Sona Nanotech Inc. provided an update on the status of its current operating activities, notably the development of its Targeted Hyperthermia Therapy ("THT") therapy and its rapid bovine tuberculosis prototype test. THT Program First Six-Month Accomplishments: Retained team of expert medtech consultants and experienced advisors. Engineered next generation THT light device which will be incorporated with a newly acquired Fujifilm Healthcare endoscope.

Assembled a panel of leading medical experts to guide THT development strategy and preclinical study plan. Devised the preclinical safety and biocompatibility study plan needed to support an IDE application, including NCL assessments of Sona's GNRs. Secured an efficacy study of THT in multiple murine cancer models with initial results expected by year-end.

Published White Paper on "Hyperthermia" photothermal therapy. Enhanced GNR manufacturing process and implemented an eQMS system. Received several unsolicited orders for nanoparticles following the release of NCL results.

Hosted regular webinars to explain THT strategy and report on progress. Targeted Hyperthermia Therapy: The Company continues to progress the development of preclinical stage THT across four streams of activities. First, the Company now aims to initiate multiple preclinical studies with leading partners to build the comprehensive data set necessary to support any future regulatory applications.

Among them, Sona is pleased to have secured the collaboration of the Giacomantonio Immuno-Oncology Research Group to assess THT's efficacy and the impact of associated intralesional immunomodulation in mice cancer models, with initial data expected by the end of this year. Other third-party studies will assess biocompatibility, stability, shelf life, histology, clearance and usability/human factors, amongst others, including the previously announced data provided from the multiple assessments received from the Nanotechnology Characterization Laboratory ("NCL"). Second, Sona anticipates receiving a prototype of its next generation infrared light device from medical device engineering partner Minnetronix Medical in time for its use in the Giacomantonio study.

The newest version of Sona's light device has been engineered to enable the delivery of infrared light through a newly acquired Fujifilm Healthcare endoscope with real time tracking of tumor temperatures. Third, EXCITE International has secured on Sona's behalf a panel of six experts from leading medical institutions across the U.S. and Canada to validate that the target indications and intended use statements for THT, as well as its preclinical study plan, will have THT serving the purposes that both gastroenterologists and colorectal surgeons, and health care insurance providers value and will pay for, respectively. This feedback, together with guidance from its regulatory advisors, will be used in a pre-submission meeting with the U.S. Food & Drug Administration.

Fourth, as part of its continuing QA/QC enhancements, Sona has implemented a Greenlight Guru eQMS quality management system and is in the process of narrowing down the list of prospective good manufacturing practice ("GMP") designated manufacturing partners to provide the materials needed for preclinical and clinical in vivo trials. Diagnostics Division Update and bTB Study Results: While Sona has strategically chosen to focus its current resources on the development of THT as it believes it can achieve a better return on investment there, work continues in its Diagnostics Division where it has rapid screening assay prototypes for both bovine tuberculosis ("bTB") and traumatic brain injuries ("TBi", "Concussions"). Sona uses its own proprietary bTB antibodies in its bTB prototype test which has recently been assessed against clinical samples of known status.

Samples from cattle deemed positive for bTB, via the tuberculin skin test ("SICCT"), and samples from a bTB-free herd were both assessed in a recent study. Results show that the test generated a Positive Predictive Value ("PPV") of 80% (24/30 samples) and a Negative Predictive Value ("NPV") of 96% (29/30 samples). While the Company is pleased with these confirmatory initial results, it cautions that further clinical assessments will be required to validate the results to date.

Sona intends to pursue this work with relevant institutions in order to provide the evidence necessary to support a successful commercialization of the test. The Company has paused the development of its TBi test pending the procurement of clinical sample materials appropriate for an assessment beyond the positive assessment conducted with contrived samples and to focus resources on the advancement of its THT therapy. Sona's rapid test commercialization strategy is to identify the best risk/return profile, which may include partnering and/or licensing, or other transactions.