Hemostemix Issues Letter to Shareholders Urging Them to Vote Their WHITE Proxy

TORONTO, ONTARIO--(Marketwired - Aug. 29, 2016) -

• Warns shareholders the dissident nominees will put their investment at risk.
• Encourages shareholders to vote their WHITE proxy FOR the current experienced board with a proven plan to create value.

Hemostemix Inc. ("Hemostemix") (TSX VENTURE:HEM)(OTCQX:HMTXF) today released a letter to shareholders highlighting the benefits of voting in favour of the current experienced, trusted board and encourages shareholders to vote their WHITE proxy to stay the course. The letter confirms that the dissidents' proposed changes to the board are not in the best interests of all shareholders, and reminds them they may revoke a blue proxy by completing and delivering their white form of proxy. Hemostemix has engaged Norton Rose Fulbright Canada LLP as their legal advisor and Kingsdale Shareholder Services as their strategic advisor and proxy solicitation agent.

Dear Fellow Hemostemix Shareholder:

We are writing to seek your support for YOUR Company, Hemostemix Inc. A group of self-interested dissident shareholders (the Dissidents) with no industry experience are attempting to ambush shareholders at the company's annual meeting, seize control of Hemostemix' intellectual property and take over your Board.

In order to grab control of Hemostemix, the Dissidents have made unfounded accusations and provided misleading information about your company and management.

Here are the facts:

• The company has made great strides in bringing our landmark technology to market and are clearly on the path to success
• We have refreshed our best-in-class Board creating a strong balance between deep industry knowledge, international operating experience and capital markets expertise
• The Dissidents have ambushed the company and embarked on a costly and disruptive campaign, that will only result in value destruction
• The Dissident nominees will put your investment in Hemostemix at risk. They have zero industry experience or familiarity with the biotechnology sector as demonstrated by their uninformed agenda. Their self-interested agenda will unwind the progress the company has achieved and shift its focus to dubious medical practices.

Now is not the time to risk the future of Hemostemix and our valuable intellectual property to unproven, inexperienced Dissidents with a self-interested agenda premised on dubious medical practices. Only our STRENGHTENED Board and EXPERIENCED Management Team have a CLEAR STRATEGY that WILL lead to the creation of SHAREHOLDER VALUE.