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Kane Biotech Announces End of Joint Development Agreement and Appointment of Vice-President Sales

V.KNE

WINNIPEG, MANITOBA--(Marketwired - July 11, 2016) - Kane Biotech Inc. (TSX VENTURE:KNE) (the "Corporation" or "Kane Biotech") today announced that the global animal health company with which it had a Joint Development Agreement (the "JDA"), previously announced by Kane Biotech on May 13, 2015, has made a business decision to decline its option to commercialize Kane Biotech's companion pet oral care technology. Pursuant to the terms of the JDA and the successful completion of its second milestone trial, Kane Biotech will be paid $50,000 USD which will be included in the Corporation's second quarter financial statements.

"Kane Biotech remains committed to achieving market success with its companion pet oral care technology and products," said Mark Ahrens-Townsend, President & CEO. "The results of the JDA validate yet again that our technology works. Sales of our product brands, bluestem™ and StrixNB™, are increasing in the Canadian and US markets. Second quarter product revenue grew significantly and on its own achieved approximately 70% of our total product revenue in 2015. Our team is working hard to market our brands to companion pet owners, expand our base of retail pet stores and vet clinics, and develop new products for the market. Kane Biotech will have a significant presence at SuperZoo 2016, the National Show for Pet Retailers in Las Vegas from August 2 to 4, and we are excited about the opportunities to expand our business with national and regional distributors, independent pet store retailers and major pet store chains."

In addition, Kane Biotech is excited to announce Mr. Grant Humphrey is joining the Corporation as Vice-President Sales, effective July 11, 2016. "Grant is an entrepreneur who brings high energy and an excellent track record of sales performance and revenue growth. He expands our team and I'm very pleased to have him on board," said Mark Ahrens-Townsend, President & CEO.

About Kane Biotech Inc.

Kane Biotech is a biotechnology company engaged in the research, development and commercialization of technologies and products that prevent and remove microbial biofilms. Biofilms develop when bacteria and other microorganisms form a protective matrix that acts as a shield against attack. When in a biofilm, bacteria become highly resistant to antibiotics, antimicrobials, biocides, disinfectants, high temperatures and host immune responses. This resiliency contributes to numerous human and animal health related problems such as wound care infections, recurrent urinary tract infections, tooth decay, medical device associated and hospital-acquired infections, and foodborne bacterial infections. According to the United States National Institutes of Health biofilms are estimated to be responsible for 80% of all human bacterial infections and cost individuals, industry, governments and hospitals billions of dollars each year. As such, there is significant interest in safe and effective products that can combat the biofilm problem.

Kane Biotech uses patent protected technologies based on molecular mechanisms of biofilm formation and methods for finding compounds that inhibit or disrupt biofilms. The Corporation has evidence that these technologies have the potential to significantly improve the ability to prevent and/or destroy biofilms in several medical and industrial applications.

Kane Biotech has a portfolio of biotechnologies, intellectual property (patents, patents pending and trademarks) and products developed by the Corporation's own biofilm research expertise and acquired from leading research institutions. StrixNB™, DispersinB®, Aledex®, bluestem™, AloSera™, coactiv+™ and Kane® are trademarks of Kane Biotech Inc. The Corporation is listed on the TSX Venture Exchange under the symbol "KNE".

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward-Looking Information

Certain statements contained in this press release constitute forward-looking information within the meaning of applicable Canadian provincial securities legislation (collectively, "forward-looking statements"). These forward-looking statements relate to, among other things, our objectives, goals, targets, strategies, intentions, plans, beliefs, estimates and outlook, including, without limitation, our anticipated future operating results, and can, in some cases, be identified by the use of words such as "believe," "anticipate," "expect," "intend," "plan," "will," "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements.

These statements reflect management's current beliefs and are based on information currently available to management. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from these expectations include, among other things: the Corporation's early stage of development, lack of product revenues and history of operating losses, uncertainties related to clinical trials and product development, rapid technological change, uncertainties related to forecasts, competition, potential product liability, additional financing requirements and access to capital, unproven markets, supply of raw materials, income tax matters, management of growth, partnerships for development and commercialization of technology, effects of insurers' willingness to pay for products, system failures, dependence on key personnel, foreign currency risk, risks related to regulatory matters and risks related to intellectual property and other risks detailed from time to time in the Corporation's filings with Canadian securities regulatory authorities, as well as the Corporation's ability to anticipate and manage the risks associated with the foregoing. The Corporation cautions that the foregoing list of important factors that may affect future results is not exhaustive. When relying on the Corporation's forward-looking statements to make decisions with respect to the Corporation's, investors and others should carefully consider the foregoing factors and other uncertainties and potential events.

These risks and uncertainties should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, the Corporation cannot provide assurance that actual results will be consistent with these forward-looking statements. The Corporation undertakes no obligation to update or revise any forward-looking statement.

Kane Biotech Inc.
Mark Ahrens-Townsend
President & CEO
204-474-7552
204-477-7592
ir@kanebiotech.com
www.kanebiotech.com



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