Willow Biosciences, a leading biotechnology company focused on revolutionizing industrial manufacturing of pure, consistent, and sustainable functional ingredients, is pleased to announce a second strategic investment (the "Milestone Investment"), by way of non-brokered private placement, from Kalsec^® Inc. ("Kalsec"), a leading global producer of natural taste and sensory, food protection, colors and advanced hops ingredients for the food and beverage industry, for the continued development of natural food ingredients. This Milestone Investment is connected to the Kalsec investment announced by the Company on February 20, 2024, pursuant to which Kalsec committed to subscribe for an additional US$100,000.00 on the completion of an operational milestone by Willow to develop a strain that meets certain performance criteria (the "Milestone"). This Milestone was achieved by the Company on February 23, 2024. Proceeds from the Milestone Investment will be used for the commercialization and development of the Company's pipeline of products, including natural food ingredients, working capital, and general corporate purposes.

Pursuant to the Milestone Investment, the Company issued 1,153,131 units (each, a "Unit") at a subscription price of C$0.12 per Unit, each Unit consisting of one (1) common share in the capital of the Company (each, a "Common Share") and one-half of one (1/2) Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder thereof to purchase one (1) Common Share at a price of C$0.16 per Common Share until March 1, 2025; provided that if, at any time prior to the expiry date of the Warrants, the 20-day volume weighted average of actual closing prices of the Common Shares on the Toronto Stock Exchange (or other principal exchange on which the Common Shares are listed, is greater than C$0.21, the Company may accelerate the expiry date of the Warrants to the date that is 20 days following the date of the notice of such acceleration.

All securities issued under the Milestone Investment, including securities issuable on exercise thereof, are subject to a hold period in Canada of four months and one day in accordance with applicable securities legislation.