Cynata Therapeutics : 17.12.07.United States Patent Allowance for Core Cynata Technology

ASX ANNOUNCEMENT

7 December 2017

Cynata Receives Notice of Allowance from U.S. Patent and Trademark Office for Further Cymerus™ Patent Application

Melbourne, Australia; 7 December 2017: Australian stem cell and regenerative medicine company, Cynata Therapeutics Limited (ASX: CYP), announced today that a Notice of Allowance has been received from the U.S. Patent and Trademark Office (USPTO) for a further patent application tied to its proprietary Cymerus™ mesenchymal stem cell technology. The patent application entitled "Methods and material for hematoendothelial differentiation of human pluripotent stem cells under defined conditions" is owned by the University of Wisconsin-Madison's Wisconsin Alumni Research Foundation (WARF) and is among the intellectual property licensed exclusively from WARF to Cynata.

The Notice of Allowance is sent to the applicant when the USPTO intends to issue a patent.

"This patent application covers a key aspect of our proprietary Cymerus stem cell manufacturing technology," said Ross Macdonald, Ph.D., Cynata's Chief Executive Officer. "This patent and others we have filed further strengthens our encompassing patent portfolio relating to the scalable manufacture of consistent, high-quality mesenchymal stem cell (MSC) therapeutic products targeting a range of devastating diseases worldwide."

The inventors named on the patent include Professor Igor Slukvin, a founder, advisor and shareholder of Cynata.

Cynata anticipates that the patent will be granted by March 2018, with an expiration date of 12 March 2034.

Ends

CONTACTS:

Dr Ross Macdonald, CEO: Tel: 0412 119343; emailross.macdonald@cynata.com

Daniel Paproth, Australia Media Contact, +61 (0)421 858 982 ,daniel.paproth@mcpartners.com.au Laura Bagby, U.S. Media Contact, 312-448-8098,lbagby@6degreespr.com

About Cynata Therapeutics (ASX: CYP)

Cynata Therapeutics Limited (ASX: CYP) is an Australian clinical stage stem cell and regenerative medicine company that is developing a therapeutic stem cell platform technology, Cymerus™, originating from the University of Wisconsin-Madison, a world leader in stem cell research. The proprietary Cymerus™ technology addresses a critical shortcoming in existing methods of production of mesenchymal stem cells (MSCs) for therapeutic use, which is the ability to achieve economic manufacture at commercial scale. Cymerus™ utilises induced pluripotent stem cells (iPSCs) to produce a particular type of MSC precursor, called a mesenchymoangioblast (MCA). The Cymerus™ platform provides a source of MSCs that is independent of donor limitations and provides an "off-the-shelf" stem cell platform for therapeutic product use, with a pharmaceutical product business model and economies of scale. This has the potential to create a new standard in the emergent arena of stem cell therapeutics and provides both a unique differentiator and an important competitive position.

Cynata Therapeutics Limited

Level 3, 62 Lygon Street, Carlton 3053, Victoria, Australia

PO Box 7165, Hawthorn North, Victoria 3122

T: + 613 9824 5254 F: + 613 9822 7735 E:admin@cynata.com

ABN - 98 104 037 372