MICROBIX

BIOSYSTEMS INC Annual General Meeting 2012

Disclaimer The material contained herein is for information purposes only and is not and is

under no circumstances intended to constitute an offer to sell or a solicitation to

buy any securities or a recommendation as to the purchase of any securities. The

information contained herein has been obtained from publicly available sources

and is believed to be accurate. Although reasonable efforts have been made to

compile this data with care, neither Microbix, its employees, officers or directors

guarantees the accuracy or completeness thereof, nor shall any of them be liable

to the user or to any other person, firm or corporation whatsoever for any

inaccuracies, errors or omissions contained herein nor for any damages arising

there from or occasioned thereby.

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ANNUAL GENERAL MEETING 2012

Priorities in 2012

Creating shareholder value

Positive cash contribution

Financial pro forma from pipeline

3

How?

Close Kinlytic® agreement

Fund LumiSortTM development

Relocate VIRUSMAXTM joint venture

Grow virology profits

EXIT 2012 CASH FLOW POSITIVE

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CURRENT STATUS

Well established safety and efficacy recognized by Key

Opinion Leaders

Approved drug, pipeline of indications

Risk reduced: safety(+), efficacy(+), market demand(+),

time(+), regulatory, investment

Technical barrier to entry – no competition for years

Zydus financing to commercialize the product

KINLYTIC®

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NEXT STEP: CLOSE DEFINITIVE AGREEMENT

Complete Due Diligence in coming weeks

Regulatory, Manufacturing, Commercial Risks

Finalize terms of Definitive Agreement

Contract Manufacturing, Royalty Income

KINLYTIC®

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Microbix receives:

Recovery operational and infrastructure costs

Royalty income

Guaranteed margin

Initial payment plus milestones payments

Kinlytic Projections Year 3 Year 5

Revenue $100M $400M

Microbix EBITDA $12M $50M

PE Multiple 8 x

Market Cap $100M $500M

POTENTIAL IMPACT

KINLYTIC®

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RELOCATE VACCINE JV TO NEW JURISDICTION

WHO target country, good investment climate

Commitment to make Guaranteed Purchase

Provide serviced site and possible equity investment

VIRUSMAXTM

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Dr. Jacques Martin, Chairman

Chris Baron, CEO

Dave McDowell, Project Leader

Senior Manager, Site Director

Dr. Jean Claude Vincent Falquet, Advisory Board Chairman

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CRUCIBLE LEADERSHIP TEAM

VIRUSMAXTM

STATE OF THE ART FACILITY Feasibility study completed by SNC

Lavalin in 2009

SNC Lavalin is one of the largest global

engineering firms

Global experience designing and

constructing influenza vaccine

manufacturing plants for companies such

as GSK, ID Biomedical, and Crucell

International quality standard

Facility scalable to 100 million doses 10

VIRUSMAXTM

REGULATORY PATHWAY

Crucible will deliver a turnkey supply/regulatory

framework that can be efficiently installed in-country

Process and equipment documentation and validation

Clinical safety and efficacy studies

• Class 15 for generic product

Plant inspection and approval

Product registration with regulatory authority

Pathway to approved license well established and low

risk

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VIRUSMAXTM

Crucible contributes:

VIRUSMAXTM license at conservative 5% royalty

Negotiated equity investment share

Management expertise and resources for construction & start-up

Industry know-how, quality systems expertise, relationships

Government Partner contributes:

Land with full services:

• Site - 5 hectares (15 hectares for 100 million dose facility)

• Services - 20 million dose facility (100 million dose facility in brackets): • Electricity 2,000 KVA (6,000 KVA)

• Gas 5,000 cf/hour (8,100 cf/hr)

• Water 5,000 gal/day (11,000 gal/day)

• Headcount 160 skilled people (330 people)

Negotiated equity investment share

Guaranteed Purchase Agreement – minimum 75% of production.

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CONSISTENT STRUCTURE

VIRUSMAXTM

VACCINE JV OWNERSHIP STRUCTURE

Microbix

Government Partner

Private Investors

Crucible

“JV Co” In-Country

VIRUSMAXTM

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Global population growth will require 100% more animal

protein by 2050

70% of this must come from technology

LIVESTOCK SEMEN SEXING

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Next generation semen sexing technology

Novel combination of proven technologies

• New intellectual property

Higher fertility rates - more pregnancies

Higher productivity - faster

Higher yield – recovery of sperm cells

Producers achieve higher profits

INNOVATION AND PERFORMANCE

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Finalize and close partnership agreements

Industry stakeholders and private equity

Complete development

Components

Prototype

Production unit

Field Trials

Launch 18 - 24 months from financing

NEXT STEPS

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FOCUSED CHANNEL STRATEGY

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Small sales force

required

No upfront license fee or

capital expenditures

Farm gate economics

significantly improved

~40 semen distributors

service global market

Financial incentive to

adopt LumiSort™

THE OPPORTUNITY

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In emerging markets, (BRIC) cows produce ~2,500 L/C/Y

In western countries, cows produce >10,000 L/C/Y

Genetic improvement through sexed semen will close this gap

Improved efficiency reduces ecological footprint of food production

$1.5 Billion Artificial Insemination(AI) industry

Premium for sexed semen drives market to $3B

No regulatory process for entry to market

Underserved market, superior enabling technology

First LumiSort patent granted; second patent pending

Commercial industry partnerships established

Advisory board has substantial industry experience

covering each element of value chain

UNDERLYING VALUE

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VIROLOGY: GROW PROFITS

Offset impact of a strong Canadian dollar

Secure new products and customers

Improve manufacturing efficiencies

VIROLOGY

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Financial Pro Forma*

Business Investment MBX Gross

Segment Capital Owns Sales (2016)

Kinlytic $ 40 M 100% $ 30 M

VIRUSMAX $ 50 M 25% $100 M**

LumiSort $ 15 M 100%* ** $100 M**

Virology 100% $ 10 M

Total $105 M $240 M

* Estimates provided for illustrative purposes only (see slide 2 “Disclaimer”)

** Gross Sales in 2016 on 100% Basis.

*** Microbix ownership interest in LumiSort to be negotiated.

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IN SUMMARY

Profitable growing virology business

Urokinase financed FY2012

Vaccine Venture relocated

LumiSort financed FY2012

Microbix profitable in FY2013

Cash flow positive

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