Stellar Biotechnologies Announces $12M Private Placement

Stellar Biotechnologies, Inc. ("Stellar" or "the Company")

announces its intent to close a private placement of up to 11,428,572 units (the "Units") to raise gross proceeds of up to US$12,000,000 (the "Private Placement"). Each Unit will have a purchase price of US$1.05 and will consist of one common share in the capital of the Company and one-half of a transferable share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder to purchase one additional common share in the capital of the Company at a purchase price of US$1.35 for a period three years from the date of issuance of the Warrants. The Private Placement will include a brokered portion to institutional and accre dited investors (the "Brokered Offering") and a non-brokered portion (the "Non-brokered Offering"). The Company has retained Newport Coast Securities (the "Agent") as the exclusive placement agent to solicit, on a "best efforts" basis, subscription for the Brokered Offering. In consideration for its services, the Agent will receive a cash fee equal to 7% of the gross proceeds raised by the Agent in connection with the Brokered Offering (or 3.5% of the gross proceeds from excluded investors identified by the Company). The Agent will also receive agent warrants ("Agent Warrants") in an amount equal to 7% of the aggregate number of equity securities sold by the Agent. Each Agent Warrant will be exercisable for a period of three years from the date of issuance into one common share at a price equal to the issue price of the Brokered Offering. The Company will not pay a placement agent fee on the Non-brokered Offering. The proceeds of the Private Placement will be used for product research, aquaculture and KLH production development, capital expenditures and working capital. The securities issued will be subject to a hold period of four months and one day. Completion of the Private Placement is subject to the approval of the TSX Venture Exchange.