Market Overview

ILJIN SNT Files Investor Presentation, Urging Aurinia Shareholders to Correct Governance Failures and Director Conflicts


Details Aurinia's Underperformance Resulting from Poor Governance
Practices, Bloated Compensation, CEO Turnover and Conflicts of Interest
under Incumbent Board

Shareholders Urged to Vote Their GREEN Proxy or GREEN VIF to Strengthen
Board with Three New, Highly Qualified Independent Nominees

ILJIN SNT Co., Ltd. ("ILJIN"), a founding shareholder of Aurinia
Pharmaceuticals Inc. (NASDAQ:AUPH, TSX:AUP) ("Aurinia" or the "Corporation"),
which together with certain affiliates holds an approximate 14%
ownership interest in Aurinia, today filed an investor presentation on
SEDAR in connection with the Corporation's upcoming Annual General
Meeting of Shareholders to be held on Wednesday, June 26, 2019. The
investor presentation is also available at

Highlights of the presentation include:

  • Aurinia has significantly underperformed relative to its peers,
    analyst expectations and its tremendous potential, as a result of a
    lack of independence in its directors, poor governance, compensation
    failures and excessive CEO turnover.
  • Aurinia's incumbent Board members are not independent, but rather
    represent a web of conflicting relationships that all lead back to the
    Corporation's former chairman and CEO, Richard Glickman.
  • Aurinia's corporate governance consistently fails in critical areas
    when compared to prevalent practices, including with regard to
    director and executive stock ownership, gender diversity, director
    overboarding and bloated non-audit fees.
  • Aurinia's CEO compensation, as well as total compensation for all
    named executive officers, continues to ratchet up, well above its
    peers. Further, Aurinia has failed to implement policies to ensure
    management is aligned with shareholders' interests, including
    performance-based equity awards or recoupment/clawback policies.
  • The Aurinia CEO position has been a revolving door, which has
    contributed to instability and shareholder value destruction. In the
    six years post-Isotechnika, Aurinia has had six CEOs, all appointed
    under former Chairman Glickman's reign.
  • ILJIN has nominated three independent nominees, who will bring
    extensive qualifications and directly relevant expertise to Aurinia's
    Board. They are committed to implementing specific improvements to
    Aurinia's governance and helping the Corporation realize its
    tremendous potential for all shareholders.

Young-Hwa Kim, Chief Executive Officer of ILJIN, said, "ILJIN has worked
quietly behind the scenes for over two years to help Aurinia improve its
corporate governance and ultimately realize its tremendous potential.
While the incumbent Board has rejected our good faith attempts to
engage, Aurinia shareholders now have a choice. The future is in your
hands. We urge you to vote your GREEN Proxy or GREEN VIF in favor of a
more qualified and independent board, better governance and leadership
stability, and a bright future for Aurinia."

Shareholders are urged to read the circular and vote ONLY the GREEN
proxy or GREEN VIF on or before 5:00 p.m. (Mountain time) on June 21,
2019, so that it can be deposited in advance of the proxy cut-off.

Shareholders who have already voted and wish to change their vote in
support of the three independent nominees can do so by simply executing
the Green proxy, as a later dated Green proxy will cancel an earlier
vote. Shareholders requiring any assistance in executing their GREEN
proxy or voting instruction form, can call Gryphon Advisors Inc. at:
1-833-266-0365 or 1-416-661-6592 or email

For ease of voting, shareholders are encouraged to visit
and click on the "Vote Now" button. A copy of the information circular
is available on Aurinia's SEDAR profile at

Advisors and Counsel

Stikeman Elliott LLP is acting as Canadian legal counsel to ILJIN.
Gryphon Advisors Inc. has been engaged as proxy solicitation agent and
Gagnier Communications has been engaged by ILJIN as communications

Legal Notices and Disclaimers

The data, information and opinions contained or referenced herein
(collectively, the "Information") is for general informational
purposes only for the shareholders in order to provide the views of
ILJIN regarding certain changes that it is requesting to the composition
of the Aurinia board of directors and other matters which it believes to
be of concern to shareholders described herein. The Information is not
tailored to specific investment objectives, the financial situation,
suitability or particular need of any specific person(s) who may receive
the Information and should not be taken as advice in considering the
merits of any investment decision. The views expressed in the
Information represent the views and opinions of ILJIN, whose opinions
may change at any time and which are based on analysis of disclosure and
filings with respect to and/or made by Aurinia and other issuers that we
consider to be comparable to Aurinia, and from other third party reports
(see "Disclaimer Respecting Publicly Sourced Information" in ILJIN's
circular dated June 2, 2019 (the "Circular"), a copy of which is
available on SEDAR at
or on
ILJIN disclaims any obligation to publicly update the Information,
except as required by applicable law.

The Information contains forward-looking statements or forward-looking
information within the meaning of applicable securities laws
(collectively, "forward-looking statements"), including in
respect of ILJIN and the impact of ILJIN's Nominees on the Corporation.
All statements and Information, other than statements of historical
fact, contained or referenced herein are forward-looking statements and
forward-looking information, including, without limitation, statements
regarding activities, events or developments that ILJIN expects or
anticipates may occur in the future. Such forward-looking statements and
information can be identified by the use of forward-looking words such
as "will", "expect", "intend", "plan", "estimate", "anticipate",
"believe" or "continue" or similar words and expressions or the negative
thereof. There can be no assurance that the plans, intentions or
expectations upon which such forward-looking statements and information
are based will occur or, even if they do occur, will result in the
performance, events or results expected.

ILJIN cautions readers not to place undue reliance on forward-looking
statements and information contained or referenced herein, which are not
a guarantee of performance, events or results and are subject to a
number of risks, uncertainties and other factors that could cause actual
performance, events or results to differ materially from those expressed
or implied by such forward-looking statements or information, including
but not limited to those set forth in the Circular under the heading
"Forward-Looking Statements and Information" and those risks and
uncertainties detailed in the continuous disclosure and other filings of
Aurinia and certain members of Aurinia's peer groups with applicable
securities regulatory authorities, copies of which are available on
or on the Electronic Data Gathering, Analysis, and Retrieval at
Shareholders are urged to carefully consider those factors.

The forward-looking statements and information contained or referenced
herein are expressly qualified in their entirety by this cautionary
statement. The forward-looking statements and information contained or
referenced herein are made as of the date of the ILJIN Circular and
ILJIN undertakes no obligation to publicly update such forward-looking
statements or information to reflect new information, subsequent events
or otherwise, except as required by applicable laws.

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