Imagin Medical Signs $8 Million Term Sheet with New York Private Equity Firm Alumina Partners

Vancouver, B.C. and Boston, MA, February 22, 2017 – Imagin Medical (CSE: IME) (OTC PINK: IMEXF) (Frankfurt/Stuttgart Stock Exchanges: DPD2) (the “Company”) announced today that it has executed a non-binding term sheet with an institutional investor wishing to invest up to $8M CDN the Company. The agreement provides for a series of private placement offerings (the “Offerings”) to be conducted between the Company and Alumina Partners (Ontario) Ltd. (“Alumina Partners”), a subsidiary of New York’s Alumina Partners LLC, over the course of its 24-month term.

Upon entry into the definitive agreement, the first tranche will close in the amount of $125,000 CDN, with subsequent tranches of up to $1M CDN available to be drawn down at the Company’s election. Each offering will be comprised of Unsecured Convertible Notes (the “Notes”) and Common Share Purchase Warrants, with all securities issued in connection with each offering bearing a restrictive legend for four months and a day from the date of issue.

We were impressed by the quality and pace of the ongoing clinical research supporting Imagin’s i/Blue system and, unusual for the emerging growth space, by its lofty academic pedigree as well. Jim Hutchens and his team of industry veterans are poised to substantially change the way we approach bladder cancer – the 4^th most common cancer among men and by far the most expensive to treat,” explained Adi Nahmani, Managing Member of Alumina Partners. “For a company of their size to credibly even have a chance of contributing to the fight against cancer is nothing short of extraordinary. We at Alumina are proud to support innovators like Imagin Medical, and we look forward to seeing what they accomplish in the year to come.

We are excited to enter into a partnership with Alumina. The proceeds of these investments will allow Imagin to maintain our focus on successfully completing our first clinical trials, meeting regulatory approvals and driving the i/Blue system to commercialization, commented Jim Hutchens, Imagin Medical's president and chief executive officer.

The notes will have a maturity one year from their date of issue and will bear simple interest of 12 per cent per annum. Immediately upon issuance and at any time thereafter, each note may be converted into common shares of the company at a conversion price equal to a 22-per-cent discount to the five-day volume-weighted average price (VWAP) of the common shares on the conversion date. Each common share purchase warrant issued in connection with the offerings may be exercised beginning at a premium of 50 per cent above the issue price.

In connection with the offerings, Imagin Medical will issue restricted common shares with value of up to 3 per cent of the total committed capital. A minority portion of these commitment shares will be paid at the first tranche closing, and the remainder will be payable in proportionate increments upon subsequent tranche closings.

Closing of the offering is subject to the receipt of applicable regulatory approvals, including approval of the Canadian Securities Exchange. The securities issued will be subject to a hold period.

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IMAGIN MEDICAL TECHNOLOGY PRESENTED AT PHOTONICS WEST 2017

The i/Blue Imaging System technology was presented at Photonics West 2017, by Dr. Stavros Demos, the inventor of the i/Blue system, and Dr. Ronald Wood, both from the University of Rochester, who support Imagin Medical Inc.'s development team.

The largest laser and photonics event in North America, Photonics West 2017 features the latest research in Biomedical Optics, Biophotonics and the latest devices and systems driving technology markets, including state-of-the art medical technologies. The presentation entitled Simultaneous white-light and protoporphyrin-IX fluorescence imaging for optimized endoscopic detection of non-muscle-invasive bladder cancer summarized progress to-date on the technology of the company's i/Blue Imaging System. The authors discussed that:

Recent studies have shown that endoscopic (cystoscopic) detection of non-muscle-invasive bladder cancer is enhanced by using blue-light with HLA, a tumor-fluorescing drug infused into the bladder (hexyl-aminolevulinate, available in the U.S. as Cysview(TM) and in Europe as Hexvix(TM)).

Current instrumentation requires the surgeon to manually alternate between two imaging modes; the blue light highlights the cancer and the white-light displays the overall bladder.

The i/Blue Imagining System prototype is designed to automatically blend and display both the white-light and blue light fluorescence images simultaneously, placing the tumor into context within the bladder.'' Using only white light illumination, the i/Blue system was assessed to perform at approximately 100x higher sensitivity in its ability to detect the fluorescing markers, compared to the existing "blue-light" technology.

Increased sensitivity makes it possible to reduce the dwell/prep time from 60 minutes to 10 minutes, increasing efficiency by at least 6x.

Benefits of this imaging technique can be extended to the physician's office, making the procedure more practical for today's health care market.

Superior sensitivity of the i/Blue Imagining System can be applied to many other surgical procedures.

"We're very pleased that the Company's technology was presented at this high-profile conference. We believe It demonstrated that the i/Blue Imaging System will be state-of-the-art medical technology," said Jim Hutchens, Imagin President and CEO.

The i/Blue system development is based at the University of Rochester where the Alpha B Prototype was completed in late 2016. Human studies are anticipated to be completed in the 2Q of this year.

About Imagin Medical

Imagin Medical is developing imaging solutions for the early detection of cancer through the use of endoscopes. The Company believes it will radically improve the way physicians detect cancer. Imagin's initial target market is bladder cancer, a major cancer worldwide, the sixth most prevalent in the U.S., and the most costly cancer to treat due to a greater than 50% recurrence rate. Developed at the Lawrence Livermore National Laboratory, this advanced, ultrasensitive imaging technology is based upon improved optical designs and advanced light sensors. Learn more at www.imaginmedical.com.

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