June 2020TSXV: KLY OTCQB:KALTF

A Strategic Acquisition Opportunity

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

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This presentation includes forward-looking statements that relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results,levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. We make such forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. All statements other than statements of historical facts contained in thispresentation are forward-looking statements. Words such as, but not limited to, “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “targets,” “likely,” “will,” “would,” “could,” and similar expressions or phrases identifyforward-looking statements. We have based these forward-looking statements largely on our current expectations and future events , recent changes in regulatory laws, and financial trends that we believe may affect ourfinancial condition, results of operation, business strategy and financial needs. These statements may relate to, but are not limited to: expectations regarding the safety or efficacy of, or potential applications for, Kalytera'stechnologies; expectations regarding the strength of Kalytera's intellectual property, the timeline for Kalytera's regulatory approval process, and the scalability and efficiency of manufacturing processes; expectations aboutKalytera's ability to grow its business and statements regarding its relationships with current and potential future business partners and future benefits of those relationships; statements concerning Kalytera's share price orpotential market capitalization; and statements concerning Kalytera's capital requirements and ability to raise future capital, among others. Forward-looking statements should not be read as a guarantee of future performance orresults, and actual results may differ from the results anticipated in these forward-looking statements, and the differences may be material and adverse. You should read this presentation together with our financial statementsand the notes related thereto, as well as the risk factors, in our most recently filed reports with the SEDAR or on our website. Uncertainties and risks that may cause Kalytera's actual results, performance or achievements to bematerially different from those which may be expressed or implied by such statements, include, without limitation: risks inherent in the development and commercialization of potential products; uncertainty of clinical trial results orregulatory approvals or clearances; government regulation; the need for future capital; dependence upon collaborators; and protection of our intellectual property rights, among others. Accordingly, you should not place unduereliance on these forward-looking statements. We do not undertake any obligations to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

A Strategic Acquisition Opportunity - Kalytera is acquiring Salzman Group

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Salzman Group’s Principal Assets

• Drug discovery team (Drs. Salzman, Southan, Jagtap)

• All have deep expertise with nitric oxide

• They have been working since 1994 to deliver nitric oxide in a non-gaseous state

• They invented R-107

• R-107

• R-107 is a non-gaseous, liquid prodrug of nitric oxide

Salzman’s Drug Discovery Team – Key Members - Deep Expertise With Nitric Oxide

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Dr. Andrew Salzman, Chairman:

• First to administer inhaled nitric oxide to a human subject in 1990

Garry Southan, Ph.D., V.P. of Drug Development:

• Trained under Nobel Laureate John Vane in the biology and chemistry of nitric oxide• Was the Principal Investigator on multiple federal & private R&D projects to develop novel nitric oxide

therapies, including a treatment for chlorine-induced lung injury• He has a research background in nitric oxide, reactive oxygen species, oxidative stress and its treatment• Invented the first selective inducible nitric oxide synthase inhibitor

Prakash Jagtap, Ph.D., V.P. of Chemistry:

• Invented the R-107 molecule that led to award of USD $84.9M BARDA contract to develop R-107 as anantidote for chlorine inhalation lung injury (“CILI”)

Nitric Oxide

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Nitric oxide normally exists as a gas

• There has been a recent explosion of interest and literature in nitric oxide inhalation therapy for COVID-19lung disease

• Nitric oxide is approved as an inhalation therapy for acute respiratory failure in newborns

• Requires a special delivery device, and administration by trained respiratory therapists

• Due to its complex administration, gaseous nitric oxide is not practical in a pandemic situation

R-107 – A Nitric Oxide Prodrug

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R-107 is a non-gaseous, liquid prodrug of nitric oxide

• In development for 3 indications:

• CILI: Chlorine inhalation lung injury (“CILI”) – all R&D costs funded under a USD $84.9M BARDA contract

• COVID-19: Covid-19 associated lung disease – all R&D costs expected to be funded under a USD $20M supplement to the BARDA contract

• PAH: Pulmonary arterial hypertension (“PAH”) – Kalytera will acquire all U.S. rights to R-107 for treatment of PAH, and will have an option to acquire EU and ROW rights

The BARDA Contract – A Strategic Funding Opportunity – With a Strategic Partner

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BARDA (The Biomedical Advanced Research and Development Authority) - a division of the U.S. Dept. of Health and Human Services.

BARDA awarded Salzman Group a USD $84.9M contract to develop R-107 as a treatment for CILI

• Revenues and Operating Profit:

• $15M has been funded and spent – $70M in follow-on funding will be released on completion of milestones

• $70M in follow-on funding will be released on completion of milestones over the next 3 years, and recognized as contract revenues

• From the $70M of revenues, Kalytera will recognize $4.2M of net operating profit

• Salzman is applying for a new BARDA contract for COVID-19; if successful, Kalyterawill recognize an additional $20M of revenues, and $1.2M of net operating profit

• A Strategic Partner: BARDA is providing Salzman access to a world-class team of pharma development experts - with15 people assigned to the Salzman program

The Technology – R-107 Advantages Over Gaseous Nitric Oxide

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Easy and Inexpensive to Administer• Unlike gaseous nitric oxide, R-107 is a liquid that is readily administered by a single intramuscular injection

• R-107 does not require a complex delivery system administered by a respiratory therapist• Thousands of patients may be treated simultaneously, in a potentially safe and less labor-intensive

manner

Sustained and Biologically Effective Delivery• R-107 slowly releases nitric oxide into lung tissues over 48 hours after a single administration,

providing a sustained level of nitric oxide to the lung

PK Activity• R-107 does not lose its potency after prolonged periods of administration

• Other organic nitrate based nitric oxide donors in liquid form, such as nitroglycerin, rapidly inducetolerance and lose biological activity after more than a single dose

The Technology – R-107 – Multiple Modes of Action – Including Anti-Viral Activity

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Anti-viral activity• Nitric oxide has demonstrated anti-viral activity against coronaviruses

• Preventing both infection of human cells and viral replication

Preventing infection

• Nitric Oxide prevents coronaviruses from infecting human cells by blocking a lipid modification of the spike protein

• Nitric oxide blocks attachment of palmitate to the spike protein on the outside of the coronavirus• This modification of the spike protein is absolutely required for viral attachment to and infection of

human cells

Preventing replication

• Nitric oxide inhibits the replication of the SARS virus (“SARS-CoV”)• The SARS virus is a coronavirus • Nitric oxide inactivates two enzymes (cysteine proteases) that the coronavirus must use to

replicate

The Technology – R-107 – Multiple Modes of Action – Also Pulmonary Activity

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Reduction of Pulmonary Hypertension• R107 reduces pulmonary vascular tone thereby reducing pulmonary arterial hypertension

• R-107 protects the endothelium of pulmonary capillaries by preventing circulating neutrophils from attachingto blood vessels and invading lung tissue

Activity on the Molecular Level• R-107 protects the nitric oxide it releases by degrading toxic free radicals and oxidants that inactivate nitric

oxide

• R-107 inactivates and removes reactive oxygen species (ROS)

• R-107 prevents nitric oxide interaction with ROS to prevent formation of peroxynitrate

Acquistion of Salzman Group – The Transaction

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Acquisition Price: 49.9% of Kalytera’s outstanding shares, plus Milestone Payments:

• 19% of shares to be issued at closing by mid-June

• 30% of shares to be issued following shareholder approval prior to September

• Shareholders will also be asked to approve 20:1 reverse split

• Aggregate cash Milestone Payments USD $29 million – payable in cash or stock

Option to License R-107 for PAH in EU and ROW:

• Kalytera has an option to license R-107 for PAH in EU and ROW for USD $5 million

• Option expires December 31, 2020 – by which time R-107 in PAH will be Phase 2 ready

Operational and Financial Benefits of Transaction ___________________________________________________________________________________________________________________________________________________________________________

Operational

• Long-standing working relationship between Salzman and Kalytera management teams

• Salzman team expertise with nitric oxide pharmaceuticals

• Salzman team received funding for 135 NIH, DARPA, and BARDA grants totaling $160M, and resulting in 200 scientific publications and 50 patents

• Seamless continuation of R-107 work under Salzman team

Financial

• CILI program fully funded under USD $84.9M BARDA grant

• Expect BARDA to fund COVID-19 with USD $20M contract

• $70 - $90M of contract revenue over next 36 months, and net operating profits of at least USD $4.2M - $5.4M over same period

• Potential sales of CILI product to BARDA

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R-107 – In Chlorine Inhalation Lung Injury - CILI

CILI

Phase 2 and 3 clinical studies will not be required for FDA approval in CILI under the FDA’s “Animal Rule” (21 CFR Part 314.600)

• FDA approval for CILI will be based on a Phase 1 safety study in human volunteers, and 2 efficacy studies in the treatment of CILI in sheep

• The in-life portion of the first study in sheep has been completed, with positive survival data

• Accelerated Regulatory Pathway

• Because Phase 2 and 3 studies in humans will not be required, the timeline for FDA approval is expected to be relatively brief, about 2.5 years.

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R-107 – In COVID-19 Associated Lung Injury

COVID-19

Nitric oxide is approved an approved agent (newborns)

• Nitric oxide has shown clinical evidence of antiviral activity against coronavirus

• R-107 - easy and inexpensive to administer - allows thousands of patients to be treated simultaneously

• R-107 - intended to reduce fluid congestion in the lungs, improve oxygenation, and reduce mortality

• Expedited clinical development pathway for R-107 in COVID-19 is expected

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R-107 – In Pulmonary Arterial Hypertension (“PAH”)

PAH

PAH is a lethal condition progressing to end-stage heart failure and death within 5-10 years

• Potentially a multi-billion dollar opportunity

• Current agents do not alter long-term prognosis, and have significant side- effects

• R-107 results in animal models of PAH are significantly superior to current agents

• Kalytera will have an option to acquire EU and ROW rights for R-107 in PAH

• Option exercise price is USD $5M payable in cash or shares by December 31, 2020

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PAH

COVID-19

Chlorine Inhalation Lung Injury

2021

Phase 1 – BARDA FundedPhase 2 – BARDA

FundedMarket / Post-Registration Phase 3 – BARDA

Funded

Phase 1 – BARDA Funded Registration Study in Sheep – BARDA Funded Market

Exercise of Option 12/31/20 Phase 3 Registration

Indications

Conditional Registration

2020 2022 2023 2024

R-107 Pipeline

Reg

Phase 2

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R-107 – Planned Clinical Trials in COVID-19, CILI and PAH

Phase 1 single-blinded, single-center, randomized, trials to be carried out at CMAX in Adelaide, Australia. Phase 2 randomized, placebo-controlled, double-blinded, multicenter trials to be carried out in USA, Israel, and Australia.

Sheet1

IndicationPhase# subjectsRouteCohortsCentersSubjectsPrimary EndpointSecondary EndpointsStartFinishCost (USD)

COVID-19 CILI132IM41HealthySafety, PK, Tolerance20-Aug20-Nov500,000

COVID-192120IM210Covid-19 pneumoniaDays to cessation of supplmental oxygen requirementLength of hospitalization, Requirement for mechanical ventilation, MortalityJan-21Aug-215,000,000

PAH116ORAL21HealthySafety, PK, ToleranceJan-21May-21400,000

PAH224IM24Perioperative - mitral valve repairReduction in pulmonary arterial BPInotropic requirement, Time to extubationFeb-21Jan-221,800,000

PAH224ORAL24Stable PAHReduction in pulmonary arterial BP6 minute walkNov-21Nov-221,800,000

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R-107 is a liquid nitric oxide donor, with sufficient loading to release drug for 48 hours after a single dose

NO2 NO

NH3C

ONO2

O

CH3

O

H3C

CH3

CH3

N3H C CH3

ONO2

OH

H3CCH3

3H C

OH

CH3

CH3

H3CN

OH

N3H C CH3

ONO2

O

3H CCH3

NH3C CH3

OH

O

H3CCH3

R-100

R-105

HMP

R-107

-8 -7 -3 -20

40

20

60

80

100

120

-6 -5 -4log[Inhibitor], M

%R

elax

atio

n

EC50 = 5.4 µM

Incubation of R-100 with rat aortic vascular rings produces concentration-dependent vasorelaxation

C o n tr o l R -10 70

5

10

15

20

µM

N itr ite (N O 2 ) a n d N itr a te (N O 3 )p = 0 .0 0 2

C o n tro l R -1 070

5

10

15

20

µM

N itr ite (N O 2 )

p = 0 .0 3

C o n tr o l R -10 70

2

4

6

8

10

µM

N itr a te (N O 3 )

p = 0 .0 1

IM administration of R-107 to sheep (80 mg/kg) after 30 min Cl2 inhalation exposure results in increased levels of nitrite and nitrite in pulmonary tissue

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R-100, the payload of R-107, inactivates ROS via its nitroxide moiety

NH3C CH3

ONO2

OH

H3CCH3

H3C

OH

CH3

CH3

H3CN

OH

NH3C CH3

ONO2

O

H3CCH3

NH3C

OH

O

3H C

CH3

CH3

R-100 HMP

R-105

-8 -7 -4 -30

20

40

60

80

120

100

-6 -5log[Inhibitor], M

O- 2

%

HMP R-100

R-100 is a potent redox degradation catalyst. Luminol measurements were made of in vitroconcentration of O - generated by a xanthine/xanthine oxidase system. Addition of R-100,or2its nitroxide domain (hydroxymethylproxyl,”HMP”) concentration-dependently lowered the

2concentration of O -.

Confidential 27

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Acute lung injury (ALI) secondary to viral infection (COVID-19) or toxic inhalation (chlorine) creates NO deficiency, ROS excess, and resultant lung dysfunction

• Inflammation from viral infection or inhalation of toxins (chlorine) depletes NO levels in the lung and increases ROS.• NO depletion and ROS excess rapidly induce neutrophil infiltration• Neutrophils in turn damage lung tissue and the microvasculature through release of more ROS that form nitrosating

oxidants (peroxynitrite).• Peroxynitrite produces massive acute lung injury (ALI), adult respiratory distress syndrome (ARDS), and reactive airway

syndrome (RAS).• The deficit in NO and excess in ROS also induce vascular constriction and raises pulmonary blood pressure (PAH)• PAH, in concert with damaged blood vessels, floods the lung with edema, imparing oxygenation and increasing lung

stiffness.A successful therapy for ALI must therefore do 3 things simultaneously:

• Replete NO• Remove ROS• Prevent NO interaction with ROS to form

peroxynitrite.

R-107 is the first and only NO donor to inactivate ROS and to prevent interaction of NO with ROS

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R-100 Inhibits peroxynitrite mediated formation of nitrosation products. Mice were subjected to endotoxic shock by administration of E. coli LPS (10 mg/kg, i.p., n=10) and weretreated with R-100 (40 mg/kg i.p., n=10) 1 and 6 hours after LPS.

R-100, the payload of R-107, blocks peroxynitrite formation via its nitroxide

N3H C CH3

ONO2

O

H3CCH3

1J Immunol 2008; 180:7664-7672Confidential

Naive LPS

LPS+R-100

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Proof of principle: R-107 is a promising therapy for COVID-19

Efficacy of nitric oxide (NO) Donors:

1. Cellular in vitro Data: ReducedCoronal viral RNA -- Treatment with awater-soluble NO donor (SNAP)

2. Pharmacological Data: Reducedpulmonary edema in ovine models ofARDS -- Treatment with R-107 (activepayload R-100)

3. Human Data: Improved oxygenationin patients with SARS1 -- Treatmentwith inhaled NO

Development Rationale

NO donor SNAP blocks viral RNA replication of SARS CoV (black). NAP (negativecontrol, white) does not contain the NO donating group.

Research Findings

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R-107 reduces pulmonary edema formation and improves oxygenation in an ovine CILI model of ALI that mimics COVID-19 pneumonia

R-107 significantly reduced pulmonary fluid retention in an ovine CILI model R-107 enables normal pulmonary function in the ovine CILI model. Merino sheep exposed to Cl2 gas (140 ppm, 30 min) were treated 30 min later via an IM route with R-107 (50 mg/kg; IM). After 1 h, R-107 (8 mg/kg/hr) was infused IV over the subsequent 48 h period. R-107 therapy reduced lung weight and wet-to-dry ratio (p300 at 24 hr)

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R -1 9 0 (1 0 m g )

C o n tro l

Nebulization

B L 3 6 18 21 240

20

40

60

80

1 0 0

1 2 0

1 4 0

L y m p h F lo w

9 1 2 1 5

T im e (h rs )

mL

/hr

R-190 (a soluble prodrug of R-100) reduces pulmonary edema and increases lymphatic flow while reducing markers of edema in a ovine model of smoke/pseudomonas induced ALI

0

20

40

60

80

1 0 0P u lm o n a ry V a s c u la r P e r m ia b ility In d e x

(in

de

x)

B L 3 6 9 1 2 1 5 1 8 2 1 2 4

T im e (h rs )Pulmonary Vascular Permeability Index (PVPI) = Ratio of Extravascular lung water (EVLW) and pulmonary blood volume (PBV) is associated with mortality.

These data suggest that R-100 may modulate alveolar water transport into the lymphatic drainage

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R-107 is effective in an ovine model of CILI

1. R-107 increases survival in the ratmodel of CILI

2. R-107 decreases pulmonary shunt,increases P/F ratio, decreases PVRI,decreases pulmonary edema, andincreases survival in sheep with CILI.

3. R-107 appears to have acceptablesafety margins based on studies todate

4. Currently pending is the outcome ofthe GLP toxicology studies (in June2020), prior to BARDA’s approval toinitiate next phases of the program.

Development Rationale

• R-107 IM single dose treatment (200 mg/kg) increases rat survival to 90%.

• R-107 IM single dose treatment increases survival of Merino sheep to 75-90%.

Research Findings in LD50 Animal Models of Chlorine Inhalational Lung Injury

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R-107: broad utility and unprecedented efficacy for PAH

R-107 demonstrates unprecedented efficacy and broad utility in a gold-standard animalmodel of PAH

• Prevents development of PAH• Acutely lowers established PAH• Provides long-term reversal of established PAH

R-107 may be superior to existing PAH Drugs

• Easier and more user friendly in the field/at home to administer (IM/oral vs. IV/SQ)• No systematic side-effects, no effect on peripheral blood pressure• Dosing 1 time per day, vs frequent dosing for other drugs

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R-107 prevents development of PAH

Early Intervention, Route: PO – Prevention effect• 28 days post MCT; R-107 in olive oil; Dose: 50 mg/kg/day, 28 days; Route: gavage; Improvement: (1)

65% in PAP, (2) Complete prevention of RV wall thickening

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R-107 Acutely Reverses PAH

Late Intervention, Route: PO – Immediate effect• 28-35 days post MCT; R-107 in PEG-400; Dose: 5 mg/kg; Route: gavage; Improvement: >50%

in 2 hours; No effect on systemic blood pressure or heart rate

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R-107 Reverses Established PAH

Late Intervention, Route: IM – Reversal effect• 42 days post MCT; R-107 in PEG-400, 14 days (days 28-42); Dose: 20 mg/kg/day, 14 days; Route: IM;

Improvement: 75% in PAP

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A Liquid Prodrug

Easier to Administer

R-107 is a patented, liquid nitric oxide prodrug that that can be administered by injection. R-107 slowly releases nitric oxide over 48 hours after a single injection and thus provides a simple and inexpensive means to deliver a sustained level of nitric oxide to the lung.

FeatureR-107

MallinckrodtInhalable

Nitric Oxide

BellerophonInhalable

Nitric OxideLiquid

Yes No No

Oral or injectable administration Yes No No

Does not require CPAP device

Yes No No

Does not require trained respiratory therapist

Yes No No

Slowrelease: delivery of NO over 48 hours

Yes No No

R-107: A Disruptive Technology

Potentially SaferPotentially

More Effective

Intellectual Property: An extensive global portfolio covering composition of matter and method of use

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• In the U.S. R-107 is protected by 2 patents• US 9,604,932 protects the compound per se as well as its pharmaceutical compositions and methods of use. • US 10,000,455 (a divisional of the first one) protects method for treatment of indications that are not specifically

covered by the first one, by administering the compounds such as R-107

• Corresponding patents have been granted in Australia, China, Europe, Japan and Russia; and applications are pending in Brazil, India and South Korea

April 2020TSXV: KLY OTCQB:KALTF

A Strategic Acquisition Opportunity

Slide Number 1Slide Number 2Slide Number 3Slide Number 4Slide Number 5Slide Number 6Slide Number 7Slide Number 8Slide Number 9Slide Number 10Slide Number 11Slide Number 12Slide Number 13Slide Number 14Slide Number 15Slide Number 16Slide Number 17R-107 is a liquid nitric oxide donor, with sufficient loading to release drug for 48 hours after a single doseR-100, the payload of R-107, inactivates ROS via its nitroxide moietyAcute lung injury (ALI) secondary to viral infection (COVID-19) or toxic inhalation (chlorine) creates NO deficiency, ROS excess, and resultant lung dysfunctionR-100, the payload of R-107, blocks peroxynitrite formation via its nitroxideSlide Number 22R-107 reduces pulmonary edema formation and improves oxygenation in an ovine CILI model of ALI that mimics COVID-19 pneumoniaL y m p hF lo wSlide Number 25Slide Number 26Slide Number 27Slide Number 28Slide Number 29R-107: A Disruptive TechnologyIntellectual Property: An extensive global portfolio covering composition of matter and method of useSlide Number 32