Investor Presentation | October 2013 The future of drug discovery has arrived Reducing development...

Investor Presentation | October 2013

The future of drug discovery has arrivedReducing development time, cost & risk

2TSXV: COT

When used anywhere in this presentation, whether oral or written, the words expects, believes, anticipates, estimates and similar expressions are intended to identify forward-looking statements. Forward-looking statements may include statements addressing future financial and operating results of Critical Outcome Technologies Inc. (COTI).

COTI bases these forward-looking statements on its current expectations about future events. Such statements are subject to risks and uncertainties including, but not limited to, the successful implementation of COTI’s strategic plans, the acceptance of new products, the obsolescence of existing products, the resolution of potential patent issues, competition, changes in economic conditions, and other risks described in COTI’s public documents such as press releases and filings with the Toronto Stock Exchange and the Ontario Securities Commission.

All forward-looking statements are qualified in their entirety by the cautionary statements included in this document and such filings. These risks and uncertainties could cause actual results to differ materially from results expressed or implied by forward-looking statements contained in this presentation. These forward-looking statements speak only as of the date of this presentation.

Disclaimer

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Who we are…

An innovative, drug discovery, preclinical development and intellectual property company

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Critical Outcome Technologies Inc.

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Investment highlights

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Proprietary platform technology reduces time, cost & risk of bringing new drugs to market

Two-pronged commercial validation and revenue strategy

Actively pursuing licensing of lead cancer drug candidate (COTI-2) with Pharma – leading to profitability

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Conventional drug development is a long & expensive process characterized by a high risk of failure

11 – 15 years

$1 billion or more

1 FDA approval 5

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Years

Prec

linic

al D

evel

opm

ent S

teps

• Reduce drug discovery timeline by 1.5 - 3 years

• Save significant $$$

• Increase revenue period under patent protection

We rapidly accelerate drug discovery

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Proprietary scalable AI platform

Computational simulation of traditional ‘wet lab’ drug discovery process (FDA,HC)

Failed attempts occur in computer simulations, not the ‘research bench’

Improving the probability of clinical & commercial success

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CHEMSAS® - Our competitive advantage

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Two-pronged commercialization strategy

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R&D collaborations for revenue & 3rd party validation of the CHEMSAS® platform

Licensing our own drug compounds

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The opportunity

Major Pharma reducing internal R&Do Low R&D productivityo Focusing on marketing & distribution – control

the end customer

Significant opportunities for R&D collaborationso Leverage complementary expertise / capabilities

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Typical CHEMSAS® R&D collaboration

Partner has specific novel drug target

Receive an upfront development fee from Partner and build a compound library

Library testing and evaluation at Partner’s expense

We retain IP ownership of compounds and all data

Partner proceeds with development under a license with upfront, milestone, and royalty payments

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A collaboration can bring in multiple milestone payments providing significant ongoing revenues

Scalability of CHEMSAS® enables multiple concurrent collaboration revenue opportunities

Three active collaborations proceeding wello Western Universityo Delmar Chemicalso Major Pharma Company

Seeking more CHEMSAS® collaborations

CHEMSAS® R&D collaborations

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Licensing our own compounds

Actively pursuing licensing of lead cancer drug candidate, COTI-2, with a Pharma Company in a transaction making us immediately profitable

Other internal drug development projects in queue (i.e. AML)

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Effective against cancers with mutations of the p53 gene

> 50% of all human cancers have a p53 mutation

About COTI-2

p53 dependent mechanism of action confirmed by Dr. Gordon Mills at the University of Texas, MD Anderson Cancer Center

In final two-species toxicity studies prior to FDA filing in early 2014 enabling human trials

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4 U.S. patents granted – strengthening COTI-2’s value proposition

Composition of matter granted out to 2030

Patents pending in USA, Europe, Canada and Japan

Patent strategy preserves downstream patent filing opportunities for potential extension of market exclusivity

We own all intellectual property with no license obligations

COTI-2: Intellectual property overview

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Why license COTI-2?

Drug development is a long and expensive process

Our core competence is accelerating drug discovery, not drug development

Recent preclinical oncology licensing deals included:

o Upfront payments of approx. $5-$15 milliono Milestone payments between $120-$288 milliono Royalties on net sales

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Investor relations

Engaged Heisler Communications to implement comprehensive Canadian IR strategy

o Strengthen relationships with current shareholders plus outreach to new investor audiences

Engaged Consulting For Strategic Growth 1/LaunchPad to implement comprehensive US IR strategy

o Stanley Wunderlich,

o Bob Giordano,

A very experienced team in the Life Sciences sector

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Summary

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Proprietary technology reduces time, cost & risk of bringing new drugs to market

Two-pronged commercial validation and revenue strategy

Actively pursuing licensing of lead cancer drug candidate (COTI-2) with pharma – leading to profitability

www.criticaloutcome.com

The future of drug discovery has arrivedReducing development time, cost & risk

19TSXV: COT

Trading

Stock Exchange TSX Venture

Symbol COT

52 Week Rolling low/high (1) $0.10 – 0.38

Capital

Cash (2) $ 1.3M

Basic Shares Outstanding 92,682,499

Options Outstanding 5,273,569

Warrants Outstanding 44,869,466

Fully Diluted Shares Outstanding 142,825,534

Contingent Rights Outstanding (3) 715,720

Board & management control (4) 22.4%

Contact Info

Address Suite 213, 700 Collip CircleLondon, Ontario N6G 4X8

Phone 519-858-5157

Fax 519-858-5179

Website www.criticaloutcome.com

Chairman Mr. John Drake jcdrake47@hotmail.com

President, CEO & CSO

Dr. Wayne Danter wdanter@criticaloutcome.com

Chief Financial Officer

Gene Kelly gkelly@criticaloutcome.com

(1) As at Sept 30/13(2) Cash = cash and cash equivalents at Aug 31/13(3) Contingent rights not included in fully diluted under IFRS(4) On a fully diluted basis

Key company facts

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CHEMSAS Validation - R&D Pipeline

Therapy: Compound / Library

Target Identification

& Research DiscoveryLead

Selection Phase 1

Oncology

COTI-2 - AKT inhibitor

COTI-219

COTI-4

COTI-58

Acute myelogenous leukemia

Colon

6 additional compounds

Multiple sclerosis

Alzheimer's - secretase inhibitors

HIV - integrase inhibitors

(Currently in co-development)

Synthesis Preclinical

Development Stage