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Stellar Biotechnologies Advances Strategic Plan to Secure Key Production Region

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LOS ANGELES, CA -- (Marketwired) -- 01/11/17 -- Stellar Biotechnologies, Inc. (NASDAQ: SBOT), a leading manufacturer of a key protein utilized in multiple immunotherapy development pipelines targeting cancers, Alzheimer's and lupus, among other diseases, today announced that the company has completed key steps under its strategic initiative to expand production of its Stellar KLH products.

This week, the company established a wholly owned Mexican subsidiary under the name BioEstelar, S.A. de C.V. The new operating entity, headquartered in Ensenada in the state of Baja California, will support Stellar's plan to establish a second aquaculture facility, including the development of regional marine resources, aquaculture, and raw material processing for Stellar's KLH products.

Stellar's aim is to accelerate scale-up to support anticipated customer demand for the company's KLH protein, which serves as an active pharmaceutical ingredient for therapeutic vaccines. The company's goal is to be in a position to increase production capacity in order to supply multiple commercial-scale therapeutic vaccines under development. A second site could also provide greater flexibility and backup capacity.

In 2015, Stellar entered into an exclusive collaboration agreement with Ostiones Guerrero, S.A. de C.V. to secure a strategic site in Baja California, Mexico, and is currently conducting a multi-year suitability study with Ostiones. Stellar recently placed the source animal for the KLH protein into aquaculture production and initiated quality studies of the KLH protein produced in Mexico -- an important part of confirming its comparability to KLH produced at Stellar's primary facility located north of Los Angeles, California.

"Baja California offers a unique combination of marine resources, academic excellence in marine biology and commercial aquaculture experience. It is well suited for our expansion and an important region to protect the native source for KLH," said Frank Oakes, Stellar President and CEO.

"Immunotherapies using KLH are in clinical trials around the world, yet the only known source for KLH exists in a limited stretch of Pacific coastline. We now have two organizations operating within this vital zone -- Stellar's headquarters in California and BioEstelar in Ensenada," said Mr. Oakes.

About Stellar Biotechnologies
Based north of Los Angeles at the Port of Hueneme, Stellar Biotechnologies, Inc. (NASDAQ: SBOT) is the leader in sustainable manufacture of Keyhole Limpet Hemocyanin (KLH), an important immune-stimulating protein used in wide-ranging therapeutic and diagnostic markets. KLH is both an active pharmaceutical ingredient (API) in many new immunotherapies (targeting cancer, immune disorders, Alzheimer's and inflammatory diseases) as well as a finished product for measuring immune status. Stellar is unique in its proprietary methods, facilities, and KLH technology. The company is committed to meeting the growing demand for commercial-scale supplies of GMP grade KLH, ensuring environmentally sound KLH production, and developing KLH-based active immunotherapies. Stellar KLH is a trademark of Stellar Biotechnologies.

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Stellar Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by the use of words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "may," "will," "would," "could," "should," "might," "potential," or "continue" and variations or similar expressions. Readers should not unduly rely on these forward-looking statements, which are not a guarantee of future performance. There can be no assurance that forward-looking statements will prove to be accurate, as all such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results or future events to differ materially from the forward-looking statements. Such risks include, but may not be limited to: general economic and business conditions; technology changes; competition; changes in strategy or development plans; availability of funds and resources; anticipated requirements for operating capital; governmental regulations and the ability or failure to comply with governmental regulations; changes in trade policy and international law; the timing of Stellar's or its partners' anticipated results, including in connection with clinical trials; the ability to meet the goals of Stellar's joint ventures and strategic partnerships; and other factors referenced in Stellar's filings with securities regulators. For a discussion of further risks and uncertainties related to the Stellar's business, please refer to the Stellar's public company reports filed with the U.S. Securities and Exchange Commission and the British Columbia Securities Commission. All forward-looking statements are made as of the date hereof and are subject to change. Except as required by law, Stellar assumes no obligation to update such statements. This press release does not constitute an offer or solicitation of an offer for sale of any securities in any jurisdiction, including the United States.

Source: Stellar Biotechnologies, Inc.

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