Investor Update | July 2013

The future of drug discovery has arrived

Reducing development time, cost & risk

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Disclaimer

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.

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Investment highlights

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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

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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 4

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Years

Pre

clin

ical

De

velo

pm

en

t St

ep

s • 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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CHEMSAS® - competitive advantage

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Proprietary technology

Computational replication of traditional ‘wet lab’ drug discovery process

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

Higher probability of clinical & commercial success

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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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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

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

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R&D collaboration: Western University

Financial terms $25k upfront cash + 50/50 share of IP & future revenue

Costs

COTI finds compounds; Western tests

Progress Compounds identified and positive initial tests

Revenue timing

2014 at earliest

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R&D collaboration: Delmar Chemicals

Financial terms 50/50 share in revenue

Costs

COTI finds compounds; Delmar synthesizes

Progress Compounds passed initial pharma screen; now in synthesis

Revenue timing

2014

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R&D collaboration: Major Pharma

Financial terms Option to license – upfront payment, milestones and royalty

Costs

COTI finds compounds, optimizes & synthesizes; Pharma tests

Progress Initial compounds identified; step 1 of 2 testing nearing completion

Revenue timing

Early 2014

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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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About COTI-2

Effective against cancers with mutations of the p53 gene

> 50% of all human cancers have a p53 mutation

P53 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 late 2013 enabling human trials

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COTI-2 intellectual property overview

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

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

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Why out 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 million o Milestone payments between $120-$288 million o Royalties on net sales

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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

The future of drug discovery has arrived

Reducing development time, cost & risk