SAN FRANCISCO, CA, Feb. 18, 2014 /CNW/ – On February 14, 2014, venBio
Select Fund, L.P. (“venBio“) acquired 5,457,522 common shares (the “Shares“) of Aurinia Pharmaceuticals Inc. (the “Company“) representing approximately 17.44% of the issued and outstanding
Shares on a non-diluted basis. The common shares were purchased
pursuant to a private placement of units (the “Units“), which were issued on February 14, 2014 at a price of US$2.7485 per
Unit. Each Unit consists of one common share and one-quarter (0.25) of
a common share purchase warrant (a “Warrant“), exercisable for a period of five years from the date of issuance.
Each Warrant entitles venBio to purchase one additional common share of
the Company at a price of US$3.2204 per share.

In addition, in the event that the Company does not reduce the size of
its board of directors to seven directors within 90 days following
closing, an additional 0.1 Warrant will be issued for each Unit
purchased by venBio for every additional 90 day period delay, up to a
maximum of 0.35 Warrant per Unit. If the Company does not obtain
approval to list its common shares on NASDAQ within 12 months following
the closing, the Company has agreed to issue an additional 0.1 Warrant
for each Unit purchased by venBio for every 90 day period delay, up to
a maximum of 0.35 Warrant per Unit. All securities issued in connection
with the Offering will be subject to a four month hold period from the
date of issuance in accordance with applicable securities law, which
expires on June 15, 2014 for the securities issued at closing.

venBio acquired the Units for investment purposes and may, depending on
the evolution of the Company’s business, financial condition, the
market for the Company’s securities, general economic conditions and
other factors, increase or decrease its beneficial ownership control or
direction over the Shares of the Company.

The Shares and the Warrants were issued to venBio in reliance on the
prospectus exemption set out in section 2.10 of National Instrument
45-106 – Prospectus and Registration Exemptions.

This press release is issued pursuant to the early warning requirements
of applicable Canadian securities laws which also requires an early
warning report to be filed on SEDAR containing additional information
with respect to the foregoing matters.

SOURCE venBio Select Fund, L.P.