Press Release, 29 June 2017

Kuros Biosciences strengthens equity base with placement of new shares

Kuros Biosciences (SIX:KURN) today announced that it sold 1,151,606 new shares (excluding an over-allotment option of up to 200,000 shares) to existing and new investors at a price of CHF 12.50 per share. In total, Kuros raised gross proceeds of CHF 14.4 million (or CHF 16.9 million if the over-allotment option will be exercised in full). The new funds will fund Kuros’ commercial activities, in particular the market launch of novel products MagnetOS and Neuroseal as well as certain important activities for the ongoing Fibrin-PTH development programs.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN THE UNITED STATES OF AMERICA, CANADA, JAPAN, AUSTRALIA, SOUTH AFRICA, NEW ZEALAND OR MEMBER STATES OF THE EUROPEAN ECONOMIC AREA (“EEA”).

Schlieren (Zurich), Switzerland, June 29, 2017

The capital increase was conducted as an “at market” rights offering and an offering for shares, for which rights were not exercised. The new shares from the Company’s authorized capital were sold by way of a public offering in Switzerland and a private placement to qualified institutional investors outside of Switzerland in compliance with applicable securities laws. After completion of the transaction, the number of registered shares of Kuros will amount to 7,600,929, representing an 18 % increase of the issued share capital. As part of the offering, the Company has granted to Zürcher Kantonalbank an over-allotment option to purchase up to 200,000 additional newly-issued registered shares to cover over-allotments and for stabilization purposes.

“The new funds provide us with the financial resources needed to prepare for the commercialization of our approved products in the US and in Europe. The market launches for MagnetOs Granules and Neuroseal are expected for 2018. In addition, we are extending MagnetOs into new formulations and have recently submitted MagnetOs Putty for clearance in the US and expect a similar submission in the EU in the next months,” said Dr. Ivan Cohen-Tanugi, Chief Executive Officer of Kuros.

“We are very pleased with the rights take-up of existing shareholders and the broadening of our shareholderbase through the demand generated from new investors. The successful fund raising indicates sustained confidence and interest in our strategy, in the commercial and medical potential of our products as well as our team’s capabilities,” commented Harry Welten, Chief Financial Officer of Kuros.

The settlement and first day of trading of the newly issued shares is expected to be on July 3, 2017.

Zürcher Kantonalbank, goetzpartners and Octavian were acting as Joint Placement Agents for Kuros in the offering.

About Kuros Biosciences Ltd

Kuros Biosciences is focused on the development of innovative products for tissue repair and regeneration and is located in Schlieren (Zurich), Switzerland. The Company is listed according to the International Financial Reporting Standard on the SIX Swiss Exchange under the symbol KURN. Visit www.kuros.ch for additional information on Kuros, its science and product pipeline.

Forward Looking Statements

This news release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. You are urged to consider statements that include the words “will” or “expect” or the negative of those words or other similar words to be uncertain and forward-looking. Factors that may cause actual results to differ materially from any future results expressed or implied by any forward-looking statements include scientific, business, economic and financial factors, Against the background of these uncertainties, readers should not rely on forward-looking statements. The Company assumes no responsibility for updating forward-looking statements or adapting them to future events or developments.

Disclaimer

The purpose of this publication is to inform shareholders of Kuros Biosciences AG and the public. This press release does neither constitute an offer to buy or to subscribe to shares of Kuros Biosciences AG nor a prospectus within the meaning of the applicable Swiss law. Investors should make their decision to buy or to subscribe to new shares solely based on the offering and listing prospectus available free of charge at Kuros Biosciences AG, Wagistrasse 25, 8952 Schlieren / www.kuros.ch/investors/reports-presentations. Investors are furthermore advised to consult their bank or financial adviser.

The securities described herein are offered publicly without restrictions in Switzerland only.

THIS PRESS RELEASE IS NOT BEING ISSUED IN THE USA, IN THE UNITED KINGDOM, IN CANADA, JAPAN, AUSTRALIA, SOUTH AFRICA, NEW ZEALAND OR MEMBER STATES OF THE EUROPEAN ECONOMIC AREA (“EEA”) AND SHOULD NOT BE DISTRIBUTED TO U.S. PERSONS OR PUBLICATIONS WITH A GENERAL CIRCULATION IN THE UNITED STATES, THE UNITED KINGDOM, CANADA, JAPAN, AUSTRALIA, SOUTH AFRICA, NEW ZEALAND OR MEMBER STATES OF THE EEA AND MUST NOT BE DISTRIBUTED OR DISSEMINATED TO ONE OF THESE COUNTRIES BY PUBLICATIONS WITH A GENERAL CIRCULATION. THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER OR INVITATION TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES. THE SECURITIES OF KUROS BIOSCIENCES AG HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933 AS AMENDED AND ARE NOT BEING OFFERED IN THE UNITED STATES OR TO U.S. PERSONS.

In relation to the United Kingdom the communication of this publication is not being made, and this publication has not been approved, by an authorized person for the purposes of Section 21 of the Financial Services and Markets Act 2000. Accordingly, this publication is not being distributed to, and must not be passed on to, the general public in the United Kingdom. Rather, the communication of this publication is being made to, and is directed only at persons outside the United Kingdom. This publication is only available to such persons and the transaction contemplated herein will be available only to, or engaged in only with persons outside the United Kingdom, and this publication must not be acted on or relied upon by any other person.

In relation to each Member State of the EEA which has implemented the Directives 2003/71/EG dated November 4, 2013 (the “Prospectus Directive”) (each a “Relevant Member State”) and 2010/73/EU dated November 24, 2010, an offer to the public of shares of Kuros Biosciences AG which are the subject of the offering contemplated by this publication may not be made in that Relevant Member State. An offer to the public of shares of Kuros Biosciences AG may in particular also not be made under the provisions of Article 3 (2) of the Prospectus Directive or the respective regulations of national regulations implementing the Prospectus Directive.

The offer referred to in this press release shall not constitute an offer to sell or the solicitation of an offer to buy, in any jurisdiction in which such offer or solicitation would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any jurisdiction.

For further information, please contact:

Kuros Biosciences Ltd

Harry Welten, MBA

Chief Financial Officer

Tel: +41 79 750 15 64

harry.welten@kuros.ch