Aurinia Announces Closing of US$7 Million Private Placement VICTORIA, British Columbia--(BUSINESS WIRE)

Announces Closing of US$7 Million Private Placement

VICTORIA, British Columbia--(BUSINESS WIRE)--June 22, 2016--Aurinia

Pharmaceuticals Inc. (NASDAQ:AUPH / TSX:AUP) ("Aurinia" or the

"Company") has completed its previously announced private placement of

3,000,000 units of the Company at US$2.36 per unit for total gross

proceeds of US$7,080,000 (the "Private Placement"). Each unit consists

of one common share of the Company and a 0.35 of one common share

purchase warrant exercisable for a period of two years from the date of

issuance at an exercise price of US$2.77. Further information regarding

the terms of the private placement and the units issued thereunder can

be found in the Company's press release dated June 15, 2016.

All securities issued pursuant to the Private Placement are subject to a

four month-and-one-day hold period in Canada and a six month hold period

in the United States in accordance with applicable securities laws.

Pursuant to a registration rights agreement entered into with each

subscriber, the Company will, within 30 days of closing, file a

prospectus supplement under its registration statement on Form F-10 with

respect to resales in the United States, from time to time, of the

common shares issuable under the Private Placement and the common shares

issuable upon the exercise of warrants. Upon filing of the prospectus

supplement, the common shares and warrant shares will be freely

tradeable in the United States if sold pursuant to the resale

registration statement.

Certain insiders participated in the Private Placement. The Private

Placement is exempt from the formal valuation and majority of the

minority requirements applicable to related party transactions as set

out in National Instrument 61-101 Protection of Minority

Securityholders in Special Transactions as the aggregate fair market

value of the securities purchased by related parties pursuant to the

Private Placement is less than 25% of Aurinia's market capitalization.

Canaccord Genuity Inc. acted as sole placement agent for the Private

Aurinia is a clinical stage pharmaceutical company focused on the global

nephrology market. The fully-enrolled Phase 2b AURA-LV clinical trial is

evaluating the efficacy of its lead drug, voclosporin, as a treatment

for active LN. LN is an inflammation of the kidneys, that if

inadequately treated can lead to end-stage renal disease, making LN a

serious and potentially life-threatening condition.

For More Information:

Pharmaceuticals Inc.

Michael R. Martin, 250-708-4272

Financial Communications Inc.

Barry Mire: bmire@renmarkfinancial.com

Welsh: lwelsh@renmarkfinancial.com

Tel: (416) 644-2020 or