Aurinia Announces US$25.0 Million Bought Deal Financing VICTORIA, British Columbia--(BUSINESS WIRE)

Announces US$25.0 Million Bought Deal Financing

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

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

"Company"), a clinical stage biopharmaceutical company focused on the

global immunology market, today announced that it has entered into an

underwriting agreement with H.C. Wainwright & Co., LLC acting as sole

book-running manager, and Cormark Securities Inc., as co-manager

(collectively, the "Underwriters"), under which the Underwriters have

agreed to purchase 11,111,111 units from the Company (the "Units") at

the price of US$2.25 per Unit (the "Issue Price") for aggregate gross

proceeds of approximately US$25.0 million (the "Offering"), before

underwriter fees and expenses. Each Unit consists of one common share of

the Company (a "Share") and one-half of a warrant to buy one Share, with

an exercise price of $3.00 per whole warrant (a "Warrant"). The Warrants

have an exercise period of 5 years after the closing of the Offering.

The Company has granted to the Underwriters an over-allotment option

(the "Over-Allotment Option") exercisable, in whole or in part, in the

sole discretion of the Underwriters to purchase up to an additional

1,666,666 Units at the Issue Price per Unit (which may be exercised for

Units, Shares, Warrants or a combination thereof), for a period of up to

30 days, for additional aggregate proceeds to the Company of up to

approximately US$3.75 million. In the event the Over-Allotment Option is

exercised in full, the aggregate gross proceeds to the Company will be

approximately US$28.8 million.

The closing of the Offering is expected to occur on or about December

28, 2016, subject to customary closing conditions, including NASDAQ and

TSX approvals. For the purposes of the TSX approval, the Company intends

to rely on the exemption set forth in Section 602.1 of the TSX Company

Manual, which provides that the TSX will not apply its standards to

certain transactions involving eligible interlisted issuers on a

recognized exchange, such as NASDAQ. The Company intends to use the net

proceeds of the Offering for research and development activities,

including LN Phase 3 clinical trial activities, and working capital

The Offering is being made pursuant to a U.S. registration statement on

Form F-10, declared effective by the United States Securities and

Exchange Commission (the "SEC") on November 5, 2015 (the "Registration

Statement"), and the Company's existing Canadian short form base shelf

prospectus (the "Base Shelf Prospectus") dated October 16, 2015. The

prospectus supplements relating to the Offering (together with the Base

Shelf Prospectus and the Registration Statement, the "Offering

Documents") will be filed with the securities commissions in the

provinces of British Columbia, Alberta and Ontario in Canada, and with

the SEC in the United States. The Offering Documents will contain

important detailed information about the securities being offered.

Before you invest, you should read the Offering Documents and the other

documents the Company has filed for more complete information about the

Company and the Offering. Copies of the Offering Documents will be

available for free by visiting the Company's profiles on the SEDAR

website maintained by the Canadian Securities Administrators at www.sedar.com

or the SEC's website at www.sec.gov, as applicable.

Alternatively, copies of the prospectus supplement will be available

upon request by contacting H.C. Wainwright & Co., LLC, 430 Park

Avenue, New York, NY 10022, or by email at placements@hcwco.com,

or by contacting Cormark Securities Inc., 200 Bay St Suite 2800,

Toronto, Ontario M5J 2J2, or by email at ssmoroz@cormark.com.

This press release does not constitute an offer to sell or the

solicitation of an offer to buy securities, nor will there be any sale

of the securities in any jurisdiction in which such offer, solicitation

or sale would be unlawful prior to the registration or qualification

under the securities laws of any such jurisdiction.

Aurinia is a clinical stage biopharmaceutical company focused on

developing and commercializing therapies to treat targeted patient

populations that are suffering from serious diseases with a high unmet

medical need. The Company is currently developing voclosporin, an

investigational drug, for the treatment of lupus nephritis (LN). The

Company is headquartered in Victoria, British Columbia and focuses its

development efforts globally.

Aurinia Pharmaceuticals Inc.

Head of IR & Communications