Aurinia Pharmaceuticals Files New Preliminary Base Shelf Prospectus to Replace Expired Base Shelf Prospectus VICTORIA, British Columbia--(BUSINESS WIRE)

Pharmaceuticals Files New Preliminary Base Shelf Prospectus to Replace

Expired Base Shelf Prospectus

VICTORIA, British Columbia--(BUSINESS WIRE)--January 4, 2018--Aurinia

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

or the "Company") today announced that in order to replace

its prior expired base shelf prospectus and corresponding shelf

registration statement it has filed a preliminary short form base shelf

prospectus (the "Preliminary Shelf Prospectus") with the

securities commissions in each of the provinces of Ontario, Alberta and

British Columbia in Canada, and a corresponding shelf registration

statement on Form F-10 with the U.S. Securities and Exchange Commission

(the "SEC") under the U.S./Canada Multijurisdictional

The Preliminary Shelf Prospectus and corresponding shelf registration

statement, when made final or effective, will allow Aurinia to offer up

to US$250,000,000 of common shares, warrants, subscription receipts,

debt securities or any combination thereof during the 25-month period

that the Preliminary Shelf Prospectus is effective. The Company has no

immediate intention to undertake an offering. However, the Preliminary

Shelf Prospectus will enable Aurinia to potentially access new capital

if and when needed. The amount and timing of any future offerings will

be based on the Company's financial requirements and market conditions

at the time. In addition, the Preliminary Shelf Prospectus and

corresponding shelf registration statement allows Aurinia to meet its

contractual obligation to maintain a valid registration statement to

certain holders of warrants issued under a private placement that took

The specific terms of any future offering under the Preliminary Shelf

Prospectus will be established at the time of such offering. At the time

any of the securities covered by the Preliminary Shelf Prospectus are

offered for sale, a prospectus supplement containing specific

information about the terms of such offering will be filed with

applicable Canadian securities regulatory authorities and the SEC.

The shelf registration statement filed today with the SEC has not yet

become effective. No securities may be sold, nor may offers to buy be

accepted, prior to the time the registration statement becomes

effective. This news release shall not constitute an offer to sell or a

solicitation of an offer to buy, nor shall there be any sale of these

securities in any jurisdiction in which an offer, solicitation or sale

would be unlawful prior to registration or qualifications under the

securities laws of any such jurisdiction.

A copy of the Preliminary Shelf Prospectus can be found on SEDAR at www.sedar.com

and a copy of the corresponding shelf registration statement can be

found on EDGAR at www.sec.gov or may be obtained upon request to

Aurinia's Investor Relations Department using the contact information

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, focal segmental glomerulosclerosis,

minimal change disease and dry eye syndrome. The company is

headquartered in Victoria, BC and focuses its development efforts

Forward-Looking Statement Disclaimer

statements made in this news release may contain forward-looking

information within the meaning of applicable Canadian securities law and

forward-looking statements within the meaning of applicable United

States securities law. Forward-looking information or statements may not

be based on historical fact, and may include without limitation

statements containing the words "believe", "may", "plan", "will",

"estimate", "continue", "anticipate", "intend", "expect" and similar

expressions. Forward-looking statements in this news release include

statements regarding the Preliminary Shelf Prospectus and corresponding

shelf registration statement being cleared by the applicable securities

regulatory authorities and Aurinia's ability to take advantage of

financing opportunities in favourable market conditions or at all. Such

forward-looking statements involve known and unknown risks,

uncertainties and other factors that may cause the actual results,

events or developments to be materially different from any future

results, events or developments expressed or implied by such

forward-looking statements. Many such known risks, uncertainties and

other factors are taken into account as part of the Company's

assumptions underlying these forward-looking statements and include,

among others, the following: general economic and business conditions in

the United States, Canada, Europe, and the other regions in which

Aurinia operates; not receiving the regulatory approvals, including the

further approvals that may be sought from securities regulatory

authorities or the SEC, on the timelines required or at all, that the

prevailing market price of the Company's securities may make a

prospectus offering in respect of such securities unattractive to

Aurinia as well as those factors discussed in or referred to under the

heading "Risk Factors" in Aurinia's Annual Report on Form 40-F for the

year ended December 31, 2016 which is available under Aurinia's profile

on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

Given these risks, uncertainties and factors, you are cautioned not to

place undue reliance on such forward-looking statements and information,

which are qualified in their entirety by this cautionary statement. All

forward-looking statements and information made herein are based on our

current expectations and we undertake no obligation to revise or update

such forward-looking statements and information to reflect subsequent

events or circumstances, except as required by law.

Aurinia Pharmaceuticals Inc.

Vice-President, Public Affairs

Chief Financial Officer