Can-Fite Announces Exercise of Warrants for Cash Proceeds of $2.4 Million

Can-Fite Announces Exercise

of Warrants for Cash Proceeds of $2.4 Million

PETACH TIKVA, Israel, January 9, 2020 -

Can-Fite BioPharma Ltd. (NYSE American: CANF) (TASE:CFBI), a biotechnology company with a pipeline of proprietary small molecule

drugs that address cancer, liver and inflammatory diseases, today announced the agreement by several accredited investors to exercise

certain warrants to purchase up to an aggregate of 22,278,540 ordinary shares represented by 742,618 American Depositary Shares

(ADSs) having exercise prices ranging from $12.90 to $78.75 per ADS issued by Can-Fite in September 2015, October 2015, March 2018,

January 2019 and April 2019, at a reduced exercise price of $3.25 per ADSs.

The ADSs and the ordinary shares issuable

upon exercise of the warrants issued in March 2018, January 2019 and April 2019 are registered pursuant to a registration statement

on Form F-1 (File No. 333-231209) which became effective by the Securities and Exchange Commission (SEC) on October 18, 2019 and

the ADSs and the ordinary shares issuable upon exercise of the warrants issued in September 2015 and October 2015 are registered

pursuant to a registration statement on Form F-3 (File No. 333-209037) which became effective on January 29, 2016. The gross proceeds

to Can-Fite from the exercise of the warrants are expected to be approximately $2.4 million, prior to deducting placement agent

fees and estimated offering expenses.

H.C. Wainwright & Co. is acting as

the exclusive placement agent for the offering.

In consideration for the immediate exercise

of the warrants for cash, the exercising holders will receive new unregistered warrants to purchase ordinary shares represented

by ADS in a private placement pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the "1933 Act").

The warrants will be exercisable into an aggregate of up to 22,278,540 ordinary shares represented by 742,618 ADS, at an exercise

price of $3.45 per ADS and have a term of exercise equal to five and one-half years.

Can-Fite intends to use the net proceeds from

the offering for working capital including for the progression of its Phase III psoriasis and the rheumatoid arthritis studies

and the preparatory work for the Phase III liver cancer study as well as other general corporate purposes.

The new warrants described above were offered

in a private placement pursuant to an applicable exemption from the registration requirements of the 1933 Act and, along with the

ADSs or the ordinary shares issuable upon their exercise, have not been registered under the 1933 Act, and may not be offered or

sold in the United States absent registration with the SEC or an applicable exemption from such registration requirements. The

securities were offered only to accredited investors. The Company has agreed to file a registration statement with the SEC covering

the resale of the ADSs and ordinary shares of issuable upon exercise of the new warrants.

This press 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 state or jurisdiction

in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws

of any such state or jurisdiction.

About Can-Fite BioPharma Ltd.

Can-Fite BioPharma Ltd. (NYSE American:

CANF) (TASE: CFBI) is an advanced clinical stage drug development Company with a platform technology that is designed to address

multi-billion dollar markets in the treatment of cancer, inflammatory disease and sexual dysfunction. The Company's lead drug candidate,

Piclidenoson, is currently in Phase III trials for rheumatoid arthritis and psoriasis. Can-Fite's liver cancer drug, Namodenoson,

recently completed a Phase II trial for hepatocellular carcinoma (HCC), the most common form of liver cancer, and is in a Phase

II trial for the treatment of non-alcoholic steatohepatitis (NASH). Namodenoson has been granted Orphan Drug Designation in the

U.S. and Europe and Fast Track Designation as a second line treatment for HCC by the U.S. Food and Drug Administration. Namodenoson

has also shown proof of concept to potentially treat other cancers including colon, prostate, and melanoma. CF602, the Company's

third drug candidate, has shown efficacy in the treatment of erectile dysfunction in preclinical studies and the Company is investigating

additional compounds, targeting A3AR, for the treatment of sexual dysfunction. These drugs have an excellent safety profile with

experience in over 1,000 patients in clinical studies to date. For more information please visit: www.can-fite.com.

Forward-Looking Statements

This press release may contain forward-looking

statements, about Can-Fite's expectations, beliefs or intentions regarding, among other things, use of proceeds, market risks

and uncertainties, its product development efforts, business, financial condition, results of operations, strategies or prospects.

In addition, from time to time, Can-Fite or its representatives have made or may make forward-looking statements, orally or in

writing. Forward-looking statements can be identified by the use of forward-looking words such as "believe," "expect,"

"intend," "plan," "may," "should" or "anticipate" or their negatives

or other variations of these words or other comparable words or by the fact that these statements do not relate strictly to historical

or current matters. These forward-looking statements may be included in, but are not limited to, various filings made by Can-Fite

with the U.S. Securities and Exchange Commission, press releases or oral statements made by or with the approval of one of Can-Fite's

authorized executive officers. Forward-looking statements relate to anticipated or expected events, activities, trends or results

as of the date they are made. Because forward-looking statements relate to matters that have not yet occurred, these statements

are inherently subject to risks and uncertainties that could cause Can-Fite's actual results to differ materially from any

future results expressed or implied by the forward-looking statements. Many factors could cause Can-Fite's actual activities

or results to differ materially from the activities and results anticipated in such forward-looking statements. Factors that could

cause our actual results to differ materially from those expressed or implied in such forward-looking statements include, but are

not limited to: our history of losses and needs for additional capital to fund our operations and our inability to obtain additional

capital on acceptable terms, or at all; uncertainties of cash flows and inability to meet working capital needs; the initiation,

timing, progress and results of our preclinical studies, clinical trials and other product candidate development efforts; our ability

to advance our product candidates into clinical trials or to successfully complete our preclinical studies or clinical trials;

our receipt of regulatory approvals for our product candidates, and the timing of other regulatory filings and approvals; the clinical

development, commercialization and market acceptance of our product candidates; our ability to establish and maintain strategic

partnerships and other corporate collaborations; the implementation of our business model and strategic plans for our business

and product candidates; the scope of protection we are able to establish and maintain for intellectual property rights covering

our product candidates and our ability to operate our business without infringing the intellectual property rights of others; competitive

companies, technologies and our industry; statements as to the impact of the political and security situation in Israel on our

business; and risks and other risk factors detailed in Can-Fite's filings with the SEC and in its periodic filings with the

TASE. In addition, Can-Fite operates in an industry sector where securities values are highly volatile and may be influenced by

economic and other factors beyond its control. Can-Fite does not undertake any obligation to publicly update these forward-looking

statements, whether as a result of new information, future events or otherwise, except as required by law.