Full Press Release Details
Stellar Biotechnologies Signs Collaboration
Agreement to Expand KLH Aquaculture Operations
Stellar Secures Strategic Site in
Mexico for Exclusive Sustainable KLH Production
Port Hueneme, CA (July 28, 2015) Stellar
Biotechnologies, Inc. ("Stellar" or the "Company") (OTCQB: SBOTF) (TSX-V: KLH), a leading provider
of Keyhole Limpet Hemocyanin (KLH) protein, today announced that the Company has entered into a collaboration agreement with Ostiones
Guerrero SA de CV ("Ostiones") (the "Agreement") to secure a unique strategic site in Baja California,
Mexico for the development of an additional aquaculture locale and expansion of Stellar KLH production to meet the increasing
needs of its customers.
Stellar provides clinical-stage biotechnology
companies with KLH, an immune-stimulating protein that is an essential ingredient in a number of human immunotherapies in various
stages of clinical development. KLH can only be obtained from a scarce marine mollusk, the Giant Keyhole Limpet, which is native
to a limited stretch of Pacific Ocean coastline.
Stellar and Ostiones both have expertise
and specialization in marine-based industries. Stellar is the leader in the sustainable manufacture of KLH for use in the pharmaceutical
industry, with proprietary aquaculture capabilities. Ostiones is a Baja California-based commercial shellfish aquaculture and fishing
corporation focused on seafood production and protection of sensitive marine ecosystems, which holds federal permits to an extensive
Pacific marine habitat for limpet colonies.
Under the terms of the Agreement, Stellar
and Ostiones will collaborate on the design, expansion and development of marine aquaculture resources and KLH production facilities
in Baja California, Mexico to provide, exclusively for Stellar, an additional site for hatchery and maturation of keyhole limpets
and production of KLH. The venture will provide Ostiones with access to advanced aquaculture techniques, proprietary expertise,
support services and training that will form the basis for expanding its seafood production business.
Additionally, the companies are joining
forces to share their vision of protecting the natural resources of the Pacific Ocean. Stellar has developed a proprietary process
for KLH harvesting that does not harm the Giant Keyhole Limpets. Similarly, Ostiones is committed to sustaining ocean wildlife
populations. The companies are committed to marine ecosystem sustainability as a commercial priority.
"This collaboration has far-reaching,
positive implications for Stellar," said Frank Oakes, President and CEO of Stellar Biotechnologies, Inc. "In addition
to the clear operational security offered by a second site, the partnership with Ostiones Guerrero provides Stellar the opportunity
to extend our leadership in the sustainable manufacture of KLH while ensuring protection of a valuable ocean resource and natural
habitat. We expect demand for reliable sources of KLH to grow, both from our existing partners and the broader biotech industry,
as the clinical use of novel immunotherapies increases. We believe this collaboration will better position Stellar to accelerate
its production strategy to accommodate the anticipated growth in the industry."
"We are excited about the synergies
and economic potential of this alliance," added Reyes Guerrero Sandoval, President of Ostiones Guerrero SA de CV. "Stellar
Biotechnologies' contributions validate the importance of the marine resources in our region which now includes marine biotechnology
in the expanding markets for our operations and for Baja California."
In June 2015, Ostiones leased to Stellar
certain undeveloped land to assess as a potential second manufacturing and production site subject to a suitability study to be
conducted over the next three years. Under the terms of the Agreement, Stellar will be responsible for certain leasehold improvements
and construction of structures and utilities, to be owned by Stellar, at Ostiones' Baja California, Mexico facility. Ostiones
will provide labor and operational support, the reasonable costs of which will be reimbursed by Stellar. The companies expect to
enter into separate usage and supply agreements covering the use of site resources and utilities such as seawater and power, and
for the production of keyhole limpets by Ostiones exclusively for Stellar.
About Ostiones Guerrero SA de CV
Ostiones Guerrero SA de CV is a privately
held commercial fishing corporation, established in 1992 in San Quintin, Baja California, Mexico. Ostiones Guerrero's mission
is to assume a leading role in the development of new approaches in aquaculture in order to sustainably supply world-class, quality
seafood production to Mexico and the world. Ostiones' business processes are conservation-focused to preserve the vital,
sensitive, coastal ecosystems of Baja California for the benefit of future generations.
About Stellar Biotechnologies, Inc.
Stellar Biotechnologies, Inc. (OTCQB: SBOTF)
(TSX-V: KLH) is the leader in sustainable manufacture of Keyhole Limpet Hemocyanin (KLH), an important immune-stimulating protein
used in wide-ranging therapeutic and diagnostic markets. KLH is both an active pharmaceutical ingredient (API) in many new
immunotherapies (targeting cancer, immune disorders, Alzheimer's, and inflammatory diseases) as well as a finished product
for measuring immune status. Stellar Biotechnologies is unique in its proprietary methods, facilities, and KLH technology. We are
committed to meeting the growing demand for commercial-scale supplies of GMP grade KLH, ensuring environmentally sound KLH production,
and developing KLH-based active immunotherapies.
Visit www.stellarbiotech.com
and the Stellar KLH knowledge base www.klhsite.org.
Forward Looking Statements
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statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. Forward-looking statements may be identified by the use of words such as "anticipate," "believe,"
"plan," "estimate," "expect," "intend," "may," "will," "would,"
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changes; competition; changes in strategy or development plans; governmental regulations and the ability or failure to comply with
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Stellar Biotechnologies Company Contact:
Vice President of Corporate Development and Communications
Phone: +1 (805) 488-2800 ext. 103
Phone: +1 (646) 536-7013
Melanie Sollid-Penton
Phone: +1 (646) 536-7023