Oncolytics Biotech Announces Poster Presentation Demonstrating the Ability of REOLYSIN to Promote and Predict Response to Checkpoint Inhibitors at ASCO 2018 Annual Meeting CALGARY, AB and

Oncolytics Biotech Announces

Poster Presentation Demonstrating the Ability of REOLYSIN to Promote and Predict Response to Checkpoint Inhibitors

at ASCO 2018 Annual Meeting

CALGARY, AB and SAN DIEGO, CA, June 4, 2018

- Oncolytics Biotech Inc. (TSX: ONC) (NASDAQ: ONCY), currently developing REOLYSIN (pelareorep),

an intravenously delivered immuno-oncolytic virus turning cold tumors hot, today announced a key poster presentation at the American

Society of Clinical Oncology (ASCO) 2018 Annual Meeting. The meeting takes place from June 1 - 5, 2018 at McCormick Place, Chicago,

"These results demonstrate that pelareorep

promotes the expression of gene signatures predictive of a response to immunotherapy in breast cancer and hepatocellular carcinoma."

said Matt Coffey, President and CEO of Oncolytics Biotech. "The tumor inflammation promoting effects in breast cancer models

provide a compelling explanation for the significant overall survival benefit in hormone receptor positive metastatic breast cancer

patients in our phase 2, IND 213, study and we believe this will continue to drive interest in our breast cancer program."

The complete poster can be found online on

the company website at https://www.oncolyticsbiotech.com/technology/posters-publications.

About REOLYSIN/Pelareorep

REOLYSIN, also known as pelareorep, is a non-pathogenic,

proprietary isolate of the unmodified reovirus: a first-in-class intravenously delivered immuno-oncolytic virus for the treatment

of solid tumors and hematological malignancies. The compound induces selective tumor lysis and promotes an inflamed tumor phenotype

through innate and adaptive immune responses to treat a variety of cancers.

About Oncolytics Biotech Inc.

Oncolytics is a biotechnology company developing

REOLYSIN , also known as pelareorep, an intravenously delivered immuno-oncolytic virus. The compound induces selective

tumor lysis and promotes an inflamed tumor phenotype - turning "cold" tumors "hot" - through innate and adaptive

immune responses to treat a variety of cancers. Oncolytics' clinical development program emphasizes three pillars: chemotherapy

combinations to trigger selective tumor lysis and immuno-therapy and immune modulator (IMiD) combinations to produce innate and

adaptive immune responses. Oncolytics is currently planning its first registration study in metastatic breast cancer, as well as

studies in combination with checkpoint inhibitors and targeted and IMiD therapies in solid and hematological malignancies. For

further information, please visit: www.oncolyticsbiotech.com.

This press release contains forward-looking

statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended and forward-looking information

under applicable Canadian securities laws (such forward-looking statements and forward-looking information are collectively referred

to herein as "forward-looking statements"). Forward-looking statements, including the Company's belief as to the potential

and mode of action of REOLYSIN, also known as pelareorep, as a cancer therapeutic; and other statements related to anticipated

developments in the Company's business and technologies involve known and unknown risks and uncertainties, which could cause the

Company's actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include,

among others, the availability of funds and resources to pursue research and development projects, the efficacy of pelareorep as

a cancer treatment, the success and timely completion of clinical studies and trials, the Company's ability to successfully commercialize

pelareorep, uncertainties related to the research and development of pharmaceuticals, uncertainties related to the regulatory process

and general changes to the economic environment. Investors should consult the Company's quarterly and annual filings with the Canadian

and U.S. securities commissions for additional information on risks and uncertainties relating to the forward-looking statements.

Investors are cautioned against placing undue reliance on forward-looking statements. The Company does not undertake to update

these forward-looking statements, except as required by applicable laws.