Deanne Eagle - Media Relations 917.837.5866 MDC Group - Investor Relations: Susan Roush 747.222.7012 David Castaneda 414.351.9758 NEURALSTEM CLOSES $ 20

CLOSES $20 MILLION REGISTERED DIRECT OFFERING

ROCKVILLE, MD, January 9, 2014 --

Neuralstem, Inc. (NYSE MKT: CUR) announced today that on January 8, 2014, it closed on a $20 million

investment from leading institutional and accredited investors in a registered direct placement (the "Offering") of

6,872,859 shares of common stock at a price of $2.91 per share. In addition, the Company issued to the investors in the

Offering warrants to purchase common stock equal to one-half of the number of shares purchased by the investors in the Offering,

for a total of 3,436,435 shares. The warrants have an exercise price of $3.64 per share and are exercisable from the issuance date

for a period of five years, and upon exercise would result in additional proceeds to the Company of approximately $12.5 million.

The Company intends to use the proceeds from this Offering to fund its on-going clinical trials, and for working capital and general

are very pleased to have raised the capital in this Offering from leading institutional investors, including dedicated institutional

healthcare investors. With the proceeds strengthening our cash balance, we have the resources to further advance our cell therapy

and small molecule clinical trial programs," said Richard Garr, President and Chief Executive Officer of Neuralstem. "Our

lead cell therapy product candidate, NSI-566, is a spinal cord-derived stem cell therapy candidate

that is in Phase II clinical trials for amyotrophic lateral sclerosis (ALS). In addition to ALS, we are targeting major central

nervous system conditions with the NSI-566 cell therapy platform, including spinal cord injury and ischemic stroke. The Company

expects to commence an FDA-approved Phase I safety trial in chronic spinal cord injury during the first quarter of 2014. In addition,

we have recently completed a Phase Ib safety and tolerability trial for NSI-189, our small molecule product candidate for the treatment

of major depressive disorder (MDD). Our medical and scientific teams are currently reviewing the data."

T.R. Winston & Company,

LLC acted as the exclusive placement agent for the Offering.

The securities described above are being

offered pursuant to a shelf registration statement (File No. 333-190936), as amended, which was declared effective by the United

States Securities and Exchange Commission ("SEC") on September 13, 2013. This press release shall not constitute an offer

to sell or the solicitation of an offer to buy any of the securities described herein, 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 registration or qualification

under the securities laws of any such state or jurisdiction. When filed with the SEC, copies of the prospectus supplement and the

accompanying base prospectus relating to this offering may be obtained at the SEC's website at www.sec.gov, or by request at T.R.

Winston & Company, LLC, 1999 Avenue of the Stars, 25th Floor, Los Angeles, CA 90067.

Neuralstem's patented technology

enables the production of neural stem cells of the brain and spinal cord in commercial quantities, and the ability to control the

differentiation of these cells constitutively into mature, physiologically relevant human neurons and glial cells. Neuralstem's

NSI-566 spinal cord-derived stem cell therapy is in Phase II clinical trials for amyotrophic lateral sclerosis (ALS), often referred

to as Lou Gehrig's disease. Neuralstem has been awarded orphan status designation by the FDA for its ALS cell therapy.

In addition to ALS, the Company

is also targeting major central nervous system conditions with its NSI-566 cell therapy platform, including spinal cord injury

and ischemic stroke. The Company has received FDA approval to commence a Phase I safety trial in chronic spinal cord injury.

Neuralstem also maintains the

ability to generate stable human neural stem cell lines suitable for systematic screening of large chemical libraries. Through

this proprietary screening technology, Neuralstem has discovered and patented compounds that may stimulate the brain's capacity

to generate neurons, possibly reversing pathologies associated with certain central nervous system conditions. The Company

has completed a Phase I safety trial evaluating NSI-189, its first neurogenic small molecule product candidate, for the treatment

of major depressive disorder (MDD). Additional indications might include traumatic brain injury (TBI), Alzheimer's disease,

and post-traumatic stress disorder (PTSD).

For more information, please

visit www.neuralstem.com or connect with us on Twitter, Facebook

Cautionary Statement Regarding

Forward Looking Information:

This news release may contain

forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform

Act of 1995. Investors are cautioned that such forward-looking statements in this press release regarding potential applications

of Neuralstem's technologies constitute forward-looking statements that involve risks and uncertainties, including, without limitation,

risks inherent in the development and commercialization of potential products, uncertainty of clinical trial results or regulatory

approvals or clearances, need for future capital, dependence upon collaborators and maintenance of our intellectual property rights.

Actual results may differ materially from the results anticipated in these forward-looking statements. Additional information on

potential factors that could affect our results and other risks and uncertainties are detailed from time to time in Neuralstem's

periodic reports, including the annual report on Form 10-K for the year ended December 31, 2012 and the Form 10-Q for the period

ended September 30, 2013.