Deanne Eagle - Media Relations 917.837.5866 Susan Roush - Investor Relations 818.222.8330 NEURALSTEM to Raise $7.0 Million in Registered Direct Offering

to Raise $7.0 Million in Registered Direct Offering

ROCKVILLE, Maryland, September 13, 2012

- Neuralstem, Inc. (NYSE MKT: CUR) today announced the pricing of a registered direct offering of 7,000,000 shares of its

common stock, offered at a price to the public of $1.00 per share. The gross proceeds to Neuralstem from this offering are expected

to be $7.0 million, before deducting placement agent fees and other estimated offering expenses payable by Neuralstem. The offering

is expected to close on or about September 19, 2012, subject to customary closing conditions.

Aegis Capital Corp. is acting as sole placement

agent for this offering.

The offering is being made pursuant to

a shelf registration statement that Neuralstem filed with the Securities and Exchange Commission ("SEC") and is effective.

A preliminary prospectus supplement and accompanying base prospectus relating to the offering were filed with the SEC and a final

prospectus supplement and accompanying base prospectus will be filed with the SEC. When available, copies of the final prospectus

supplement and accompanying base prospectus relating to the offering may be obtained by contacting Aegis Capital Corp., Prospectus

Department, 810 Seventh Avenue, 18th Floor, New York, NY, 10019, telephone: 212-813-1010 or email: prospectus@aegiscap.com. Electronic

copies of the final prospectus supplement and accompanying base prospectus will also be available on the website of the SEC at

This press release does not constitute

an offer to sell, or the solicitation of an offer to buy, these securities, nor will there be any sale of these securities in any

state or other jurisdiction in which such offer, solicitation or sale is not permitted.

Neuralstem's patented technology enables

the ability to produce neural stem cells of the human 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 glia. Neuralstem is in

an FDA-approved Phase I safety clinical trial for amyotrophic lateral sclerosis (ALS), often referred to as Lou Gehrig's disease,

and has been awarded orphan status designation by the FDA.

In addition to ALS, the company is also

targeting major central nervous system conditions with its cell therapy platform, including spinal cord injury, ischemic spastic

paraplegia and chronic stroke. The company has submitted an IND (Investigational New Drug) application to the FDA for a Phase I

safety trial in chronic spinal cord injury.

Neuralstem also has the ability to generate

stable human neural stem cell lines suitable for the 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 new

neurons, possibly reversing the pathologies of some central nervous system conditions. The company has received approval

from the FDA to conduct a Phase Ib safety trial evaluating NSI-189, its first neurogenic small molecule compound, for the treatment

of major depressive disorder (MDD). Additional indications could include chronic traumatic encephalopathy (CTE), Alzheimer's

disease, anxiety, and post-traumatic stress disorder (PTSD).

Cautionary Statement Regarding Forward

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, 2011 and the quarterly report on Form 10-Q for the period

ended June 30, 2012.