Deanne Eagle - Media Relations 917.837.5866 Susan Roush - Investor Relations 818.222.8330 NEURALSTEM REPORTS THIRD QUARTER FINANCIAL RESULTS AND PROVIDES UPDATE ON CLINICAL PROGRAMS AND BUSINESS HIGHLIGHTS ROCKV

NEURALSTEM REPORTS THIRD QUARTER FINANCIAL

RESULTS AND PROVIDES UPDATE ON CLINICAL PROGRAMS AND BUSINESS HIGHLIGHTS

Maryland, November9, 2012-Neuralstem, Inc. (NYSE MKT: CUR) reported its financial results for the three months and nine

months ended September 30, 2012 and provided an update on clinical programs and business highlights.

the third quarter, the company achieved three significant clinical milestones. The first was the completion of the eighteenth and

final surgery in our ALS Phase I trial. All ALS trial assessments show the NSI-566 neural stem cells and intraspinal transplantation

procedure, the first in the world, to be safe. The trial's principal investigator, Dr. Eva Feldman, saidshe believes we are

seeing evidence of a treatment effect in some Phase I patients over a sustained period of time. We look forward to advancing tothe

next ALS trials, to increase both number of patients treated and NSI-566 dosage, and effectively evaluate efficacy. To that end,

we are working diligently with our investigators to file an IND with the FDA for a Phase IIALS trial by year-end," said Karl

Johe, PhD, Chairman of Neuralstem's Board of Directors and Chief Scientific Officer.

"The second significant clinical

milestone was approval to begin our ischemic stroke trial in China. Our collaborators in Beijing, at the world-class BaYi Brain

Hospital are on schedule to start enrollmentearly in the first quarter for a combined Phase I/II clinical trial to treat motor

deficits due to ischemic stroke with NSI-566. The first part of the study, Phase I, will be open-label and enroll up to 18 patients

who will be assigned to one ofthree cohorts. Each cohort will receive ascending doses of NSI-566 directly into the brain at the

stroke area (another first for Neuralstem), to define the maximal safe dose, before proceeding tothe Phase II/proof-of-concept

study to evaluate efficacy," said Dr. Johe. "One of several independent Neuralstem studiespresented at The Society

for Neuroscience's annual meeting demonstrated significant recovery of motor and neurological functions in ischemic stroke

rats with NSI-566; a second ischemic stroke study demonstrated safety and feasibility in a chronic model in mini-pigs. Together,

with the extensive human safety data established in our ALS trial, these two studies demonstrate strong proof-of-principle data

that our NSI-566 cells are ready to test in humans to treat paralysis in stroke patients. A rat spinal cord injury study, reported

in the peer-reviewed scientific journal CELL,demonstrated that NSI-566 cells induce regeneration of injured spinal cord

axons into the graft and serve as a bridge to reconnect to gray matter motor neurons for many spinal cord segments below an injury,

inducing significant recovery of motor functions."

Dr. Johe concluded: "The third significant

clinical milestone was the FDA approval for dosing the second cohort of major depressive disorder patients in the Phase Ib trial

of NSI-189. Our lead neurogenic drug, NSI-189 is a first-in-class orally active drug that stimulates new neuron growth and increased

volume in the hippocampus, which we believe can help patients with MDD and other psychological and cognitive conditions. We are

on track to complete the Ib, an ascending-dose, 28-day-cycle safety trial designed in collaboration with Dr. Maurizio Fava of Harvard

University and Massachusetts General, during the first quarter of 2013."

Neuralstem's President and CEO Richard

Garr added: "The third quarter of 2012 marked business milestones as well.We saw a major addition to our patent estate with

U.S. patent number 8,236,299, with a patent life into 2030, titled: Transplantation of Human Neural Cells for Treatment

of Neurodegenerative Conditions.' This is significant in that it covers processes involved in our first potential transplantation

product, including claims covering processes for dissociating our neural stem cells from central nervous system tissue; culturing

the cells; expanding the cells in vitro and transplanting the cells into the spinal cord of a patient to treat a wide array of

neurodegenerative conditions, including ALS."

Mr. Garr continued: "The company

granted its first licenses for use of our proprietary Spinal Cord Delivery Platform and Floating Cannula. As the industry standard

for delivering therapeutic agents to the spinal cord, we expect to continue to announce licenses of the surgical devices to both

industry and academia as they now begin to explore the possibilities our technology has enabled. We are also continuing discussions

for licensing and partnership opportunities for our neurogenic small molecule program, for which we are seeing strong interest.

Our goal is to move NSI-189 and our preclinical library of additional novel neurogenic compounds forward in multiple indications,

which range from Alzheimer's disease and anti-aging (nootropic) to chronic traumatic encephalopathy and post-traumatic stress

disorder. We believe this can best be accomplished through partnering with industry."

and Business Highlights

NSI-566 Phase I Clinical Trial in ALS (amyotrophic lateral sclerosis, or Lou Gehrig's disease) at Emory University Hospital

Neuralstem completed the final transplantation of its ground-breaking Phase I safety trial of NSI-566 spinal cord neural stem cells

for the treatment of ALS. Phase I is scheduled to conclude six months after this final surgery of returning patient #18.

patient 17 was the second ALS patient to return to the trial, receiving five injections in the cervical region in addition to the

ten previously received in the lumbar region of the spinal cord, for a total of 15 injections of neural stem cells.

Event: In October, principal investigator and president of the American Neurological Association (ANA) Eva Feldman, MD, PhD, updated

data on the trial at the ANA annual meeting. She called the transplantations "a paradigm shift in the treatment of ALS"

and presented interim results on all 18 procedures in 15 patients.

NSI-566 Phase I/II Clinical Trial in Ischemic Stroke at BaYi Brain Hospital

Neuralstem was approved to commence a clinical trial to treat motor deficits due to ischemic stroke with NSI-566 at BaYi Brain

Hospital, in Beijing, China, through its subsidiary, Neuralstem China. The trial approval includes a combined phase I/II design

of up to 118 patients, and will test direct injections into the brain of NSI-566. It is scheduled to commence in the first quarter

NSI-566 Pre-clinical Programs

a peer-reviewed article in the leading scientific journal CELL reported that Neuralstem NSI-566 cells induced significant functional

improvement in permanent rat spinal cord injury, with paralyzed rats regaining use of lower limbs. The study, entitled "Long-Distance

Growth and Connectivity of Neural Stem Cells After Severe Spinal Cord Injury: Cell-Intrinsic Mechanisms Overcome Spinal Inhibition,"

reports that the animals recovered significant locomotor function, regaining movement in all lower extremity joints, and that the

transplanted neural stem cells turned into neurons which grew a "remarkable" number of axons that extended for "very

long distances" over 17 spinal segments, making connections both above and below the point of severance.

Event: In October, NSI-566/animal ischemic stroke data was presented in two independent studies at The Society for Neuroscience's

Annual Meeting. "Histopathological Assessment of Adult Ischemic Rat Brains after 4 Weeks of Intracerebral Transplantation

of NSI-566RSC Cell Line," conducted in the laboratory of Dr. Cesar Borlongan at the Center of Excellence for Aging and Brain

Repair at the University of South Florida College of Medicine, showed significant recovery of motor and neurological functions

in ischemic stroke rats with NSI-566. The other ischemic stroke study presented was conducted by Dr. Martin Marsalaat the Neuroregeneration

Laboratory at University of California San Diego, and entitled "Survival and Differentiation of Human Neural Stem Cells (NSI-566RSC)

After Grafting into Ischemia-Injured Porcine Brain." Neuralstem presented three additional posters of preclinical data at

Small Molecule NSI-189: Phase I Clinical Trial in Major Depressive Disorder (MDD)

-Subsequent Event: In October, Neuralstem

began dosing the second cohort of eight patients, upon receiving FDA approval, in the Phase Ib trial. The trial is testing the

safety of escalated dosing for 28 daily administrations of the company's lead neurogenic small molecule drug, NSI-189, in

the treatment of major depressive disorder.

- In September, Neuralstem granted

the first licenses for use of its Spinal Cord Delivery Platform and Floating Cannula, used in the ALS Phase I trial for delivering

therapeutic agents to the spinal cord.

- In September, Chairman and Chief

Scientific Officer Dr. Karl Johe presented "Novel Neurogenic Drugs Targeting Hippocampal Degeneration" at the 6th

Neurodegenerative Conditions Research and Development conference, and President and CEO Richard Garr presented corporate and clinical

updates at the 2012 Aegis Healthcare Conference and the 2012 Rodman and Renshaw Annual Healthcare Conference.

-In July, Neuralstem received a notice

of issuance for patent applicationnumber 12/710,097 (subsequently issued patent number 8,236,299) titled: "Transplantation

of Human Neural Cells for Treatment of Neurodegenerative Conditions." This patent, which will expire in the first quarter

of 2030, covers both the culturing of central nervous system (CNS) cells as well as their transplantation into spinal cord tissue

to treat neurodegenerative conditions, including ALS.

- During the quarter, the company

raised $9.76 million through offerings of its common stock to fund its ongoing clinical trials, research and development, and working

- Subsequent Events: In October, Neuralstem

engaged Locust Walk Partners, LLC, a life sciences' commercial licensing and partnering specialist advisory firm, to further

explore partnership opportunities for a clinical-stage neurogenic small molecule program targeting a broad range of psychiatric

and cognitive disorders.

- Subsequent Events: In October, Neuralstem

received a notice of issuance for Vietnam patent number 10524 titled: "Transplantation of Human Neural Cells for Treatment

of Neurodegenerative Conditions." This issuance bringsNeuralstem's worldwide patent count to 28 issued and 43 pending.