Deanne Eagle - Media Relations 917.837.5866 Susan Roush - Investor Relations 818.222.8330 NEURALSTEM TO RAISE $4

NEURALSTEM TO RAISE $4 MILLION IN REGISTERED

ROCKVILLE, Maryland, September 5, 2013

- Neuralstem, Inc. (NYSE MKT: CUR) announced today that it has entered into agreements with

certain accredited investors for a registered direct placement of 2,535,000 shares of common stock at a price of $1.60 per share

for aggregate gross proceeds of $4,056,000.

In addition, the Company will issue to

each investor a warrant to purchase a number of shares of common stock equal to one-half of the number of shares purchased by the

investor in the offering. The warrants have an exercise price of $2.00 per share and are exercisable six months from issuance date

and for a term of 5 years from the initial exercise date.

The offering is expected to close on or

about September 9, 2013, subject to satisfaction of customary closing conditions.

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. 333-169847), which was declared effective by the United States Securities

and Exchange Commission ("SEC") on October 14, 2010. 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, Suite 2550, Los Angeles, CA 90067.

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

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

disease, in February 2013, and has received FDA approval to begin Phase II. 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,

ischemic stroke and glioblastoma (brain cancer). The company received FDA approval to commence a Phase I safety trial in chronic

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 is in the last cohort

of 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 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 and LinkedIn

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 June 30, 2013.