AMENDED AND RESTATED ANNUAL INFORMATION FORM

XORTX THERAPEUTICS INC.

AMENDED AND RESTATED ANNUAL INFORMATION FORM

FOR THE FISCAL YEAR ENDED DECEMBER 31,

XORTX THERAPEUTICS INC.

ANNUAL INFORMATION FORM

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021

REFERENCE INFORMATION

In this annual information form (the "AIF"), a reference

to the "Company", "XORTX", "we", "us", "our" and similar words refer to XORTX

Therapeutics Inc. and its subsidiaries or any one of them as the context requires.

All references herein to "dollars" and "$" are

to Canadian dollars, unless otherwise indicated.

Unless otherwise stated, the information set forth in this AIF is as

of December 31, 2021.

CAUTION REGARDING FORWARD-LOOKING

Certain statements contained in this AIF constitute forward-looking statements.

These statements relate to future events or the Company's (as defined herein) future performance. All statements other than statements

of historical fact are forward-looking statements. The use of any of the words "anticipate", "plan", "contemplate",

"continue", "estimate", "expect", "intend", "propose", "might",

"may", "will", "shall", "project", "should", "could", "would",

"believe", "predict", "forecast", "pursue", "potential" and "capable"

and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties

and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.

No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this AIF should

not be unduly relied upon. These statements speak only as of the date of this AIF. In addition, this AIF may contain forward-looking statements

and forward-looking information attributed to third party industry sources.

In particular, forward-looking statements in this AIF include, but are not

limited to, statements about:

our ability to obtain additional financing;

the accuracy of our estimates regarding expenses, future revenues and

capital requirements;

the success and timing of our preclinical studies and clinical trials;

our ability to obtain and maintain regulatory approval of product candidates

we may develop, and the labeling under any approval we may obtain;

regulatory developments in the United States and other countries;

the performance of third-party manufacturers;

our plans to develop and commercialize our product candidates;

our ability to obtain and maintain intellectual property protection

for our product candidates;

the successful development of our sales and marketing capabilities;

the potential markets for our product candidates and our ability to

serve those markets;

the rate and degree of market acceptance of any future products;

the success of competing drugs that are or become available; and

the loss of key scientific or management personnel.

All forward-looking statements, including, without limitation, our examination

of historical operating trends, are based upon our current expectations and various assumptions. Certain assumptions made in preparing

the forward-looking statements include:

the availability of capital to fund planned expenditures;

prevailing regulatory, tax and environmental laws and regulations;

the ability to secure necessary personnel, equipment, supplies and

our ability to manage our growth effectively;

the absence of material adverse changes in our industry or the global

trends in our industry and markets;

our ability to maintain good business relationships with our strategic

our ability to comply with current and future regulatory standards;

our ability to protect our intellectual property rights;

our continued compliance with third-party license terms and the non-infringement

of third-party intellectual property rights;

our ability to manage and integrate acquisitions; and

our ability to raise sufficient debt or equity financing to support our continued

We believe there is a reasonable basis for our expectations and beliefs, but

they are inherently uncertain. We may not realize our expectations, and our beliefs may not prove correct. Actual results could differ

materially from those described or implied by such forward-looking statements. The following uncertainties and factors, among others (including

those set forth under "Risk Factors"), could affect future performance and cause actual results to differ materially from

those matters expressed in or implied by forward-looking statements:

our ability to obtain regulatory approval for our product candidates

without significant delays;

the predictive value of our current or planned clinical trials;

delays with respect to the development and commercialization of our

product candidates, which may cause increased costs or delay receipt of product revenue;

our ability to enroll subjects in clinical trials and thereby complete

trials on a timely basis;

the design or our execution of clinical trials may not support regulatory

the potential for our product candidates to have undesirable side effects;

our ability to face significant competition;

no regulatory agency has made a determination that any of our product

candidates are safe or effective for use by the general public or for any indication;

the competitive threat of generic or other follow-on products;

the likelihood of broad market acceptance of our product candidates;

our ability to obtain Orphan Drug Designation or exclusivity for some

or all of our product candidates;

our ability to commercialize products outside of the United States;

the outcome of reimbursement decisions by third-party payors relating

our expectations with respect to the market opportunities for any product

candidate that we or our strategic partners develop;

our ability to pursue product candidates that may be profitable or

have a high likelihood of success;

our ability to use and expand our therapeutic platforms to build a

pipeline of product candidates;

our ability to meet the requirements of ongoing regulatory review;

the threat of product liability lawsuits against us or any of our strategic

changes in product candidate manufacturing or formulation that may

result in additional costs or delay;

the potential disruption of our business and dilution of our shareholdings

associated with acquisitions and joint ventures;

the potential for foreign governments to impose strict price controls;

the risk of security breaches or data loss, which could compromise

sensitive business or health information;