Mr. Tom Velan reports

VELAN INC.: 2014 NORMAL COURSE ISSUER BID

Velan Inc. has received approval of the Toronto Stock Exchange to proceed with its normal course issuer bid previously announced on Oct. 9, 2014. Under the bid, the corporation may purchase up to 100,000 subordinate voting shares of the corporation. The average daily trading volume for the six-month period preceding Oct. 1, 2014, is 2,586 shares. In accordance with TSX rules, the corporation may repurchase up to 1,000 shares on a daily basis. The bid will commence on Oct. 22, 2014, and terminate on Oct. 21, 2015, or on such earlier date as the corporation may complete its purchases pursuant to the bid. The shares will be purchased on behalf of the corporation by a registered broker through the facilities of TSX or alternative Canadian trading platforms. The price paid for the shares will be the market price at the time of the acquisition, and the number of shares purchased and the timing of any such purchases will be determined by the corporation. During the past 12 months, 18,600 shares were purchased by the corporation at a weighted average price of $17.03.