1Q2014CONFIDENTIAL

Theralase Technologies Inc. Roger Dumoulin‐White  

Chapter Title Section

gPresident, Chief Executive Officer

Chapter  Title Section

Company

Anti Cancer Platform TechnologyAnti Cancer Platform TechnologyPatented anti‐cancer drugs known as Photo Dynamic Compounds (PDCs) localize to the DNA of cancer cells and when light activated destroy the DNA resulting in natural cell death (apoptosis) 

HighlightsHighlightsUp to 100% cancer cell kill at very low concentrations (< 0.8µM) 

Virtually 0% toxicity at high concentrations (> 100µM) leading to very high safety profile

More effective at killing cancer cells than FDA approved drugs  (668,000 x ALA, 198 x PHOTOFRIN)

No side effects were observed from treatment (quick evacuation of PDC from  healthy cells and high light fluence required for activation provides extremely high safety profile)

Ult l t i it PDC t bl d t (bl dd )Ultra low toxicity as PDC never enters blood stream (bladder cancer)

Water soluble & readily penetrates cellular membrane (DNA localizing)

Activated by laser light providing excellent specificity and selectivity

Lethal to cancer and bacteria

Able to treat solid core hypoxic tumours, such as: breast, prostate and lung

Research performed at world renowned Princess Margaret Cancer Centre

Activated at long wavelengths (allows deeper tumour destruction)

Issued USA Patents:  6,962,910, 7,612,057, 8,148,360, 8,445,475

Pending USA Patent Applications:  61/801,674, 13/863,089, PCT/US13/36595

O i

Strategy

OpportunityComplete a FDA Phase 1/2a human bladder cancer clinical study with FDA breakthrough status

Execution of a strategic partnering agreement with big pharma for destruction of bladder cancerExecution of a strategic partnering agreement with big pharma for destruction of bladder cancer 

(i.e.: upfront payments , co‐development funds, annual recurring revenue streams)

Strategy2013 ‐Milestone 2 (complete): Destruction of cancer in a live animal mouse model. Demonstrated >99% 

efficacy for a subcutaneous cancerous tumour

2014 ‐Milestone 3 (in progress): Complete validation in orthotopic rat model, dose toxicity study, GMP drug manufacture and FDA Investigational New Drug (IND) application

2015 ‐Milestone 4: Complete FDA phase 1/2a human clinical study with FDA breakthrough status

2016 ‐Milestone 5: Execute strategic partnering agreement with big pharma

Bladder Cancer

USA Bladder Cancer Treatment Annual SpendingUSA Bladder Cancer Treatment Annual Spending $3.9 billion (2012)

Statistics70,000 new cases, > 14,000 deaths in the US each year

386,000 new cases are diagnosed worldwide annually

Standard treatment unchanged with no new drugs approved since 1998

5th most common cancer, 4th in men, 8th in women

Most expensive cancer to treat with a recurrence rate up to 80%

70% of new bladder cancer cases are early stage disease and 90% of bladder cancers are Transitional Cell Carcinoma (TCC)

Current Standard of CareEarly stage disease (Ta, T1): Trans Urethral Resection of the Bladder Tumour (TURBT) followed by treatment y g ( , ) ( ) ywith bacillus Calmette‐Guérin (BCG) – 5 year survival rate of 75%.

Mid Stage disease (T2, T3a/b): Entire bladder removed along with nearby reproductive  organs and lymph nodes in a procedure called a radical cystectomy ‐ 5 year survival rate of 31 to 63% depending on progression of disease.

Late stage disease (T4): Disease has spread to distant sites, such as the bones, liver and lungs and is generally regarded as incurable ‐ 5 year survival rate of 21%.

HT1376 Human Bladder Cancer Cell LineSafety and Efficacy of PDC

Safety: PDC + No light Efficacy: PDC + LightSafety: PDC + No light Efficacy: PDC + Light 

100

12045 J cm‐290 J cm‐2

100

120 45 J cm‐290 J cm‐2

40

60

80

Cell Kill (%

)

40

60

80

Cell Kill (%

)

0

20

0.00125 0.0025 0.005 0.01 0.02 0.04

Concentration (mM)

0

20

0.00125 0.0025 0.005 0.01 0.02 0.04

Concentration (mM)Concentration (mM)

Safety: PDC + No Light Efficacy: PDC + Light Mouse colon cancer (carcinoma)

PDC Efficacy vs. ALA (FDA Approved Drug)

40

60

80

100

ll K

ill (%

)

ALA14A

40

60

80

100

ll K

ill (%

)

ALATPDC

0

20

0.00016 0.0003 0.0008 0.025

Cel

Concentration (mM)

0

20

0.00016 0.0003 0.0008 0.025

Ce

Concentration (mM)Human brain cancer (glioblastoma)

40

60

80

100

ll K

ill (%

)

40

60

80

100

Kill

(%)

0

20

0.00016 0.0003 0.0008 0.025C

elConcentration (mM)

0

20

40

0.00016 0.0003 0.0008 0.025

Cel

l

Concentration (mM)Rat brain cancer (glioma)

40

60

80

100

Kill

(%)

40

60

80

100

Kill

(%)

0

20

40

0.0001 0.0002 0.0005 0.017

Cel

l

Concentration (mM)

0

20

40

0.0001 0.0002 0.0005 0.017

Cel

l

Concentration (mM)

Theralase PDC Efficacy vs. 2 FDA Approved Drugs

33

TLD1633

668 000 198668,000x more effective than ALA

198x more effective than PHOTOFRIN

Destruction of Cancer in Live Animal with PDC

PDC injection of 53 mg kg‐1 4hr Post PDC Injection (Pre Light Activation)

T i d d iTumour induced in animal (BALB/c mice ) with tumour reaching 5.0  0.5 mm in size.

20 Months Post Treatment24hr Post Light Activation

20 Months Post Treatment (No recurrence)

Mice have survived 20Mice have survived 20 months cancer free after only 1 PDC treatment

Preclinical

Live Animal SurvivalLive Animal Survival

Colon Cancer cells injectedIrradiation: λ=530 nm, 192 J 

2013: $0 M2014: $0 M2015: $0 M2016: $250 M

Investment  $10 M

ROI2500% in 3 yrs

Investment vehicleJoint venture with bladder cancer asset placed into an incorporated company with 50/50 ownership split 

Survival of mice up to 20 months (50 human years)between Theralase and investment partner months (50 human years) after one Theralase PDT treatment 

Scientific Risk

Anti‐Cancer Technology Risk

Scientific Riskin‐vitro and small animal in‐vivo results show virtually zero toxicity and up to 100% cancer kill across a wide range of cancers

Manufacturing RiskgDrug manufacturing will be outsourced to a GMP facility. Laser design will be completed by Theralase which is ISO‐13485 certified and has designed and manufactured laser systems for over 20 years. Manufacturing of sub components will occur at ISO‐9001 manufacturing facilities

Regulatory RiskRegulatory RiskVery low as anti‐cancer technology has demonstrated up to 100% effectiveness in bladder cancer cells with virtually zero toxicity as it never enters the blood stream. FDA is very supportive of approving new cancer drugs

Financing Riskg$3.15 M financing completed in November 2013 to commercialize next generation therapeutic laser and commence Phase 1/2a anti‐cancer clinical trial

Liquidity Riskl d h d k d f llCompany currently trades on the TSXV under ticker TLT and is a fully reporting issuer

Execution RiskOutsourced to Princess Margaret Cancer Centre, one of the top 5 cancer institutes in the world. Canada’s top uro‐oncologist and Head of Urology at Princess Margaret Cancer Centre will lead bladder cancer clinical trialsoncologist and Head of Urology at Princess Margaret Cancer Centre will lead bladder cancer clinical trials

Recent Pharma Deals

$1B + royalties  July 2011 ‐Worldwide rights to develop and commercialize Bi‐specific T cell engager antibodies against 2 solid tumour targets. 

$964M + royalties 

Dec 2010 ‐ Exclusive rights to develop and commercialize targeted covalent drugs for 

t t t b d A il ’ A il icancer treatment based on Avila’s AvilomicsTechnology. 

$912M + Aug 2010 ‐Worldwide rights to develop and$912M + royalties 

Aug 2010 ‐Worldwide rights to develop and commercialize cancer drug candidates using Seattle Genetics’ antibody‐drug conjugate program. 

$815M + royalties 

Jan 2012 ‐ Collaboration to discover and develop small molecule drugs against oncology‐relevant 

t i t i i t ti

Note: Deals include up‐front, milestone and royalty payments on net sales. 

protein‐protein interactions. 

Recent Pharma Deals

$700 M + royalties 

Jan 2012 ‐ Collaboration to discover and develop drugs that target tumor metabolism mechanisms. 

$540 M + royalties 

June 2010 ‐ Rights to discover, develop and commercialize novel anti‐cancer stem cell therapeutics targeting the Wnt signaling pathway. p g g g g p y

$508 M + royalties 

Aug 2010 ‐ Exclusive worldwide rights to develop and commercialize drug candidates arising from y g g fits PD‐1 program for treatment of cancer. 

$466 M + Oct 2010, Dec 2011 ‐ Exclusive worldwide rights to$466 M + royalties 

Oct 2010, Dec 2011  Exclusive worldwide rights to discover, develop, manufacture and market TAP compounds for the treatment of cancer. 

Note: Deals include up‐front, milestone and royalty payments on net sales. 

Company

Therapeutic Laser Platform TechnologyTherapeutic Laser Platform TechnologyDesigner and manufacturer of cold laser technology used to heal a wide range of nerve, muscle and joint conditions (i.e.: Low Back Pain, Knee Osteoarthritis, Shoulder Tendonitis) 

HighlightsHighlightsUsed daily by thousands of practitioners worldwide

Millions of patients successfully treated

Superpulsed technology able to penetrate up to 4” into tissue (best in class)

Proven via clinical studies to  eliminate pain, reduce inflammation and accelerate tissue healing through 3 independent cellular pathways (>90% efficacy)

FDA H lth C d d CE d f l i t 180 t iFDA, Health Canada and CE approved for sale into 180 countries

Large installed base of over 800 systems in Canada and 400 systems in the US and Internationally

Patented next generation therapeutic laser technology completed and launching 4Q 2014

Opportunity

Strategy

OpportunityExpand sales and marketing into Western Canada and the 5 largest US States (30% of US GDP) 

Commercialize next generation therapeutic laser (TLC‐2000) 

$US pain market exceeds $100 Billion annually and is growing rapidly with aging population and rising healthcare costs

StrategyLaunch Canadian sales and marketing offices in Toronto (complete), Calgary, Manhattan, Los Angeles, Tampa, Houston and Chicago in 2014 and 2015

Expand manufacturing representatives and distributors across Canada and the US in non‐key  territories

h h l h h h l dLaunch next generation TLC‐2000 therapeutic laser system through 800 existing Theralase customers in Canada and 400 existing Theralase customers in US in 4Q2014

Displace competitive products through new sales and marketing offices in Canada and the US with next generation TLC‐2000 therapeutic laser system in 2015

Theralase Therapeutic Laser Comparison

TLC‐1000

p pTheralase             TLC ‐1007H

Microlight  ML‐830

Erchonia Quantum MEDX Meditech

Wavelength (nm) 905 and 660 830 635 635 785 840

Drive Platform / FDA Approval

Super Pulse / 

NHN

Continuous Wave / NHN

Continuous Wave / NHN

Continuous Wave / ILY

Continuous Wave / ILY

Continuous Wave / ILY / 

NHN

Indicated Use Knee PainHand and Wrist Pain

Neck and Shoulder  Heat Heat

Heat / Rotator Cuff 

Wrist PainPain Tendonitis

Average Power (mW)

7 X 100 mW         6 x 25 mW

3 X 30 mW 2 X 5 mW 4 X 5 mW 16 X 5 mW100 X 15 mW

Peak Power ( W)

50,000 mW 30 mW 10 mW 5 mW 5 mW 15 mW(mW)

,

Total Actual Tested Power

850 90 10 20 72 150

Photon Density Per Laser Diode 5000 3 1 0.5 0.5 1.5Per Laser Diode 

(W/cm2)5000 3 1 0.5 0.5 1.5

Approximate List Price (USD)

$15,000 $10,000 $14,000 $12,000 $8,000 $30,000

Approximate cost $17 $112 $1 400 $600 $112 $200

per mW (USD)$17 $112 $1,400 $600 $112 $200

TLC‐2000

Next Generation Therapeutic Laser Launch 2014Next Generation Therapeutic Laser – Launch 2014

Dramatically improves efficacy over existing

Key BenefitsDramatically improves efficacy over existing technology by targeting tissue based on a patient’s physical  characteristics (patient specific)

Allows migration from capital equipment model to recurring revenue model

No up front fee, with $1,000 trade up allowance to replace existing technology

2014 Objective: Installed base of 400 units at $16,500 each, equates to $6.6 M in annual revenue

USA Patent: 6,413,267, Canadian Patent: 2,315,521, l i l i d i d iBelgium, Italy, United Kingdom, Germany, France, Spain 

Patent: 1075854

2013 PRACTITIONER SURVEY

Company

2013 PRACTITIONER SURVEY 

20 Canadian and US Theralase customers (MDs, DCs, NPs PTs)

Survey ResultsPractitioners charge between $25 to $75 per treatment  (Average: $50)

Practitioners treat a single location 8 to 12 minutes per location (Average: 10 minutes)

Practitioners  treat 100 to 400 patient treatments per month (Average: 200 treatments per month)

SummaryOn average, Canadian and US medical practitioner utilize the Theralase therapeutic medical laser for 2000 minutes per month charging patients $5 per minute, generating $10,000 in monthly revenue for their practice

At an average purchase price of $16,500 for the Theralase TLC‐2000 therapeutic medical laser system, the ROI is > 700%700%

Business Model

TLC‐2000

Business ModelNo Up Front FeePractitioners sign a 42 month lease (6 payments @ $99 per month, followed by 36 payments at $500 + tax per month) for the Professional Model, which allows for a $1,000 trade up allowance. Program includes: 42 month 

i d 2 h k i d f 2 h i i hequipment warranty and 42 month marketing program. At end of 42 month term, customer must continue with monthly payments into perpetuity or system ceases to operate.  

Unlimited Use (Tracked through Internet)10 treatments per month @ $50 per treatment covers cost of lease Medical practitioner retains all revenue in10 treatments per month @ $50 per treatment covers cost of lease. Medical practitioner retains all revenue in excess of $500 per month (typically $10,000 per month generated from use of product)Monthly report of usage per condition e‐mailed to customer with marketing support to increase usage per condition

C l iConclusions Practitioner Revenue: 200 patient treatments @ $50 per treatment = $10,000 monthly revenuePractitioner Cost: $500 per monthPractitioner is generating 20X return on investment

2014 ObjectiveInstalled base of 400 units financed initially through 42 month leases at $16,500 each equating to $6.6 M in annual revenue

U S Healthcare Demographics

US Demographics

U.S. Healthcare Demographics

Healthcare Practitioners* 2008 2017 % increase

Veterinarians 59,700 79,400 33.0%Veterinarians 59,700 79,400 33.0%

Physical Therapists 185,500 241,700 30.3%

Medical Doctors 661,000 805,500 21.9%

Chiropractors 49,100 58,700 19.6%

Dentists 141,900 164,000 15.6%

Podiatrists 12,200 13,300 9.0%

Hospitals 5,795 5,795 0.0%

Total 1,115,195 1,368,395 18.5%

3,500 unit installed base(target 2016) 0.31% 0.25%

* All statistics from the U.S. Bureau of Labor Statistics, Washington, DC, Occupational Outlook Handbook, 2010 – 2011 edition

Scientific Risk

Therapeutic Laser Technology Risk

Scientific RiskZero. Alpha prototype is already designed and patented.

Manufacturing RiskZero Laser manufacturing will be completed by Theralase which is ISO 13485 certified and has designed andZero. Laser manufacturing will be completed by Theralase which is ISO‐13485 certified and has designed and manufactured laser systems for over 20 years. 

Regulatory RiskZero. Current therapeutic laser technology is already FDA, Health Canada and CE approved. The next generation willZero. Current therapeutic laser technology is already FDA, Health Canada and CE approved. The next generation will use these approvals for regulatory approval.

Financing RiskZero. $3.15 M financing completed in November 2013 to commercialize next generation therapeutic laser and commence Phase 1 / 2a anti‐cancer clinical trial.

Liquidity RiskVirtually zero. Company currently trades on the TSXV under ticker TLT and is a fully reporting issuer.

Execution RiskExtremely Low. Theralase will displace its own technology in 2014 to achieve sales objectives. Theralase will displace a small portion of competitive products to achieve 2015 and 2016 objectives.

Management Team

Management and Advisors

Board of DirectorsManagement TeamRoger Dumoulin‐White, P. Eng, President & CEOFounded Theralase in 1995, 27+ years as a senior manager with private and public companies 

Arkady Mandel MD PhD DSc Chief Scientific

Board of DirectorsS. Donald Moore –Director & senior officer to several public companies

Roger Dumoulin‐White ‐ Company’s founder, President & CEO with  previous senior management experience with Ford Motor Co.Arkady Mandel, MD, PhD., DSc, Chief Scientific 

Officer 21+ years experience as a key founder of therapeutic uses of lasers in dermatology and other areas of clinical medicineKristina Hachey, CGA, CFO

Randy Bruder ‐ Owner and operator of a wholesale / retail operation for the last 25 years

Matt Perraton ‐ 13+ years of financial experience for TD Waterhouse

17+ years of experience in finance and financings in public and private  companiesWayne Embree, VP Engineering38+ years of experience in designing and managing design teams in the production of electronics devices

Guy Anderson ‐ 16+ years of financial experience with the Investment Planning Counsel

Dr. James Andrews, American Sports Medicine Institute Scientific & Medical Advisors

design teams in the production of electronics devices

Princess Margaret Cancer Centre ‐ University Health Network

Dr. Jeffrey Dugas, American Academy of Orthopedic Surgeons, ASMI, International Cartilage Repair Society 

Kevin Wilk DPT, American Physical Therapy Association, ASMI

Dr. Lyle Cain, American Orthopedic Society for Sports Medicine, 

Strong Strategic Partnerships

Ontario Centers of Excellence – Photonics

National Research Council ‐ IRAP

Virginia Tech

Michael Jewett MD, Professor of Surgery (Urology) at Univ. of Toronto, Surgical Oncology at Princess Margaret Cancer Centre

Lothar Lilge PhD, Professor in the Department of Medical Biophysics at the University of Toronto, Senior Scientist Ontario 

Virginia Tech 

Buffalo Niagara Medical Campus

Scripps Research Institute

Cancer Institute, Princess Margaret Cancer Centre

Investors

Why Invest?Why Invest?

Patented TechnologyPatented anti‐cancer technology for bladder cancer

Patented next generation TLC‐2000 therapeutic laser technology

Large Market Opportunity$$3.9 Billion bladder cancer treatment market in US, with no new drugs approved since 1998

$100 Billion pain market in US

Experienced Management TeamExperienced management team with ability to execute on strategic initiatives

Contact Information

h l h lTheralase Technologies Inc.1945 Queen Street EastToronto, Ontario, M4L 1H7Canada

TLT:TSXVRoger Dumoulin‐WhiteFounder President & CEOFounder, President & CEO1‐866‐THE‐LASE (843‐5273) x225rwhite@theralase.com

Common shares:  65,726,309 

Stock price: $0.50

Market capitalization: $32.8 M

Auditors: Collins Barrows

Legal Counsel: Blaney McMurtry

Transfer Agent: TMX Equity

Forward Looking Statements

Forward Looking Statements

Forward Looking StatementsCertain statements contained or incorporated in this presentation, which deal with the Company’s financial conditionand operating results, include information, analyses and projections as to future corporate developments which arecurrently in the planning stage, and on the projected operating financial performance of the Company, whichconstitute forward looking statements Such forward looking statements made with special reference to theconstitute forward‐looking statements. Such forward‐looking statements, made with special reference to theCompany’s ongoing technologically complex healthcare and medical device research and development efforts, whichmay include in‐house and independent clinical trials, testing new medical technologies and their applications, involveknown and unknown risks and uncertainties that could cause actual events and results to differ materially from thoseestimated or anticipated and which may have been implied or expressed in such forward‐looking statements. Noconclusions as to the successful outcome of the ongoing and planned research and development projects in which theC i i l d i d d i li d h b f di d i d fi i iCompany is involved are intended or implied nor can they be foreseen or predicted prior to definitive corporateannouncements as to their outcome. Certain forward looking statements are identified by words such as “believe”,“anticipate”, “estimate”, “expect”, “intend”, “plan”, “expect”, “project”, “may”, and “will” and the negative of suchexpressions, although not all forward looking statements contain these identifying words, any statements that refer toexpectations, projections or other characterizations of future events or circumstances are forward lookingstatements. Although Theralase believes that the expectations reflected in any forward looking statements made ing p y gthis presentation are reasonable, such statement are based on a number of assumptions which may prove to beincorrect, including, but not limited to assumptions relating to the risks and factors set out below. Accordingly, noassurances can be given that any of the events or circumstances contemplated by any such forward lookingstatements will transpire or occur or, if any of them transpire or occur or, if any of them transpire or occur, whatimpact they will have on Theralase’s results of operations or financial condition. A more complete list of risks anduncertainties inherent to the Company’s industry can be found in our MD&A reports listed on www sedar comuncertainties inherent to the Company s industry can be found in our MD&A reports listed on www.sedar.com.

Furthermore, the forward‐looking statements contained in this presentation are made as of the date hereof and theCompany does not undertake any obligations to update publicly or to revise any of the included forward‐lookingstatements, whether as a result of new information, future events, or otherwise. The forward‐looking statementscontained in this presentation are expressly qualified by this cautionary statement.p p y q y yAll references to dollars herein are to Canadian dollars except as otherwise indicated.