GNI : Additional FAQ for Our Disclosure on December 27, 2022, “GNI Group and Catalyst Biosciences Signed Agreements to Advance Liver Fibrosis Drug Development”

	January 18, 2023
Company Name:	GNI Group Ltd.
Representative:	Director, Representative Executive Officer,
	President and CEO
	Ying Luo, PhD
	(Security Code: 2160, TSE Growth)
Contact Person:	Director, Investor Relations
	Akihiro Nakano
	(TEL. [phone])

Additional FAQ for Our Disclosure on December 27, 2022, "GNI Group and Catalyst Biosciences Signed

Agreements to Advance Liver Fibrosis Drug Development"

The followings are some additional frequently asked questions after our Initial frequently asked questions (disclosed on December 30, 2022) regarding our disclosure on December 27, 2022, "GNI Group and Catalyst Biosciences Signed Agreements to Advance Liver Fibrosis Drug Development."

This presentation contains statements concerning the current plans, expectations, and strategies of GNI Group Ltd. (GNI Group). Any statements contained herein that pertain to future operating performance and that are not historic facts are forward-looking statements. Forward-looking statements may include, but are not limited to, words such as "believe," "plan," "strategy," "expect," "forecast," "possibility" and similar words that describe future operating activities, business performance, events, or conditions. Forward-looking statements, whether spoken or written, are based on judgments made by the management of GNI Group, based on information that is currently available to it. As such, these forward-looking statements are subject to various risks and uncertainties, and actual business results may vary substantially from the forecasts expressed or implied in forward- looking statements. Consequently, investors are cautioned not to place undue reliance on forward-looking statements.

The information contained in this presentation does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Any decision to invest in or acquire securities of GNI Group must be based wholly on the information contained in the preliminary offering circular issued or to be issued by GNI Group in connection with any such offer and not on the contents hereof.

This material is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote in any jurisdiction pursuant to the proposed transactions or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law.

Note: In places, pro forma figures in the pages which follow may be rounded to underscore direction of the business.

Legends

GNI Group Ltd. (single entity in Japan): the Company

The Company and its subsidiaries: the Group

Beijing Continent Pharmaceuticals, Co. Ltd.: Continent

Catalyst Biosciences, Inc.: CBIO

For Q&A 1-13 and / or for other terminology, please refer to the disclosure on December 27, 2022, "GNI Group and Catalyst Biosciences Signed Agreements to Advance Liver Fibrosis Drug Development" and the first Q&A disclosed on December 30, 2022, "FAQ for 'GNI Group and Catalyst Biosciences Signed Agreements to Advance Liver Fibrosis Drug Development' disclosure."

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Q14: There was a comment in the first disclosure on December 27, 2022, that "the Group intends to buy out these shares within the next two years." How do you finance this purchase of Continent shares that are currently held by China-domiciled Continent shareholders?

A14: The Group has significant investment and commercial banking relationships worldwide, as well as access to the global equity markets. The Group will take into consideration all alternatives in regard to funding this contingent liability, while keeping in mind the interest of the Group's existing shareholders.

Q15: Since CBIO is a money-losing company, wouldn't consolidating it adversely affect your financial results?

A15: CBIO will serve as a platform for the further development of a key IP asset of the GNI Group, F351, with a view to increase economic value for the Group's shareholders. Unlike most other biotechnology companies, CBIO will be able to fund its own R&D in the US, utilizing the profits the Group has retained and potentially raising funds in the US capital markets. This will substantially reduce the financial burden on the GNI Group going forward.

Q16: GNI's disclosure material says CBIO (through CPI, etc.) will own 55.97% of Continent, while CBIO's press release says 65.18%. Why are they different?

A16: In addition to the Group's 55.97% ownership pre-transaction, there were several other smaller shareholders offshore who endorsed the transaction and agreed with the Group to "piggyback" on the Group's transaction.

Q17: There is a rule in Nasdaq that a stock of which price is below $1 will be issued a warning and be delisted unless the stock price goes above $1. CBIO stock price has been below $1 since September 20th, 2022. Will it be delisted from Nasdaq? What are you going to do with it?

A17: There are various standard procedures frequently used in the equity markets to correct such matters that CBIO can utilize, such as reverse stock splits. CBIO will carefully evaluate the most appropriate action, in consultation with Nasdaq and its investment bank advisors, to resolve the issue and avoid any delisting requirements.

Q18: Law firms in the US such as Weiss Law claim that they are "investigating possible breaches of fiduciary duty and other violations of law" regarding this transaction. Is this transaction illegal? Will this investigation impact the transactions with CBIO?

A18: As a public company listed on Nasdaq, from time to time, CBIO may be subject to claims or legal proceedings arising in its ordinary course of business. At this time CBIO is not presently a party to any legal proceedings that in the opinion of its management, would individually or taken together have a material effect on its business, operating results, financial condition, or cash flows.

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