----

| ☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) or (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---------|----------------------------------------------------------------------------------------------------------|

| ☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED FEBRUARY 29, 2016 |
|---------|----------------------------------------------------------------------------------------------------------------------------------|

| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---------|-----------------------------------------------------------------------------------------------|

| ☐ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---------|--------------------------------------------------------------------------------------------------|

|                            |                                                                                |
|---------------------------------|-------------------------------------------------------------------------------------|
| Title of each class   | Name of each exchange on which registered   |
| Common Shares, no par value     | The NASDAQ Capital Market                                                           |
| U.S. GAAP  ☐ | International Financial Reporting Standards asissued by the International Accounting Standards Board  ☒ | Other  ☐ |
|-----------------------------------|------------------------------------------------------------------------------------------------------------------------------|--------------------------|

----

| INTRODUCTION AND USE OF CERTAIN TERMS                      | 1                                                                            |
|------------------------------------------------------------|------------------------------------------------------------------------------|
|                                                       |                                                                         |
| SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS          | 2                                                                            |
|                                                       |                                                                         |   |
| PART I                                                     | 3                                                                            |
|         Item  1.   | Identity of Directors, Senior Management and Advisers                        | 3 |
|         Item  2.   | Offer Statistics and Expected Timetable                                      | 3 |
|         Item  3.   | Key Information                                                              | 3 |
|         Item  4.   | Information on the Company                                                   | 19 |
|         Item 4A.        | Unresolved Staff Comments                                                    | 36 |
|         Item 5.         | Operating and Financial Review and Prospects                                 | 36 |
|                                                       |                                                                         |   |
|                                                       |                                                                         |   |
| SELECTED QUARTERLY FINANCIAL DATA                          | 39                                                                           |
|         Item  6.   | Directors, Senior Management and Employees                                   | 46 |
|         Item 7.         | Major Shareholders and Related Party Transactions                            | 62 |
|         Item 8.         | Financial Statements                                                         | 62 |
|         Item 9.         | The Offer and Listing                                                        | 63 |
|         Item  10.  | Additional Information                                                       | 64 |
|         Item  11.  | Quantitative and Qualitative Disclosure about Market Risk                    | 73 |
|         Item  12.  | Description of Securities other than Equity Securities                       | 74 |
|                                                       |                                                                         |   |
|                                                       |                                                                         |   |
| PART II                                                    | 74                                                                           |
|         Item  13.  | Defaults, Dividend Arrearages and Delinquencies                              | 74 |
|         Item 14.        | Material Modification to the Rights of Security Holdings and Use of Proceeds | 74 |
|         Item  15.  | Controls and Procedures                                                      | 74 |
|         Item  16.  | Reserved                                                                     | 75 |
|         Item 16A.       | Audit Committee Financial Expert                                             | 75 |
|         Item  16B. | Code of Ethics                                                               | 75 |
|         Item 16C.       | Principal Accountant Fees and Services                                       | 75 |
|         Item  16D. | Exemptions from the Listing Standards for Audit Committees                   | 76 |
|         Item  16E. | Purchases of Equity Securities by the Issuer and Affiliated Purchasers       | 76 |
|         Item  16F. | Change in Registrant's Certifying Accountant                                 | 76 |
|         Item 16G.       | Corporation Governance                                                       | 76 |
|         Item 16H.       | Mining Safety Disclosure                                                     | 76 |
|                                                       |                                                                         |   |
|                                                       |                                                                         |   |
| PART III                                                   | 76                                                                           |
|         Item  17.  | Financial Statements                                                         | 76 |
|         Item 18.        | Financial Statements                                                         | 76 |
|         Item 19.        | Exhibits                                                                     | 76 |
|                                                       |                                                                         |   |
| EXHIBITS INDEX                                             | 113                                                                          |
|                                                       |                                                                         |
| SIGNATURES                                                 | 114                                                                          |

----

|       |   |    |   |
|------------|--------|---------|--------|
|       |   | Average |   |
| 2011  |   | 1.0151  |   |
| 2012  |   | 1.0008  |   |
| 2013  |   | 0.9903  |   |
| 2014  |   | 0.9555  |   |
| 2015  |   | 0.8003  |   |
| 2016  |   | 0.7645  |   |
|                |   |   |   |   |   |   |
|---------------------|--------|--------|--------|--------|--------|--------|
|                |   | Low    |   |   | High   |   |
| November 2015  |   | 0.7485 |   |   | 0.7637 |   |
| December 2015  |   | 0.7148 |   |   | 0.7485 |   |
| January 2016   |   | 0.6854 |   |   | 0.7159 |   |
| February 2016  |   | 0.7123 |   |   | 0.7395 |   |
| March 2016     |   | 0.7425 |   |   | 0.7715 |   |
| April 2016     |   | 0.7593 |   |   | 0.7972 |   |
| May 2016       |   | 0.7613 |   |   | 0.7969 |   |

----

|  | · | Acasti's ability to conduct all required clinical and nonclinical trials for CaPre®, including the timing and results of those clinical trials; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Acasti's ability to commercialize and distribute CaPre® and ONEMIA® in the United States and elsewhere; |
|--|--------|-------------------------------------------------------------------------------------------------------------------|

|  | · | Acasti's estimates of the size of the potential markets for CaPre® and ONEMIA® and the rate and degree of market acceptance of CaPre® and ONEMIA®; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the benefits of CaPre® and ONEMIA® as compared to other products in the pharmaceutical, medical food and natural health products markets, respectively; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Acasti's ability to maintain and defend its intellectual property rights; |
|--|--------|---------------------------------------------------------------------------|

|  | · | Acasti's ability to maintain its supply of raw materials, including krill oil, from its parent company; |
|--|--------|---------------------------------------------------------------------------------------------------------|

|  | · | Acasti's ability to secure a third-party supplier to provide Acasti, as needed, with raw materials to supplement its operations, including raw krill oil ("RKO"), used to manufacture CaPre® and ONEMIA®; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Acasti's ability to secure and maintain a third-party to manufacture CaPre® whose manufacturing processes and facilities are in compliance with current good manufacturing practices ("cGMP"); |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Acasti's ability to obtain and maintain regulatory approval of CaPre®, and the labeling requirements that would apply under any approval Acasti may obtain; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | regulatory developments affecting the pharmaceutical, medical food and  natural health products markets in the United States and elsewhere; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the size and growth of the potential markets for CaPre® and ONEMIA® and Acasti's ability to serve those markets; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------|

|  | · | the rate and degree of market acceptance of CaPre®, if it reaches commercialization; |
|--|--------|-------------------------------------------------------------------------------------------|

|  | · | the success of competing products that are or become available; and |
|--|--------|---------------------------------------------------------------------|

|  | · | Acasti's expectations regarding its financial performance, including its revenues, research and development, expenses, gross margins, liquidity, capital resources and capital expenditures. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | whether the current and future clinical trials by the Corporation will be successful; |
|--|--------|---------------------------------------------------------------------------------------|

|  | · | whether CaPre® and ONEMIA® can be successfully commercialized; |
|--|--------|--------------------------------------------------------------------------|

|  | · | the Corporation's reliance on third parties for the manufacture, supply and distribution of its products and for the supply of raw materials, including the ability to find a third party to supply RKO in sufficient quantities and quality and to produce CaPre® under cGMP standards; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the Corporation's reliance on a limited number of distributors for ONEMIA® and its ability to secure distribution arrangements for CaPre® if it reaches commercialization; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the Corporation's ability to manage future growth effectively; |
|--|--------|----------------------------------------------------------------|

|  | · | the Corporation's ability to achieve profitability; |
|--|--------|-----------------------------------------------------|

|  | · | the Corporation's ability to secure future financing from Neptune or other third party sources on favorable terms or at all; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | the Corporation's ability to gain acceptance of its products in its markets; |
|--|--------|------------------------------------------------------------------------------|

|  | · | the Corporation's ability to attract, hire and retain key management and scientific personnel; |
|--|--------|------------------------------------------------------------------------------------------------|

|  | · | the Corporation's ability to achieve its publicly announced milestones on time; |
|--|--------|---------------------------------------------------------------------------------|

|  | · | the Corporation's ability to successfully defend any product liability lawsuits that may be brought against it; |
|--|--------|-----------------------------------------------------------------------------------------------------------------|

|  | · | intense competition from other companies in the pharmaceutical, medical food and natural health product industries; |
|--|--------|---------------------------------------------------------------------------------------------------------------------|

|  | · | the Corporation's ability to secure and defend its intellectual property rights and to avoid infringing upon the intellectual property rights of third parties; and |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the Corporation's status as a foreign private issuer/emerging growth company. |
|--|--------|-------------------------------------------------------------------------------|

| Item  1. | Identity of Directors, Senior Management and Advisers |
|---------------|-------------------------------------------------------|

| Item  2. | Offer Statistics and Expected Timetable |
|---------------|-----------------------------------------|

| Item  3. | Key Information |
|---------------|-----------------|

| A. | Selected Financial Data |
|----|-------------------------|

|                                              |   |              |       |   |              |   |        |              |   |   |              |   |   |              |       |
|---------------------------------------------------|--------|-------------------|------------|--------|-------------------|--------|-------------|-------------------|--------|--------|-------------------|--------|--------|-------------------|------------|
|                                              |   | February 29, 2016 |       |   | February 28, 2015 |   |        | February 28, 2014 |   |   | February 28, 2013 |   |   | February 29, 2012 |       |
| Revenue from sales                           |   | $                 | 37,656     |   |              | $      | 270,615     |              |   | $      | 500,875           |   |   | $                 | 724,196    |   |   | $ | 10,415 |   |
| Loss from operating activities          |   | $                 | (9,611,418 | )      |              | $      | (12,394,461 | )                 |   | $      | (10,799,706       | )      |   | $                 | (6,979,733 | ) |   | $ | (6,512,842 | ) |
| Net loss and total comprehensive loss   |   | $                 | (6,316,731 | )      |              | $      | (1,654,724  | )                 |   | $      | (11,611,649       | )      |   | $                 | (6,892,360 | ) |   | $ | (6,500,933 | ) |
| Basic and diluted loss per share             |   | $                 | (0.59      | )      |              | $      | (0.16       | )                 |   | $      | (1.38             | )      |   | $                 | (0.95      | ) |   | $ | (0.97 | ) |
| Total assets                                 |   | $                 | 28,517,322 |   |              | $      | 37,208,105  |              |   | $      | 45,631,803        |   |   | $                 | 12,170,048 |   |   | $ | 15,728,860 |   |
| Total liabilities                            |   | $                 | 1,297,290  |   |              | $      | 3,979,786   |              |   | $      | 12,352,303        |   |   | $                 | 2,446,372  |   |   | $ | 1,259,518 |   |
| Share capital                                |   |              | 61,972,841 |   |              |   | 61,627,743  |              |   |   | 61,027,307        |   |   |              | 28,922,710 |   |   |   | 28,614,550 |   |
| Warrants and rights                          |   |              | –    |   |              |   | –     |              |   |   | 406,687           |   |   |              | 406,687    |   |   |   | 313,315 |   |
| Weighted average number of shares outstanding     |   |              | 10,659,936 |   |              |   | 10,617,704  |              |   |   | 8,436,893         |   |   |              | 7,275,444  |   |   |   | 6,723,164 |   |
| Dividends declared per share                 |   |              | —    |   |              |   | —     |              |   |   | —           |   |   |              | —    |   |   |   | — |   |

| B. | Capitalization and Indebtedness |
|----|---------------------------------|

----

| C. | Reasons for the Offer and Use of Proceeds |
|----|-------------------------------------------|

| D. | Risk Factors |
|----|--------------|

|  | · | the FDA or comparable foreign regulatory authorities or IRBs may disagree with the design or implementation of the Corporation's clinical trials; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the Corporation may not be able to provide acceptable evidence of the safety and efficacy of CaPre®; |
|--|--------|-----------------------------------------------------------------------------------------------------------|

|  | · | the results of the Corporation's clinical trials may not meet the level of statistical or clinical significance required by the FDA or other regulatory agencies for marketing approval; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the dosing of CaPre® in a particular clinical trial may not be at an optimal level; |
|--|--------|------------------------------------------------------------------------------------------|

|  | · | patients in the Corporation's clinical trials may suffer adverse effects for reasons that may or may not be related to CaPre®; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | the data collected from the Corporation's clinical trials may not be sufficient to support the submission of an NDA for CaPre® or to obtain regulatory approval for CaPre® in the United States or elsewhere; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the FDA or comparable foreign regulatory authorities may not approve the manufacturing processes or facilities of third-party manufacturers with which the Corporation contracts for clinical and commercial supplies; and |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the approval policies or regulations of the FDA or comparable foreign regulatory authorities may significantly change in a manner rendering the Corporation's clinical data insufficient for approval. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | demonstration of clinical safety and efficacy of prescription omega-3 products generally; |
|--|--------|-------------------------------------------------------------------------------------------|

|  | · | relative convenience, pill burden and ease of administration; |
|--|--------|---------------------------------------------------------------|

|  | · | the prevalence and severity of any adverse side effects; |
|--|--------|----------------------------------------------------------|

|  | · | the willingness of physicians to prescribe CaPre® and of the target patient population to try new therapies; |
|--|--------|-------------------------------------------------------------------------------------------------------------------|

|  | · | efficacy of CaPre® compared to competing products, including omega-3 dietary supplements; |
|--|--------|------------------------------------------------------------------------------------------------|

|  | · | the introduction of any new products, including generic prescription omega-3 products, that may in the future become available to treat indications for which CaPre® may be approved; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | new procedures or methods of treatment that may reduce the incidences of any of the indications for which CaPre® shows utility; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|  | · | effective pricing of CaPre®; |
|--|--------|-----------------------------------|

|  | · | the inclusion of prescription omega-3 products in applicable treatment guidelines; |
|--|--------|------------------------------------------------------------------------------------|

|  | · | the effectiveness of the Corporation's or any future collaborators' sales and marketing strategies; |
|--|--------|-----------------------------------------------------------------------------------------------------|

|  | · | negative perception of market regarding limitations or warnings contained in FDA-approved labeling; |
|--|--------|-----------------------------------------------------------------------------------------------------|

----

|  | · | the Corporation's ability to obtain and maintain sufficient third-party coverage or reimbursement from government health care programs, including Medicare and Medicaid, private health insurers and other third-party payors; and |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the willingness of patients to pay out-of-pocket in the absence of third-party coverage or reimbursement. |
|--|--------|-----------------------------------------------------------------------------------------------------------|

----

|  | · | restrictions on the marketing or manufacturing of the product, withdrawal of the product from the market, or voluntary or mandatory product recalls; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | issuance of warning letters or untitled letters; |
|--|--------|--------------------------------------------------|

|  | · | clinical holds; |
|--|--------|-----------------|

|  | · | injunctions or the imposition of civil or criminal penalties or monetary fines; |
|--|--------|---------------------------------------------------------------------------------|

|  | · | suspension or withdrawal of regulatory approval; |
|--|--------|--------------------------------------------------|

|  | · | suspension of any ongoing clinical trials; |
|--|--------|--------------------------------------------|

|  | · | refusal to approve pending applications or supplements to approved applications filed by the Corporation, or suspension or revocation of product license approvals; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | suspension or imposition of restrictions on operations, including costly new manufacturing requirements; or |
|--|--------|-------------------------------------------------------------------------------------------------------------|

|  | · | product seizure or detention or refusal to permit the import or export of product. |
|--|--------|------------------------------------------------------------------------------------|

----

----

|  | · | not approving the prices charged for health care products; |
|--|--------|------------------------------------------------------------|

|  | · | limiting both coverage and the amount of reimbursement for new therapeutic products; |
|--|--------|--------------------------------------------------------------------------------------|

|  | · | denying or limiting coverage for products that are approved by the regulatory agencies but are considered to be experimental or investigational by third-party payors; and |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | refusing to provide coverage when an approved product is used in a way that has not received regulatory marketing approval. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------|

|  | · | the FDA, Health Canada or similar regulatory authorities not granting permission to proceed and placing the clinical study on hold; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------|

|  | · | subjects failing to enroll or remain in the Corporation's trials at the rate the Corporation expects; |
|--|--------|-------------------------------------------------------------------------------------------------------|

|  | · | a facility manufacturing CaPre® being ordered by the FDA or other government or regulatory authorities to temporarily or permanently shut down due to violations of cGMP requirements or other applicable requirements, or cross-contaminations of product candidates in the manufacturing process; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | any changes to the Corporation's manufacturing process that may be necessary or desired; |
|--|--------|------------------------------------------------------------------------------------------|

|  | · | subjects choosing an alternative treatment for the indications for which the Corporation is developing CaPre®, or participating in competing clinical studies; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | subjects experiencing severe or unexpected drug-related adverse effects; |
|--|--------|--------------------------------------------------------------------------|

|  | · | reports from clinical testing on similar technologies and products raising safety and/or efficacy concerns; |
|--|--------|-------------------------------------------------------------------------------------------------------------|

----

|  | · | third-party clinical investigators losing their license or permits necessary to perform the Corporation's clinical trials, not performing the Corporation's clinical trials on their anticipated schedule or employing methods not consistent with the clinical trial protocol, cGMP requirements, or other third parties not performing data collection and analysis in a timely or accurate manner; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | inspections of clinical study sites by the FDA, Health Canada or similar regulatory authorities or IRBs finding regulatory violations that require the Corporation to undertake corrective action, result in suspension or termination of one or more sites or the imposition of a clinical hold on the entire study, or that prohibit the Corporation from using some or all of the data in support of its marketing applications; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | third-party contractors becoming debarred or suspended or otherwise penalized by the FDA, Health Canada or other government or regulatory authorities for violations of regulatory requirements, in which case the Corporation may need to find a substitute contractor, and the Corporation may not be able to use some or any of the data produced by such contractors in support of its marketing applications; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | one or more IRBs refusing to approve, suspending or terminating the study at an investigational site, precluding enrollment of additional subjects, or withdrawing its approval of the trial; reaching agreement on acceptable terms with prospective CRO and clinical trial sites, the terms of which can be subject to extensive negotiation and may vary significantly among different CROs and trial sites; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | deviations of the clinical sites from trial protocols or dropping out of a trial; |
|--|--------|-----------------------------------------------------------------------------------|

|  | · | the addition of new clinical trial sites; and |
|--|--------|-----------------------------------------------|

|  | · | the inability of the CRO to execute any clinical trials for any reason. |
|--|--------|-------------------------------------------------------------------------|

----

|  | · | becomes unavailable for any reason, including as a result of the failure to comply with current good manufacturing practices, or cGMP regulations; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | experiences manufacturing problems or other operational failures, such as equipment failures or unplanned facility shutdowns required to comply with cGMP or damage from any event, including fire, flood, earthquake, business restructuring or insolvency; or |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | fails or refuses to perform its contractual obligations under its agreement with the Corporation, such as failing or refusing to deliver the quantities requested on a timely basis. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | any rights under Canadian, U.S. or foreign patents owned by the Corporation or other patents that Neptune and other third parties license to the Corporation will not be curtailed; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | the Corporation was the first inventor of inventions covered by its issued patents or pending applications or that the Corporation was the first to file patent applications for such inventions; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the Corporation's pending or future patent applications will be issued with the breadth of claim coverage sought by the Corporation, or be issued at all; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the Corporation's competitors will not independently develop or patent technologies that are substantially equivalent or superior to the Corporation's technologies; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | any of the Corporation's trade secrets will not be learned independently by its competitors; or |
|--|--------|-------------------------------------------------------------------------------------------------|

|  | · | the steps the Corporation takes to protect its intellectual property will be adequate. |
|--|--------|----------------------------------------------------------------------------------------|

----

|  | · | result in costly litigation; |
|--|--------|------------------------------|

|  | · | divert the time and attention of the Corporation's technical personnel and management; |
|--|--------|----------------------------------------------------------------------------------------|

|  | · | cause product development or commercialization delays, including delays in clinical trials for CaPre®; |
|--|--------|-------------------------------------------------------------------------------------------------------------|

|  | · | prevent the Corporation from commercializing CaPre® until the asserted patent expires or is held finally invalid or not infringed in a court of law; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | require the Corporation to cease or modify its use of the technology and/or develop non-infringing technology; or |
|--|--------|-------------------------------------------------------------------------------------------------------------------|

|  | · | require the Corporation to enter into royalty or licensing agreements. |
|--|--------|------------------------------------------------------------------------|

----

----

|  | · | decreased demand for ONEMIA®, CaPre® or any future products that the Corporation may develop; |
|--|--------|---------------------------------------------------------------------------------------------------------|

|  | · | injury to the Corporation's reputation; |
|--|--------|-----------------------------------------|

|  | · | withdrawal of clinical trial participants; |
|--|--------|--------------------------------------------|

|  | · | costs to defend the related litigation; |
|--|--------|-----------------------------------------|

|  | · | a diversion of management's time and the Corporation's resources; |
|--|--------|-------------------------------------------------------------------|

|  | · | substantial monetary awards to consumers, trial participants or patients; |
|--|--------|---------------------------------------------------------------------------|

|  | · | product recalls, withdrawals or labeling, marketing or promotional restrictions; |
|--|--------|----------------------------------------------------------------------------------|

|  | · | loss of revenue; |
|--|--------|------------------|

|  | · | the inability to commercialize CaPre®; |
|--|--------|---------------------------------------------|

|  | · | the inability to continue the sale, marketing and distribution of ONEMIA®; and |
|--|--------|-------------------------------------------------------------------------------------|

|  | · | a decline in the price of the Common Shares. |
|--|--------|----------------------------------------------|

----

|  | · | investors and analysts placing a different, and possibly lower, value on the Common Shares to reflect a lower degree of exposure by Neptune to Acasti's krill oil-based pharmaceutical business; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Acasti making decisions in connection with the development and commercialization of Acasti's products with less or no involvement and approval from Neptune; and |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a limited availability of market quotations for our securities; |
|--|--------|-----------------------------------------------------------------|

|  | · | reduced liquidity for our securities; |
|--|--------|---------------------------------------|

|  | · | a determination that our common stock is a "penny stock" which will require brokers trading in our Common Shares to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for our securities; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a limited amount of news and analyst coverage; and |
|--|--------|----------------------------------------------------|

|  | · | a decreased ability to issue additional equity securities or obtain additional equity or debt financing in the future. |
|--|--------|------------------------------------------------------------------------------------------------------------------------|

----

----

| Item  4. | Information on the Company |
|---------------|----------------------------|

| A. | History and Development of the Company |
|----|----------------------------------------|

----

| B. | Business Overview |
|----|-------------------|

----

----

----

----

----

----

----

----

----

----

| Patent Family Description                         | Description           | WO (PCT)Application Number&U.S. Patent Number | Expiration Date of the Patent Family | Numberof Patents Worldwide           |
|---------------------------------------------------|-----------------------|---------------------------------------------------|--------------------------------------|--------------------------------------|
| Concentrated Therapeutic Phospholipid Composition | Composition of Matter | WO2011050474 &US8,586,567;               | 2028**                               | 14*(pending in approx. 38 countries) |

|  | * | Five Australian innovation patents are valid until 2018 and patent (ZL 201080059930.4) granted by the Chinese Patent Office is valid until 2030 |
|--|---|-------------------------------------------------------------------------------------------------------------------------------------------------|

| Patent description                                                                                                                                                                                         | US Patent #     | Expiration Date of the Patent | Holder  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|-------------------------------|---------|
| Composition of Matter(natural phospholipids of marine origin containing flavonoids and polyunsaturated phospholipids and their uses)                                                                       | US8,030,348 (1) | 2022                          | Neptune |
| Method of Use for Dyslipidemia(krill and/or marine extracts for prevention and/or treatment of cardiovascular diseases, arthritis, skin cancer, premenstrual syndrome, diabetes and transdermal transport) | US8,057,825     | 2022                          | Neptune |
| Method of Extraction(Method of extracting lipids from marine and aquatic animal tissues)                                                                                                              | US6,800,299     | 2019                          | Neptune |

----

----

----

|  | · | completion of extensive nonclinical (animal) and formulation studies in accordance with applicable regulations, including the FDA's Good Laboratory Practice ("GLP") regulations; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | submission of an IND, which must become effective before human clinical trials may begin in the United States; |
|--|--------|----------------------------------------------------------------------------------------------------------------|

|  | · | performance of adequate and well-controlled clinical trials in accordance with the applicable IND and other clinical study-related regulations, such as current Good Clinical Practices, to establish the safety and efficacy of the proposed drug for its proposed indication; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | submission of an NDA for a new drug; |
|--|--------|--------------------------------------|

|  | · | satisfactory completion of an FDA pre-approval inspection of the manufacturing facility or facilities where the drug is produced to assess compliance with cGMP to assure that the facilities, methods and controls are adequate to preserve the drug's identity, strength, quality and purity; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | satisfactory completion of potential FDA audit of the nonclinical and/or clinical trial sites that generated the data in support of the NDA; and |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | FDA review and approval of the NDA prior to any commercial marketing or sale of the drug in the United States. |
|--|--------|----------------------------------------------------------------------------------------------------------------|

----

----

----

| C. | Organizational Structure |
|----|--------------------------|

|  D. | Property, Plants and Equipment |
|----------|--------------------------------|

----

| Item 4A. | Unresolved Staff Comments |
|----------|---------------------------|

| Item 5. | Operating and Financial Review and Prospects |
|---------|----------------------------------------------|

| A. | Operating Results |
|----|-------------------|

| B. | Liquidity and Capital Resources |
|----|---------------------------------|

| C. | Research and Development, Patents and Licenses, etc. |
|----|------------------------------------------------------|

| D. | Trend Information |
|----|-------------------|

| E. | Off-Balance Sheet Arrangements |
|----|--------------------------------|

| F. | Tabular Disclosure of Contractual Obligations |
|----|-----------------------------------------------|

| G. | Safe Harbor |
|----|-------------|

----

----

|                                    |   |                      |    |   |              |   |
|-----------------------------------------|--------|---------------------------|---------|--------|-------------------|--------|
|                                    |   | Three-month periods ended |    |   | Years ended       |   |
|                                    |   | February 29, 2016         |    |   | February 28, 2015 |   |   | February29, 2016 |   |   | February 28, 2015 |   |   | February28, 2014 |   |
|                                    |   |                      | $  |   |              |   | $  |   |   |   | $  |   |   |   | $  |   |   |   |  $ |   |
| Revenue from sales                      |   |                      | 21      |   |              |   | 178 |   |   |   | 38 |   |   |   | 271 |   |   |   | 501 |   |
| Non-IFRS operating Loss(1)              |   |                      | (1,163  | )      |              |   | (2,263 | ) |   |   | (6,569 | ) |   |   | (8,506 | ) |   |   | (5,584 | ) |
| Net loss and comprehensive loss         |   |                      | (1,919  | )      |              |   | (2,311 | ) |   |   | (6,317 | ) |   |   | (1,655 | ) |   |   | (11,612 | ) |
| Basic and diluted loss per share        |   |                      | (0.18   | )      |              |   | (0.21 | ) |   |   | (0.59 | ) |   |   | (0.16 | ) |   |   | (1.38 | ) |
| Total assets                            |   |                      | 28,517  |   |              |   | 37,208 |   |   |   | 28,517 |   |   |   | 37,208 |   |   |   | 45,632 |   |
| Working capital(2)                      |   |                      | 12,185  |   |              |   | 18,020 |   |   |   | 10,184 |   |   |   | 18,020 |   |   |   | 24,646 |   |
| Total non-current financial liabilities |   |                      | 156     |   |              |   | 2,357 |   |   |   | 156 |   |   |   | 2,357 |   |   |   | 11,181 |   |
| Total equity                            |   |                      | 27,220  |   |              |   | 33,228 |   |   |   | 27,220 |   |   |   | 33,228 |   |   |   | 33,280 |   |
|                                                          |   |                      |    |   |               |   |
|---------------------------------------------------------------|--------|---------------------------|---------|--------|--------------------|--------|
|                                                          |   | Three-month periods ended |    |   | Years ended        |   |
|                                                          |   | February 29,  2016        |    |   | February 28,  2015 |   |   | February29, 2016 |   |   | February  28, 2015 |   |   | February 28, 2014 |   |
|                                                          |   |                      | $  |   |               |   | $  |   |   |   | $  |   |   |   | $  |   |   |   | $  |   |
| Net loss                                                      |   |                      | (1,919  | )      |               |   | (2,311 | ) |   |   | (6,317 | ) |   |   | (1,655 | ) |   |   | (11,612 | ) |
| Add (deduct)                                                  |   |                      |    |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Finance costs                                                 |   |                      | (1      | )      |               |   | 2 |   |   |   | 2 |   |   |   | 4 |   |   |   | 1,118 |   |
| Finance Income                                                |   |                      | (175    | )      |               |   | (1,398 | ) |   |   | (1,096 | ) |   |   | (1,920 | ) |   |   | (814 | ) |
| Change in fair value of derivative warrant liabilities        |   |                      | (114    | )      |               |   | 703 |   |   |   | (2,201 | ) |   |   | (8,824 | ) |   |   | 508 |   |
| Depreciation and amortization/Impairment of intangible assets |   |                      | 938     |   |               |   | 584 |   |   |   | 2,734 |   |   |   | 2,335 |   |   |   | 1,774 |   |
| Stock-based compensation                                      |   |                      | 108     |   |               |   | 157 |   |   |   | 309 |   |   |   | 1,554 |   |   |   | 3,442 |   |
| Non-IFRS operating loss                                       |   |                      | (1,163  | )      |               |   | (2,263 | ) |   |   | (6,569 | ) |   |   | (8,506 | ) |   |   | (5,584 | ) |

----

|                             |   |         |    |   |         |   |    |       |   |   |    |   |
|----------------------------------|--------|--------------|---------|--------|--------------|--------|---------|------------|--------|--------|---------|--------|
|                             |   | February 29, |    |   | November 30, |   |    | August 31, |   |   | May 31, |   |
|                             |   | 2016         |    |   | 2015         |   |    | 2015       |   |   | 2015    |   |
|                             |   |         | $  |   |         |   | $  |       |   |   | $  |   |   |   | $  |   |
| Revenue from sales               |   |         | 21      |   |         |   | 5       |       |   |   | 7       |   |   |   | 5 |   |
| Non-IFRS operating loss          |   |         | (1,163  | )      |         |   | (1,988  | )          |   |   | (1,485  | )      |   |   | (1,946 | ) |
| Net loss                         |   |         | (1,919  | )      |         |   | (2,191  | )          |   |   | (1,241  | )      |   |   | (966 | ) |
| Basic and diluted loss per share |   |         | (0.18   | )      |         |   | (0.20   | )          |   |   | (0.12   | )      |   |   | (0.09 | ) |
|                             |   |         |    |   |         |   |    |       |   |   |    |   |
|----------------------------------|--------|--------------|---------|--------|--------------|--------|---------|------------|--------|--------|---------|--------|
|                             |   | February 28, |    |   | November 30, |   |    | August 31, |   |   | May 31, |   |
|                             |   | 2015         |    |   | 2014         |   |    | 2014       |   |   | 2014    |   |
|                             |   |         | $  |   |         |   | $  |       |   |   | $  |   |   |   | $  |   |
| Revenue from sales               |   |         | 178     |   |         |   | 29      |       |   |   | 8       |   |   |   | 56 |   |
| Non-IFRS operating loss          |   |         | (2,263  | )      |         |   | (2,099  | )          |   |   | (2,449  | )      |   |   | (1,695 | ) |
| Net (loss) earnings              |   |         | (2,311  | )      |         |   | 3,012   |       |   |   | (3,712  | )      |   |   | 1,356 |   |
| Basic and diluted loss per share |   |         | (0.21   | )      |         |   | 0.28    |       |   |   | (0.35   | )      |   |   | 0.13 |   |

----

|                              |   |                      |    |   |               |   |
|-----------------------------------|--------|---------------------------|---------|--------|--------------------|--------|
| Research and development expenses |   | Three-month periods ended |    |   | Years ended        |   |
|                              |   | February 29,  2016        |    |   | February 28,  2015 |   |   | February 29,  2016 |   |   | February 28,  2015 |   |   | February 28,  2014 |   |
|                              |   |                      | $  |   |               |   | $  |   |   |   | $  |   |   |   | $  |   |   |   | $  |   |
| Salaries and benefits             |   |                      | 332     |   |               |   | 86 |   |   |   | 989 |   |   |   | 465 |   |   |   | 457 |   |
| Stock-based compensation          |   |                      | 12      |   |               |   | 39 |   |   |   | 53 |   |   |   | 258 |   |   |   | 601 |   |
| Research contracts                |   |                      | 317     |   |               |   | 1,463 |   |   |   | 2,550 |   |   |   | 5,062 |   |   |   | 3,081 |   |
| Regulatory expenses               |   |                      | 80      |   |               |   | 83 |   |   |   | 472 |   |   |   | 160 |   |   |   | 141 |   |
| Professional fees(1)              |   |                      | 223     |   |               |   | 229 |   |   |   | 567 |   |   |   | 705 |   |   |   | 214 |   |
| Amortization and depreciation(1)  |   |                      | 599     |   |               |   | 584 |   |   |   | 2,395 |   |   |   | 2,335 |   |   |   | 1,774 |   |
| Impairment of intangible assets   |   |                      | 339     |   |               |   | - |   |   |   | 339 |   |   |   | - |   |   |   | - |   |
| Tax credits                       |   |                      | (126    | )      |               |   | (192 | ) |   |   | (169 | ) |   |   | (264 | ) |   |   | (270 | ) |
| Other                             |   |                      | 53      |   |               |   | 51 |   |   |   | 193 |   |   |   | 136 |   |   |   | 61 |   |
| TOTAL                             |   |                      | 1,829   |   |               |   | 2,343 |   |   |   | 7,389 |   |   |   | 8,857 |   |   |   | 6,059 |   |

|  | (1) | The Corporation modified the classification on amortization and depreciation as well as certain legal fees from "general and administrative expenses" to "research and development expenses" to reflect more appropriately the way in which economic benefits are derived from the use of the expenses, which resulted in $2,335 and $1,762 being reclassed in 2015 and 2014, respectively. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| General and administrative expenses |   | Three-month periods ended |   |   | Years ended       |   |
|-------------------------------------|--------|---------------------------|--------|--------|-------------------|--------|
|                                |   | February 29, 2016         |   |   | February 28, 2015 |   |   | February 29, 2016 |   |   | February 28, 2015 |   |   | February 28, 2014 |   |
|                                |   | $                         |   |   |              | $      |   |   |   | $ |   |   |   | $ |   |   |   | $ |   |   |
| Salaries and benefits               |   |                      | 143    |   |              |   | 280 |   |   |   | 938 |   |   |   | 1,267 |   |   |   | 990 |   |
| Administrative fees                 |   |                      | 50     |   |              |   | - |   |   |   | 50 |   |   |   | - |   |   |   | - |   |
| Stock-based compensation            |   |                      | 96     |   |              |   | 118 |   |   |   | 256 |   |   |   | 1,296 |   |   |   | 2,841 |   |
| Professional fees                   |   |                      | 34     |   |              |   | 46 |   |   |   | 650 |   |   |   | 501 |   |   |   | 607 |   |
| Royalties                           |   |                      | -      |   |              |   | - |   |   |   | - |   |   |   | - |   |   |   | 228 |   |
| Sales and marketing                 |   |                      | 5      |   |              |   | 14 |   |   |   | 20 |   |   |   | 29 |   |   |   | 16 |   |
| Investor relations                  |   |                      | 33     |   |              |   | 48 |   |   |   | 78 |   |   |   | 63 |   |   |   | 84 |   |
| Rent                                |   |                      | (12    | )      |              |   | 25 |   |   |   | 67 |   |   |   | 99 |   |   |   | 100 |   |
| Other                               |   |                      | (22    | )      |              |   | 127 |   |   |   | 119 |   |   |   | 318 |   |   |   | 83 |   |
| TOTAL                               |   |                      | 327    |   |              |   | 658 |   |   |   | 2,178 |   |   |   | 3,573 |   |   |   | 4,949 |   |

----

|                                                        |   | February 29,2016 |       |   | February 28, 2015 |   |       | February 28, 2014 |   |
|-------------------------------------------------------------|--------|------------------|------------|--------|-------------------|--------|------------|-------------------|--------|
| Class A shares, voting, participating and without par value |   |             | 10,712,038 |   |              |   | 10,644,440 |              |   |   | 10,586,253 |   |
| Stock options granted and outstanding                       |   |             | 454,151    |   |              |   | 429,625    |              |   |   | 491,100 |   |
| Restricted Shares Units granted and outstanding             |   |             | -          |   |              |   | 18,398     |              |   |   | 77,494 |   |
| Series 6 & 7 warrants expired on February 10, 2015      |   |             | -          |   |              |   | -          |              |   |   | 75,000 |   |
| Series 8 warrants exercisable at $1.50 USD, until           |   |             |       |   |              |   |       |              |   |   |   |   |
| December 3, 2018(1)                                         |   |             | 1,840,000  |   |              |   | 1,840,000  |              |   |   | 1,840,000 |   |
| Series 9 warrants exercisable at $16,00, until              |   |             |       |   |              |   |       |              |   |   |   |   |
| December 3, 2018                                            |   |             | 161,654    |   |              |   | 161,654    |              |   |   | 161,654 |   |
| Total fully diluted shares                                  |   |             | 13,167,843 |   |              |   | 13,094,117 |              |   |   | 13,231,501 |   |

----

----

| Accounts                       |   | Increase(Decrease) |   | Comments |
|--------------------------------|--------|--------------------|--------|----------|
| Cash                           |   |               | 1,716  |     | See cash flow statement |
| Short-term investments         |   |               | (7,628 | )        | Maturity of investments held |
| Trade and other receivables    |   |               | (47    | )        | Payments received |
| Tax credits receivable         |   |               | (359   | )        | Payments received |
| Prepaid expenses               |   |               | 138    |     | Increase in prepaid portion of expenses |
| Inventories                    |   |               | (87    | )        | Onemia® sales and write-off of inventory |
| Intangible assets              |   |               | (2,323 | )        | Amortization |
| Trade and other payables       |   |               | 42     |     | Increase in expenses |
| Payable to parent corporation  |   |               | (474   | )        | Payments made |
| Derivative warrant liabilities |   |               | (2,201 | )        | Change in fair value |
|                               |   | Total  |   |   | Less than 1 year |   |
|------------------------------------|--------|--------|--------|--------|------------------|--------|
|                               |   | $      |   |   |             | $      |   |   |
| Payables                           |   |   | 1,141  |   |             |   | 1,141 |   |
| Research and development contracts |   |   | 5,358  |   |             |   | 5,358 |   |
| Purchase obligation                |   |   | 2,271  |   |             |   | 2,271 |   |
| Total                              |   |   | 8,770  |   |             |   | 8,770 |   |
|                           |   | February 29, |   |   | February 28, |   |   | February 28, |   |
|--------------------------------|--------|--------------|--------|--------|--------------|--------|--------|--------------|--------|
|                           |   | 2016         |   |   | 2015         |   |   | 2014         |   |
| Administrative costs           |   |         | 485    |   |         |   | 226    |         |   |   | 128 |   |
| Research and development costs |   |         | 347    |   |         |   | 188    |         |   |   | 24 |   |
| Royalties1                     |   |         | -      |   |         |   | -      |         |   |   | 228 |   |
|                           |   |         | 832    |   |         |   | 414    |         |   |   | 380 |   |

----

----

----

| Cash Short-term fixed interest rate | Short-term fixed interest rate |
|-------------------------------------|--------------------------------|
| Short-term investments              | Short-term fixed interest rate |

| Item  6. | Directors, Senior Management and Employees |
|---------------|--------------------------------------------|

| A. | Directors and Senior Management |
|----|---------------------------------|

| Name, province or state, as the case may be, and country of residence of each director and proposed director | Principal Occupation                                               | First year as director | Number of Common Shares beneficially owned or controlled or directed by each proposed director |
|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------|------------------------|------------------------------------------------------------------------------------------------|
| Roderick N. CarterCalifornia, United StatesExecutive Chairman of the Board                                   | Principal, Aquila Life Sciences LLC                                | 2015                   | -                                                                                              |
| Janelle D'Alvise California, United States                                                                   | President and CEO of the Corporation                               | 2016                   | -                                                                                              |
| James S. HamiltonQuébec, Canada                                                                         | President and CEO of Neptune Technologies & Bioressources Inc. | 2015                   | -                                                                                              |
| Leendert H. StaalMaryland, United States                                                                     | Independent consultant and owner of Staal Consulting LLC.          | 2016                   | -                                                                                              |

----

|                                          |   |                              |   |                                        |
|-----------------------------------------------|--------|-----------------------------------|--------|---------------------------------------------|
| Name, Province and Country of Residence  |   | Principal Occupation    |   | Position Within the Corporation   |
| Pierre LemieuxQuébec, Canada             |   | Chief Operating Officer of Acasti |   | Chief Operating Officer                     |

----

| B. | Compensation |
|----|--------------|

|                              | What are thekey features?                                                                                                                                                                                                                                | Primary objective                                                                                                                                   | What does the compensationelement reward?                  | How is the annual value or target determined?                                                        |
|-----------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------------------------------------------------|
| ANNUAL BASE SALARY                | Fixed compensation· Payable in cash· Revised annually and adjusted, as necessary                                                                                                                                                               | Provides a market competitive fixed rate of pay                                                                                                     | Rewards skills, knowledge, responsibilities and experience | Targets are set at the 50th percentile of what is paid in the reference market for similar positions |
| SHORT-TERMINCENTIVE PLAN (STIP)   | Variable compensation· Payable in cash following the end of each fiscal year                                                                                                                                                                        | Encourages performance against our annual corporate and individual objectives                                                                       | Rewards the achievement of our annual objectives           | Targets are set at the 50th percentile of what is paid in the reference market for similar positions |
| LONG-TERMINCENTIVE PLAN (LTIP)    | Variable compensation· In forms of stock options, which vest over three years at a rate of 1/3 per year and expire after five to seven years· Generally granted annually at the beginning of each financial year· Equity incentive grants | Aligns interests of executives and shareholders                                                                                                     | Rewards the creation of shareholder value                  | Targets are set at the 50th percentile of what is paid in the reference market for similar positions |
| EMPLOYEE BENEFITS AND PERQUISITES | Fixed compensationGroup Benefits· Life, medical, dental and disability insurancePerquisites· RRSP Matching Program                                                                                                                             | Group Benefits· Provides employees and their families with assistance and securityPerquisites· Complements executives' total compensation | ---                                                        | Competitive overall with programs offered in comparable organizations                                |
| PENSION                           | The Corporation does not have any pension plan available for its executives or Directors                                                                                                                                                            | ---                                                                                                                                                 | ---                                                        | ----                                                                                                 |

----

| (i) | base salary; |
|-----|--------------|

| (ii) | short term incentive plan, consisting of a cash bonus; |
|------|--------------------------------------------------------|

| (iii) | long term incentive plan, consisting of stock options and equity incentive grants based on performance and/or time vesting conditions; and |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------|

| (iv) | other elements of compensation, consisting of group benefits and perquisites. |
|------|-------------------------------------------------------------------------------|

----

|  | · | reward top performers; |
|--|--------|------------------------|

|  | · | new hires; |
|--|--------|------------|

|  | · | retain high-potential contributors; and |
|--|--------|-----------------------------------------|

|  | · | address special needs. |
|--|--------|------------------------|

----

----

| Name andPrincipal Position                                      | Year ended February 28/29 | Salary($)             | Share-Based Awards(1)(2)($) | Option-based/Warrant-based awards(1) (2)($) | Annual incentive plans($) | All other compensation($)(3)(4) | Total compensation($) |
|-----------------------------------------------------------------|---------------------------|-----------------------|-----------------------------|---------------------------------------------|---------------------------|---------------------------------|-----------------------|
| Pierre LemieuxCOO                                               | 201620152014              | 239,565186,115170,308 | --207,000                   | 33,32022,163102,505                         | 42,00012,000-             | -16,000-                        | 314,885236,278479,813 |
| Laurent HarveyVice President, Clinical and Non-Clinical Affairs | 2016                      | 159,808               | -                           | 17,153                                      | 16,000                    | -                               | 192,961               |
| 2015                                                            | 107,977                   | -                     | 7,388                       | 8,000                                       | -                         | 123,365                         |
| 2014                                                            | 33,600                    | -                     | 13,734                      | -                                           | -                         | 47,334                          |
| André Godin(5)Former Interim President, CEO and CFO        | 201620152014              | 14,79863,53823,442    | --54,790                    | -14,77512,255                               | -20,000-                  | 132,65319,419-                  | 147,451117,73290,487  |

| (1) | The Corporation has adopted the IFRS 2 Shared-based payment to account for the issuance of stock options to employees and non-employees. The fair value of stock options is estimated at the grant date using the Black-Scholes Option Pricing Model. This model requires the input of a number of parameters, including stock price, stock exercise price, expected stock price volatility, expected time until exercise and risk-free interest rates. Although the assumptions used reflect management's best estimates, they involve inherent uncertainties based on market conditions generally outside of the Corporation's control. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (2) | For the period ended on February 29, 2016, the fair market value of the June 1, 2015 option-based awards of the Corporation is based on a fair value of $1.97 per option granted to the NEOs of the Corporation. No additional grants were awarded to the NEOs during the 2015-2016 financial year. For the period ended on February 28, 2015, the fair market value of the October 20, 2014 option-based award granted to Mr. André Godin and Mr. Pierre Lemieux is based on a fair value of $3.00 per option. For the period ended on February 28, 2014, the fair market value of the June 27, 2013 Acasti share-based awards is based on a fair value of $28.90 per restricted share unit ("RSU") granted to Mr. Pierre Lemieux and Mr. André Godin. For the period ended on February 28, 2014, the fair market value of the June 21, 2013 Acasti call-option based awards granted by Neptune is based on a fair value of $11.40 per Acasti call-option granted to Mr. Pierre Lemieux, and $1.22 per Acasti call‐option granted to Mr. André Godin. For the period ended on February 28, 2014, the fair market value of the October 1, 2013 option-based awards granted to Mr. Laurent Harvey is based on a fair value of $9.16 per option. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The value of perquisites and other personal benefits received by these executives did not total an aggregate value of $50,000 or more, and does not represent 10% or more of their total salary during the financial year ended February 29, 2016. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | These amounts include severance payments, vacation time accumulated and paid during the financial year ended February 29, 2016. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Mr. André Godin became Interim President and CEO of the Corporation on May 23, 2014 and CFO of the Corporation on June 16, 2014. Mr. Godin's functions with the Corporation were terminated on April 29, 2015. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name / Grant Date   | Number of securities underlying unexercised options(1)(#) | Option exercise price ($)(1) | Option expiration date | Value of unexercised in-the-money options(2) ($) |
|---------------------|-----------------------------------------------------------|------------------------------|------------------------|--------------------------------------------------|
| Pierre Lemieux      |
| June 1, 2015        | 16,900                                                    | 4.50                         | June 1, 2022           | -                                                |
| October 20, 2014    | 7,500                                                     | 6.50                         | October 19, 2019       | -                                                |
| April 11, 2012      | 15,000                                                    | 21.00                        | April 11, 2017         | -                                                |
| June 16, 2011       | 20,000                                                    | 14.00                        | June 16, 2016          | -                                                |
| Laurent Harvey      |
| June 1, 2015        | 8,700                                                     | 4.50                         | June 1, 2022           | -                                                |
| October 20, 2014    | 2,500                                                     | 6.50                         | October 19, 2019       | -                                                |
| André Godin(3) |
| October 20, 2014    | 5,000                                                     | 6.50                         | April 29, 2017         | -                                                |
| April 11, 2012      | 10,000                                                    | 21.00                        | April 11, 2017         | -                                                |
| June 16, 2011       | 15,000                                                    | 14.00                        | June 16, 2016          | -                                                |
| October 8, 2008     | 10,000                                                    | 2.50                         | April 29, 2017         | -                                                |

| (1) | Acasti option-based awards were consolidated following the Reverse-Split. The exercise price was increased proportionally to reflect the consolidation. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Calculation is based on a trading price of $2.02 for the Common Shares on the TSXV, as at closing on February 29, 2016. |
|-----|-------------------------------------------------------------------------------------------------------------------------|

| (3) | Mr. André Godin became Interim President and CEO of the Corporation on May 23, 2014 and CFO of the Corporation on June 16, 2014. Mr. Godin's functions with the Corporation were terminated on April 29, 2015. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  Name       | Share-based Awards of the Corporation – value vested during the financial year ended on February 29, 2016($) | Option-based Awards of the Corporation – value vested during the financial year ended on February 29, 2016($) |
|------------------|------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|
| Pierre Lemieux   | 4,500                                                                                                                        | -                                                                                                                             |
| André Godin | 4,500                                                                                                                        | -                                                                                                                             |
| Name                    | Financial Year Ended February 29 | Fees earned ($) | Option-based awards(1)(2)($) | All other compensation(3)($) | Total ($) |
|-------------------------|----------------------------------|-----------------|------------------------------|------------------------------|-----------|
| Jerald J. Wenker(4)     | 2016                             | 62,167          | 23,111                       | -                            | 85,278    |
| Roderick N. Carter      | 2016                             | 28,500          | 23,111                       | -                            | 51,611    |
| James S. Hamilton       | 2016                             | -               | -                            | -                            | -         |
| Adrian T. Montgomery(4) | 2016                             | 28,750          | 23,111                       | -                            | 51,861    |
| Reed V. Tuckson(4)      |  2016                  | 25,750          | 23,111                       | -                            | 48,861    |
| Harlan W. Waksal(4)     | 2016                             | 21,500          | 23,111                       | -                            | 44,611    |

----

|    | (1) | The Corporation has adopted the IFRS 2 Shared-based payment to account for the issuance of stock options to employees and non-employees. The fair value of the awards is estimated at the grant date using the Black-Scholes Option Pricing Model. This model requires the input of a number of parameters, including stock price, stock exercise price, expected stock price volatility, expected time until exercise and risk-free interest rates. Although the assumptions used reflect management's best estimates, they involve inherent uncertainties based on market conditions generally outside of the Corporation's control. |
|--------------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (2) | For the period ended on February 29, 2016, (i) the fair market value of the August 19, 2015 option-based awards of the Corporation is based on a fair value of $2.31 per option granted to Mr. Wenker, Dr. Carter, Mr. Montgomery, Dr. Tuckson and Dr. Waksal. No additional grants were awarded to the Directors during the 2015-2016 financial year. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (3) | The value of the perquisites and other personal benefits received by these Directors did not total an aggregate value of $50,000 or more, and does not represent more than 10% of the compensation paid during financial year ended February 29, 2016. The Directors do not receive pension benefits or other non-equity based annual compensation. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (4) | On February 29, 2016, Messrs. Wenker, Montgomery, Tuckson and Waksal resigned as Directors of the Corporation. |
|--|-----|----------------------------------------------------------------------------------------------------------------|

| Name / Grant Date       | Number of securities underlying unexercised options(1) | Option exercise price ($)(1) | Option expiration date | Value of unexercised in-the-money options($)(2) |
|-------------------------|--------------------------------------------------------|------------------------------|------------------------|-------------------------------------------------|
| Jerald J. Wenker(5)     |
| June 26, 2014           | 2,813                                                  | 12.00                        | February 28, 2017      | -                                               |
| December 19, 2013       | 3,750                                                  | 21.00                        | December 19, 2016      | -                                               |
| Roderick N. Carter      |
| August 19, 2015         | 10,000                                                 | 4.80                         | August 19, 2022        | -                                               |
| Adrian T. Montgomery(4) |
| June 26, 2014           | 5,625                                                  | 12.00                        | February 28, 2017      | -                                               |
| Reed V. Tuckson(4)      |
| December 19, 2013       | 7,500                                                  | 21.00                        | December 19, 2016      | -                                               |
| Harlan W. Waksal(4)     |
| April 11, 2012          | 20,000(3)                                              | 21.00                        | February 28, 2017      | -                                               |
| June 16, 2011           | 20,000(3)                                              | 14.00                        | June 16, 2016          | -                                               |

|    | (1) | Acasti option-based awards were consolidated following the consolidation of Acasti's issued and outstanding Common Shares in a proportion of ten (10) pre-consolidation shares for (1) post-consolidation shares dated October 15, 2015. The exercise price was increased proportionally to reflect the consolidation. |
|--------------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (2) | Calculation is based on a trading price of $2.02 for the Common Shares on the TSXV, as at closing on February 29, 2016. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------|

|  | (3) | Awards received for his role as former Vice-President, Business and Scientific Affairs. |
|--|-----|-----------------------------------------------------------------------------------------|

|  | (4) | On February 29, 2016, Mr. Wenker, Mr. Montgomery, Dr. Tuckson and Dr. Waksal resigned as directors of the Corporation. |
|--|-----|------------------------------------------------------------------------------------------------------------------------|

----

|  Name       | Share-based Awards of the Corporation – value vested during the financial year ended on February 29, 2016 ($) | Option-based Awards of the Corporation – value vested during the financial year ended on February 29, 2016 ($) |
|------------------|---------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|
| Harlan W. Waksal | 13,500                                                                                                              | -                                                                                                                    |

| C. | Board Practices |
|----|-----------------|

----

| Board Members        | Meeting Attendance in Person | Telephone Meeting Attendance | Total Attendance |
|----------------------|-----------------------------------|------------------------------|------------------|
| Jerald J. Wenker     | 4/5                               | 1/5                          | 5/5              |
| Roderick N. Carter   | 2/3                               | 1/3                          | 3/3              |
| James S. Hamilton    | 2/3                               | 0/3                          | 2/3              |
| Adrian T. Montgomery | 1/5                               | 4/5                          | 5/5              |
| Reed V. Tuckson      | 0/5                               | 5/5                          | 5/5              |

----

----

----

----

|  D. | Employees |
|----------|-----------|

| E. | Share Ownership |
|----|-----------------|

|                     |   |                                                                          |   |                                                                                                        |
|--------------------------|--------|-------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------|
| Name                |   | Common Shares beneficially owned as of February 29, 2016  |   | Percentage of total issued andoutstanding Common Sharesas of February 29, 2016(1)  |
| Roderick N. Carter  |   | 0                                                                             |   | *                                                                                                           |
| Pierre Fitzgibbon   |   | 500                                                                           |   | *                                                                                                           |
| James S. Hamilton   |   | 0                                                                             |   | *                                                                                                           |
| Mario Paradis       |   | 0                                                                             |   | *                                                                                                           |
| Pierre Lemieux           |   | 7,000                                                                         |   | *                                                                                                           |
| Laurent Harvey           |   | 0                                                                             |   | *                                                                                                           |

|  | (1) | Based on 10,712,038 Common Shares outstanding. |
|--|-----|------------------------------------------------|

|  |  * | Less than 1%. |
|--|---------|---------------|

----

| Item 7. | Major Shareholders and Related Party Transactions |
|--------------|---------------------------------------------------|

| A. | Major Shareholders |
|----|--------------------|

| B. | Related Party Transactions |
|----|----------------------------|

| C. | Interests of Experts and Counsel |
|----|----------------------------------|

| Item 8. | Financial Statements |
|--------------|----------------------|

| A. | Consolidated Statements and Other Financial Information |
|----|---------------------------------------------------------|

----

| Item 9. | The Offer and Listing |
|--------------|-----------------------|

| A. | Listing Details |
|----|-----------------|

|              |   |   |   |   |                |   |   |     |   |   |    |   |
|-------------------|--------|--------|--------|--------|---------------------|--------|--------|----------|--------|--------|---------|--------|
|              |   | TSX-V  |   |   | NASDAQ Stock Market |   |
| Fiscal year ended |   | High $ |   |   | Low $               |   |   | High US$ |   |   | Low US$ |   |
| Feb. 29, 2012     |   |   | 21.50  |   |                |   | 5.10   |     |   |   |    |   |   |   |
| Feb. 28, 2013     |   |   | 27.60  |   |                |   | 16.00  |     |   | 39.90  |    |   | 20.00 |   |
| Feb. 28, 2014     |   |   | 43.20  |   |                |   | 11.50  |     |   |   | 42.00   |   |   |   | 10.90 |   |
| Feb. 28, 2015     |   |   | 14.90  |   |                |   | 11.50  |     |   |   | 13.40   |   |   |   | 10.90 |   |
| Feb. 29, 2016     |   |   | 7.60   |   |                |   | 1.83   |     |   |   | 6.10    |   |   |   | 1.30 |   |
|                                      |   |   |   |   |                |   |   |     |   |   |    |   |
|-------------------------------------------|--------|--------|--------|--------|---------------------|--------|--------|----------|--------|--------|---------|--------|
|                                      |   | TSX-V  |   |   | NASDAQ Stock Market |   |
| Period                                    |   | High $ |   |   | Low $               |   |   | High US$ |   |   | Low US$ |   |
| 1st Quarter ended May 31, 2014  |   |   | 14.90  |   |                |   | 8.80   |     |   |   | 13.40   |   |   |   | 8.00 |   |
| 2nd Quarter ended Aug. 31, 2014      |   |   | 13.00  |   |                |   | 8.80   |     |   |   | 12.20   |   |   |   | 8.10 |   |
| 3rd Quarter ended Nov. 30, 2014      |   |   | 12.00  |   |                |   | 4.00   |     |   |   | 11.10   |   |   |   | 3.50 |   |
| 4th Quarter ended Feb. 28, 2015      |   |   | 7.80   |   |                |   | 4.60   |     |   |   | 6.20    |   |   |   | 4.00 |   |
| 1st Quarter ended May 31, 2015  |   |   | 7.60   |   |                |   | 4.00   |     |   |   | 6.10    |   |   |   | 5.00 |   |
| 2nd Quarter ended Aug. 31, 2015      |   |   | 5.50   |   |                |   | 3.50   |     |   |   | 4.20    |   |   |   | 3.90 |   |
| 3rd Quarter ended Nov. 30, 2015      |   |   | 4.70   |   |                |   | 2.65   |     |   |   | 3.80    |   |   |   | 2.01 |   |
| 4th Quarter ended Feb. 29, 2016      |   |   | 4.40   |   |                |   | 1.83   |     |   |   | 3.20    |   |   |   | 1.30 |   |
|                |   |   |   |   |                |   |   |     |   |   |    |   |
|---------------------|--------|--------|--------|--------|---------------------|--------|--------|----------|--------|--------|---------|--------|
|                |   | TSX-V  |   |   | NASDAQ Stock Market |   |
| Period              |   | High $ |   |   | Low $               |   |   | High US$ |   |   | Low US$ |   |
| November 2015  |   |   | 3.54   |   |                |   | 2.87   |     |   |   | 2.75    |   |   |   | 2.20 |   |
| December 2015  |   |   | 4.40   |   |                |   | 2.16   |     |   |   | 3.20    |   |   |   | 1.57 |   |
| January2016    |   |   | 3.50   |   |                |   | 2.16   |     |   |   | 2.55    |   |   |   | 1.50 |   |
| February 2016  |   |   | 2.20   |   |                |   | 1.83   |     |   |   | 1.61    |   |   |   | 1.30 |   |
| March 2016     |   |   | 2.45   |   |                |   | 1.80   |     |   |   | 1.88    |   |   |   | 1.42 |   |
| April 2016     |   |   | 1.96   |   |                |   | 1.68   |     |   |   | 1.52    |   |   |   | 1.30 |   |
| May 2016            |   |   | 2.00   |   |                |   | 1.56   |     |   |   | 1.67    |   |   |   | 1.20 |   |

----

| B. | Plan of Distribution |
|----|----------------------|

| C. | Markets |
|----|---------|

| D. | Selling Shareholders |
|----|----------------------|

| E. | Dilution |
|----|----------|

| F. | Expenses of the Issuer |
|----|------------------------|

| Item  10. | Additional Information |
|----------------|------------------------|

| A. | Share Capital |
|----|---------------|

|  B. | Memorandum and Articles of Association |
|----------|----------------------------------------|

| 1. | Register, Entry Number and Purposes |
|----|-------------------------------------|

| 2. | Directors' Powers |
|----|-------------------|

----

| 3. | Rights, Preferences and Restrictions Attaching to Each Class of Shares |
|----|------------------------------------------------------------------------|

----

----

|                         |                                                                                                                                                                                                                                                                                                                                                                                 |
|------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Conversion Ratio = | The product obtained by multiplying a factor to be agreed at the time of the issuance of the Class D non-voting shares by the average amount paid per share for the Class D non-voting shares plus the redemption premium per share, as defined in subsection 5.4.6.1 of the Articles as well as the amount of any and all declared but yet paid dividends per said shares |
|                         | Fair Market Value of the Common Shares at the date of any conversion of Class D non-voting shares in Common Shares                                                                                                                                                                                                                                                              |
|                         |                                                                                                                                                                                                                                                                                                                                                                                 |
|------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Conversion Ratio = | The product obtained by multiplying a factor to be agreed at the time of the issuance of the Class D non-voting shares by the average amount paid per share for the Class D non-voting shares plus the redemption premium per share, as defined in subsection 5.4.6.1 of the Articles as well as the amount of any and all declared but yet paid dividends per said shares |
|                         | Fair Market Value of the Common Shares at the date of any conversion of Class D non-voting shares in Common Shares                                                                                                                                                                                                                                                              |

----

|                         |                                                                                                                                                                                                                                                                                   |
|------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Conversion Ratio = | The product obtained by multiplying a factor to be agreed at the time of the issuance of the Class E non-voting shares by the average amount paid per share for the Class E non-voting shares plus the amount of any and all declared but yet paid dividends per said shares |
|                         | Fair Market Value of the Common Shares at the date of any conversion of Class E non-voting shares in Common Shares                                                                                                                                                                |

| 4. | Procedures to Change the Rights of Shareholders |
|----|-------------------------------------------------|

| 5. | Ordinary and Extraordinary Shareholders' Meetings |
|----|---------------------------------------------------|

----

| 6. | Limitations on Rights to Own Securities |
|----|-----------------------------------------|

| 7. | Impediments to Change of Control |
|----|----------------------------------|

| 8. | Stockholder Ownership Disclosure Threshold in Bylaws |
|----|------------------------------------------------------|

| 9. | Significant Differences with Applicable U.S. Law |
|----|--------------------------------------------------|

| 10. | Special Conditions for Changes in Capital |
|-----|-------------------------------------------|

| C. | Material Contracts |
|----|--------------------|

| D. | Exchange Controls |
|----|-------------------|

| E. | Taxation |
|----|----------|

----

----

|  | · | at least 75% of its gross income is "passive" income (referred to as the "income test"); or |
|--|--------|---------------------------------------------------------------------------------------------|

|  | · | at least 50% of the average value of its assets is attributable to assets that produce passive income or are held for the production of passive income (referred to as the "asset test"). |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | dividends, royalties, rents, annuities, interest, and income equivalent to interest; and |
|--|--------|------------------------------------------------------------------------------------------|

|  | · | net gains from the sale or exchange of property that gives rise to dividends, interest, royalties, rents, or annuities and certain gains from the commodities transactions. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| F. | Dividends and Paying Agents |
|----|-----------------------------|

| G. | Statement by Experts |
|----|----------------------|

| H. | Documents on Display |
|----|----------------------|

| I. | Subsidiary Information |
|----|------------------------|

| Item  11. | Quantitative and Qualitative Disclosure about Market Risk |
|----------------|-----------------------------------------------------------|

----

| Item  12. | Description of Securities other than Equity Securities |
|----------------|--------------------------------------------------------|

| A. | Debt Securities |
|----|-----------------|

| B. | Warrants and Rights |
|----|---------------------|

| C. | Other Securities |
|----|------------------|

| D. | American Depositary Shares |
|----|----------------------------|

| Item  13. | Defaults, Dividend Arrearages and Delinquencies |
|----------------|-------------------------------------------------|

| Item 14. | Material Modification to the Rights of Security Holdings and Use of Proceeds |
|---------------|------------------------------------------------------------------------------|

| Item  15. | Controls and Procedures |
|----------------|-------------------------|

----

| Item  16. | Reserved |
|----------------|----------|

| Item 16A. | Audit Committee Financial Expert |
|----------------|----------------------------------|

| Item  16B. | Code of Ethics |
|-----------------|----------------|

| Item 16C. | Principal Accountant Fees and Services |
|----------------|----------------------------------------|

----

| Item  16D. | Exemptions from the Listing Standards for Audit Committees |
|-----------------|------------------------------------------------------------|

| Item  16E. | Purchases of Equity Securities by the Issuer and Affiliated Purchasers |
|-----------------|------------------------------------------------------------------------|

| Item  16F. | Change in Registrant's Certifying Accountant |
|-----------------|----------------------------------------------|

| Item 16G. | Corporation Governance |
|----------------|------------------------|

| Item 16H. | Mining Safety Disclosure |
|----------------|--------------------------|

| Item  17. | Financial Statements |
|----------------|----------------------|

----

----

----

----

| Financial Statements |                                          |
|----------------------|-----------------------------------------------|
|                 |                                               |   |
|                 | Statements of Financial Position              | 1 |
|                 |                                          |   |
|                 | Statements of Earnings and Comprehensive Loss | 2 |
|                 |                                          |   |
|                 | Statements of Changes in Equity               | 3 |
|                 |                                          |   |
|                 | Statements of Cash Flows                      | 5 |
|                 |                                          |   |
|                 | Notes to Financial Statements                 | 6 |

----

|                                                   |   |         |        |   |         |   |
|--------------------------------------------------------|--------|--------------|-------------|--------|--------------|--------|
|                                                   |   | February 29, |        |   | February 28, |   |
|                                                   |   | 2016         |        |   | 2015         |   |
|                                                   |   |
| Assets                                                 |   |         |        |   |         |   |
|                                                   |   |
| Current assets:                                        |   |         |        |   |         |   |
| Cash                                                   |   | $            | 3,026,943   |   |         | $      | 1,310,556 |   |
| Short-term investments (note 19 (e))                   |   |         | 7,443,115   |   |         |   | 17,071,344 |   |
| Trade and other receivables (note 4)                   |   |         | 337,603     |   |         |   | 384,886 |   |
| Receivable from corporation under common control       |   |         | -           |   |         |   | 49,658 |   |
| Tax credits receivable (note 6)                        |   |         | 61,210      |   |         |   | 419,992 |   |
| Inventories (note 7)                                   |   |         | -           |   |         |   | 87,370 |   |
| Prepaid expenses                                       |   |         | 456,539     |   |         |   | 318,457 |   |
|                                                   |   |         | 11,325,410  |   |         |   | 19,642,263 |   |
|                                                   |   |
| Restricted short-term investment (note 5(b) and 19(e)) |   |         | 2,000,000   |   |         |   | - |   |
| Equipment (note 8)                                     |   |         | 287,136     |   |         |   | 69,937 |   |
| Intangible assets (note 9)                             |   |         | 14,904,776  |   |         |   | 17,495,905 |   |
|                                                   |   |         |        |   |         |   |   |   |
| Total assets                                           |   | $            | 28,517,322  |   |         | $      | 37,208,105 |   |
|                                                   |   |
| Liabilities and Equity                                 |   |         |        |   |         |   |   |   |
|                                                   |   |
| Current liabilities:                                   |   |         |        |   |         |   |   |   |
| Trade and other payables (note 10)                     |   | $            | 1,125,977   |   |         | $      | 1,083,847 |   |
| Payable to parent corporation (note 5 (e))             |   |         | 14,936      |   |         |   | 538,531 |   |
|                                                   |   |         | 1,140,913   |   |         |   | 1,622,378 |   |
|                                                   |   |
| Derivative warrant liabilities (notes 11 (e) and 21)   |   |         | 156,377     |   |         |   | 2,357,408 |   |
| Total liabilities                                      |   |         | 1,297,290   |   |         |   | 3,979,786 |   |
|                                                   |   |
| Equity:                                                |   |         |        |   |         |   |   |   |
| Share capital (note 11 (a))                            |   |         | 61,972,841  |   |         |   | 61,627,743 |   |
| Contributed surplus                                    |   |         | 4,874,727   |   |         |   | 4,911,381 |   |
| Deficit                                                |   |         | (39,627,536 | )      |         |   | (33,310,805 | ) |
| Total equity                                           |   |         | 27,220,032  |   |         |   | 33,228,319 |   |
|                                                   |   |
| Commitments and contingency (note 20)                  |   |         |        |   |         |   |   |   |
|                                                   |   |         |        |   |         |   |   |   |
| Total liabilities and equity                           |   | $            | 28,517,322  |   |         | $      | 37,208,105 |   |

| /s/ Dr. Roderick Carter | /s/Pierre Fitzgibbon |
|-------------------------|----------------------|

| Roderick Carter | Pierre Fitzgibbon |
|-----------------|-------------------|

| Executive Chairman of the Board | Director |
|---------------------------------|----------|

----

|                                                                           |   |         |       |   |         |    |        |         |   |
|--------------------------------------------------------------------------------|--------|--------------|------------|--------|--------------|---------|-------------|--------------|--------|
|                                                                           |   | February 29, |       |   | February 28, |    |        | February 28, |   |
|                                                                           |   | 2016         |       |   | 2015         |    |        | 2014         |   |
|                                                                           |   |
| Revenue from sales                                                             |   | $            | 37,656     |   |         | $       | 270,615     |         |   | $ | 500,875 |   |
| Cost of sales (note 7)                                                         |   |         | (81,418    | )      |         |    | (235,091    | )            |   |   | (291,853 | ) |
| Gross (loss) profit                                                            |   |         | (43,762    | )      |         |    | 35,524      |         |   |   | 209,022 |   |
|                                                                           |   |         |       |   |         |    |        |         |   |   |   |   |
| Research and development expenses,                                             |   |         |       |   |         |    |        |         |   |   |   |   |
|    net of tax credits of $168,795 (2015 - $264,270; 2014 - $269,591) |   |         | (7,389,415 | )      |         |    | (8,856,941  | )            |   |   | (6,059,311 | ) |
| General and administrative expenses                                            |   |         | (2,178,241 | )      |         |    | (3,573,044  | )            |   |   | (4,949,417 | ) |
| Loss from operating activities                                                 |   |         | (9,611,418 | )      |         |    | (12,394,461 | )            |   |   | (10,799,706 | ) |
|                                                                           |   |         |       |   |         |    |        |         |   |   |   |   |
| Finance income (note 14)                                                       |   |         | 1,095,917  |   |         |    | 1,919,730   |         |   |   | 813,842 |   |
| Finance costs (note 14)                                                        |   |         | (2,261     | )      |         |    | (4,060      | )            |   |   | (1,118,355 | ) |
| Change in fair value of warrant liabilities (note 21)                          |   |         | 2,201,031  |   |         |    | 8,824,067   |         |   |   | (507,430 | ) |
| Net finance income (cost)                                                      |   |         | 3,294,687  |   |         |    | 10,739,737  |         |   |   | (811,943 | ) |
|                                                                           |   |         |       |   |         |    |        |         |   |   |   |   |
| Net loss and total comprehensive loss for the year                             |   | $       | (6,316,731 | )      |         | $  | (1,654,724  | )            |   | $  | (11,611,649 | ) |
|                                                                           |   |         |       |   |         |    |        |         |   |   |   |   |
|                                                                           |   |         |       |   |         |    |        |         |   |   |   |   |
| Basic and diluted loss per share (note 16)                                     |   | $       | (0.59      | )      |         | $       | (0.16       | )            |   | $  | (1.38 | ) |
|                                                                           |   |         |       |   |         |    |        |         |   |   |   |   |
|                                                                           |   |         |       |   |         |    |        |         |   |   |   |   |
| Weighted average number of shares outstanding                                  |   |         | 10,659,936 |   |         |    | 10,617,704  |         |   |   | 8,436,893 |   |
|                                                                           |   |
|                                                                           |   |

----

|                                 |   |          |       |      |   |   |       |        |   |   |     |   |   |    |      |
|--------------------------------------|--------|---------------|------------|-----------|--------|--------|------------|-------------|--------|--------|----------|--------|--------|---------|-----------|
|                                 |   | Share capital |       |      |   |   |       | Contributed |   |   |     |   |   |    |      |
|                                 |   | Number        |       |      | Dollar |   |       | Warrants    |   |   | surplus  |   |   | Deficit |      |   | Total |   |
| Balance, February 28, 2015           |   |          | 10,644,440 | (1)  |   | $      | 61,627,743 |        |   | $      | -        |   |   | $       | 4,911,381 |   |   | $ | (33,310,805 | ) |   | $ | 33,228,319 |   |
|                                 |   |          |       |      |   |   |       |        |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| Net loss and total comprehensive     |   |          |       |      |   |   |       |        |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| loss for the year                    |   |          | -          |      |   |   | -          |        |   |   | -        |   |   |    | -         |   |   |   | (6,316,731 | ) |   |   | (6,316,731 | ) |
|                                 |   |          | 10,644,440 |      |   |   | 61,627,743 |        |   |   | -        |   |   |    | 4,911,381 |   |   |   | (39,627,536 | ) |   |   | 26,911,588 |   |
|                                 |   |          |       |      |   |   |       |        |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| Transactions with owners,            |   |          |       |      |   |   |       |        |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| recorded directly in equity          |   |          |       |      |   |   |       |        |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| Contributions by and distributions   |   |          |       |      |   |   |       |        |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| to owners                            |   |          |       |      |   |   |       |        |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| Share-based payment                  |   |          |       |      |   |   |       |        |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| transactions (note 15)               |   |          | -          |      |   |   | -          |        |   |   | -        |   |   |    | 308,607   |   |   |   | - |   |   |   | 308,607 |   |
| Issuance of shares (note 11 (b))     |   |          | 50,000     |      |   |   | 101,712    |        |   |   | -        |   |   |    | (102,500  | ) |   |   | - |   |   |   | (788 | ) |
| Share options exercised (note 15)    |   |          | 250        |      |   |   | 625        |        |   |   | -        |   |   |    | -         |   |   |   | - |   |   |   | 625 |   |
| RSUs released (note 15)              |   |          | 17,348     |      |   |   | 242,761    |        |   |   | -        |   |   |    | (242,761  | ) |   |   | - |   |   |   | - |   |
| Total contributions by and           |   |          |       |      |   |   |       |        |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| distributions to owners              |   |          | 67,598     |      |   |   | 345,098    |        |   |   | -        |   |   |    | (36,654   | ) |   |   | - |   |   |   | 308,444 |   |
|                                 |   |
| Balance at February 29, 2016         |   |          | 10,712,038 |      |   | $      | 61,972,841 |        |   | $      | -        |   |   | $       | 4,874,727 |   |   | $ | (39,627,536 | ) |   | $ | 27,220,032 |   |
|                                 |   |
|                                 |   |
| Balance, February 28, 2014           |   |          | 10,586,258 | (1)  |   | $      | 61,027,307 |        |   | $      | 406,687  |   |   | $       | 3,501,587 |   |   | $ | (31,656,081 | ) |   | $ | 33,279,500 |   |
|                                 |   |
| Net loss and total comprehensive     |   |          |       |      |   |   |       |        |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| loss for the year                    |   |          | -          |      |   |   | -          |        |   |   | -        |   |   |    | -         |   |   |   | (1,654,724 | )  |   |   | (1,654,724 | ) |
|                                 |   |          | 10,586,258 |      |   |   | 61,027,307 |        |   |   | 406,687  |   |   |    | 3,501,587 |   |   |   | (33,310,805 | ) |   |   | 31,624,776 |   |
|                                 |   |          |       |      |   |   |       |        |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| Transactions with owners,            |   |          |       |      |   |   |       |        |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| recorded directly in equity          |   |          |       |      |   |   |       |        |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| Contributions by and distributions   |   |          |       |      |   |   |       |        |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| to owners                            |   |          |       |      |   |   |       |        |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| Share-based payment                  |   |          |       |      |   |   |       |        |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| transactions (note 15)               |   |          | -          |      |   |   | -          |        |   |   | -        |   |   |    | 1,553,543 |   |   |   | - |   |   |   | 1,553,543 |   |
| Share options exercised (note 15)    |   |          | 20,000     |      |   |   | 50,000     |        |   |   | -        |   |   |    | -         |   |   |   | - |   |   |   | 50,000 |   |
| RSUs released (note 15)              |   |          | 38,182     |      |   |   | 550,436    |        |   |   | -        |   |   |    | (550,436  | ) |   |   | - |   |   |   | - |   |
| Expiration of warrants (note 11 (e)) |   |          | -          |      |   |   | -          |        |   |   | (406,687 | )      |   |    | 406,687   |   |   |   | - |   |   |   | - |   |
| Total contributions by and           |   |          |       |      |   |   |       |        |   |   |     |   |   |    |      |   |   |   |   |   |   |   |   |   |
| distributions to owners              |   |          | 58,182     |      |   |   | 600,436    |        |   |   | (406,687 | )      |   |    | 1,409,794 |   |   |   | - |   |   |   | 1,603,543 |   |
|                                 |   |
| Balance at February 28, 2015         |   |          | 10,644,440 |      |   | $      | 61,627,743 |        |   | $      | -        |   |   | $       | 4,911,381 |   |   | $ | (33,310,805 | ) |   | $ | 33,228,319 |   |

| (1) | Adjusted to give effect to the reverse stock split that occurred on October 15, 2015, as detailed in note 11. |
|-----|---------------------------------------------------------------------------------------------------------------|

----

|                               |   |          |       |      |   |   |       |        |   |   |    |   |   |    |      |
|------------------------------------|--------|---------------|------------|-----------|--------|--------|------------|-------------|--------|--------|---------|--------|--------|---------|-----------|
|                               |   | Share capital |       |      |   |   |       | Contributed |   |   |    |   |   |    |      |
|                               |   | Number        |       |      | Dollar |   |       | Warrants    |   |   | surplus |   |   | Deficit |      |   | Total |   |
|                               |   |
| Balance, February 28, 2013         |   |          | 7,314,538  | (1)  |   | $      | 28,922,710 |        |   | $      | 406,687 |   |   | $       | 438,711   |   |   | $ | (20,044,432 | ) |   | $ | 9,723,676 |   |
|                               |   |          |       |      |   |   |       |        |   |   |    |   |   |    |      |   |   |   |   |   |   |   |   |   |
| Net loss and total comprehensive   |   |          |       |      |   |   |       |        |   |   |    |   |   |    |      |   |   |   |   |   |   |   |   |   |
| loss for the year                  |   |          | -          |      |   |   | -          |        |   |   | -       |   |   |    | -         |   |   |   | (11,611,649 | ) |   |   | (11,611,649 | ) |
|                               |   |          | 7,314,538  |      |   |   | 28,922,710 |        |   |   | 406,687 |   |   |    | 438,711   |   |   |   | (31,656,081 | ) |   |   | (1,887,973 | ) |
|                               |   |          |       |      |   |   |       |        |   |   |    |   |   |    |      |   |   |   |   |   |   |   |   |   |
| Transactions with owners,          |   |          |       |      |   |   |       |        |   |   |    |   |   |    |      |   |   |   |   |   |   |   |   |   |
| recorded directly in equity        |   |          |       |      |   |   |       |        |   |   |    |   |   |    |      |   |   |   |   |   |   |   |
| Contributions by and distributions |   |          |       |      |   |   |       |        |   |   |    |   |   |    |      |   |   |   |   |   |   |   |   |   |
| to owners                          |   |          |       |      |   |   |       |        |   |   |    |   |   |    |      |   |   |   |   |   |   |   |   |   |
| Public offering (note 11(b))       |   |          | 1,840,000  |      |   |   | 12,396,535 |        |   |   | -       |   |   |    | -         |   |   |   | - |   |   |   | 12,396,535 |   |
| Private placement (note 11 (c))    |   |          | 161,654    |      |   |   | 2,067,605  |        |   |   | -       |   |   |    | -         |   |   |   | - |   |   |   | 2,067,605 |   |
| Issuance of shares on              |   |          |       |      |   |   |       |        |   |   |    |   |   |    |      |   |   |   |   |   |   |   |   |   |
| royalty prepayment(note 20)        |   |          | 675,000    |      |   |   | 15,496,000 |        |   |   | -       |   |   |    | -         |   |   |   | - |   |   |   | 15,496,000 |   |
| Share-based payment                |   |          |       |      |   |   |       |        |   |   |    |   |   |    |      |   |   |   |   |   |   |   |   |   |
| transactions (note 15)             |   |          | -          |      |   |   | -          |        |   |   | -       |   |   |    | 3,441,719 |   |   |   | - |   |   |   | 3,441,719 |   |
| Warrants exercised                 |   |          | 539,485    |      |   |   | 1,358,088  |        |   |   | -       |   |   |    | -         |   |   |   | - |   |   |   | 1,358,088 |   |
| Share options exercised (note 15)  |   |          | 29,650     |      |   |   | 492,289    |        |   |   | -       |   |   |    | (84,763   | ) |   |   | - |   |   |   | 407,526 |   |
| RSUs released (note 15)            |   |          | 25,931     |      |   |   | 294,080    |        |   |   | -       |   |   |    | (294,080  | ) |   |   | - |   |   |   | - |   |
| Total contributions by and         |   |          |       |      |   |   |       |        |   |   |    |   |   |    |      |   |   |   |   |   |   |   |   |   |
| distributions to owners            |   |          | 3,271,720  |      |   |   | 32,104,597 |        |   |   | -       |   |   |    | 3,062,876 |   |   |   | - |   |   |   | 35,167,473 |   |
|                               |   |          |       |      |   |   |       |        |   |   |    |   |   |    |      |   |   |   |   |   |   |   |   |   |
| Balance at February 28, 2014       |   |          | 10,586,258 |      |   | $      | 61,027,307 |        |   | $      | 406,687 |   |   | $       | 3,501,587 |   |   | $ | (31,656,081 | ) |   |   | 33,279,500 |   |

| (1) | Adjusted to give effect to the reverse stock split that occurred on October 15, 2015, as detailed in note 11. |
|-----|---------------------------------------------------------------------------------------------------------------|

----

|                                                                           |   |         |        |   |         |   |        |         |   |
|--------------------------------------------------------------------------------|--------|--------------|-------------|--------|--------------|--------|-------------|--------------|--------|
|                                                                           |   | February 29, |        |   | February 28, |   |        | February 28, |   |
|                                                                           |   | 2016         |        |   |         | 2015   |        |         |   | 2014 |   |
|                                                                           |   |         |        |   |         |   |        |         |   |   |   |
|                                                                           |   |         |        |   |         |   |        |         |   |   |   |
| Cash flows used in operating activities:                                       |   |         |        |   |         |   |        |         |   |   |   |
| Net loss for the year                                                          |   |         | (6,316,731  | )      |         |   | (1,654,724  | )            |   |   | (11,611,649 | ) |
| Adjustments:                                                                   |   |         |        |   |         |   |        |         |   |   |   |   |
|          Depreciation of equipment                    |   |         | 58,809      |   |         |   | 3,654       |         |   |   | 5,337 |   |
|          Amortization of intangible asset             |   |         | 2,335,668   |   |         |   | 2,331,569   |         |   |   | 1,768,500 |   |
|          Impairment loss related to intangible assets |   |         | 339,106     |   |         |   | -           |         |   |   | - |   |
|          Stock-based compensation                     |   |         | 308,607     |   |         |   | 1,553,543   |         |   |   | 3,441,719 |   |
|          Net finance (income) cost                    |   |         | (3,294,687  | )      |         |   | (10,739,737 | )            |   |   | 811,943 |   |
|          Realized foreign exchange gain (loss)        |   |         | 36,656      |   |         |   | 1,606       |         |   |   | (92,944 | ) |
|                                                                           |   |         | (6,532,572  | )      |         |   | (8,504,089  | )            |   |   | (5,677,094 | ) |
| Changes in non-cash operating working capital items:                           |   |         |        |   |         |   |        |         |   |   |   |   |
|    Changes in non-cash operating items (note 17)                     |   |         | (41,969     | )      |         |   | 1,306,404   |         |   |   | (1,127,443 | ) |
| Net cash used in operating activities                                          |   |         | (6,574,541  | )      |         |   | (7,197,685  | )            |   |   | (6,804,537 | ) |
|                                                                           |   |
| Cash flows from (used in) investing activities:                                |   |         |        |   |         |   |        |         |   |   |   |   |
| Interest received                                                              |   |         | 113,727     |   |         |   | 40,995      |         |   |   | 98,132 |   |
| Acquisition of equipment                                                       |   |         | (276,008    | )      |         |   | (34,650     | )            |   |   | (25,000 | ) |
| Acquisition of intangible assets                                               |   |         | (91,572     | )      |         |   | (51,270     | )            |   |   | (123,610 | ) |
| Acquisition of short-term investments                                          |   |         | (11,954,050 | )      |         |   | (14,478,186 | )            |   |   | (25,395,800 | ) |
| Maturity of short-term investments                                             |   |         | 20,436,500  |   |         |   | 22,149,888  |         |   |   | 6,000,000 |   |
| Net cash from (used in) investing activities                                   |   |         | 8,228,597   |   |         |   | 7,626,777   |         |   |   | (19,446,278 | ) |
|                                                                           |   |         |        |   |         |   |        |         |   |   |   |   |
| Cash flows from (used in) financing activities:                                |   |         |        |   |         |   |        |         |   |   |   |   |
| Net proceeds from public offering (note 11 (b))                                |   |         | -           |   |         |   | -           |         |   |   | 21,953,200 |   |
| Net proceeds from private placement (note 11 (c))                              |   |         | -           |   |         |   | -           |         |   |   | 2,067,605 |   |
| Proceeds from exercise of warrants and options                                 |   |         | 625         |   |         |   | 50,000      |         |   |   | 972,177 |   |
| Share issue costs (note 11(b))                                                 |   |         | (788        | )      |         |   | -           |         |   |   | (29,000 | ) |
| Interest paid                                                                  |   |         | (2,261      | )      |         |   | (4,060      | )            |   |   | (975 | ) |
| Net cash from (used in) financing activities                                   |   |         | (2,424      | )      |         |   | 45,940      |         |   |   | 24,963,007 |   |
|                                                                           |   |         |        |   |         |   |        |         |   |   |   |   |
| Foreign exchange gain on cash held in foreign currencies                       |   |         | 64,755      |   |         |   | 160,034     |         |   |   | 766,730 |   |
| Net increase (decrease) in cash                                                |   |         | 1,716,387   |   |         |   | 635,066     |         |   |   | (521,078 | ) |
|                                                                           |   |         |        |   |         |   |        |         |   |   |   |   |
| Cash, beginning of year                                                        |   |         | 1,310,556   |   |         |   | 675,490     |         |   |   | 1,196,568 |   |
|                                                                           |   |         |        |   |         |   |        |         |   |   |   |   |
|                                                                           |   |         |        |   |         |   |        |         |   |   |   |   |
| Cash, end of year                                                              |   |         | 3,026,943   |   |         |   | 1,310,556   |         |   |   | 675,490 |   |

----

----

|  | (a) | Statement of compliance: |
|--|-----|--------------------------|

|  | (b) | Basis of measurement: |
|--|-----|-----------------------|

|  | · | Stock-based compensation which is measured pursuant to IFRS 2, Share-based payments (Note 3(f) (ii)); and, |
|--|--------|------------------------------------------------------------------------------------------------------------|

|  | · | Derivative warrant liabilities measured at fair value on a recurring basis (Note 21). |
|--|--------|---------------------------------------------------------------------------------------|

|  | (c) | Functional and presentation currency: |
|--|-----|---------------------------------------|

|  | (d) | Use of estimates and judgments: |
|--|-----|---------------------------------|

----

|  | (d) | Use of estimates and judgments (continued): |
|--|-----|---------------------------------------------|

|  | · | Identification of triggering events indicating that the intangible assets might be impaired (Note 3 (e) (ii)). |
|--|--------|----------------------------------------------------------------------------------------------------------------|

|  | · | The use of the going concern basis of preparation of the financial statements.  At each reporting period, management assesses the basis of preparation of the financial statements. These financial statements have been prepared on a going concern basis in accordance with IFRS. The going concern basis of presentation assumes that the Corporation will continue its operations for the foreseeable future and be able to realize its assets and discharge its liabilities and commitments in the normal course of business. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Measurement of derivative warrant liabilities (Note 21) and stock-based compensation (Note 15). |
|--|--------|-------------------------------------------------------------------------------------------------|

|  | · | Determination of the recoverable amount of the Corporation’s cash generating unit (“CGU”) (Note 3 (e) (ii)). |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------|

|  | (a) | Financial instruments: |
|--|-----|------------------------|

|  | (i) | Non-derivative financial assets: |
|--|-----|----------------------------------|

----

|  | (a) | Financial instruments (continued): |
|--|-----|------------------------------------|

|  | (ii) | Non-derivative financial liabilities: |
|--|------|---------------------------------------|

|  | (iii) | Share capital: |
|--|-------|----------------|

*Common shares*

|  | (iv) | Derivative financial instruments: |
|--|------|-----------------------------------|

|  | (v) | Other equity instruments: |
|--|-----|---------------------------|

|  | (b) | Inventories: |
|--|-----|--------------|

|  | (c) | Equipment: |
|--|-----|------------|

|  | (i) | Recognition and measurement: |
|--|-----|------------------------------|

----

|  | (c) | Equipment (continued): |
|--|-----|------------------------|

|  | (ii) | Subsequent costs: |
|--|------|-------------------|

|  | (iii) | Depreciation: |
|--|-------|---------------|

|   |                           |              |        |
|--------|--------------------------------|-------------------|-------------|
|   | Assets                         | Method            | Period/Rate |
|   | Furniture and office equipment | Declining balance | 20% to 30%  |
|   | Computer equipment             | Straight-line     | 3 - 4 years |
|   | Laboratory equipment           | Declining balance | 30%         |

|  | (d) | Intangible assets: |
|--|-----|--------------------|

|  | (i) | Research and development: |
|--|-----|---------------------------|

|  | (ii) | Other intangible assets: |
|--|------|--------------------------|

----

|  | (d) | Intangible assets (continued): |
|--|-----|--------------------------------|

|  | (iii) | Subsequent expenditure: |
|--|-------|-------------------------|

|  | (iv) | Amortization: |
|--|------|---------------|

|   |    |          |
|--------|---------|---------------|
|   | Assets  | Period        |
|   | Patents | 20 years      |
|   | License | 8 to 14 years |

|  | (e) | Impairment: |
|--|-----|-------------|

|  | (i) | Financial assets (including receivables): |
|--|-----|-------------------------------------------|

----

|  | (e) | Impairment (continued): |
|--|-----|-------------------------|

|  | (ii) | Non-financial assets: |
|--|------|-----------------------|

|  | (f) | Employee benefits: |
|--|-----|--------------------|

|  | (i) | Short-term employee benefits: |
|--|-----|-------------------------------|

|  | (ii) | Share-based payment transactions: |
|--|------|-----------------------------------|

----

|  | (f) | Employee benefits (continued): |
|--|-----|--------------------------------|

|  | (iii) | Termination benefits: |
|--|-------|-----------------------|

|  | (g) | Provisions: |
|--|-----|-------------|

|  | (i) | Onerous contracts: |
|--|-----|--------------------|

|  | (ii) | Contingent liability: |
|--|------|-----------------------|

|  | (h) | Revenue: |
|--|-----|----------|

|  |  | Sale of goods: |
|--|--|----------------|

----

|  | (i) | Government grants: |
|--|-----|--------------------|

|  | (j) | Lease payments: |
|--|-----|-----------------|

|  | (k) | Foreign currency: |
|--|-----|-------------------|

|  | (l) | Finance income and finance costs: |
|--|-----|-----------------------------------|

|  | (m) | Income tax: |
|--|-----|-------------|

----

|  | (m) | Income tax (continued): |
|--|-----|-------------------------|

|  | (n) | Earnings per share: |
|--|-----|---------------------|

|  | (o) | Segment reporting: |
|--|-----|--------------------|

|  | (p) | Change in accounting policy: |
|--|-----|------------------------------|

----

|                   |   |         |    |   |         |   |
|------------------------|--------|--------------|---------|--------|--------------|--------|
|                   |   | February 29, |    |   | February 28, |   |
|                   |   | 2016         |    |   | 2015         |   |
|                   |   |
| Trade receivables      |   | $            | -       |   |         | $      | 250,313 |   |
| Sales taxes receivable |   |         | 181,742 |   |         |   | 134,573 |   |
| Government assistance  |   |         | 155,861 |   |         |   | - |   |
|                   |   | $            | 337,603 |   |         | $      | 384,886 |   |

|  | (a) | Administrative and research and development expenses: |
|--|-----|-------------------------------------------------------|

|                                |   |         |    |   |         |   |    |         |   |
|-------------------------------------|--------|--------------|---------|--------|--------------|--------|---------|--------------|--------|
|                                |   | February 29, |    |   | February 28, |   |    | February 28, |   |
|                                |   | 2016         |    |   | 2015         |   |    | 2014         |   |
|                                |   |         |    |   |         |   |    |         |   |
| Research and development expenses   |   | $            | 368,991 |   |         | $      | 188,281 |         |   | $ | 23,866 |   |
| General and administrative expenses |   |         | 485,486 |   |         |   | 225,980 |         |   |   | 127,504 |   |
| Royalties (note 20)                 |   |         | -       |   |         |   | -       |         |   |   | 228,219 |   |
|                                |   | $            | 854,470 |   |         | $      | 414,261 |         |   | $ | 379,589 |   |

|  | (b) | Interest revenue: |
|--|-----|-------------------|

----

|  | (c) | Revenue from royalties: |
|--|-----|-------------------------|

|  | (d) | Payable to parent corporation: |
|--|-----|--------------------------------|

|  | (e) | Key management personnel compensation: |
|--|-----|----------------------------------------|

|                           |   |         |    |   |         |   |      |         |   |
|--------------------------------|--------|--------------|---------|--------|--------------|--------|-----------|--------------|--------|
|                           |   | February 29, |    |   | February 28, |   |      | February 28, |   |
|                           |   | 2016         |    |   | 2015         |   |      | 2014         |   |
|                           |   |         |    |   |         |   |      |         |   |
| Short-term benefits            |   | $            | 687,740 |   |         | $      | 741,639   |         |   | $ | 680,319 |   |
| Severance                      |   |         | 102,900 |   |         |   | 174,950   |         |   |   | - |   |
| Share-based compensation costs |   |         | 120,295 |   |         |   | 1,339,361 |         |   |   | 2,439,254 |   |
|                           |   | $            | 910,935 |   |         | $      | 2,255,950 |         |   | $ | 3,119,573 |   |

|   |   |   |      |   |
|--------|--------|--------|-----------|--------|
| 2029   |   | $      | 11,000    |   |
| 2030   |   |   | 30,000    |   |
| 2031   |   |   | 45,000    |   |
| 2032   |   |   | 431,000   |   |
| 2033   |   |   | 441,000   |   |
| 2034   |   |   | 436,000   |   |
| 2035   |   |   | 534,000   |   |
| 2036   |   |   | 318,000   |   |
|   |   | $      | 2,246,000 |   |

----

|                           |   |             |   |   |      |   |   |       |   |   |    |   |
|--------------------------------|--------|------------------|--------|--------|-----------|--------|--------|------------|--------|--------|---------|--------|
|                           |   | Furniture and    |   |   | Computer  |   |   | Laboratory |   |   |    |   |
|                           |   | office equipment |   |   | equipment |   |   | equipment  |   |   | Total   |   |
| Cost:                          |   |             |   |   |      |   |   |       |   |   |    |   |
| Balance at February 28, 2013   |   | $                | 58,706 |   |      | $      | 3,691  |       |   | $      | -       |   |   | $ | 62,397 |   |
| Additions                      |   |             | -      |   |      |   | -      |       |   |   | 25,000  |   |   |   | 25,000 |   |
| Balance at February 28, 2014   |   |             | 58,706 |   |      |   | 3,691  |       |   |   | 25,000  |   |   |   | 87,397 |   |
| Additions                      |   |             | -      |   |      |   | -      |       |   |   | 34,650  |   |   |   | 34,650 |   |
| Balance at February 28, 2015   |   |             | 58,706 |   |      |   | 3,691  |       |   |   | 59,650  |   |   |   | 122,047 |   |
| Additions                      |   |             | -      |   |      |   | -      |       |   |   | 276,008 |   |   |   | 276,008 |   |
| Balance at February 29, 2016   |   |             | 58,706 |   |      |   | 3,691  |       |   |   | 335,658 |   |   |   | 398,055 |   |
|                           |   |             |   |   |      |   |   |       |   |   |    |   |   |   |   |   |
| Accumulated depreciation:      |   |             |   |   |      |   |   |       |   |   |    |   |   |   |   |   |
| Balance at February 29, 2013   |   |             | 39,733 |   |      |   | 3,386  |       |   |   | -       |   |   |   | 43,119 |   |
| Depreciation for the year      |   |             | 5,032  |   |      |   | 305    |       |   |   | -       |   |   |   | 5,337 |   |
| Balance at February 28, 2014   |   |             | 44,765 |   |      |   | 3,691  |       |   |   | -       |   |   |   | 48,456 |   |
| Depreciation for the year      |   |             | 3,654  |   |      |   | -      |       |   |   | -       |   |   |   | 3,654 |   |
| Balance at February 28, 2015   |   |             | 48,419 |   |      |   | 3,691  |       |   |   | -       |   |   |   | 52,110 |   |
| Depreciation for the year      |   |             | 2,664  |   |      |   | -      |       |   |   | 56,145  |   |   |   | 58,809 |   |
| Balance at February 28, 2016   |   | $                | 51,083 |   |      | $      | 3,691  |       |   | $      | 56,145  |   |   | $ | 110,919 |   |
|                           |   |             |   |   |      |   |   |       |   |   |    |   |   |   |   |   |
| Net carrying amounts:          |   |             |   |   |      |   |   |       |   |   |    |   |   |   |   |   |
|    February 28, 2015 |   | $                | 10,287 |   |      | $      | -      |       |   | $      | 59,650  |   |   | $ | 69,937 |   |
|    February 29, 2016 |   |             | 7,623  |   |      |   | -      |       |   |   | 279,513 |   |   |   | 287,136 |   |

----

|                           |   |    |    |   |    |   |       |   |   |
|--------------------------------|--------|---------|---------|--------|---------|--------|------------|--------|--------|
|                           |   | Patents |    |   | License |   |       | Total  |   |
| Cost:                          |   |    |    |   |    |   |       |   |   |
| February 28, 2013              |   | $       | 103,068 |   |    | $      | 9,200,000  |   |   | $ | 9,303,068 |   |
| Additions (note 20)            |   |    | 123,610 |   |    |   | 15,129,932 |   |   |   | 15,253,542 |   |
| Balance at February 28, 2014   |   |    | 226,678 |   |    |   | 24,329,932 |   |   |   | 24,556,610 |   |
| Additions (note 20)            |   |    | 51,270  |   |    |   | -          |   |   |   | 51,270 |   |
| Balance at February 28, 2015   |   |    | 277,948 |   |    |   | 24,329,932 |   |   |   | 24,607,880 |   |
| Additions                      |   |    | 83,645  |   |    |   | -          |   |   |   | 83,645 |   |
| Balance at February 29, 2016   |   |    | 361,593 |   |    |   | 24,329,932 |   |   |   | 24,691,525 |   |
|                           |   |    |    |   |    |   |       |   |   |   |   |   |
| Accumulated amortization:      |   |    |    |   |    |   |       |   |   |   |   |   |
| Balance at February 28, 2013   |   |    | -       |   |    |   | 3,011,906  |   |   |   | 3,011,906 |   |
| Amortization for the year      |   |    | 906     |   |    |   | 1,767,594  |   |   |   | 1,768,500 |   |
| Balance at February 28, 2014   |   |    | 906     |   |    |   | 4,779,500  |   |   |   | 4,780,406 |   |
| Amortization for the year      |   |    | 8,741   |   |    |   | 2,322,828  |   |   |   | 2,331,569 |   |
| Balance at February 28, 2015   |   |    | 9,647   |   |    |   | 7,102,328  |   |   |   | 7,111,975 |   |
| Amortization for the year      |   |    | 12,840  |   |    |   | 2,322,828  |   |   |   | 2,335,668 |   |
| Impairment loss                |   |    | 339,106 |   |    |   | -          |   |   |   | 339,106 |   |
| Balance at February 29, 2016   |   | $       | 361,593 |   |    | $      | 9,425,156  |   |   | $ | 9,786,749 |   |
|                           |   |
| Net carrying amounts:          |   |    |    |   |    |   |       |   |   |   |   |   |
|    February 28, 2015 |   | $       | 268,301 |   |    | $      | 17,227,604 |   |   | $ | 17,495,905 |   |
|    February 29, 2016 |   |    | -       |   |    |   | 14,904,776 |   |   |   | 14,904,776 |   |

|                                   |   |         |      |   |         |   |
|----------------------------------------|--------|--------------|-----------|--------|--------------|--------|
|                                   |   | February 29, |      |   | February 28, |   |
|                                   |   | 2016         |      |   | 2015         |   |
| Trade payables                         |   | $            | 375,203   |   |         | $      | 246,516 |   |
| Accrued liabilities and other payables |   |         | 543,253   |   |         |   | 661,625 |   |
| Employee salaries and benefits payable |   |         | 207,521   |   |         |   | 175,706 |   |
|                                   |   | $            | 1,125,977 |   |         | $      | 1,083,847 |   |

----

|  | (a) | Share capital: |
|--|-----|----------------|

|  | ● | The Corporation consolidated all classes of its capital stock on a 10:1 basis. |
|--|---------|--------------------------------------------------------------------------------|

|  | ● | The exercise price in effect in the case of incentive stock options, warrants and other securities convertible into Common Shares (the “Convertible Securities”) increased proportionally to reflect the Consolidation. The number of Common Shares subject to a right of purchase under such Convertible Securities also decreased proportionally to reflect the Consolidation, provided that no fractional Common Share shall be issued or otherwise provided theretofore upon the exercise of any Convertible Securities. |
|--|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | › | Class A shares, voting (one vote per share), participating and without par value |
|--|---------|----------------------------------------------------------------------------------|

|  | › | Class B shares, voting (ten votes per share), non-participating, without par value and maximum annual non-cumulative dividend of 5% on the amount paid for said shares.  Class B shares are convertible, at the holder’s discretion, into Class A shares, on a one-for-one basis, and Class B shares are redeemable at the holder’s discretion for $0.80 per share, subject to certain conditions. (1) |
|--|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | › | Class C shares, non-voting, non-participating, without par value and maximum annual non-cumulative dividend of 5% on the amount paid for said shares.  Class C shares are convertible, at the holder’s discretion, into Class A shares, on a one-for-one basis, and Class C shares are redeemable at the holder’s discretion for $0.20 per share, subject to certain conditions. (1) |
|--|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | › | Class D and E shares, non-voting, non-participating, without par value and maximum monthly non-cumulative dividend between 0.5% and 2% on the amount paid for said shares.  Class D and E shares are convertible, at the holder’s discretion, into Class A shares, on a one-for-one basis, and Class D and E shares are redeemable at the holder’s discretion, subject to certain conditions. (1) |
|--|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | Issuance of shares: |
|--|-----|---------------------|

|  | (c) | Public offering: |
|--|-----|------------------|

----

|  | (d) | Private placement 2014: |
|--|-----|-------------------------|

|  | (e) | Warrants: |
|--|-----|-----------|

|                            |   |        |       |   |         |   |    |        |   |   |         |   |   |        |      |   |         |   |
|---------------------------------|--------|-------------|------------|--------|--------------|--------|---------|-------------|--------|--------|--------------|--------|--------|-------------|-----------|--------|--------------|--------|
|                            |   |        |       |   | February 29, |   |    |        |   |   | February 28, |   |   |        |      |   | February 28, |   |
|                            |   |        |       |   | 2016         |   |    |        |   |   | 2015         |   |   |        |      |   | 2014         |   |
|                            |   |
|                            |   | Number      |       |   |         |   |    | Number      |   |   |         |   |   | Number      |      |   |         |   |
|                            |   | outstanding |       |   | Amount       |   |    | outstanding |   |   | Amount       |   |   | outstanding |      |   | Amount       |   |
|                            |   |
| Liability                       |   |        |       |   |         |   |    |        |   |   |         |   |   |        |      |   |         |   |
| Series 8 Public offering        |   |        |       |   |         |   |    |        |   |   |         |   |   |        |      |   |         |   |
| warrants 2014 ((c) and Note 21) |   |        | 18,400,000 |   |         | $      | 156,377 |        |   |   | 18,400,000   |   |   | $           | 2,357,408 |   |         |   | 18,400,000 |   |   | $ | 11,181,475 |   |
|                            |   |        |       |   |         |   |    |        |   |   |         |   |   |        |      |   |         |   |   |   |   |   |   |   |
|                            |   |        | 18,400,000 |   |         | $      | 156,377 |        |   |   | 18,400,000   |   |   | $           | 2,357,408 |   |         |   | 18,400,000 |   |   | $ | 11,181,475 |   |
|                            |   |        |       |   |         |   |    |        |   |   |         |   |   |        |      |   |         |   |   |   |   |   |   |   |
|                            |   |        |       |   |         |   |    |        |   |   |         |   |   |        |      |   |         |   |   |   |   |   |   |   |
| Equity                          |   |        |       |   |         |   |    |        |   |   |         |   |   |        |      |   |         |   |   |   |   |   |   |   |
| Private placement warrants      |   |        |       |   |         |   |    |        |   |   |         |   |   |        |      |   |         |   |   |   |   |   |   |   |
| Series 9 Private placement      |   |        |       |   |         |   |    |        |   |   |         |   |   |        |      |   |         |   |   |   |   |   |   |   |
| warrants 2014 (d)               |   |        | 161,654    |   |         | $      | -       |        |   |   | 161,654      |   |   | $           | -         |   |         |   | 161,654 |   |   | $ | - |   |
| Series 6 warrants - expired     |   |        |       |   |         |   |    |        |   |   |         |   |   |        |      |   |         |   |   |   |   |   |   |   |
| unexercised February 10, 2015   |   |        | -          |   |         |   | -       |        |   |   | -            |   |   |        | -         |   |         |   | 37,500 |   |   |   | 306,288 |   |
| Series 7 warrants - expired     |   |        |       |   |         |   |    |        |   |   |         |   |   |        |      |   |         |   |   |   |   |   |   |   |
| unexercised February 10, 2015   |   |        | -          |   |         |   | -       |        |   |   | -            |   |   |        | -         |   |         |   | 37,500 |   |   |   | 100,399 |   |
|                            |   |        |       |   |         |   |    |        |   |   |         |   |   |        |      |   |         |   |   |   |   |   |   |   |
|                            |   |        | 161,654    |   |         | $      | -       |        |   |   | 161,654      |   |   | $           | -         |   |         |   | 236,654 |   |   | $ | 406,687 |   |

----

|                                            |            |   |         |      |   |         |      |      |         |   |
|-------------------------------------------------|-----------------|--------|--------------|-----------|--------|--------------|-----------|-----------|--------------|--------|
|                                            |       |   | February 29, |      |   | February 28, |      |      | February 28, |   |
|                                            |            |   | 2016         |      |   | 2015         |      |      | 2014         |   |
|                                            |            |
| Salaries and other short-term employee benefits |            | $      | 1,901,742    |      |   | $            | 1,553,687 |      |         | $      | 1,417,891 |   |
| Share-based compensation                        |            |   | 308,607      |      |   |         | 1,553,543 |      |         |   | 3,423,243 |   |
| Severance                                       |            |   | 210,149      |      |   |         | 171,364   |      |         |   | - |   |
|                                            |       |   | $            | 2,420,498 |   |         | $         | 3,278,594 |         |   | $ | 4,841,134 |   |
|                                            |            |   |         |      |   |         |      |      |         |   |   |   |   |
| 14. Finance income and finance costs:      |            |   |         |      |   |         |      |      |         |   |   |   |
|                                            |            |   |         |      |   |         |      |      |         |   |   |   |   |
| (a)                                             | Finance income: |   |         |      |   |         |      |      |         |   |   |   |   |
|                                            |            |   |         |      |   |         |      |      |         |   |   |   |   |
|                                            |       |   | February 29, |      |   | February 28, |      |      | February 28, |   |
|                                            |            |   |         | 2016      |   |         |      | 2015      |         |   |   | 2014 |   |
|                                            |            |   |         |      |   |         |      |      |         |   |   |   |   |
| Interest income                                 |            | $      | 73,495       |      |   | $            | 87,009    |      |         | $      | 32,256 |   |
| Foreign exchange gain                           |            |   | 1,022,422    |      |   |         | 1,832,721 |      |         |   | 781,586 |   |
|                                            |       |   | $            | 1,095,917 |   |         | $         | 1,919,730 |         |   | $ | 813,842 |   |
|                                            |            |   |         |      |   |         |      |      |         |   |   |   |   |
| (b)                                             | Finance costs:  |   |         |      |   |         |      |      |         |   |   |   |   |
|                                            |            |   |         |      |   |         |      |      |         |   |   |   |   |
|                                            |       |   | February 29, |      |   | February 28, |      |      | February 28, |   |
|                                            |            |   |         | 2016      |   |         |      | 2015      |         |   |   | 2014 |   |
|                                            |            |
| Interest charges                                |            | $      | (2,261       | )         |   | $       | (4,060    | )         |         | $      | (975 | ) |
| Warrants issue costs (Note 11 (b))              |            |   | -            |      |   |         | -         |      |         |   | (1,117,380 | ) |
|                                            |       |   | $            | (2,261    | )      |         | $    | (4,060    | )            |   | $  | (1,118,355 | ) |

|  | (a) | Corporation stock option plan: |
|--|-----|--------------------------------|

----

|  | (a) | Corporation stock option plan (continued): |
|--|-----|--------------------------------------------|

|                             |   |                    |   |   |                    |   |
|----------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|
|                             |   | Year ended              |   |   | Year ended              |   |
|                             |   |  February 29, 2016 |   |   |  February 28, 2015 |   |
|                             |   | Weighted average        |   |   | Number of               |   |   | Weighted average |   |   | Number or |   |
|                             |   | exercise price          |   |   | options                 |   |   | exercise price |   |   | options |   |
|                             |   |
| Outstanding at beginning of year |   | $                       | 15.33  |   |                    |   | 429,625 |   |   | $ | 15.72 |   |   |   | 491,100 |   |
| Granted                          |   |                    | 4.65   |   |                    |   | 109,188 |   |   |   | 9.51 |   |   |   | 51,250 |   |
| Exercised                        |   |                    | 2.50   |   |                    |   | (250 | ) |   |   | 2.50 |   |   |   | (20,000 | ) |
| Forfeited                        |   |                    | 9.40   |   |                    |   | (66,912 | ) |   |   | 14.90 |   |   |   | (22,750 | ) |
| Expired                          |   |                    | 18.57  |   |                    |   | (17,500 | ) |   |   | 18.00 |   |   |   | (10,000 | ) |
| Cancelled (note 20)              |   |                    | -      |   |                    |   | - |   |   |   | 17.50 |   |   |   | (60,000 | ) |
| Outstanding at end of year       |   | $                       | 13.52  |   |                    |   | 454,151 |   |   | $ | 15.33 |   |   |   | 429,625 |   |
|                             |   |
| Exercisable at end of year       |   | $                       | 15.28  |   |                    |   | 375,563 |   |   | $ | 15.48 |   |   |   | 332,039 |   |
|                             |   |
|                             |   |
|                             |   |
|                             |   |
|                             |   |                    |   |   |                    |   |   |   |   | Year ended |   |
|                             |   |                    |   |   |                    |   |   |   |   |  February 28, 2014 |   |
|                             |   |                    |   |   |                    |   |   |   | Weighted average |   |   | Number or |   |
|                             |   |                    |   |   |                    |   |   |   |   | exercise price |   |   | options |   |
|                             |   |
| Outstanding at beginning of year |   |                    |   |   |                    |   |   |   |   | $ | 15.51 |   |   |   | 521,625 |   |
| Granted                          |   |                    |   |   |                    |   |   |   |   |   | 22.31 |   |   |   | 29,750 |   |
| Exercised                        |   |                    |   |   |                    |   |   |   |   |   | 13.74 |   |   |   | (29,650 | ) |
| Forfeited                        |   |                    |   |   |                    |   |   |   |   |   | 20.56 |   |   |   | (30,625 | ) |
| Outstanding at end of year       |   |                    |   |   |                    |   |   |   |   | $ | 15.72 |   |   |   | 491,100 |   |
|                             |   |
| Exercisable at end of year       |   |                    |   |   |                    |   |   |   |   | $ | 13.86 |   |   |   | 341,217 |   |
|                             |   |
|                             |   |
|                             |   |
|            |   |
|-----------------|--------|
|            |   |   |   |   | 2016 |   |
|            |   | Options outstanding |   |   | Exercisable options |   |
|            |   | Weighted |   |   |   |   |   |   | Weighed |   |   |   |   |   |
|            |   | remaining |   |   | Number of |   |   | average |   |   | Number of |   |
|            |   | contractual life |   |   | options |   |   | exercise price |   |   | options |   |
| Exercise price  |   | outstanding |   |   | outstanding |   |   | $ |   |   |   | exercisable |   |
|            |   |
|            |   |
| $2.50 - $4.65   |   |   | 4.59 |   |   |   | 95,800 |   |   |   | 2.50 |   |   |   | 43,000 |   |
| $4.66 - $13.00  |   |   | 3.31 |   |   |   | 54,726 |   |   |   | 10.27 |   |   |   | 28,938 |   |
| $13.01 - $14.50 |   |   | 0.30 |   |   |   | 150,875 |   |   |   | 14.00 |   |   |   | 150,875 |   |
| $14.51 - $21.50 |   |   | 1.07 |   |   |   | 139,750 |   |   |   | 20.92 |   |   |   | 139,750 |   |
| $21.51 - $27.50 |   |   | 0.19 |   |   |   | 13,000 |   |   |   | 22.79 |   |   |   | 13,000 |   |
|            |   |   | 1.80 |   |   |   | 454,151 |   |   |   | 15.28 |   |   |   | 375,563 |   |

----

|  | (a) | Corporation stock option plan (continued): |
|--|-----|--------------------------------------------|

|                |   |       |   |   |       |   |   |       |   |
|---------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
|                |   | 2016       |   |   | 2015       |   |   | 2014       |   |
|                |   |       |   |   |       |   |   |       |   |
| Exercise price      |   | $          | 4.65   |   |       | $      | 9.51   |       |   | $ | 22.31 |   |
| Share price         |   | $          | 4.39   |   |       | $      | 9.20   |       |   | $ | 18.79 |   |
| Dividend            |   |       | -      |   |       |   | -      |       |   |   | - |   |
| Risk-free interest  |   |       | 0.66   | %      |       |   | 1.14   | %          |   |   | 1.11 | % |
| Estimated life      |   | 4.20 years |   |   | 3.00 years |   |   | 2.49 years |   |
| Expected volatility |   |       | 65.63  | %      |       |   | 60.34  | %          |   |   | 64.81 | % |

|  | (b) | Corporation equity incentive plan: |
|--|-----|------------------------------------|

|                                  |   |   |    |   |   |   |    |   |   |   |    |   |
|---------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|
|                                  |   |   | 2016    |   |   |   | 2015    |   |   |   | 2014    |   |
| RSUs outstanding at beginning of year |   |   | 18,398  |   |   |   | 77,494  |   |   |   | -       |   |
| Granted                               |   |   | -       |   |   |   | -       |   |   |   | 106,000 |   |
| Released                              |   |   | (17,348 | )      |   |   | (38,182 | )      |   |   | (25,931 | )      |
| Forfeited                             |   |   | (1,050  | )      |   |   | (1,831  | )      |   |   | (2,575  | )      |
| Cancelled (note 20)                   |   |   | -       |   |   |   | (19,083 | )      |   |   | -       |   |
| RSUs outstanding at end of year       |   |   | -       |   |   |   | 18,398  |   |   |   | 77,494  |   |

----

|  | (c) | Neptune stock-based compensation plan: |
|--|-----|----------------------------------------|

|  |  | Diluted loss per share was the same amount as basic loss per share, as the effect of options, RSUs and warrants would have been anti-dilutive, because the Corporation incurred losses in each of the years presented. All outstanding options, RSUs and warrants could potentially be dilutive in the future. |
|--|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (a) | Changes in non-cash operating items: |
|--|-----|--------------------------------------|

|                                              |   |         |     |   |         |   |      |         |   |
|---------------------------------------------------|--------|--------------|----------|--------|--------------|--------|-----------|--------------|--------|
|                                              |   | February 29, |     |   | February 28, |   |      | February 28, |   |
|                                              |   | 2016         |     |   | 2015         |   |      | 2014         |   |
|                                              |   |
| Trade and other receivables                       |   | $            | 47,283   |   |         | $      | 534,485   |         |   | $ | (468,533 | ) |
| Receivables from corporation under common control |   |         | 49,658   |   |         |   | 47,140    |         |   |   | (47,140 | ) |
| Tax credits receivable                            |   |         | 358,782  |   |         |   | (285,872  | )            |   |   | 201,381 |   |
| Inventories                                       |   |         | 87,370   |   |         |   | 174,061   |         |   |   | (39,306 | ) |
| Prepaid expenses                                  |   |         | (138,082 | )      |         |   | 385,040   |         |   |   | (686,806 | ) |
| Trade and other payables                          |   |         | 50,057   |   |         |   | (86,981   | )            |   |   | 463,945 |   |
| Payable to parent corporation                     |   |         | (497,037 | )      |         |   | 538,531   |         |   |   | (417,167 | ) |
| Royalties payable to parent corporation           |   |         | -        |   |         |   | -         |         |   |   | (133,817 | ) |
|                                              |   | $            | (41,969  | )      |         | $      | 1,306,404 |         |   |   | (1,127,443 | ) |

|  | (b) | Non-cash transactions: |
|--|-----|------------------------|

|                                                          |   |
|---------------------------------------------------------------|--------|
|                                                          |   | February 29, |   |   | February 28, |   |   | February 28, |   |
|                                                          |   |   | 2016 |   |   |   | 2015 |   |   |   | 2014 |   |
|                                                          |   |
| Issuance of shares on settlement of a liability (Note 11 (b)) |   | $ | 102,500 |   |   | $ | - |   |   | $ | - |   |
| Issuance of common shares                                     |   |   | - |   |   |   | - |   |   |   | 15,525,000 |   |
| Royalties settled through issuance of shares                  |   |   | - |   |   |   | - |   |   |   | 395,068 |   |
| Acquisition of intangible asset                               |   |   | - |   |   |   | - |   |   |   | 15,129,932 |   |
| Exercise of warrants by Neptune applied against payable       |   |   | - |   |   |   | - |   |   |   | 793,437 |   |
| Intangible assets included in trade and other payables        |   |   | - |   |   |   | 7,927 |   |   |   | - |   |
| Interest receivable included in payable to parent corporation |   |   | 26,558 |   |   |   | - |   |   |   | - |   |

----

|                                                                        |   |
|-----------------------------------------------------------------------------|--------|
|                                                                        |   | 2016 |   |   | 2015 |   |   | 2014 |   |
|                                                                        |   |
| Origination and reversal of temporary differences                           |   | $ | 2,065,378 |   |   | $ | 2,221,229 |   |   | $ | 1,932,370 |   |
| Change in unrecognized deductible temporary differences                     |   |   | (2,065,378 | ) |   |   | (2,221,229 | ) |   |   | (1,932,370 | ) |
| Deferred tax expense                                                        |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                        |   |
| Reconciliation of effective tax rate:                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   |
|                                                                        |   |   | 2016 |   |   |   | 2015 |   |   |   | 2014 |   |
|                                                                        |   |
| Loss before income taxes                                                    |   | $ | (6,316,731 | ) |   | $ | (1,654,724 | ) |   |  $ | (11,611,649 | ) |
|                                                                        |   |
| Income tax at the combined Canadian statutory rate of 26.9%                 |   | $ | (1,699,201 | ) |   | $ | (445,121 | ) |   | $ | (3,123,534 | ) |
| Increase resulting from:                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|      Change in unrecognized deductible temporary differences |   |   | 2,065,378 |   |   |   | 2,221,229 |   |   |   | 1,932,370 |   |
|      Non-deductible stock-based compensation                 |   |   | 83,015 |   |   |   | 417,903 |   |   |   | 925,823 |   |
|      Non-deductible change in fair value                     |   |   | (592,077 | ) |   |   | (2,373,674 | ) |   |   | 136,499 |   |
|      Permanent differences and other                         |   |   | 142,885 |   |   |   | 179,663 |   |   |   | 128,842 |   |
| Total tax expense                                                           |   | $ | - |   |   | $ | - |   |   | $ |  ‒ |   |

Unrecognized deferred tax assets:

|                                                |   |   |       |   |   |   |      |   |
|-----------------------------------------------------|--------|--------|------------|--------|--------|--------|-----------|--------|
|                                                |   |   | 2016       |   |   |   | 2015      |   |
|                                                |   |
| Tax losses carried forward                          |   | $      | 6,020,000  |   |   | $      | 4,492,000 |   |
| Research and development expenses                   |   |   | 3,866,000  |   |   |   | 3,332,000 |   |
| Property, plant and equipment and intangible assets |   |   | 340,000    |   |   |   | 282,000   |   |
| Other deductible temporary differences              |   |   | 388,000    |   |   |   | 441,000   |   |
| Unrecognized deferred tax assets                    |   | $      | 10,614,000 |   |   | $      | 8,547,000 |   |

----

|                                                            |   |    |       |   |       |   |
|-----------------------------------------------------------------|--------|---------|------------|--------|------------|--------|
|                                                            |   | Federal |       |   | Provincial |   |
|                                                            |   |    |       |   |       |   |
|                                                            |   |    |       |   |       |   |
| Tax losses carried forward                                      |   |    |       |   |       |   |
| 2029                                                            |   | $       | 714,000    |   |       | $      | 714,000 |   |
| 2030                                                            |   |    | 1,627,000  |   |       |   | 1,620,000 |   |
| 2031                                                            |   |    | 2,071,000  |   |       |   | 2,063,000 |   |
| 2032                                                            |   |    | 2,262,000  |   |       |   | 2,241,000 |   |
| 2033                                                            |   |    | 1,854,000  |   |       |   | 1,825,000 |   |
| 2034                                                            |   |    | 3,597,000  |   |       |   | 3,597,000 |   |
| 2035                                                            |   |    | 4,459,000  |   |       |   | 4,459,000 |   |
| 2036                                                            |   |    | 5,823,000  |   |       |   | 5,823,000 |   |
|                                                            |   | $       | 22,407,000 |   |       | $      | 22,342,000 |   |
|                                                            |   |    |       |   |       |   |   |   |
| Research and development expenses, without time limitation      |   | $       | 13,883,000 |   |       | $      | 14,986,000 |   |
|                                                            |   |    |       |   |       |   |   |   |
| Other deductible temporary differences, without time limitation |   | $       | 2,700,000  |   |       | $      | 2,700,000 |   |

|  | (a) | Credit risk: |
|--|-----|--------------|

|  | (b) | Currency risk: |
|--|-----|----------------|

----

|  |  (b) | Currency risk (continued): |
|--|-----------|----------------------------|

|                                                                                  |         |   |              |       |    |   |              |   |
|---------------------------------------------------------------------------------------|--------------|--------|-------------------|------------|---------|--------|-------------------|--------|
|                                                                                  |    |   | February 29, 2016 |       |         |   | February 28, 2015 |   |
|                                                                                  |    |   | US$               |       |    |   | US$               |   |
|                                                                                  |         |   |              |       |    |   |              |   |
| Cash                                                                                  |         |   |              | 2,871,358  |    |   |              |   | 1,102,908 |   |
| Short-term investments                                                                |         |   |              | 7,442,050  |    |   |              |   | 15,007,176 |   |
| Trade and other receivables                                                           |         |   |              | 1,396      |    |   |              |   | 250,313 |   |
| Trade and other payables                                                              |         |   |              | (275,092   | )       |   |              |   | (398,648 | ) |
|                                                                                  |         |   |              | 10,039,712 |    |   |              |   | 15,961,749 |   |
|                                                                                  |         |   |              |       |    |   |              |   |   |   |
|                                                                                  |         |   |              |       |    |   |              |   |   |   |
| The following exchange rates are those applicable to the following periods and dates: |         |
|                                                                                  |         |   |              |       |    |   |              |   |   |   |
|                                                                                  |         |   |              |       |    |   |              |   |   |   |
|                                                                                  |    |   | February 29,      |       |    |   | February 28,      |   |
|                                                                                  |         |   |              | 2016       |    |   |              |   | 2015 |   |
|                                                                                       | Average      |   | Reporting         |       | Average |   | Reporting         |   |
|                                                                                  |         |   |              |       |    |   |              |   |   |   |
| US$ per CAD                                                                           | 1.3071       |   |              | 1.3531     |    | 1.1266 |              |   | 1.2503 |   |

|                   |                         |           |
|------------------------|------------------------------|--------------------------------------------------------|
|                   | February 29,                 | February 28,                                           |
|                   |     2016 | 2015                                                   |
|                   | US$                          | US$                                                    |
|                   |                         |           |
| Increase in net profit | 370,989                      | 638,317                                                |

----

|  | (c) | Interest rate risk: |
|--|-----|---------------------|

|                   |                           |
|------------------------|--------------------------------|
| Cash                   | Short-term fixed interest rate |
| Short-term investments | Short-term fixed interest rate |

|  | (d) | Liquidity risk: |
|--|-----|-----------------|

|                          |   |   |   |   |     |   |   |         |   |
|-------------------------------|--------|--------|--------|--------|----------|--------|--------|--------------|--------|
|                          |   |   |   |   |     |   |   | February 29, |   |
|                          |   |   |   |   |     |   |   | 2016         |   |
| Required payments per year    |   |   |   |   | Carrying |   |   | Less than    |   |
| (in thousands of dollars)     |   | Total  |   |   | amount   |   |   | 1 year       |   |
|                          |   |
| Trade and other payables      |   | $      | 1,126  |   |     | $      | 1,126  |         |   | $ | 1,126 |   |
| Payable to parent corporation |   |   | 15     |   |     |   | 15     |         |   |   | 15 |   |
|                          |   | $      | 1,141  |   |     | $      | 1,141  |         |   | $ | 1,141 |   |

|                          |   |   |   |   |     |   |   |         |   |
|-------------------------------|--------|--------|--------|--------|----------|--------|--------|--------------|--------|
|                          |   |   |   |   |     |   |   | February 28, |   |
|                          |   |   |   |   |     |   |   | 2015         |   |
| Required payments per year    |   |   |   |   | Carrying |   |   | Less than    |   |
| (in thousands of dollars)     |   | Total  |   |   | amount   |   |   | 1 year       |   |
|                          |   |   |   |   |     |   |   |         |   |
| Trade and other payables      |   | $      | 1,084  |   |     | $      | 1,084  |         |   | $ | 1,084 |   |
| Payable to parent corporation |   |   | 538    |   |     |   | 538    |         |   |   | 538 |   |
|                          |   | $      | 1,622  |   |     | $      | 1,622  |         |   | $ | 1,622 |   |

----

|  | (e) | Short-term investments |
|--|-----|------------------------|

----

| ● | Level 1: defined as observable inputs such as quoted prices in active markets. |
|---------|--------------------------------------------------------------------------------|

| ● | Level 2: defined as inputs other than quoted prices in active markets that are either directly or indirectly observable. |
|---------|--------------------------------------------------------------------------------------------------------------------------|

| ● | Level 3: defined as inputs that are based on little or no little observable market data, therefore requiring entities to develop their own assumptions. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|                |   |              |   |   |              |   |
|---------------------|--------|-------------------|--------|--------|-------------------|--------|
|                |   | February 29, 2016 |   |   | February 28, 2015 |   |
|                |   |              |   |   |              |   |
| Exercise price      |   | US $1.50          |   |   | US $1.50          |   |
| Share price(1)      |   | US $1.50          |   |   | US $5.50          |   |
| Dividend            |   |              | -      |   |              |   | - |   |
| Risk-free interest  |   |              | 0.87   | %      |              |   | 1.20 | % |
| Estimated life      |   | 2.76 years        |   |   | 3.76 years        |   |
| Expected volatility |   |              | 76.34  | %      |              |   | 62.94 | % |

|                                                   |   |   |       |   |   |   |
|--------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                   |   | 2016   |       |   | 2015   |   |
| Balance – beginning of year                      |   | $      | 2,357,408  |   |   | $      | 11,181,475 |   |
| Change in fair value of derivative warrant liabilities |   |   | (2,201,031 | )      |   |   | (8,824,067 | ) |
| Closing balance                                        |   | $      | 156,377    |   |   | $      | 2,357,408 |   |

----

----

| Item 18. | Financial Statements |
|---------------|----------------------|

| Item 19. | Exhibits |
|---------------|----------|

----

|                      |                                                                                                                                                                                                                                                                        |
|---------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ExhibitNumber   | Description of Document                                                                                                                                                                                                                                 |
|                      |                                                                                                                                                                                                                                                                        |
|   1.1           | Articles of Incorporation (incorporated by reference to Exhibit 4.1 from Form S-8 (File No. 333-191383) filed with the Commission on September 25, 2013)                                                                                                     |
|                      |                                                                                                                                                                                                                                                                        |
|   1.2           | Bylaw No. 1 (incorporated by reference to Exhibit 4.2 from Form S-8 (File No. 333-191383) filed with the Commission on September 25, 2013)                                                                                                                   |
|                      |                                                                                                                                                                                                                                                                        |
|   1.3           | Bylaw No. 2013-1 (incorporated by reference to Exhibit 4.3 from Form S-8 (File No. 333-191383) filed with the Commission on September 25, 2013)                                                                                                              |
|                      |                                                                                                                                                                                                                                                                        |
|   2.1           | Specimen Certificate for Common Shares of Acasti Pharma Inc. (incorporated by reference to Exhibit 2.1 from Form 20-F (File No. 001-35776) filed with the Commission on June 6, 2014)                                                                                       |
|                      |                                                                                                                                                                                                                                                                        |
|   2.2           | Warrant Indenture dated December 3, 2013 between Acasti Pharma Inc. and Computershare Trust Company of Canada (incorporated by reference to Exhibit 99.1 from Form 6-K (File No. 001-35776) filed with the Commission on December 3, 2013)              |
|                      |                                                                                                                                                                                                                                                                        |
|   4.1           | Prepayment Agreement, dated December 4, 2012, between Neptune Technologies & Bioressources Inc. and Acasti Pharma Inc. (incorporated by reference to Exhibit 99.1 from Form 6-K (File No. 001-35776) filed with the Commission on October 29, 2013) |
|                      |                                                                                                                                                                                                                                                                        |
|   4.2           | Equity Incentive Plan (incorporated by reference to Exhibit 4.4 from Form S-8 (File No. 333-191383) filed with the Commission on September 25, 2013)                                                                                                         |
|                      |                                                                                                                                                                                                                                                                        |
|   4.3           | Stock Option Plan (incorporated by reference to Exhibit 4.5 from Form S-8 (File No. 333-191383) filed with the Commission on September 25, 2013)                                                                                                             |
|                      |                                                                                                                                                                                                                                                                        |
| 11.1                      | Code of Business Conduct and Ethics for Directors, Officers and Employees (incorporated by reference to Exhibit 99.4 from Form 40-F (File No. 001-35776) filed with the Commission on May 30, 2013)                                                          |
|                      |                                                                                                                                                                                                                                                                        |
| 12.1*                     | Principal Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                    |
|                      |                                                                                                                                                                                                                                                                        |
| 12.2*                     | Principal Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                    |
|                      |                                                                                                                                                                                                                                                                        |
| 13.1*                     | Principal Executive Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                    |
|                      |                                                                                                                                                                                                                                                                        |
| 13.2*                     | Principal Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                    |

----

|   |               |                           |
|--------|--------------------|--------------------------------|
|   | ACASTI PHARMA INC. |
|   |               |                           |
|   | By:                | /s/ Pierre Lemieux   |
|   | Name:              | Pierre Lemieux                 |
|   | Title:             | Principal Executive Officer    |

----