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SQI Announces Closing Of Private Placement
Toronto, Ontario
May 3, 2013
SQI Diagnostics Inc. (“SQI” or the “Company”) (TSX-V: SQD),

a life sciences company that develops and commercializes proprietary technologies and products for advanced microarray diagnostics, announced today it raised gross proceeds of CDN $3.845 million through a non-brokered private placement (the “Private Placement”) of 5,126,044 units (“Units”) priced at $0.75 per unit.

Each Unit consists of one common share and one common share purchase warrant. Each common share purchase warrant will entitle the holder to purchase one common share at a price of $1.10 for a period of two years from the date of issuance. After giving effect to the issuance of the shares and exercise of warrants of the Private Placement the Company will have 50,078,352 shares outstanding.

In connection with the Private Placement, the Company paid Kingsdale Capital Markets Inc. (“Kingsdale”) a cash finder’s fee of $269,000 of the gross proceeds and issued 512,604 compensation warrants entitling Kingsdale to acquire 512,604 Units at a price of $0.75 per Unit and expiring 24 months after the closing of the Private Placement.

The Private Placement is subject to all necessary regulatory and stock exchange approvals. The securities being issued pursuant to the Private Placement will be subject to a four month hold period in accordance with applicable Canadian securities law.

SQI intends to use the net proceeds to fund the Company’s product development and commercialization programs, sales and marketing and for general working capital purposes.

“SQI’s enhanced cash position enables us to deliver to our growing pipeline of pharma customers in the Diagnostic Tools and Services business segment” said Andrew Morris, Chief Financial Officer of SQI Diagnostics. “This financing will also enable the Company to continue to build out our menu of IVD autoimmune tests focused on customers in the reference lab market.”

About SQI Diagnostics

SQI Diagnostics is a life sciences and diagnostics company that develops and commercializes proprietary technologies and products for advanced microarray diagnostics. The Company's proprietary microarray tests and fully-automated systems are designed to simplify protein and antibody testing workflow, increase throughput, reduce costs and provide excellent data quality. For more information, please visit www.sqidiagnostics.com.

Sales and Marketing Contact

Russ Peloquin
Vice President, Global Commercial Operations
913.484.9022
rpeloquin@sqidiagnostics.com

Investor Relations Contact

Andrew Morris
Chief Executive Officer
416.674.9500 ext. 229
amorris@sqidiagnostics.com

Forward-looking Information

This press release contains certain forward-looking statements, including, without limitation, statements containing the words "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect", "believe", "in the process", "benefits", "leading to", "possible" "is subject to" and other similar expressions which constitute "forward-looking information" within the meaning of applicable securities laws. Forward-looking statements reflect the Company's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to: the ability of our patents to adequately protect our rights or permit us to gain or keep any competitive advantage; our ability to market and sell our novel multiplexing technologies and detection platforms; our ability to maintain any technical or product advantages; our ability to continue to market and sell our products; potential supply problems or price fluctuations with sole source or other third-party suppliers on which SQI is dependent; SQI's ability to increase customer orders and manufacturing volumes; adverse changes in general economic conditions; impact of healthcare reform legislation; and, SQI's ability to raise additional funds in the future on acceptable terms or at all. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Company's ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.