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Press release Communiqué de presse

November 5, 2010 5 November, 2010

Sernova Completes $1,000,000 Private Placement, Grants Options


Source: Sernova Corp

Friday, November 5, 2010, 6:00 a.m. EDT

LONDON, ONTARIO - (Marketwire - November 5, 2010) - Sernova Corp. ("Sernova" or the "Company") (TSX VENTURE: SVA - News) is pleased to announce that it has completed a non-brokered private placement of 6,666,667 units (the "Units") at a price of $0.15 per Unit raising gross proceeds of $1,000,000. The private placement, which was previously announced as an offering of up to $750,000 in the Company's news release of October 18, 2010, was increased by $250,000 to accommodate oversubscriptions.

The Company completed the private placement in two closings: 2,866,667 Units were issued in the second closing on November 4, 2010 and 3,800,000 Units were issued in the first closing on October 17, 2010. Each Unit issued consisted of one common share of the Company (a "Share") and one-half of a share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder thereof to acquire one Share at a price of $0.20 for a period of 24 months. In connection with the second closing, the Company paid $11,150.16 to finders and issued 21,000 finder warrants (such finder warrants having the same terms as the Warrants).

Proceeds of the offering will be used to fund ongoing development of Sernova's proprietary Cell Pouch System(TM), including cGMP manufacturing, pre-clinical studies required by regulatory authorities to support a future Phase I/II human clinical study of insulin- dependent diabetes, and for general working capital.

The terms of the private placement are subject to final acceptance by the TSX Venture Exchange. All of the securities issued in connection with the closings of the private placement are subject to resale restrictions, including a four month hold period.

Sernova also reports that it has granted incentive stock options to officers, directors and consultants to purchase up to an aggregate of 1,488,333 common shares at $0.15 per share and 250,000 common shares at $0.20 per share for a period of 5 years expiring October 28, 2015.

About Sernova

Sernova Corp. is a Canadian-based, health- sciences company focused on commercializing medical technologies. Sernova is currently developing a platform technology for a number of serious disease indications, starting with a novel treatment for insulin- dependent diabetes, using the novel Cell Pouch System(TM) and its patented Sertolin(TM) cell technology. According to the American Diabetes Association approximately 9 million Americans require insulin injections and it is the sixth leading cause of death in the United States. One out of every 8 dollars spent on health care in the United States is spent on treating diabetes and its complications. Worldwide expenditures on insulin alone are estimated to be $15 billion annually and growing.

For further information contact: Philip Toleikis, Ph.D., President and CEO Tel: (604) 961-2939

Neither the 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.

The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirement of such Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.