SillaJen IR Letter

Dear Fellow Shareholders and Colleagues,

Happy New Year to you all.

I want to wish you and your family a veryhappy new year and hope you enjoy a wonderful, successful and prosperous 2017.

2016 was a year full of challenges, yet a year filled with achievements. Nothing that we have accomplished in 2016 would have been possible without the support from our shareholders and the incredible hard work from everyone on the SillaJen team.

The long awaited initiation of the global phase 3 liver cancer trial PHOCUS has made this year very special. The trial is well underway with patients enrolled in Taiwan, USA, Korea, Canada, and with more to come. A global phase 3 trial of this magnitude is something that manyof the leading pharmaceutical companies in Korea have not yet experienced. Weare very excited to see this trial continue onward as we activate more countries and sites.

On the corporate side of things, on December 6, 2016, we have successfully completed listing onto the KOSDAQ market. The Korea Exchange and the financial regulators have recognized thescientific and commercial potential of our program and it has allowed us to enterthe public market with one of the most anticipated IPOs of the year.

The funds that was raised in our IPO willbe primarily committed to our operations, including the successful completionof our current phase 3 trial and commercialization preparation. The investmenthas also allowed us to look to accelerating our new pipeline research,including initiation of various combination trials. The New Year will be agrowth and expansion for this company and the Pexa-Vec program.

Looking back on the last 10 years, we have walked paths that others had not chosen, and we have had many achievements precisely because of this. Let us work together to plan for an innovative future and growth for this company so that we continue to create success. I would like to thank you all for your dedication and commitment to this program inthese challenging times. The years ahead will bring their own challenges, but Ihave no doubt that if we work together with strong focus on our priorities, wecan realize our ambitions of bringing this medicine to cancer patients worldwide. Looking at all that we have accomplished so far, I am convinced that I can count on you to continue to champion the SillaJen values, and to worktogether toward the success of this program.

Wishing you all a happy 2017.

Eun Sang Moon

Chief Executive Officer

SillaJen, Inc.

SillaJen Biotherapeutics, Inc.