Northstar Healthcare Closes Acquisition of Interests in Houston Hospital and ASC

September 30, 2014

Houston, TX, September 30, 2014 – Northstar Healthcare Inc. (TSX: NHC) today
announced that it has closed the transaction with First Surgical Partners Holdings, Inc.
(“First Surgical”) to form a new entity to own and operate the Houston, Texas hospital
and surgical center businesses owned by First Surgical.

Under the transaction, Northstar and First Surgical formed First Nobilis, LLC, a Texas
limited liability company (“First Nobilis”), to assume the operations of First Surgical
Hospital and First Street Surgical Center. First Nobilis is owned 51% by Northstar and
49% by First Surgical. First Nobilis formed two subsidiary Texas limited liability
companies to be the new operating entities. Northstar has also signed management
agreements to manage the operations of the hospital and surgical center. Northstar
contributed a total of U.S. $7.5 million to First Nobilis, which was raised by a recently
closed brokered private placement.

On September 26, 2014, the Company closed the brokered private placement previously
announced on September 9, 2014 (the “Private Placement”) and led by PI Financial
Corp., as agent (the “Agent”).

The Company raised gross proceeds of $7,238,920 in the Private Placement through the
issuance of a total of 5,568,400 units (each, a “Unit”), at a price of $1.30 per Unit. Each
Unit consists of one common share in the capital of the Company (each, a “Share”) and
one-half of one transferable common share purchase warrant where each whole warrant is
exercisable for one additional Share at a price of $1.80 per unit until September 26, 2016.
Pursuant to an agency agreement entered into between the Company and the Agent, an
aggregate of 332,908 transferable Agent’s warrants (the “Agent’s Warrants”) were issued
to the Agent, representing approximately seven percent (7%) of the Units sold in the
Private Placement. Each Agent’s Warrant is exercisable for one additional Share at a
price of $1.37 until September 26, 2016. In addition, the Agent has also been paid a cash
commission representing approximately 7% of the gross proceeds of the Private

“Northstar chose to raise a lower amount in the Private Placement than previously
announced due to the fact that after the announcement of the First Street transaction,
Northstar received the proceeds from the exercise of the purchase warrants previously
issued in connection with the December 2013 private placement”, said Harry Fleming,
President of Northstar. “With the exercise of the earlier warrants and the amount of the
Private Placement, the total gross amount received by Northstar was approximately $10.4
million.” All of the Securities issued pursuant to the Private Placement are subject to a four month
hold period expiring on January 27, 2015. The Private Placement remains subject to final
approval of the Toronto Stock Exchange.

“Northstar is proud to be affiliated with the world class group of surgeons that have
partnered to form First Surgical,” said Dr. Donald Kramer, Chief Executive Officer of
Northstar. “Northstar and First Surgical are committed to a number of initiatives that
should prove synergistic to the new organization.”
Dr. Jacob Varon, Chairman of First Surgical stated, “We are excited for our affiliation
with Northstar which will combine the surgical experience of First Surgical with the
administrative and marketing expertise of Northstar. This combination will make both
companies stronger.”

About Northstar Healthcare Inc.
Northstar owns and manages seven healthcare facilities in Texas and Arizona; four
ambulatory surgery centers, two MRI centers and an urgent care center. The four
ambulatory surgery centers are located in Houston (two), Dallas and Scottsdale, Arizona.

Forward-looking statements
This news release contains forward-looking statements (within the meaning of applicable
securities laws) relating to the business of Northstar Healthcare Inc. (the “Company”) and
the environment in which it operates including specifically the Private Placement and the
Company’s planned use of proceeds from the Private Placement for the funding of the
new First Surgical entity. Forward-looking statements are identified by words such as
“believe”, “anticipate”, “expect”, “intend”, “plan”, “will”, “may” and other similar
expressions. These statements are based on the Company’s expectations, estimates,
forecasts and projections. They are not guarantees of future performance and involve
risks and uncertainties that are difficult to control or predict. These risks and uncertainties
are discussed in the Company’s regulatory filings available on the Company’s web site at or at and include the risk that the
Private Placement may not complete as planned or at all There can be no assurance that
forward-looking statements will prove to be accurate as actual outcomes and results may
differ materially from those expressed in these forward-looking statements. Readers,
therefore, should not place undue reliance on any such forward-looking statements.
Further, a forward-looking statement speaks only as of the date on which such statement
is made. Except as required by law, the Company undertakes no obligation to publicly
update any such statement or to reflect new information or the occurrence of future
events or circumstances.

For more information, contact:
Harry Fleming
Tel: (713) 840-5180