Bontan closes Portage Pharma Limited acquisition

               Bontan closes Portage Pharma Limited acquisition

PR Newswire

TORONTO, June 4, 2013

TORONTO, June 4, 2013 /PRNewswire/  - Bontan Corporation Inc. ('the  Company") 
(OTCBB: BNTNF)  ("Bontan") is  pleased to  announce the  official signing  and 
completion of a share exchange agreement with all the shareholders of  Portage 
Pharma Limited ("PPL"), a private Biotech corporation formed under the laws of
the British Virgin Islands. Under the  terms of the agreement, all the  shares 
of PPL have  been exchanged for  approximately 81.7 million  common shares  of 
Bontan and approximately 71.4  million warrants valid for  two years from  the 
date of closing, exercisable to convert into an equal number of common  shares 
of Bontan at an  exercisable price of US$0.29  per share. Additionally  Bontan 
issued approximately 9.8 million shares to Culminant Capital Inc., a St. Kitts
private corporation, as compensation for financial services rendered to Bontan
and PPL in connection  with this transaction. All  shares and warrants  issued 
will be restricted until registered.

After giving  effect  to the  share  exchange transaction,  Bontan  will  have 
approximately 175  million  common  shares issued  and  outstanding  of  which 
approximately 91.5 million common shares will be restricted securities. Bontan
will also  have approximately  140 million  options and  warrants  outstanding 
which are exercisable into an equal number of common shares.

The transaction  resulted in  PPL  merging into  Portage Acquisition  Inc.,  a 
wholly owned subsidiary of Bontan, incorporated in the BVI. The merged  entity 
will be named Portage  Pharma Inc. ("Portage") which  will be a subsidiary  of 
Bontan. The  senior managers  of  Portage, Dr.  Bruce  Littman and  Dr.  Frank 
Marcoux, will continue to hold  33,542 options to acquire  up to 7% equity  in 
Portage valid for five years at an  exercise price of US$1.10 per option.  The 
options vest in agreed instalments over a two year period.

Portage holds  an  exclusive  licence in  non-oncology  fields  under  patents 
granted in the USA, Australia, Israel and New Zealand and patents applied  for 
in Japan and Canada, and an exclusive worldwide licence in non-oncology fields
and the  know-how relating  to the  Antennapedia protein  (ANTP)  transduction 
technology developed  by Trojantec  for non-oncology  products, treatments  or 
medications.

After completion of the  initial share exchange, Mr.  Shah will resign as  CEO 
while retaining his role as CFO of  Bontan. Dr. Declan Doogan will become  the 
CEO of Bontan.

Mr. Dean Bradley and  Mr. Brett Rees will  resign as independent directors  of 
Bontan and  will be  replaced by  Dr. Gregory  Bailey and  Mr. Jim  Mellon  as 
independent directors.  The new  Board  will be  comprised  of Mr.  Shah,  Dr. 
Doogan, Dr. Bailey and Mr. Mellon.

PPL currently has nine consultants headed by Dr. Bruce Littman as CEO and  Dr. 
Frank Marcoux,  as  Chief  Scientific  Officer. This  same  team  will  manage 
Portage. This team will continue their development of ANTP-containing peptides
for non-oncology  indications and  review  other potential  opportunities  for 
inclusion in the PPL drug discovery and development portfolio.

The outgoing CEO,  Mr. Kam  Shah commented, "After  a very  lengthy period  of 
comprehensive  due  diligencewe  are  delighted  to  finalize  this  exciting 
transaction with PPL which will look to develop new drugs for the Antennapedia
platform. The Company has  over US $3.4  million in cash  which will meet  the 
initial development  costs  for  the  current initiatives  at  Portage.  I  am 
confident that Portage's development team,  having over 200 years of  combined 
experience in the financing  and the development of  new drugs, will  position 
Bontan at the forefront of biotech research and development and should  create 
substantial and sustainable shareholder value."

Dr. Declan Doogan, the  incoming CEO commented, "We  believe that this  merger 
with Bontan  provides  our  team  with  access  to  the  capital  markets  and 
opportunity to not only to develop ANTP but to look for other compelling  drug 
development opportunities to in-license. I personally am very excited that  we 
have been able to assemble this  team of biotech professionals, especially  as 
many of us  have worked  together on a  variety of  other successful  projects 
during our professional careers."

The following are the backgrounds of the new management and Board members:

Declan Doogan M.D. is the co-founder and  Chairman of PPL and will be the  CEO 
of Bontan. Previously the CEO and Head of R&D at Amarin Inc. (AMRN:NASDAQ) and
the former  Head of  Worldwide Drug  Development at  Pfizer Inc.  He has  held 
Visiting Professorships at Harvard School of Public Health, Glasgow University
Medical School  and Kitasato  University (Tokyo)  and sits  on the  boards  of 
Pulmonary Vascular  Research Institute  UK, Sosei  (Japan Biotech),  Trojantec 
(UK, oncology)  and  Spinifex (Melbourne).  He  continues to  provide  medical 
advice to Amarin Inc.

Gregory Bailey  M.D. is  a  co-founder and  Chief  Business Officer  of  PPL. 
Co-founder of  Ascent  Healthcare  Solutions,  the  #1  re-processor  of  used 
surgical equipment; VirnetX Inc. (VHC: AMEX), internet security; and Duramedic
Inc., a medical products company. He is a former financier of Medivation  Inc. 
(MDVN: NASDAQ) and was a director from 2005 to 2012.

Jim Mellon  is a  co-founder of  PPL. A  principal of  Charlemagne Capital,  a 
listed fund management company; Regent Pacific, an Asian mining group; and the
controlling shareholder of Manx Financial, an Isle of Man based-bank; Speymill
Group, a property business; and Webis  Holdings. Co-founder of Uramin and  Red 
Dragon Resources,  both mining  groups. Burnbrae,  his private  company, is  a 
substantial landlord in  Germany and  in the  Isle of  Man, and  owns a  hotel 
chain. Mr Mellon is on twitter @: https://twitter.com/jimmhk.

Bruce H. Littman, M.D., will  be the CEO of Portage.  He has over 30 years  of 
research and drug development  experience. He was  Vice President and  Global 
Head of  Translational Medicine  in  Pfizer and  also  has a  strong  academic 
background in immunology,  rheumatology and  inflammation. His  skill set  is 
particularly  suited  to  developing   de-risking  strategies  and  using   an 
understanding of  how  drugs  behave  in  the  body  to  evaluate  early  drug 
candidates. He has an  excellent track record  in early clinical  development. 
After retiring  from  Pfizer at  the  end of  2007  he became  an  independent 
consultant. Prior to that, he served for 13 years on the faculty of  Virginia 
Commonwealth University's Medical  College of  Virginia. He is  an author  and 
co-editor of "Translational Medicine and Drug Discovery" published in 2011  by 
Cambridge University Press.

Frank W.  Marcoux, Ph.D.  is the  CSO  of Portage.  He has  over 25  years  of 
pharmaceutical company  and  academic  research  experience.  He  was  the  VP 
Quantitative and Innovative Medicine in WW Development at Pfizer and former VP
WW Discovery Biology Discipline Head until 2008 when he became an  independent 
consultant. Previously he worked  for Parke-Davis Pharmaceutical Research  for 
seventeen  years.  Dr.  Marcoux's  consulting  focus  is  on  high  confidence 
translation of drug discovery programs to early clinical proof of concept  and 
is aimed at biotech, Pharma and academic medical centres. Dr. Marcoux holds  a 
Ph.D. in  Physiology  and Biophysics  and  held research  positions  prior  to 
industry at Harvard Medical School/Massachusetts General Hospital,  University 
of Alabama,  Birmingham, Medical  Center, and  at the  University of  Vermont, 
College of Medicine.

About Bontan Corporation Inc:

Bontan and  its  new subsidiary,  Portage  Pharma  Inc., will  be  engaged  in 
researching and  developing pharmaceutical  and  biotech products  through  to 
proof of concept with an early focus on unmet clinical needs and orphan drugs.
Following proof  of concept,  the Company  will look  to sell  or licence  the 
products to large  pharmaceutical companies to  gain global distribution.  For 
further information,  contact  Kam  Shah CFO  of  Bontan,  at416-929-1806  or 
kam@bontancorp.com.

Forward-Looking Statements

This news release  includes forward-looking statements  within the meaning  of 
the U.S. federal and  Canadian securities laws.  Any such statements  reflect 
Bontan's current  views  and assumptions  about  future events  and  financial 
performance. Bontan  cannot assure  that future  events or  performance  will 
occur. Important risks and factors that  could cause actual results or  events 
to differ materially from those indicated in our forward-looking statements.

Bontan assumes no obligation  and expressly disclaims any  duty to update  the 
information in this News Release.

SOURCE Bontan Corporation Inc.

Contact:

Contact Kam Shah CFO of Bontan, at416-929-1806 orkam@bontancorp.com
 
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