Bioniche Life Sciences announces completion of Australian Offer and raises gross proceeds of A$12.5 million

Bioniche Life Sciences In., a research-based, technology-driven Canadian biopharmaceutical company, today announced that it has successfully completed its Australian Offer of 8.6 million CHESS Depositary Instruments (CDIs) at A$1.45 per CDI, raising gross proceeds of A$12.5 million. This is in addition to the C$16.7 million raised through a concurrent Canadian Offer of 11.5 million Common Shares at C$1.45 per Share that closed on December 16, 2010. Total proceeds from the two Offers are approximately C$29.4 million, based on a January 3, 2011 exchange rate of C$1.021 per A$.

It is expected that the Company, subject to the approval of the Australian Securities Exchange (ASX), will be admitted to the Official List of the ASX, and that the CDIs that were the subject of the Australian Offer will commence trading on the ASX on or around January 10, 2011. The Company's code on the ASX will be "BNC".

Upon completion of the Australian Offer, Bioniche will have 100.3 million Common Shares issued and outstanding, of which 8.6 million will be represented by an equal number of CDIs to allow Australian shareholders to trade their shareholding through the Australian CHESS system. This represents a  market capitalization of C$150.5 million, based on a December 31, 2010 closing price of C$1.50 per Share. A total of 20.1 million new Common Shares and equivalents will be issued from treasury pursuant to the two concurrent Offers.

The Australian Offer was conducted on a best efforts agency basis by Taylor Collison Limited. The Canadian Offer was underwritten by a Canadian syndicate led by NCP Northland Capital Partners Inc. and including Dundee Securities Corporation and National Bank Financial Inc.

"We are pleased with the outcome of these financings and we welcome the many new investors who have joined us in both jurisdictions," said Graeme McRae, Chairman, President & CEO of Bioniche Life Sciences Inc. "We also appreciate the confidence of the numerous existing shareholders who took part in the Offers. We look forward to utilizing the proceeds to accelerate corporate growth."

The funds raised in the Offers will be used to:

• expand the Company's current manufacturing capacity for Urocidin™ to meet expected global demand;
• pursue new human oncology applications using the Company's MCC platform through Phase I clinical testing;
• undertake a U.S.-based field trial of Econiche™ in support of a full license application in the U.S.A., followed by license applications in Australia, Europe and Latin America;
• complete the development of a second food safety vaccine for Salmonella;
• complete the development and registration of internally-generated product opportunities in animal health;
• acquire the rights to certain externally-developed products/technologies in animal health;
• cover the expenses of the Offers; and
• support general corporate requirements.

Completion of the Offers is subject to customary conditions and all regulatory approvals, including the Toronto Stock Exchange and the Australian Securities Exchange.