Bontan Corporation Inc. changes the terms of previously announced private placement

TORONTO, Dec. 23 /PRNewswire-FirstCall/ – Bontan Corporation Inc. (OTCBB: BNTNF) announced on December 16, 2008 a private placement to raise up to US$700,000 by issuing up to 10 million common shares at US$0.07 each.

On December 22, 2008, the Board of Directors of Bontan approved the following changes in the terms of the private placement:

    1.  The maximum amount to be raised is revised down to US$500,000.
    2.  The amount will be raised by issuing up to 10 million Units at US
        $0.05 each.
    3.  Each Unit to comprise one common share of Bontan Corporation Inc. and
        one warrant.
    4.  Each warrant is exercisable within two years of the closing date at
        an exercise price of US$0.10 each to convert into equal number of
        Common Shares of Bontan Corporation Inc.
    5.  Minimum subscription amount acceptable will be US$50,000.

The Units will be restricted as per regulatory requirements.

The Private Placement will be offered to the participants of our 2006 private placement and other selected accredited investors and is expected to close earlier of the date on which all the proposed Units are fully subscribed and paid for or January 5, 2009. The proceeds, net of finders’ fee at 10% payable to Current Capital Corp., will be used for working capital and for acquisitions.

No regulatory authority has approved nor disapproved the content of this release.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). In particular, when used in the preceding discussion, the words “plans”, “confident that”, “believe”, “expect”, or “intend to”, and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements.

SOURCE Bontan Corporation Inc.