BELLEVILLE, ON, Aug. 1, 2011 /PRNewswire/ – Bioniche Life Sciences Inc. (TSX:
BNC) (ASX: BNC), a research-based, technology-driven Canadian
biopharmaceutical company, today announced that it will not proceed
with the proposed acquisition comprising the business and assets of
Plasvacc Holdings Limited (Plasvacc) as previously announced on July 4,
2011. The parties have failed to reach agreement on definitive
transaction documents and have terminated discussions under their
letter of intent in connection with the transaction.

“We are disappointed that we could not successfully conclude this
acquisition,” said Graeme McRae, Chairman, President & CEO of Bioniche
Life Sciences Inc. “However, this outcome does not affect our
intentions to selectively acquire rights to commercially-important
animal health products and technologies, one of the stated uses of
proceeds for our C$28.9 million concurrent financings in Canada and
Australia completed earlier this year. A number of other potential
acquisitions are currently under consideration.”

About Bioniche Life Sciences Inc.

Bioniche Life Sciences Inc. is a research-based, technology-driven
Canadian biopharmaceutical company focused on the discovery,
development, manufacturing, and marketing of proprietary products for
human and animal health markets worldwide. The fully-integrated company
employs more than 200 skilled personnel and has three operating
divisions: Human Health, Animal Health, and Food Safety. The Company’s
aims to develop and commercialize proprietary and innovative products
for human and animal health.

The Animal Health division – Bioniche Animal Health – develops,
manufactures and markets animal health biopharmaceutical products
worldwide. It has product development, manufacturing and marketing
facilities in Belleville, Ontario, Canada; marketing and production
facilities in Athens, Georgia, U.S.A.; Pullman, Washington, U.S.A.; and
Armidale, New South Wales, Australia. The Australian business is
conducted from two sites: Melbourne, Victoria, where sales and
marketing, customer support and technical service are located; and
Armidale, New South Wales, where production (manufacturing facility,
farm/research and development facility) is located.

Bioniche Life Sciences Inc. has been named one of the Top 50 Best Small
and Medium-Sized Employers in Canada for 2010. For more information,
please visit www.Bioniche.com.

Except for historical information, this news release may contain
forward-looking statements that reflect the Company’s current
expectation regarding future events. These forward-looking statements
involve risk and uncertainties, which may cause, but are not limited
to, changing market conditions, the successful and timely completion of
clinical studies, the establishment of corporate alliances, the impact
of competitive products and pricing, new product development,
uncertainties related to the regulatory approval process, and other
risks detailed from time to time in the Company’s ongoing quarterly and
annual reporting.

SOURCE Bioniche Life Sciences Inc.