TORONTO, March 26, 2013 /PRNewswire/ – Bontan Corporation Inc. (‘the Company”)
(OTCBB: BNTNF) (“Bontan”) is pleased to announce that it has signed a
letter of intent with Portage Pharma Ltd., a private limited company
formed under the laws of The British Virgin Islands (“Portage”) to
acquire all the issued and outstanding shares of Portage in exchange
for approximately 81.7 million shares of Bontan. Approximately 71.4
million shares of Bontan, equal to the total number of warrants and
options currently issued and outstanding in Bontan, will be reserved
for the shareholders of Portage to be issued as warrants and options
on terms to be mutually agreed upon at the time of Closing.
Additionally, approximately 9.8 million shares of Bontan will be issued
to Culminant Capital in consideration for financial advisory services
rendered and to be rendered in connection with the proposed transaction
and other transactions contemplated on Closing.

The Closing of the proposed transaction is subject to the completion of
due diligence, execution of a definitive agreement and other approvals,
expected to be completed by April 15, 2013.

Portage is a biotechnology company engaged in researching and developing
products through to proof of concept with an early focus on unmet
clinical needs and orphan drugs. Following proof of concept, Portage
would look to sell or licence the products to Big Pharma.

Portage currently holds a master licence to the Antennapedia platform
for all pathologies (except oncology).The board of directors and key
shareholders of Portage are Dr. Gregory Bailey, Mr. Jim Mellon and Dr.
Declan Doogan.

Portage has assembled a very experienced team of senior researchers and
developers led by Dr. Bruce Littman, President and Chief Executive
Officer, and Dr. Frank W. Marcoux, Chief Scientific Officer.

Dr. Doogan is Chairman of Portage and brings more than 30 years of
experience in the global pharmaceuticals industry, including more than
20 years with Pfizer Inc., his last position being head of global drug
development. Dr. Bruce Littman has extensive experience in the areas of
translational research, personalised medicine and early clinical
development planning and execution, including over 19 years with Pfizer
Inc. at various levels of pharmaceutical drug development positions.
Dr. Frank Marcoux has 25 years of experience in pharmaceutical research
focusing on high confidence translation of drug discovery programs to
early clinical proof of concept. Dr. Marcoux worked in various senior
capacities with Pfizer Inc. for eight years and with Parke-Davis
Pharmaceutical for seventeen years.

Mr. Kam Shah, Bontan CEO, comments; “We are delighted to report to our
shareholders that, after a careful review, we have entered into a LOI
to acquire Portage. The acquisition is a potential game-changer for us.
It will put us at the forefront of biotech research and development. We
are very much looking forward to completing our due diligence and
closing this transaction and moving to the next phase of our plan.”

Dr. Declan Doogan, the Chairman of Portage, states; “Portage represents
a significant opportunity to bring exciting new medicines to the
market. Using the strong scientific, medical and drug development
expertise in the company we believe we can identify and develop novel
approaches utilizing the latest in scientific theory. Under Bruce
Littman we have an acknowledged leader in early drug development
(Translational Medicine) and with the rest of the team we can exploit
the exciting breakthroughs in biological and genetic sciences. Our
first projects are already underway and could significantly add to the
treatment of neurological and inflammatory disease. Bontan provides
access to public markets and allows us to proceed expeditiously with
our development of the Antennapedia platform while sourcing additional
products.”

About Bontan Corporation Inc:

Bontan Corporation Inc. recently concluded a settlement on its indirect
oil and gas interest in Israel and now seeks business opportunities in
biotechnology sector.

For further information, contact Kam Shah, Chief Executive Officer of
Bontan, at (416) 929-1806 and for investor relations contact John Robinson at (416) 860-0211.

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.