TORONTO, May 13, 2013 /PRNewswire/ – Bontan Corporation Inc. (‘the Company”)
(OTCBB: BNTNF) (“Bontan”) provides the following update:

Pursuant to our press release of March 26, 2013, we are pleased to
announce that the bilateral due diligence process has now been
completed by Portage Pharma Ltd. (“Portage”) and Bontan, and the
closing documents are being reviewed by both lawyers. For the closing,
Bontan has commenced the process of continuance of its jurisdiction to
British Virgin Islands (“BVI”) from Ontario. This process and timing is
governed by regulatory processes in BVI and Ontario.

To facilitate an earlier closing, Bontan has incorporated Portage
Acquisition Inc. in the British Virgin Islands, a wholly owned
subsidiary which will acquire Portage Pharma Ltd for shares of Bontan.
The resulting merged company will become a subsidiary of Bontan.

About Bontan Corporation Inc:

Bontan Corporation Inc. concluded a settlement on its indirect oil and
gas interest in Israel and has recently signed a letter of intent with
Portage Pharma Ltd to acquire Portage through a share exchange.

Portage currently holds a master licence to the Antennapedia platform
for all pathologies (except oncology). The Company, upon closing of the
Portage acquisition, will be 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, the
Company will look to sell or licence the products to Big Pharma.

For further information, contact Kam Shah, Chief Executive Officer of
Bontan, at (416) 929-1806.

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.