PharmaGap Completes $231,000 Private Placement

PharmaGap Inc. (TSX VENTURE:GAP)(OTCBB:PHRGF) ("PharmaGap" or "the Company")
announced today that it has completed a private offering of 3,300,000 equity
units (the "Units") at $0.07 per Unit for a gross aggregate amount of $231,000. 


Each Unit consists of one common share and one warrant to purchase one common
share at an exercise price of $0.10 per common share with a three year warrant
term. The closing of this private placement is subject to the approval of the
TSX Venture Exchange and the shares and warrants issued pursuant to the private
placement are restricted from trading for four months from the date of closing. 


In connection with this closing, $18,480 in cash fees and 264,000 broker
warrants will be paid to Northern Securities Inc. Broker warrants are issued on
the same terms and conditions as the warrants included in the Units. 


About PharmaGap Inc. 

PharmaGap Inc. (TSX VENTURE:GAP), based in Ottawa, ON, is a biotechnology
company with a core focus on developing novel peptide therapeutics for the
treatment of cancer. PharmaGap's GAP-107B8 is a novel peptide drug that has been
shown to be effective in numerous cancer types, including chemo-resistant
cancers, in vitro. For more information on PharmaGap please visit the Company's
website at www.pharmagap.com.


Forward Looking Statements 

This news release contains certain statements that constitute forward-looking
statements as they relate to the Company and its management. Forward-looking
statements are not historical facts but represent management's current
expectations of future events, and can be identified by words such as "believe",
"expects", "will", "intends", "plans", "projects", "anticipates", "estimates",
"continues", and similar expressions. Although management believes that
expectations represented in such forward-looking statements are reasonable,
there can be no assurance that they will prove to be correct.


By their nature, forward-looking statements include assumptions and are subject
to inherent risks and uncertainties that could cause actual future results,
conditions, actions or events to differ materially from those in the
forward-looking statements. If and when forward-looking statements are set out
in this news release, PharmaGap will also set out the material risk factors or
assumptions used to develop the forward-looking statements. Except as expressly
required by applicable securities laws, the Company assumes no obligation to
update or revise any forward-looking statements. The future outcomes that relate
to forward-looking statements may be influenced by many factors, including, but
not limited to: results of ongoing product testing and development; regulatory
approvals required to complete development of products; ability to manufacture
product at quality and scale for human use on an economically sound basis;
patient reimbursement by private and public health insurance programs;
unintended side effects of products; competitive products; product liability;
intellectual property; reliance on key personnel; risks of future legal
proceedings; income tax matters; availability and terms of financing;
distribution of securities; effect of market interest rates on price of
securities, and potential dilution.