Mistral Pharma Announces its Financial Results for the First Quarter Ended June 30, 2007

Mistral Pharma Inc. (TSX VENTURE:MIP) (the "Corporation", "Mistral") announces
today its financial results and review of operating highlights for the first
quarter ended June 30, 2007. "The highlights of Mistral's first quarter were the
successful acquisition of CuraMedica (Canada) Inc. ("CuraMedica") and the
approval of Instillagel((R)) by Health Canada", said Bertrand Bolduc, the
Corporation's President & CEO. "We are working closely with our partners to
realize a successful product launch in the fall of 2007" he added.


Highlights of the first quarter

During the first quarter, Mistral continued development work on its branded
products MIST-B02 and MIST-B03, pursued formulation work on new branded products
and completed its acquisition of CuraMedica. In May 2007, Instillagel((R)) was
approved by Health Canada.


Subsequent to the quarter, Mistral announced the results of a pilot study
showing that MIST-B03, which is designed using the CHRONOP technology, presents
the expected pulse release profile for both active ingredients included in the
formulation. Also, Mistral continued its discussions with a potential partner
from which it has obtained a release from an exclusivity clause. Mistral is
pursuing its confidential discussions with numerous potential commercial
partners for the co-development and commercialization of the MIST-B01 product.


Results for the quarter ended June 30, 2007

The loss for the quarter was $796,101 ($0.00 per share) compared to $604,712 for
the same period in the previous year ($0.00 per share). Research and development
costs, net of tax credits, were $259,833 for the quarter compared to $175,250
for the quarter ended June 30, 2006. The increase is the result of an increase
in wages and staffing as well as higher spending for subcontractors and
material.


For the quarter ended June 30, 2007, Administration expenses totaled $255,611
compared to $233,793 in 2006. The increase is the result of higher wages and
higher rental and office expenses resulting from the move to the new location.
Sales and business development expenses were $62,572 compared to $40,888 a year
earlier. The acquisition of CuraMedica and higher expenses incurred to bring the
product Instillagel(R) to market explain the increase. Stock based compensation
was $89,385 for the quarter ended June 30, 2007 compared to $140,060 for the
same period in the previous year. These amounts represent the expense portion of
the grant of options made in the previous periods over the award's vesting
period. Interest totaled $64,089 for the quarter ended June 30, 2007 compared to
$(6,129) for the same quarter a year earlier. The higher amount of long term
debt explains this increase. The gain on exchange was $59,211 for the quarter
ended June 30, 2007 compared to $27,090 a year earlier because Mistral had more
US denominated long term debt and because of the important appreciation of the
Canadian dollar compared to the US dollar during the quarter ended June 30,
2007.


As at June 30, 2007, the Corporation had cash and cash equivalents of $
2,666,572 compared to $4,092,717 as at June 30, 2006. The cash balance was
higher last year because Mistral had just completed the last tranche of its $5
million Private Placement realized in May 2006.  During the quarter ended June
30, 2007, the funds were used for operating activities, for the acquisition of
CuraMedica, for the purchase of R&D equipment and for the normal repayment of
long-term debt.




Selected Financial Information                   Three months ended
                                                          June 30th
                                                 2007          2006
                                           (Unaudited)   (Unaudited)
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                                                    $             $
Expenses
 Research and development costs               259,833       175,250
 Administration                               255,611       233,793
 Sales & Business development                  62,572        40,888
 Stock-based compensation                      89,385       140,060
 Interest                                      64,089        (6,129)
 Exchange loss (gain)                         (59,211)      (27,070)
 Amortization & other                         123,822        47,920
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Net loss                                      796,101       604,712
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 Deficit, beginning                        13,185,539     9,459,019
 Accounting change                             12,800             -
 Share issue costs                              3,735     1,188,737
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 Deficit, end                              13,998,175    11,252,468
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Net loss per share basic and diluted             0.00          0.00
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 Weigthed average number of common
 shares outstanding                       172,437,391   126,976,849

                                           2007-06-30    2007-03-31
                                           (Unaudited)     (Audited)
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                                                    $             $
Assets
 Cash and Cash equivalent                   2,666,572     3,731,911
 Receivable and other current assets          401,289       341,205
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                                            3,067,861     4,073,116
 Equipment                                  1,940,715     1,949,000
 Deposit                                      212,680       230,580
 Intangible and other assets                1,385,792       889,112
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                                            6,607,048     7,141,808
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Liabilities
 Accounts payable and accrued liabilities     128,680       128,680
 Other current liabilities                    376,872       320,920
 Current portion of long term debt            805,498       899,808
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                                            1,311,050     1,349,408
 Long term debt                             1,476,421     1,841,951
Shareholders' Equity
 Share capital                             15,046,908    14,449,863
 Contributed surplus                        2,770,844     2,686,125
 Deficit                                  (13,998,175)  (13,185,539)
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                                            3,819,577     3,950,449
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                                            6,607,048     7,141,808
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About Mistral Pharma Inc.

Mistral Pharma is an innovative pharmaceutical product development and drug
delivery company. Its first two branded drug delivery products, MIST-B01 & B02,
showed positive results at their respective first pilot clinical trials. Mistral
also has the Canadian rights to Instillagel(R), a local anesthetic and
antiseptic combination product used for urology procedures, which is expected to
be launched in Canada during Q4 2007. Mistral positions itself as a development
and marketing partner for pharmaceutical companies. Additional information about
Mistral Pharma can be obtained on Mistral Pharma's website at
www.mistralpharma.com.


Forward-looking Statements

Except for historical information provided herein, this press release may
contain information and statements of a forward-looking nature concerning the
future performance of Mistral Pharma. These statements are based on assumptions
and uncertainties as well as on management's best possible evaluation of future
events. Such factors may include, without excluding other considerations,
fluctuations in quarterly results, evolution in customer demand for Mistral
Pharma's products, the impact of price pressures exerted by competitors, and
general market trends or economic changes. As a result, readers are advised that
actual results may differ from expected results.