Mistral Pharma Obtains an Extension to Make its Proposal Under the Bankruptcy and Insolvency Act

Mistral Pharma Inc. (TSX VENTURE:MIP) (the "Corporation"), announced that the
Superior Court of Quebec has granted a motion to extend the delay to file a
proposal under the bankruptcy and insolvency act. The Corporation has until
August 25, 2008 to make a proposal to its creditors. This extension will help
the Corporation to pursue ongoing negotiations concerning potential offers for
its business and assets, and likely put forth a viable proposal to its
creditors.


The Corporation has retained the firm of Demers Beaulne to act as trustee to the
proposal.


The Corporation's creditors will be able to vote on the proposal at a meeting to
be called within 21 days of the proposal's filing. If accepted by the creditors
and ratified by the Court, the proposal is binding on all creditors. In order to
be accepted, the Corporation's proposal will need to be approved by creditors
representing the majority in number and at least 66.66% in value of the
Corporation's debt.


Pending the filing of the proposal, all claims of the Corporation's creditors
against the Corporation are stayed.


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.


The TSX Venture Exchange does not accept responsibility for the adequacy or
accuracy of this press release.