Osta Announces Closing of Private Placement

THE ISSUE OF THIS PRESS RELEASE IS LIMITED TO CANADA ONLY. THIS PRESS RELEASE
SHOULD NOT BE ISSUED IN THE UNITED STATES THROUGH U.S. NEWS WIRE AGENCIES.


Osta Biotechnologies Inc. (TSX VENTURE:OBI) is pleased to announce that on April
1, 2010, it has closed its previously announced "bought deal" private placement
of 8,400,000 units at a price of $0.06 per unit, for gross proceeds to Osta of
$504,000. Each unit consists of one common share and one-half of a common share
purchase warrant. Each whole common share purchase warrant entitles the holder
thereof to acquire one additional common share at a price of $0.10 for a period
of two years from the closing of the private placement.


Sherbrooke Street Capital (SSC) Inc. acted as lead underwriter in connection
with the private placement. Pursuant to the underwriting agreement entered into
between Osta and SSC, SSC received a fee equal to 7% of the gross proceeds of
the private placement. In addition, Osta issued non-transferable broker warrants
to SSC, entitling it to purchase 588,000 common shares of Osta. The broker
warrants will be exercisable at a price of $0.10 per common share for a period
of two years from the closing of the private placement.


The securities issued in connection with the private placement are subject to a
four-month hold period, expiring on August 2, 2010, in compliance with the
policies of the TSX Venture Exchange and applicable securities legislation. As a
result of the closing of the private placement, Osta has 43,786,528 issued and
outstanding common shares. The securities issued in connection with the private
placement will be subject to a four-month hold period under the policies of the
TSX Venture Exchange and applicable securities legislation.


The net proceeds from the private placement will be used by Osta for research
and development, as well as for working capital and general corporate purposes. 


About Osta Biotechnologies Inc. 

Osta is a biopharmaceutical company listed on the TSX Venture Exchange currently
focusing on developing therapeutics for Cancer and Alzheimer's disease.