Bioniche Further Pays Down Debt

BELLEVILLE, Ontario, Dec. 22 /PRNewswire-FirstCall/ -- Bioniche Life Sciences Inc. (TSX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced that the Company will repay an additional $1 million USD of its debt with Laurus Master Funds.

The Company will repay $500,000 USD on the secured convertible term note and $500,000 USD on the secured revolving note in shares. The shares will be priced at the ten day market average (VWAP) less 15%. This will equate to 1,721,266 shares. In addition, the Company will issue 200,000 warrants to Laurus Master Funds at $1.00 per share for five years. There is no penalty attached to this repayment.

This arrangement will leave Bioniche with net convertible term debt of approximately $1.1 million USD and approximately $1.75 million USD of operating debt, with an additional $1.75 million USD of borrowing capacity under the operating line.

"We have reduced our debt by more than 80% compared to the same time last year," said Graeme McRae, President & CEO of Bioniche Life Sciences Inc. "An improved balance sheet is particularly important as we are executing our Phase III development program for Urocidin, while completing a partnership deal and/or a strategic financing arrangement to support our business model."

About Bioniche Life Sciences Inc.

Bioniche Life Sciences Inc. is a research-based, technology-driven Canadian biopharmaceutical company focused on the discovery, development, manufacturing, and marketing of proprietary products for human and animal health markets worldwide. The fully-integrated company employs approximately 188 skilled personnel and has three operating divisions: Human Health, Animal Health, and Food Safety. The Company's primary goal is to develop proprietary cancer therapies supported by revenues from marketed products in human and animal health. For more information, please visit http://www.bioniche.com/ .

Except for historical information, this news release may contain forward-looking statements that reflect the Company's current expectation regarding future events. These forward-looking statements involve risk and uncertainties, which may cause, but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process, and other risks detailed from time to time in the Company's ongoing quarterly and annual reporting.

For further information, please contact: Jennifer Shea Corporate Communications & Investor Relations Manager Bioniche Life Sciences Inc. Telephone: [phone] Cell: [phone]