Paladin Labs Inc. and Bioniche Life Sciences Inc. Officially

Close Debt Refinancing and Urocidin™ Licensing Deals

Montreal, Quebec, July 5, 2013 - Paladin Labs Inc.(TSX: PLB) ("Paladin") and Bioniche Life Sciences Inc. (TSX: BNC) (ASX: BNC) ("Bioniche") today announced the official closing of the various agreements associated with a comprehensive strategic collaboration to refinance and increase Bioniche's debt, provide new equity, and enter into the first licensing deal for Bioniche's Phase III bladder cancer product - Urocidin™. This collaboration was originally announced on June 5, 2013.
The closing of these deals has resulted in the issuance of a further $5 million in debt financing to
Bioniche from Paladin.
As partial consideration for the entering into of the amended loan transaction, Bioniche granted Paladin Warrants to acquire Common Shares ("Warrants"), such Warrants to expire on the earlier of two years from the complete repayment by Bioniche of the loan or May 31, 2019. The following number of Warrants were issued to Paladin, subject to the terms noted below: