Cannasat Therapeutics Inc. Reports Results for the Three Months Ended March 31, 2009

TORONTO--(Marketwire - May 29, 2009) - Cannasat Therapeutics Inc. (TSX-V: CTH), a clinical stage pharmaceutical company developing products to treat neurological disorders such as neuropathic pain and schizophrenia, today announced its results for the three months ended March 31, 2009. Unless specified otherwise, all amounts are in Canadian dollars.

Operational Highlights

* During Q1 2009, completed a Phase 1(b) clinical trial for Relivar, a potential treatment for patients with neuropathic pain and other conditions. Positive results of this study were announced on April 14, 2009.

* During Q1 2009, continued early stage formulation development work on Modulyn, a potential treatment for schizophrenia, anxiety and other mood disorders.

* During Q1 2009, signed an engagement letter with Sandfire Securities Inc. of Toronto to act as lead agent in a proposed short form prospectus offering of units in an amount of up to $2,500,000. The Corporation has since filed a preliminary short form prospectus with the securities regulatory authorities in the provinces of Ontario, British Columbia and Alberta.

* Subsequent to quarter end, strengthened management team with the appointment of Dr. Nathan Bryson as Chief Scientific Officer.

* Subsequent to quarter end, announced that the United States Patent and Trademark Office has issued a Notice of Allowance for a U.S. Patent Application, which forms the basis for Cannasat's lead product, Relivar. The Corporation is the exclusive licensee of the patent application.

Financial Highlights

* Completed a $387,000 non-brokered private placement on February 27, 2009.

* Cash and cash equivalents at March 31, 2009 of $654,490 (December 31, 2008: 805,128).

* Net loss of $567,835 for the three months ended March 31, 2009 (March 31, 2008: $442,134), in line with expectation.

* Report 78,513,849 common shares outstanding at March 31, 2009.

"The first quarter was highlighted by the completion of our Phase 1(b) clinical trial with a new and improved Relivar prototype. The positive results of this study represent a key milestone for our company, and will form the basis of our upcoming short form prospectus offering led by Sandfire Securities," said David Hill, Chief Executive Officer of Cannasat. "The advances in Relivar and Modulyn continue to be encouraging, and we expect to report news of progress in the year ahead."

About Cannasat Therapeutics

Cannasat is a clinical stage pharmaceutical company developing products to treat neurological disorders such as neuropathic pain and schizophrenia. Cannasat has two new drugs in its pipeline: Relivar and Modulyn. Over the next 12 months Cannasat plans to advance Relivar and Modulyn with further clinical testing and is positioning itself to enter marketing agreements with select Pharma partners. Pharma collaborations will create a pathway towards the future commercialization, as well as provide important new investment to develop a pipeline of additional CNS/neurology product candidates. More information about Cannasat (CTH: TSXV) is available at www.cannasat.com.

Note Regarding Forward looking Statements

This press release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Corporation to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks and uncertainties relating to the Corporation's business disclosed under the heading "Risk Factors" in the Corporation's current Annual Information Form and its other filings with the various Canadian securities regulators which are available online at www.sedar.com. Although the Corporation has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Corporation does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

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

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