PharmaGap Inc. Sees 80% Reduction in Melanoma Cancer Cell Growth in Tests at Memorial Sloan-Kettering Cancer Center Proceeding to Animal Testing

OTTAWA, ONTARIO--(Marketwire - June 24, 2010) - PharmaGap Inc. (TSX VENTURE: GAP)(OTCBB: PHRGF) ("PharmaGap" or "the Company") today announced 80% average growth inhibition (at 20 micromolar dose) in in vitro testing of its lead cancer drug GAP-107B8 in Ocular and Cutaneous Melanoma at Memorial Sloan-Kettering Cancer Center (MSKCC).

"In addition to seeing these strong in vitro results in melanoma, we are very excited to learn that the test program at MSKCC will proceed to animal tests, and I anticipate results from these tests during our 3rd quarter", said, President Robert McInnis.

"We are seeing promising results in the melanoma cell line panel, and I am excited to be continuing with further testing, both in vitro and in animal models, to explore the potential for this new drug compound," stated Dr. Gary Schwartz, chief of the Melanoma and Sarcoma Service at Memorial Sloan-Kettering Cancer Center.

In these tests, GAP-107B8 was tested in cell proliferation assays in 6 Ocular Melanoma and 4 Cutaneous Melanoma human cancer cell lines with established cell signaling profiles in order to generate further understanding of GAP-107B8's efficacy in slowing proliferation, its time course of effect in cells, dose level response patterns, and inhibition of known cell signaling targets.

In the dose levels of 10, 15, and 20 micromolars (um), GAP107B8 slowed cell growth by, 29%, 62%, and 80% (average across all cell lines), showing a clear effect in slowing cancer cell proliferation and a clear effect of different dose levels.

Image analysis of cells over time showed biological effects in cells in as early as 15 minutes, and inhibitory effect on signaling pathways was observed to be time-dependent and observed as early as 2 hours following treatment. Inhibition of known cancer-related signaling pathways was observed in mTOR, MAPK, and PKC pathways (alpha and delta).

This in vitro test program will continue over the next few weeks with additional analysis of GAP-107B8's mechanism on autophagic cell death, cell cycle effects in order to elucidate additional mechanism of action information, and testing of the drug against normal, non-cancer cells in order to continue to establish the safety profile of the drug.

"A series of tests are underway to provide the basis for selection of the cancer target for clinical trial application. I expect results from the pharmacokinetics program at the National Research Council, carried out in conjunction with Tandem Labs, to be available next week. I will be outlining the company's program to licensing at the Annual General Meeting later today, and we will report further on that program in the next few days", Mr. McInnis said.

About PharmaGap Inc.

PharmaGap Inc. (TSX-V: GAP), based in Ottawa, ON, is a biotechnology company with a core focus on developing novel peptide therapeutics for the treatment of cancer. PharmaGap's GAP-107B8 is a novel peptide drug that has been shown to be highly cytotoxic to numerous cancer types, including chemo-resistant cancers, in vitro. For more information on PharmaGap please visit the Company's website at www.pharmagap.com.

Note: Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No Securities Commission or other regulatory authority having jurisdiction over PharmaGap has approved or disapproved of the information contained herein. This release contains forward looking statements that may not occur or may change materially.