Biomira Inc. Announces U.S. $16.1 Million Financing

EDMONTON, Jan. 27 /PRNewswire-FirstCall/ - Biomira Inc. today announced that it has arranged a financing totaling approximately U.S. $16.1 million with Rodman & Renshaw, LLC of New York acting as exclusive placement agent. In respect of this financing, Biomira intends to file shortly in Canada a prospectus supplement to its July 13, 2004 Base Shelf Prospectus and in the United States a prospectus supplement to its July 13, 2004 F-10 Registration Statement. The financing is expected to close within the next few days and is subject to regulatory approval.

The Company will be offering up to 10,572,368 units, each unit consisting of one common share and 0.25 of a warrant, at an issue price of U.S. $1.52.

Each warrant will entitle the holder thereof to purchase one common share at an exercise price of U.S. $2.50. The warrants will have a 42-month term, from the date the financing closes, and a no-exercise period of six months.

Dr Alex McPherson, MD, PhD President and Chief Executive Officer of Biomira, commented: “We have secured important additional funding for the Company at a key stage of our development. After the renegotiation of our licensing agreement with Merck KGaA of Darmstadt, Germany, for our lead cancer vaccine L-BLP25, we are now free to focus on advancing our follow-on vaccine BGLP40 and to further expand our portfolio of development-stage products.”

About Biomira

Biomira is a biotechnology company specializing in the development of innovative therapeutic approaches to cancer management. Biomira’s commitment to the treatment of cancer currently focuses on the development of synthetic vaccines and novel strategies for cancer immunotherapy.

This release may contain forward-looking statements. Various factors could cause actual results to differ materially from those projected in forward-looking statements, including those predicting the timing, duration and results of clinical trials, trial reviews and analyses and regulatory reviews, the safety and efficacy of the product, the ability to retain collaborative partners and the ability to secure and manufacture vaccine supplies and the resolution of a recent manufacturing problem by an outside vendor of the vaccine. Although the Company believes that the forward-looking statements contained herein are reasonable, it can give no assurance that the Company’s expectations are correct or that the Company will have sufficient resources to fund clinical trials. All forward-looking statements are expressly qualified in their entirety by this cautionary statement.

Biomira Inc.

CONTACT: Biomira Company Contacts: Edward Taylor, Vice President Finance &Administration, Chief Financial Officer, (780) 490-2806; Investor Contact,Jane Tulloch, Director, Investor Relations & Corporate Compliance, (780)490-2812; Media Relations, Bill Wickson, Manager, Public Relations, (780)490-2818; U.S. Media and Investor Contact, Jonathan Birt, FinancialDynamics, (212) 850-5634; To request a free copy of this organization’sannual report, please go to http://www.newswire.ca and click on Tools forInvestors.