MONTREAL, QUEBEC -- (MARKET WIRE) -- October 18, 2006 -- Mistral Pharma Inc. (TSX VENTURE: MIP) (“Mistral”) announces today that it has secured a US$1.5 million debt financing from MMV Financial Inc. (“MMV”). In connection with the loan, Mistral issued 2,389,170 bonus warrants to MMV and 284,482 warrants to RCC Ventures, LLC in payment of a finder’s fee, each warrant entitling its holder to purchase one treasury common share of Mistral, at a price of $0.10, until October 17, 2009. A resale restriction applies to the warrants and underlying common shares of Mistral until February 18, 2007.
