Thallion Pharmaceuticals Inc. Announces Changes to Management and Board of Directors

MONTREAL, QUEBEC--(Marketwire - June 09, 2009) - Thallion Pharmaceuticals Inc. (TSX: TLN) today announced the departure of Dr. Pierre Falardeau from the senior management team and Dr. Halvor Jaeger, F.C.P., from the Board of Directors. Dr. Falardeau has resigned his position as Chief Operating Officer of the Company, effective June 12, 2009, to pursue other interests and has agreed to act as a consultant to the Company to assist in the transition process.

“On behalf of Thallion team, I would like to thank Dr. Falardeau for his many contributions over the past seven years in helping to transform Ecopia BioSciences, and then Thallion Pharmaceuticals, into an oncology company with two products in Phase II trials,” said Lloyd M. Segal, Chief Executive Officer. “We wish him success in his future endeavors.”

Thallion also announced the promotion of Dr. Didier Reymond to Executive Vice President Clinical Development. Dr. Reymond will assume the leadership of all Thallion’s clinical and regulatory operations.

Thallion recently announced a corporate reorganization to extend its development runway into 2011 including a reduction in headcount and additional savings from non-core areas through negotiations with various suppliers and partners. The Company also announced an agreement to raise $8.85 million in new, non-dilutive capital.

The Board of Directors has also accepted the resignation of Dr. Halvor Jaeger, who has elected to resign to focus on other opportunities. The resignation is effective immediately.

“I would like to extend our deepest appreciation to Halvor for his commitment, counsel and support of the long-term strategy we are executing at Thallion. His medical expertise and strategic advice were significant,” said Franklin Berger, Lead Director of the Board of Directors of Thallion.

About Thallion Pharmaceuticals Inc.

Thallion Pharmaceuticals Inc. (TSX: TLN) is a biotechnology company developing pharmaceutical products in the areas of oncology and infectious disease. Thallion has three clinical programs at the Phase II stage of development. The two oncology product candidates include TLN-4601, a novel anti-cancer therapy targeting the RAS-MAPK pathway, and TLN-232, a peptide therapy targeting the M2 isoform of the metabolic enzyme pyruvate kinase (M2PK), with potential efficacy in multiple oncology indications. TLN-4601 and TLN-232 are currently recruiting patients in their respective multi-centre, Phase II, North American clinical trials. The Company’s third product candidate, Shigamabs®, is a dual antibody product for the treatment of Shigatoxin producing E. coli bacterial infections. Additional information about the Company can be obtained at www.thallion.com.

Forward-Looking Statements

This press release contains certain forward-looking statements, including, without limitation, statements containing the words “believe”, “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect” and other similar expressions which constitute “forward-looking information” within the meaning of applicable Canadian securities laws. Forward-looking statements reflect the Company’s current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time-to-time in the Company’s ongoing filings with the Canadian securities regulatory authorities which filings can be found at www.sedar.com. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable Canadian securities laws.