Thallion Pharmaceuticals Inc. Eliminates Long-Term Lease Obligation

MONTREAL, QUEBEC--(Marketwire - June 24, 2010) - Thallion Pharmaceuticals Inc. (TSX: TLN) today announced that it has entered into a binding agreement with Liberty Sites Ltd. (“Liberty”), the landlord of its corporate headquarters, to cancel the remaining six years of its fifteen year lease obligation, which represents a remaining commitment of approximately $8 million, for total consideration of $2.4 million. As part of the settlement, Thallion will continue to occupy the premises until August 31, 2010, while the Company searches for a new head office in Montreal, Quebec. Thallion has the option to remain in the current premises until November 30, 2010, if required.

“This transaction provides us with greater financial flexibility to execute on our business strategies and demonstrates our continued commitment to materially reduce costs that are not core to the Shigamabs® program,” said Michael Singer, Chief Financial Officer of Thallion Pharmaceuticals Inc.

About Thallion Pharmaceuticals Inc.

Thallion Pharmaceuticals Inc. (TSX: TLN) is a biotechnology company developing pharmaceutical products in the areas of infectious disease and oncology. The Company’s clinical programs include Shigamabs® and TLN-4601, a novel anti-cancer therapy. Shigamabs® is a dual antibody product for the treatment of Shiga toxin producing E. coli bacterial infections which is anticipated to enter Phase II clinical testing in the second half of 2010. Additional information about Thallion 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 Thallion’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, the determination of the level of the TLN-232 licensor’s damages by the Arbitral Tribunal as part of the final award, 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 Thallion’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. Thallion 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.