Thallion Pharmaceuticals Inc. Receives $1.85 Million From Sale of Promissory Note

MONTREAL, QUEBEC--(Marketwire - December 17, 2009) - Thallion Pharmaceuticals Inc. (TSX: TLN) today announced that it has sold its Caprion Proteomics Inc. (“Caprion”) subordinated promissory note back to Caprion for an immediate cash payment of $1,850,000. The promissory note was originally issued by Caprion to Thallion in July 2007 as part of the proceeds pursuant to the Company’s sale of its wholly-owned proteomics business. Thallion will continue to retain its approximate 16 percent equity interest in Caprion.

“This transaction provides Thallion with a great opportunity to immediately monetize a long-term asset and redeploy the capital for our corporate and development priorities,” 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 oncology and infectious disease. The Company’s clinical programs include TLN-4601 and Shigamabs®. TLN-4601 is a novel anti-cancer therapy which is being studied in Canada and the United States in a Phase II trial for brain cancer. Shigamabs® is a dual antibody product for the treatment of Shigatoxin producing E. coli bacterial infections which is ready to begin a Phase II/III clinical program upon the completion of a development partnership. 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, 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.