Killick Capital

Ottawa, Ontario/April 12, 2006 – PharmaGap Inc. (TSX-V: GAP) ("PharmaGap" or "the Company"), today released additional animal efficacy data for its lead drug compound, PhGalpha1, confirming its effectiveness in delaying establishment and growth of colorectal cancer tumours in mice.

These latest test results showed:

• Confirmation of earlier results showing that establishment and growth of tumours is significantly delayed when treated with PhGalpha1

At the lowest dose, administered alone or in combination with doxorubicin (a widely used chemotherapeutic agent) tumour establishment was delayed, on average, by approximately 57% (22.4 days vs 14.2 days in control group) and subsequent tumour growth to a predetermined size was delayed by 27% (15 days vs 11.8 days).

● PhGalpha1 shown to be most effective at lower doses

Results of the study indicate that PhGalpha1 was most effective at the lowest dose administered (2.5 mg/kg).

● PhGalpha1 effective when administered alone

PhGalpha1 was shown to be equally effective in delaying tumour establishment whether administered on its own or in combination with doxorubicin

● Confirmation of Safety of Lead Compound

PhGalpha1 was administered to 64 mice in 72 hour cycles over periods of up to 75 days. No evidence of toxicity was observed in the mice or was evident in a subsequent pathology analysis.

This latest study was conducted in order to confirm the results previously reported from the initial human colon cancer study and to provide insight into the optimal dose required for response, while maintaining or improving the safety profile. Human colon cancer tumours (type LS180) established in test mice were treated with PhGalpha1, with doses ranging from 2.5 to 10 mg/kg, alone and in combination with doxorubicin. An untreated control group was also maintained. Rates of tumour establishment and tumour growth were then recorded over the 75-day test period in all cohorts.

The results of this test, carried out by PharmaGap researchers at the National Research Council’s Animal Care Facility in Ottawa, confirm the compelling single-dose-level results (5 mg/kg) announced by the Company on January 25, 2006 and provide further support for the use of PhGalpha1 in potentially treating chemo-resistant colorectal cancer in humans.

Dr. David G. Barnes, PharmaGap’s Drug Development & Regulatory Affairs consultant said, "This latest animal study data re-affirms the potential efficacy of PhGalpha1 in treating Mulit-Drug Resistant ("MDR") colorectal cancer. In addition, the fact that we are seeing a strong biological effect with lower doses is very encouraging from the point of view of safety and the ability to develop the drug for use in humans. The compelling bioactivity we see with this compound in colon cancer is an excellent result and, as such, PharmaGap will shortly embark on a new round of animal studies aimed at cancer of the ovary and lung, in addition to colorectal cancer." Dr. Barnes is a respected clinical consultant to the international biopharma industry, and a former head regulator of biological/biotechnology-derived drugs at Health Canada.

Multi-drug resistance is the principal mechanism whereby many cancers develop resistance to cytotoxic chemotherapy drugs. The effect of MDR is that increasing doses of chemotherapeutic agents are often required, with a corresponding increase in the severity of side effects caused by these toxic agents. Moreover, MDR is at least partially responsible for the failure of chemotherapy in many patients with a wide variety of cancers and is a major obstacle in cancer therapeutics. An estimated 500,000 new cancer patients in the U.S. every year will develop MDR and subsequently will not respond effectively to chemotherapy. Treatments to limit or eliminate MDR cancers are a major unmet need of clinical oncologists and the pharmaceutical industry

PharmaGap’s lead drug compound PhGalpha1 is a selective inhibitor of PKC-alpha. PhGalpha1 has been designed to selectively inhibit the alpha isoform of PKC and exhibits practically no association with other PKC isoforms. PharmaGap is developing a strong patent estate around PhGalpha1 and associated peptide inhibitors of other PKC isoforms for the Company’s drug development pipeline. Alterations in PKC isoform activity relate to many disorders including cancer, diabetes, heart and blood circulation dysfunction, kidney and liver illnesses.

PharmaGap Inc. (TSX-V: GAP), based in Ottawa, ON, is a biotechnology company with a core focus on developing novel therapeutic compounds for the treatment of cancer. PharmaGap's research platform targets cellular signalling pathways controlled by Protein Kinase C (PKC) isoforms. PharmaGap's lead drug compound, PhGalpha1, is in preclinical development and targets PKC-alpha. The Company's strategy is to out-license drug compounds to larger life sciences companies at the preclinical stage. For more information on PharmaGap please visit the Company's website at www.pharmagap.com.