These documents can be viewed on the SEDAR web site at www.sedar.com.

The following is a summary of selected financial information extracted from the audited consolidated financial statements:

  Year ended March 31,                         2010          2009
                (all amounts in 000'$ - except # of shares)

    Revenue                                  $      -       $     8
    Net Loss                                 $  3,927       $   686
    Total assets                             $ 10,420        $1,593
    Shareholders' equity                     $  6,900       $ 1,440

    # of issued and outstanding
     common shares                         65,229,076    30,820,743

Project update

Seismic data for Sara and Mira has been shot, acquired, and processed. The 3D seismic data in respect of the Sara and Myra licenses has been submitted to the MNI. The first phase of the interpretation of the results of the 3D seismic data is expected to be completed and a report submitted to the MNI the first week of August, 2010, as per the agreed work program.

Determination of a drilling prospect on each license and engineering for those prospects is expected by December 31, 2010. A contract with a drilling contractor is expected March 31, 2011 followed by an expected spud date of Q3 2011.

Bontan is currently seeking interested parties to participate in the development of its 10.45% interest in the Sara and Myra licenses either through a farmout, option, partial sale of interest, assignment, debt or equity financing.

About The Offshore Israel Project

The Offshore Israel Project comprises two Licenses – Sarah and Myra – covering approximately 310 square miles and is located in the Levantine Basin near the recent 8.4 TCF Tamar 1, Tamar 2, and the Dalit natural gas discoveries by Noble Energy Inc.

The right to licences is held by a group comprising IPC Oil and Gas Ltd Partnership, Tel Aviv-based Emanuelle Energy Ltd, Modin Energy Partnership Limited, Emanuelle Energy Oil & Gas Limited Partnership and four other entities including the operator, GeoGlobal Resources (India) Inc.

Bontan’s indirect working interest in these licenses is 10.45%.

A Prospective Resource Evaluation Report was prepared by Chapman Petroleum Engineering Ltd, an independent Calgary based consulting firm (http://www.chapeng.ab.ca/). Assuming a successful ultimate recovery of resources and using a discount rate of 10%, Chapman estimates the unrisked net present value of Bontan’s 10.45% interest in the Sara and Myra licenses at approximately $727 million.

About Bontan Corporation Inc.:

Bontan Corporation Inc. is an oil and gas exploration company that operates and invests in exploration prospects. Through its subsidiaries, Bontan seeks highly visible opportunities in countries around the globe with a history of natural resource production that offer exciting and attractive propositions. Bontan seeks to minimize risk by bringing in either joint venture, carried or working interest partners, depending on the size and scale of the project.

Forward-Looking Statements

The first phase of the interpretation of the results of the 3D seismic data is expected to be completed and report submitted to the MNI by August 1, 2010.

About The Offshore Israel Project

The Offshore Israel Project comprises two Licenses – Sarah and Myra – covering approximately 310 square miles and is located in the Levantine Basin near the recent 8.4 TCF Tamar 1, Tamar 2, and the Dalit natural gas discoveries by Noble Energy Inc.

The right to licenses is held by a group comprising of IPC Oil and Gas Ltd Partnership, Tel Aviv-based Emanuelle Energy Ltd, Modin Energy Partnership Limited, Emanuelle Energy Oil & Gas Limited Partnership and four other entities including the operator, GeoGlobal Resources (India) Inc.

Bontan’s indirect working interest in these licenses is 10.45%, held through its 76.79% equity interest in Israel Petroleum Company, Limited which in turn is the owner of IPC Oil and Gas Limited Partnership, which is now the registered holder of 13.609% interest in the above licenses.

About Bontan Corporation Inc.:

Bontan Corporation Inc. is an oil and gas exploration company that operates and invests in exploration prospects. Through its subsidiaries, Bontan seeks highly visible opportunities in countries around the globe with a history of natural resource production that offer exciting and attractive propositions. Bontan seeks to minimize risk by bringing in either joint venture, carried or working interest partners, depending on the size and scale of the project.

347/Myra and 348/Sarah Licenses

The Petroleum Commissioner of the Israel Ministry of National Infrastructure (“MNI”) confirmed on June 16, 2010 that our application for transfer and registration of the participation rights in the two licenses the 347/Myra and 348/Sarah has been approved.

Bontan’s indirect working interest in these licenses is now 10.45% reduced from 11% due to the sale of a 5% interest to the Operator, Geoglobal Resources (India) Inc., (“GGR”) (AMEX: GGR). As previously announced. Bontan’s interest is held through its 76.79% equity interest in Israel Petroleum Company, Limited, (“IPC Cayman”) which in turn is the 100% owner of I.P.C. Oil and Gas (Israel) Limited Partnership, which is now the registered holder of 13.609% interest in the above licenses.

The MNI notified our group that our application for the Michal license was not approved.

Samuel License

As per the agreement signed with GGR, the operator has granted the existing partners of the Myra and Sarah licenses an option to purchase from the operator up to 20% in accordance with their pro rata share, an additional offshore license known as “Samuel” located within the territorial waters of the State of Israel.

The MNI has now awarded the Samuel license to GGR and their partners. IPC is now entitled to acquire 2.72% of the Samuel license, of which Bontan’s share would be 2.09%.

Kam Shah, CEO comments, “With the confirmation of the registration of our rights on the two licenses and appointment of an operator, we expect the work on the development of the two licenses to accelerate. The confirmation by the MNI also puts an end to all the controversies surrounding the rights over these licenses.”

About The Offshore Israel Project

The Offshore Israel Project comprises two Licenses – Sarah and Myra – covering approximately 310 square miles and is located in the Levantine Basin near the recent 8.4 TCF Tamar 1, Tamar 2, and the .8 TCF Dalit natural gas discoveries by Noble Energy Inc.

The right to the licenses is held by a group comprising of Bontan’s Israel Petroleum Company, Limited (“IPC”), Tel Aviv-based Emanuelle Energy Ltd. (“Emanuelle”) and IDB-DT Energy (2010) Ltd. (“IDB-DT”), Blue Water Oil & Gas exploration Ltd and GeoGlobal Resources (India) Inc. under an Agreement entered into on March 24, 2010 and subsequent addendum and an operators agreement.

Prospective Resource Evaluation Report prepared in accordance with National Instrument 51-101, Section 5.9 standards for review and assessment of prospective resources has been updated as of May 1, 2010 by Chapman Petroleum Engineering Ltd, an independentCalgary based consulting firm (http://www.chapeng.ab.ca/). According to this report, given below is an extract from the report relating to the before and after risk values of the evaluated prospects using forecast prices and costs:

 Bontan's 10.45% Net Value, US Dollars

                                    Before Risk       After Risk
                                    Combined          Combined
                                    Prospects         Prospects

    Undiscounted                   $2.6 billion       $767 million
    Discounted @ 5%/year           $1.33 billion      $390 million
    Discounted @ 10%/year           $727 million      $209 million

______________________________________________________________________________________________________________________________________________

About Bontan Corporation Inc.:

Bontan Corporation Inc. is an oil and gas exploration company that operates and invests in exploration prospects. Through its subsidiaries, Bontan seeks highly visible opportunities in countries around the globe with a history of natural resource production that offer exciting and attractive propositions. Bontan seeks to minimize risk by bringing in either joint venture, carried or working interest partners, depending on the size and scale of the project.

347/Myra and 348/Sara Licenses

Geoglobal Resources (India) Inc. (“GGR”, “The Operator”) has been appointed as operator for the two offshore licenses, 347 “Myra” and 348 “Sara”, in which Bontan holds an indirect 11% net working interest through its interest in Israel Petroleum Company Ltd. (“IPC”). An application was submitted on May 20, 2010 to the Petroleum Commissioner to approve transfer and registration of the participation rights in the two licenses.

GGR is a wholly owned subsidiary of Geoglobal Resources Inc. The publicly traded oil and gas company is headquartered in Calgary, Alberta and it trades on the American Stock Exchange under the symbol AMEX: GGR. GGR is currently involved in the exploration of oil and natural gas reserves in four geological basins located offshore and onshore in India. GGR will acquire a 5% working interest in the two licenses from the existing partners proportionately from their respective shares. Thus, Bontan’s indirect working interest in the two licenses, through its 76.79% interest in IPC, will change from 11% to 10.450% upon such acquisition. GGR is also given an option to acquire an additional 5% of the Sara and Myra licenses from the existing partners in accordance with their relative share in the transfer request. GGR will pay their share of expenses incurred by the existing partners to date. A joint Operating Agreement will be signed with GGR within sixty days.

GGR has applied separate from IPC and its partners, for the “Samuel” License, an additional license located within the territorial waters of the State of Israel. As per the agreement signed between IPC and its partners and GGR, as operator, GGR has agreed to grant the existing partners of the Sara and Myra licenses an option to purchase up to 12.5% in accordance with their pro rata share if the license is granted to GGR by the Petroleum Commissioner. The exact cost of acquisition is not yet determined.

Michal License (within Benjamin Permit)

An application has been submitted with the Ministry of Petroleum for the “Michal” license where GGR is named as operator with a 5% working interest. If granted Bontan’s share will be 10.450%. The Operator is again granted an option to acquire an additional 5% from the remaining partners in accordance with their pro rata part in the license request. The Operator will have to pay, if they decide to exercise the option, for each 1% of the additional participation rights, half of the existing partners incurred expenses incurred to the date of the application.

Kam Shah, CEO of Bontan, commented, “We are very pleased that GGR has agreed to become our operator. They bring significant experience and expertise in deep water exploration that will allow our group to ultimately maximize our drilling opportunities in the East Med. We look forward to a successful partnership.”

About The Offshore Israel Project

The Offshore Israel Project is comprised of two Licenses – Sara and Myra. These licenses cover approximately 310 square miles and are located in the Levantine Basin near the recent 6.3 TCF Tamar 1, Tamar 2, and the Dalit natural gas discoveries by Noble Energy Inc.

The rights to licences are held by a group comprising of Bontan’s majority-owned, Israel Petroleum Company, Limited (“IPC”), Tel Aviv-based Emanuelle Energy Ltd. (“Emanuelle”), IDB-DT Energy (2010) Ltd. (“IDB-DT”), and PBT under an Agreement entered into on March 24, 2010.

The rights to licenses are currently listed in PetroMed’s name on the registry maintained by the Israel Ministry of National Infrastructures (“MNI”). PetroMed is now effectively controlled by one of the group members and has given unconditional release to the group for transfer of its rights. Conditioned on the MNI’s transfer approval, IPC, Emanuelle IDB-DT, and PBT will receive respective working interests on the Registry of 14.325%, 50.865%, 25.56%, and 9.25% in PetroMed’s share of the Licenses.

The Prospective Resource Evaluation Report prepared in accordance with National Instrument 51-101, Section 5.9 standards for review and assessment of prospective resources has been updated as of May 1, 2010 by Chapman Petroleum Engineering Ltd, an independentCalgary based consulting firm (http://www.chapeng.ab.ca/). According to this report, below is an extract from the report relating to the before and after risk values of the evaluated prospects using forecast prices and costs:

    Company Net Value, US Dollars, Sara and Myra Licenses
    ---------------------------------------------------------
                                     Before Risk  After Risk
                                      Combined     Combined
                                     Prospects    Prospects
    ---------------------------------------------------------
    Undiscounted                   $2.7 billion $807 million

    Discounted @ 5%/year        $1.4 billion $410 million

    Discounted @ 10%/year       $765 million $220 million

About Bontan Corporation Inc.

Bontan Corporation Inc. is an oil and gas exploration company that operates and invests in exploration prospects. Through its subsidiaries, Bontan seeks highly visible opportunities in countries around the globe with a history of natural resource production that offer exciting and attractive propositions. Bontan seeks to minimize risk by bringing in either joint venture, carried or working interest partners, depending on the size and scale of the project.

The work program (to be submitted in agreed stages over the next 10 months) will begin with the delivery, completion and interpretation of the 3D seismic data by mid July 2010.

The Company is also pleased to announce that its Prospective Resource Evaluation Report prepared in accordance with National Instrument 51-101, Section 5.9 standards for review and assessment of prospective resources has been updated as of May 1, 2010 by Chapman Petroleum Engineering Ltd, an independent Calgary based consulting firm (http://www.chapeng.ab.ca/). According to this report, given below is an extract from the report relating to the before and after risk values of the evaluated prospects using forecast prices and costs:

Company Net Value, Thousands of US Dollars
——————————————————–
Before Risk      After Risk
Combined        Combined

Prospects (2)   Prospects (2)
——————————————————–
Undiscounted                 2,724,476         807,494

Discounted @ 5%/year      1,400,497         409,533

Discounted @ 10%/year       765,264         219,700
Kam Shah, CEO of Bontan commented, “We are very pleased with the MNI’s decision with respect to the Sarah and Myra licenses, which was the result of hard work by our partners, Emanuelle and IDB-DT and our advisors. We are confident in meeting all the requirements of the work program and look forward to the future development of the two licenses with excitement.”

About the Project Area

The Offshore Israel Project comprises two Licenses – Sarah and Myra – covering approximately 310 square miles and is located in the Levantine Basin near the recent 6.3 TCF Tamar 1, Tamar 2, and the Dalit natural gas discoveries by Noble Energy Inc.

The right to the licenses is held by a group comprising Bontan’s majority-owned subsidiary, Israel Petroleum Company, Limited (“IPC”), Tel Aviv-based Emanuelle Energy Ltd. (“Emanuelle”) and IDB-DT Energy (2010) Ltd. (“IDB-DT”) Under an Agreement entered into on March 24, 2010.

The right to the licenses is currently listed in PetroMed’s name on the registry maintained by the Israel Ministry of National Infrastructures (“MNI”). PetroMed is now effectively controlled by one of the group members and has given unconditional release to the group for transfer of its rights. Conditioned on the MNI’s transfer approval, IPC, Emanuelle and IDB-DT will receive respective working interests on the Registry of 14.325%, 54.025% and 27.15% in the PetroMed’s Share of the Licenses.

About Bontan Corporation Inc.:

Bontan Corporation Inc. is an oil and gas exploration company that operates and invests in exploration prospects. Through its subsidiaries, Bontan seeks highly visible opportunities in countries around the globe with a history of natural resource production that offer exciting and attractive propositions. Bontan seeks to minimize risk by bringing in either joint venture, carried or working interest partners, depending on the size and scale of the project.

For further information please contact John Robinson at (416) 860-0211, or refer to our website www.bontanoilandgas.com.

Certain proceeds from the offering have been used with respect to the Company’s 11% net working interest in the two drilling licenses in offshore Israel: Sarah and Myra. The Company’s ownership of theses licenses is held through its 76.8% owned subsidiary: Israel Petroleum Company, Limited (“IPC”).

The Company is pleased to report that all seismic data relating to the two licenses have now been fully acquired from Western Geco International Ltd, a Schlumberger group company, who were paid the balance of their fees of US$ 10.5 million. All of the seismic data is now being processed.

Bontan also reports that it is preparing an application to list on the Canadian National Stock Exchange (CNSX). The CNSX is an innovative new stock exchange for trading the securities of public companies. The Company must meet all requirements of the Exchange prior to any approval.

Kam Shah, CEO of Bontan, commented, “We are very pleased with the progress our Company has made over the last seven months. We have met all of our financial obligations in relation to the offshore Israeli project and look forward to further developmental activities in both the Sarah and Myra licenses. We have received tremendous support from our existing shareholders as well as from new sophisticated investors who participated in our recent private placement. The recent reports from the US Geological Survey indicating that there are some 1.7 Billion barrels of recoverable oil and 122 Trillion cubic feet of gas in the 83000 square kilometer Levant Basin Province augurs well for our project. In addition the fact that the offshore area has also recently attracted the attention of various energy giants including Gazprom, bodes extremely well for our project. Identifying an international driller and operator will enable us and our joint venture partners to proceed with the plans to drill in both the licenses. It should be a very exciting year ahead for our company.

About the Project Area

The Offshore Israel Project comprises two Licenses – Sarah and Myra – covering approximately 310 square miles and is located in the Levantine Basin near the recent 6.3 TCF Tamar 1, Tamar 2, and the Dalit natural gas discoveries by Noble Energy Inc.

The right to licences is held by a group comprising Bontan’s majority-owned subsidiary, Israel Petroleum Company, Limited (“IPC”), Tel Aviv-based Emanuelle Energy Ltd. (“Emanuelle”) and IDB-DT Energy (2010) Ltd. (“IDB-DT”) Under an Agreement entered into on March 24, 2010.

The right to licenses is currently listed in PetroMed’s name on the registry maintained by the Israel Ministry of National Infrastructures (“MNI”). PetroMed is now effectively controlled by one of the group members and has given unconditional release to the group for transfer of its rights. Conditioned on the MNI’s transfer approval, IPC, Emanuelle and IDB-DT will receive respective working interests on the Registry of 14.325%, 54.025% and 27.15% in the PetroMed’s Share of the Licenses.

Chapman Petroleum Engineering Ltd, an independent Calgary based consulting firm (http://www.chapeng.ab.ca/) prepared a Prospective Resource Evaluation Report, effective January 1, 2010 in accordance with National Instrument 51-101, Section 5.9 standards for review and assessment of prospective resources, which provided a low estimate of 5.71 TCF and high of 7.34 TCF of gross prospective resources on the Sarah/Myra prospects.

About Bontan Corporation Inc.:

Bontan Corporation Inc. is an oil and gas exploration company that operates and invests in exploration prospects. Through its subsidiaries, Bontan seeks highly visible opportunities in countries around the globe with a history of natural resource production that offer exciting and attractive propositions. Bontan seeks to minimize risk by bringing in either joint venture, carried or working interest partners, depending on the size and scale of the project.

Bontan currently has 78,199,076 common shares issued and outstanding and is debt free.

TORONTO, March 29 /PRNewswire-FirstCall/ – Further to the press release of March 26, 2010, Bontan Corporation Inc. (OTCBB:BNTNF.ob – News) is pleased to announce that its Israel-based partners, Emanuelle Energy Ltd. and IDB-DT Energy (2010) Ltd., have delivered payment of the initial $7 million towards the purchase of 2D and 3D seismic data performed over the Myra and Sara licenses to WesternGeco, a geophysical company and subsidiary of Schlumberger. The processing of the data will take 11 weeks. Upon completion, the balance of $3.5 million will be delivered to WesternGeco, per the terms of the agreement.

Bontan’s working interest in the Licenses is 11%.

About the Project Area

The Licenses cover approximately 310 square miles and are located in the Levantine Basin near the recent Tamar 1, Tamar 2, and the Dalit natural gas discoveries. The wells were drilled by Noble Energy Inc. (NBL.NYSE), in partnership with Delek Energy Systems (DEOL.TA), Isramco (ISRA.TA) and Avner Oil and Gas LP (AVNR.TA). The wells have a reported 6.8 TCF (1.02 BBOE) of estimated proved, probable and possible reserves in their licensed area, making these wells the second largest gas discovery in the world since January 2008. South of the Licenses’ area is the existing Mari-B field, also drilled by Noble, Delek and Avner, which contains a reported 1 TCF (150 MBOE) of estimated proved, probable and possible reserves.

Chapman Petroleum Engineering Ltd, an independent Calgary based consulting firm (http://www.chapeng.ab.ca/) prepared a Prospective Resource Evaluation Report, effective January 1, 2010 in accordance with National Instrument 51-101, Section 5.9 standards for review and assessment of prospective resources =, which provided a low estimate of 5.71 TCF and high of 7.34 TCF of gross prospective resources on the Sarah /Myra prospects.

About Bontan Corporation Inc.:

Bontan Corporation Inc. is an oil and gas exploration company that operates and invests in exploration prospects. Through its subsidiaries, Bontan seeks highly visible opportunities in countries around the globe with a history of natural resource production that offer exciting and attractive propositions. Bontan seeks to minimize risk by bringing in either joint venture, carried or working interest partners, depending on the size and scale of the project.

The Agreement also settles the litigations amongst IPC, PetroMed Corporation (“PetroMed”), Bontan and their respective affiliates relating to ownership of the 95.5% interest (“PetroMed’s Share”) in the “Sarah” and “Myra” drilling licenses (the “Licenses”), and the now expired “Benjamin” drilling permit (the “Permit”), acquired by IPC from PetroMed in November 2009.

PetroMed’s Share in the Licenses is currently listed in PetroMed’s name on the registry (the “Registry”) maintained by the Israel Ministry of National Infrastructures (“MNI”). Conditioned on the MNI’s transfer approval, IPC, Emanuelle and IDB-DT will receive respective working interests on the Registry of 14.325%, 54.025% and 27.15% in the PetroMed’s Share of the Licenses and the Permit.

Bontan’s working interest in PetroMed’s Share of the Licenses and Permit is 11% held through its holding of 76.8 % equity interest in IPC.

As part of their working interest acquisition, Emanuelle and IDB-DT agreed to contribute approximately US$ 16.1 million of which approximately US$ 10.5 million will be paid to WesternGeco, a geophysical services firm and a subsidiary of Schlumberger Limited, for joint title with IPC for the delivery of 2-dimensional data, and for processing an estimated 11 weeks of 3-dimensional geophysical mapping data on the License sites; these were shot and completed in November 2009 (the “Data”). The MNI required the Data to be submitted by April 1, 2010 as a condition of the Licenses and will need to agree to an extension of the due dates under the Licenses for the submittal of the Data in order for the Licenses to be maintained. The balance of approximately US$ 5.6 million will be used for operational needs and for the benefit of PetroMed’s creditor’s through a Trust.

The terms of the agreement also include a commitment by all parties to seek reinstatement of the Benjamin permit and the conversion of the permit to one or more drilling licenses for the joint benefit of the parties.

PetroMed agreed to the cancellation of the 8.6 million shares of Bontan common stock, and the 22.8 million Bontan common stock warrants, issued to it as part of the consideration for the transfer of PetroMed’s Share in the Licenses and Permit to IPC in November 2009. PetroMed will retain the $1 million cash payment made by IPC.

Kam Shah, CEO of Bontan, commented, “This is a very significant milestone for Bontan, partnering with strong local Israeli partners like Mr. Nimrodi and Mr. Sultan will allow this world class gas exploration project to advance to the next stage. This is particularly timely in light of the new March 2010 MNI regulations requiring applicants for offshore projects to demonstrate the financial capability to cover the full estimated cost of their initial project work program and half the estimated drilling cost per offshore well, as well as experience in operating large oil and gas exploration projects. We also believe that settlement of the PetroMed litigations will enhance our joint request to the MNI for official re-registration of PetroMed’s Share in the Licenses in IPC’s name and that of our other partners. After the 3-dimentional data is processed and analysed, we expect to be in a position to begin the preparation leading up to the drilling of wells with an international operator. We look forward to a very successful partnership with our new investors.”

About the Project Area

The Licenses cover approximately 310 square miles and are located in the Levantine Basin near the recent Tamar 1, Tamar 2, and the Dalit natural gas discoveries. The wells were drilled by Noble Energy Inc. (NBL.NYSE), in partnership with Delek Energy Systems (DEOL.TA), Isramco (ISRA.TA) and Avner Oil and Gas LP (AVNR.TA). The wells have a reported 6.8 TCF (1.02 BBOE) of estimated proved, probable and possible reserves in their licensed area, making these wells the second largest gas discovery in the world since January 2008. South of the Licenses’ area is the existing Mari-B field, also drilled by Noble, Delek and Avner, which contains a reported 1 TCF (150 MBOE) of estimated proved, probable and possible reserves.

Chapman Petroleum Engineering Ltd, an independent Calgary based consulting firm (http://www.chapeng.ab.ca/) prepared a Prospective Resource Evaluation Report , effective January 1, 2010 in accordance with National Instrument 51-101, Section 5.9 standards for review and assessment of prospective resources , which provided a low estimate of 5.71 TCF and high of 7.34 TCF of gross prospective resources on the Sarah /Myra prospects.

About Emanuelle Energy Ltd.

Ofer Nimrodi controls Emanuelle and is the chairman of managing director of publicly traded Israel Land Development Corporation (TASE: ILDC).

About IDB-DT Energy (2010) Ltd

IDB-DT is a joint venture of IDB Development Corporation Ltd. (affiliated with Avraham Livnat Company) and Du-Tzah Ltd. (affiliated with Manor Holdings and Yitzak “Zachi” Sultan). Avraham Livnat Company and Manor Holdings, purchased 47.5% of all Noya Oil and Gas shares as well as 1/2 of all participation units held by Noya including a 70% stake in the Gabriella License, a 15% interest in the Zurim License, and a 7.5% interest in the Carveout Halamish License.

IDB was recently ranked by leading international institutions as Israel’s largest top tier leading diversified business group in Israel with assets totalling over US$30 billion. IDB has subsidiaries in over 100 countries with over 40,000 employees. Yitzak “Zachi” Sultan, the owner of Noya Oil and Gas, is the chairman of Clal Finance Underwriting (CFU), the leading underwriter and investment banker in Israel with 50% of the total market. In 2009, CFU raised over 30 billion Shekels (US $8.4 billion).

About Bontan Corporation Inc.:

Bontan Corporation Inc. is an oil and gas exploration company that operates and invests in exploration prospects. Through its subsidiaries, Bontan seeks highly visible opportunities in countries around the globe with a history of natural resource production that offer exciting and attractive propositions. Bontan seeks to minimize risk by bringing in either joint venture, carried or working interest partners, depending on the size and scale of the project.

Bontan will have 60,284,076 common shares issued and outstanding after cancellation of Petromed shares as above.

    Forward-Looking Statements
    --------------------------

This news release includes forward-looking statements within the meaning of the U.S. federal and Canadian securities laws. Any such statements reflect Bontan’s current views and assumptions about future events and financial performance. Bontan cannot assure that future events or performance will occur. Important risks and factors that could cause actual results or events to differ materially from those indicated in our forward-looking statements, include: the effect of economic and political developments in Israel; the discretion of the MNI to cancel, extend the time for compliance with or otherwise waive requirements of, the Licenses or to reinstate the Permit; the discretion of the MNI to officially transfer the Licenses on the Registry to IPC and our other partners; the effect of the continuing litigation with East Mediterranean Exploration Co. on our rights to the Licenses and the now expired Permit; the reliance on Emanuelle, IDB-DT and IPC, as well as third-party consultants and contractors, to develop the Project; the ability of Bontan and IPC to raise sufficient capital and demonstrate adequate financial capability to the MNI, and the associated dilution to current investors’ interests associated with the issuance of additional debt and equity securities; the risk that the Data may show or suggest, or that the License sites ultimately may contain no, or limited amounts of, hydrocarbons; the volatility in commodity prices for crude oil and natural gas; the presence or recoverability of estimated reserves; the potential unreliability or other effects of geological and geophysical analysis and interpretation; exploration and development, drilling and operating risks; competition for development of the Project; environmental risks; government regulation or other action; potential disruption from terrorist activities or warfare in the region or at the Project site; general economic conditions; and other risks we identify from time to time in our filings with the U.S. Securities and Exchange Commission and securities regulators in Canada. Bontan assumes no obligation and expressly disclaims any duty to update the information in this Press Release.

TORONTO, Feb. 1 /PRNewswire-FirstCall/ – Bontan Corporation Inc. (Bontan) (OTCBB:BNTNF) is pleased to announce today the results of the Evaluation Report prepared by Chapman Petroleum Engineering Ltd. on two prospects located on the Mira and Sarah Drilling Licenses, Offshore Israel. The Prospective Resource Evaluation Report, effective January 1, 2010, was prepared in accordance with National Instrument 51-101, Section 5.9 standards for review and assessment of prospective resources

For the Mira Prospect, the best estimate of gross prospective sales gas resources is 4.24 TCF and for the Sarah Prospect, the best estimate of gross prospective sales gas resources is 1.47 TCF. The following table provides best, low and high estimates of gross prospective sales gas resources for each prospect.

                       Gross Prospective Resources

                        Best       Low        High
                      Estimate   Estimate   Estimate

                        TCF        TCF        TCF

    Mira Prospect       4.24       3.03       5.45
    Sarah Prospect      1.47       1.05       1.89

                      TCF is a trillion cubic feet of natural gas

The low estimate is considered to be a conservative estimate of the quantity that will actually be recovered while the high estimate is considered to be an optimistic estimate of the quantity that will actually be recovered. The best (or median) estimate is considered to be the most likely estimate of the quantity that will actually be recovered.

Bontan will have an indirect 71.625% indirect interest in these prospects via its 75% equity interest in the Israel Petroleum Company which has acquired a 95.5% interest in the drilling licenses as well as an adjoining exploration permit from the current operator subject to approval by the Government of Israel.

The Chapman report also provides an economic evaluation of Bontan’s interest in both prospects assuming a successful ultimate recovery of these resources. For the Mira Prospect, using a discount rate of 10%, unrisked net present value ranges from $2.54 billion to $5.37 billion with an unrisked NPV of $3.96 billion as the most likely amount. For the Sarah Prospect, again using a discount rate of 10%, unrisked net present value ranges from $1.02 billion to $2.17 billion with an unrisked NPV of $1.59 billion as the most likely amount. A subsequent risk analysis of the economic evaluations using a probability of success calculated to be 30% for both prospects confirmed the feasibility of the drilling of these prospects.

All values presented do not necessarily infer the “fair market value” of these prospective resources. All monetary values presented are expressed in terms of US dollars.

In the cover letter of the Evaluation Report, Chapman Petroleum Engineering stated, “Based on our analysis, after consideration of risk, we have concluded that the potential of these prospects is of sufficient merit to justify the work program being proposed, and we therefore recommend and support the Company’s participation.”

The Mira Prospect is a large structure mapped with 2D seismic and targeting the same reservoir zone as the Tamar Field discovered in 2009. The Tamar Field is approximately 30 miles directly to the north of the Mira Prospect with reported reserves of 7.7 TCF. The Sarah Prospect is another structure mapped with 2D seismic. It is on the same trend and targeting the same reservoir zone as the recent Dalit discovery well drilled in 2009, approximately 10 miles due north. Reported reserves for the Dalit Field are 0.5 TCF.

The Mira and Sarah Drilling Licenses are adjoining blocks located 30 to 60 miles offshore Israel within the Eastern Mediterranean Sea. They are each 154 sq. mi. in size and to date no exploratory drilling has been done on either block. A 3D seismic program was completed on the entirety of both blocks in late 2009 and is currently being processed for interpretation.

Kam Shah, CEO of Bontan, commented, “The Company is very pleased with the results of the Evaluation Report on these offshore Israeli prospects. This independent technical assessment confirms that these exploration blocks are indeed world class assets and completely justify the Company’s investment of time and capital in this highly significant project. A review of global exploration discoveries in 2009 just published by the American Association of Petroleum Geologists also reported that the recent offshore Israel natural gas discoveries were among the most significant in the world. This independent technical report places the Company’s prospects in the same geological setting as the 2009 offshore Israel discoveries. Our next step is the completion of the processing and interpretation of the 3D geophysical survey acquired over the Mira and Sarah drilling licenses. Firm drilling locations can then be selected on both prospects and application made to the Government of Israel to commence an exploratory drilling program.”

Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.

Chapman Petroleum Engineering Ltd., a Calgary based consulting firm, are Qualified Reserves Evaluators and Auditors. They have previously acted as technical advisors to the Government of Israel and have conducted similar resource evaluations in many petroleum basins around the world.

Bontan Corporation Inc. is a Canadian public company based in Toronto, Ontario which invests in international oil and gas exploration prospects. Bontan Corporation Inc. trades in the United States on the OTC Bulletin Board under the symbol BNTNF.

    Forward-Looking Statements
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This news release includes forward-looking statements within the meaning of the U.S. federal and Canadian securities laws. Forward-looking statements are typically identified by words such as “anticipate,” “believe,” “expect,” “plan,” “intend,” “project, “estimate” or similar words suggesting future outcomes or statements regarding an outlook. Information relating to resource estimates and future valuations are forward-looking statements and are based on assumptions, estimates and opinions of Chapman Petroleum Engineering as of the date the statements were made. Actual results will differ from those estimated by Chapman Petroleum Engineering and such differences may be material. By their nature, forward-looking statements involve numerous assumptions and known and unknown risks and uncertainties that contribute to the possibility that the projections, forecasts, estimates and other forward-looking information will not occur. The following factors, among others, could cause actual results or events to differ materially from those indicated in the forward-looking statements: the need to obtain approval of the transfer of the two licenses and permit to Israel Petroleum Company, Limited by the Israeli Petroleum Commissioner, reliance on our project manager well as third-party consultants and contractors to develop the offshore Israel project, the availability and terms of capital, the amount, nature and timing of capital expenditures, the results of exploration and development drilling and related activities, the cost and other effects of legal proceedings, settlements and claims, volatility in commodity prices for natural gas and crude oil, exploration and development risks, the presence or recoverability of estimated reserves, the availability of infrastructure, drilling rigs and equipment, drilling and operating risks, actions by governmental authorities, including increases in taxes, changes in environmental and other regulations, economic and political uncertainties in Israel, including potential disruption from terrorist activities and war, weather conditions, general economic conditions and other risks set forth from time to time in Bontan’s filings with the U.S. Securities and Exchange Commission (SEC) and securities regulators in Canada. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions, expectations or assumptions upon which they are based will occur. Bontan assumes no obligation and expressly disclaims any duty to update the information contained herein, except as required by applicable securities laws.

    Cautionary Note to U.S. Investors
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This new release and the Chapman report contain references to “prospective resources” (as defined above), which do not qualify as, and should not be confused with, reserves. Under SEC rules, reserves are estimated remaining quantities of oil and gas and related substances anticipated to be economically producible, as of a given date, by application of development projects to known accumulations. In addition, there must exist, or there must be a reasonable expectation that there will exist, the legal right to produce or a revenue interest in the production, installed means of delivering oil and gas or related substances to market, and all permits and financing required to implement the project. The SEC permits oil and gas companies, in their SEC filings, to disclose only “proved,” “probable” and “possible” reserves. While Canadian securities regulators permit the use of the term “prospective resources” under National Instrument 51-101, the SEC does not recognize this term. Prospective resources have a great amount of uncertainty as to their existence and economic and legal feasibility. There is no assurance that prospective resources will ever convert into as possible, probable or proved reserves under SEC standards. U.S. investors are cautioned not to assume that all or any part of a resource exists, or is economically or legally recoverable.