Bioniche Amends Terms of Convertible Debt with Laurus Master Funds

    - borrowing limit extended to US$5.5 million -

    BELLEVILLE, ON, Dec. 21 /CNW/ - Bioniche Life Sciences Inc. (TSX: BNC), a
research-based, technology-driven Canadian biopharmaceutical company, today
announced that the Company has renewed and amended the terms of its long-term
convertible debt with Laurus Master Funds.
    Under the renewed and amended note, the Company will now have a maximum
borrowing limit of US$5.5 million, versus a previous maximum of
US$4.0 million.
    The Company's capacity to borrow under the note is determined by a
formula which measures existing levels of inventory and accounts receivable.
This formula is now being amended to increase the Company's capacity to
borrow. Assuming the Company maintains its current levels of inventory and
accounts receivable, it will have access to the full amended line of credit of
US$5.5 million. Under the previous terms, the Company's capacity to borrow was
limited to approximately US$2.5 million based on the current monthly asset
base. This amendment will, therefore, represent an immediate increase to
available funds of US$3.0 million with no restriction from asset base
    For this renewal and amendment, the Company will pay a fee of
US$1.0 million. This fee will be due and payable upon maturity of the loan in
December, 2008 or when the loan is paid in full. The fee may be paid in shares
or cash at the Company's discretion. If paid in shares, the shares will be
priced at the ten-day volume weighted average price on the day of payment.
    "We appreciate the flexibility of Laurus Master Funds in renewing its
support for Bioniche and in granting these amendments," said Graeme McRae,
President & CEO of Bioniche Life Sciences Inc. "Our liquidity has now been
further strengthened as we continue to work to execute our Phase III clinical
development program for Urocidin in bladder cancer while negotiating a
partnership deal related to this technology, and scaling up production of our
E. coli O157:H7 cattle vaccine while pursuing registrations in the U.S. and

    About Bioniche Life Sciences Inc.

    Bioniche Life Sciences Inc. is a research-based, technology-driven
Canadian biopharmaceutical company focused on the discovery, development,
manufacturing, and marketing of proprietary products for human and animal
health markets worldwide. The fully-integrated company employs approximately
200 skilled personnel and has three operating divisions: Human Health, Animal
Health, and Food Safety. The Company's primary goal is to develop proprietary
cancer therapies supported by revenues from marketed products in human and
animal health. Bioniche has been named one of Canada's Top Ten Life Sciences
Companies for 2008. For more information, please visit

    Except for historical information, this news release may contain
forward-looking statements that reflect the Company's current expectation
regarding future events. These forward-looking statements involve risk and
uncertainties, which may cause, but are 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 quarterly and annual reporting.

    %SEDAR: 00013159EF

For further information:

For further information: Jennifer Shea, Corporate Communications &
Investor Relations Manager, Bioniche Life Sciences Inc., Telephone: (613)
966-8058, Cell: (613) 391-2097,

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