02.19.2010

PharmaGap Announces $855,625 Private Placement

Ottawa, Ontario/February 19, 2010 – PharmaGap Inc. (TSX-V: GAP; OTC.BB: PHRGF) (“PharmaGap” or “the Company”) announces the completion of a non-brokered private placement of equity units (“Units”) on February 19, 2010  with arm’s length accredited investors in the amount of $855,625. Purchasers acquired 5,185,606 Units at a price of $0.165 per Unit. Each Unit consists of one (1) common share and one (1) warrant to acquire an additional common share with an exercise price of $0.20 per common share and a two year term, which commences on the closing date. The private placement has been filed as an expedited private placement with the TSX Venture Exchange (“TSX-V”) and the common shares issued will be subject to a restriction from trading on the TSX-V for four months from the closing date in accordance with TSX-V rules and regulations for private placements. Proceeds will be applied to fund the Company’s drug development program, for business development, and to working capital.

Following the financing, the Company will have 100.9 million shares outstanding.

In connection with this private placement, cash finders fees and broker warrants will be paid to Capital Street Group ($58,958 cash fees and 357,320 broker warrants), and to Northern Securities (($26,605 cash fees and 161,240 broker warrants). Broker warrants are issued on the same terms and conditions as the warrants included in the Units.

PharmaGap’s largest shareholder, SC Stormont Holdings Inc., (“Stormont”), has entered into common share lending agreements with certain purchasers of the Units whereby Stormont will loan freely tradable shares to those purchasers for a four month period. Stormont has not disposed or sold any of its shareholdings under these agreements and all shares loaned will be returned to Stormont after four months. Similar share lending arrangements were agreed to by Stormont to support the Company’s private placements in June, July, and December 2009. The lending of shares required the filing by Stormont of Form 45-102F1 (available at www.sedar.com).

About PharmaGap Inc.
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, PhG-alpha-1, 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.

For information relating to this Release, please contact:
Robert McInnis, President & CEO
(613) 990-9551 bmcinnis@pharmagap.com

Note: The TSX-Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No Securities Commission or other regulatory authority having jurisdiction over PharmaGap has approved or disapproved of the information contained herein. This release contains forward looking statements that may not occur or may change materially.