07.16.2009

PharmaGap Raises Additional Equity Financing

Ottawa, Ontario/July 16, 2009 – PharmaGap Inc. (TSX-V: GAP) (“PharmaGap” or “the Company”) today announced completion of a non-brokered private placement financing of 717,000 equity units, each unit consisting of one common share and one warrant to purchase one common share (the “Private Placement”).

The price per unit was $0.16, for total gross proceeds of $114,720.  Warrants have a two year term and an exercise price of $0.20 per share. These terms mirror the private placement announced on June 17, 2009 and the two private placements combined resulted in approximately $976,000 of equity financing.  Proceeds from this Private Placement will be used to further advance PharmaGap’s portfolio of drug compounds and for general working capital. The shares issued pursuant to the Private Placement and subsequent warrant exercises are subject to a four month restriction from trading on the TSX-Venture Exchange (“TSX-V”) in accordance with TSX-V rules and regulations for equity private placements.  The Private Placement has been filed under the TSX-V Expedited Private Placement Filing System.

Capital Street Group Investment Services Inc. was paid a cash fee for advisory and structuring services for the Private Placement of $8,317 and 48,397 warrants on the same terms as the Private Placement.  Northern Securities Inc. was paid $8,030 plus 50,190 warrants on the same terms as the Private Placement as a finders fees.

The Company also advises that the agreement with the National Research Council of Canada (“NRC”) to convert $215,201 owed by the Company to the NRC into common shares at a price of $0.15 per common share, as previously announced on June 23, 2009, has not been completed, pending receipt of final approval to the transaction by the NRC’s legal and financial services staff. The transaction as announced on June 23, 2009 has been approved by the TSX-V.

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.