09.18.2006

PHARMAGAP ISSUES ADDITIONAL SERIES 3 NOTES

Ottawa, Ontario/September 18, 2006 - PharmaGap Inc. (TSX-V: GAP) ("PharmaGap" or "the Company"), a biotechnology company developing novel therapeutic compounds for the treatment of cancer, today announced it has closed a financing for a sixth tranche of secured convertible debentures ("Tranche 6 Series 3 Notes") to an accredited investor by way of a private placement in the amount of $200,000.  The Tranche 6 Series 3 Notes mature August 26, 2007 and accrue interest at 10% per annum.  The closing is effective as of September 12, 2006 and today received TSX-Venture Exchange final approval.

The Tranche 6 Series 3 Notes are convertible at any time by the holder into equity units of the Company (the "Equity Units") at a price of $0.30 for each Equity Unit (each Equity Unit consists of one (1) common share and one (1) warrant with a two (2) year term to purchase one (1) common share at an exercise price of $0.45).  The Tranche 6 Series 3 Notes and the underlying common shares of the Company represented by the Tranche 6 Series 3 Notes are subject to a four (4) month hold period until January 13, 2007 under the rules of the TSX-Venture Exchange.  The Tranche 6 Series 3 Notes are also callable by the Company under certain circumstances.

The Tranche 6 Series 3 Notes mirror the terms of the Tranche 1, 2, 3, 4 and 5 Series 3 Notes issued to accredited investors in December 2005 and January, April, May and June 2006.  Together, the six issues total $1,287,120.

About PharmaGap Inc.

PharmaGap Inc. (TSX-V: GAP), based in Ottawa, ON, is a biotechnology company with a core focus 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 late stage pre-clinical development and targets PKCalpha.  The Company's strategy is to out-license drug compounds to pharmaceutical companies at the pre-clinical stage. For more information on PharmaGap please visit the Company's website at www.pharmagap.com.

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