Chemaphor Inc.

Chemaphor Inc.

March 12, 2007 17:00 ET

Chemaphor Inc. Completes Private Placement

OTTAWA, ONTARIO--(CCNMatthews - March 12, 2007) - Chemaphor Inc. (TSX VENTURE:CFR), a biotechnology research and development company, today announced the completion of its private placement providing gross proceeds of $1 million. This represents the maximum intended placement amount as previously announced on January 12, 2007.

"It is gratifying to achieve our goal of raising $1 million in the current financial climate", said Dr. Graham Burton, President and Chief Executive Officer. "This round of financing puts in place another key element of our plan to develop the full potential of the OxBC product. This resource, together with the approximately $2.1 million loan from the Atlantic Canada Opportunities Agency and the agreement recently signed with Eli Lilly's Elanco Animal Health Division, allows us to fully commit to our oxidized carotenoid nutrisciences program and develop our various OxBC product applications including our non-antibiotic additive in animal feeds for promoting growth and feed efficiency."

Chemaphor issued 3,333,333 Units at a price of $0.30 per Unit. Each Unit consists of one common share and one warrant. Each warrant entitles the holder to acquire one common share of Chemaphor at an additional purchase price of $0.40 per share at any time up to twenty-four months from March 12, 2007.

Dundee Securities Corporation acted as agent for the placement. Dundee Securities Corporation received, as part of their remuneration, an aggregate of 150,767 agent compensation warrants. These agent compensation warrants enable the agent to acquire an equivalent number of Units at a price of $0.30 per Unit for twenty four months after March 12, 2007. The Units available to the agent on exercise of the agent compensation warrants are identical to the Units issued to subscribers on the private placement.

The securities issued under this private placement may not be publicly traded until July 13, 2007. The net proceeds of the proposed offering will be used to fund working capital and research and development expenditures and for general corporate purposes.

About Chemaphor

Chemaphor Inc. ( uses its core expertise in organic chemistry to develop premium products for the animal health, skin care cosmetics, pharmaceutical and specialty chemical markets. The Company's focus is on two proprietary products, a non pharmaceutical product OxBC and a lead cancer drug compound OCL-1. Chemaphor's goal is to fully exploit its proprietary platform of carotenoid oxidation compounds by finding recognized partners to commercialize its products in multiple, large markets.

Forward-looking statements

This news release contains forward-looking information. These statements relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management of Chemaphor. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. These forward-looking statements are made as of the date hereof and Chemaphor does not assume any obligation to update or revise them to reflect new events or circumstances.

The TSX-Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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