WEX Pharmaceuticals Inc.

WEX Pharmaceuticals Inc.

August 21, 2006 18:29 ET

WEX Pharmaceuticals Inc.: Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 21, 2006) - WEX Pharmaceuticals Inc. (the "Company") (TSX:WXI) is pleased to announce that it has agreed to offer by way of private placement (the "Private Placement") an aggregate of 7,773,584 common shares at a price of $0.265 per Share to purchasers in China. Closing is expected to occur on or about September 8, 2006.

The Private Placement is subject to certain approvals, including necessary regulatory and stock exchange approvals. The Company has agreed to pay a reasonable finder's fee subject to the approval of the Company's board of directors.

Proceeds from the Private Placement will be used for general working capital.

About WEX Pharmaceuticals Inc.

WEX Pharmaceuticals Inc. is dedicated to the discovery, development, manufacture and commercialization of innovative drug products to treat pain. The Company's principal business strategy is to derive drugs from naturally occurring toxins and develop proprietary products for the global market. The Company's Chinese subsidiary sells generic products manufactured at its facility in China.

Forward-Looking Statements

This News Release contains forward-looking statements which may not be based on historical fact. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. The company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments.

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