Bontan receives escrowed funds

TORONTO, Jan. 17, 2013 /PRNewswire/ - Bontan Corporation Inc. ('the Company") (OTCBB: BNTNF) ("Bontan") is pleased to inform that the Israeli Tax Authority ("ITA") approved the release of approximately US$1.6 million to Bontan, which have been held in an escrow account in Israel pending ITA clearance. These funds were part of a settlement agreement with the IPC Parties as detailed in our press release of July 2, 2012.

Further to our announcement on December 12, 2012, the company is currently engaged in confidential negotiations to potentially acquire a biotech company. Further updates will be provided shortly.

About Bontan Corporation Inc:

Bontan Corporation Inc. recently concluded a settlement on its indirect oil and gas interest in Israel and now seeks business opportunities in the biotech sector.

Forward-Looking Statements

This news release includes forward-looking statements within the meaning of the U.S. federal and Canadian securities laws.  Any such statements reflect Bontan's current views and assumptions about future events and financial performance.  Bontan cannot assure that future events or performance will occur. Important risks and factors that could cause actual results or events to differ materially from those indicated in our forward-looking statements.

Bontan assumes no obligation and expressly disclaims any duty to update the information in this News Release.

SOURCE Bontan Corporation Inc.