TORONTO, Aug. 3 /PRNewswire-FirstCall/ - Bontan Corporation Inc. (OTCBB: BNTNF) ("The Company", "Bontan") is pleased to announce that it has filed its audited consolidated financial statements and Management Discussion and Analysis in the form of an F-20 annual report for the year ended March 31, 2010.

These documents can be viewed on the SEDAR web site at www.sedar.com.

The following is a summary of selected financial information extracted from the audited consolidated financial statements:

    Year ended March 31,                         2010          2009
                (all amounts in 000'$ - except # of shares)

    Revenue                                  $      -       $     8
    Net Loss                                 $  3,927       $   686
    Total assets                             $ 10,420        $1,593
    Shareholders' equity                     $  6,900       $ 1,440

    # of issued and outstanding
     common shares                         65,229,076    30,820,743

Project update

Seismic data for Sara and Mira has been shot, acquired, and processed. The 3D seismic data in respect of the Sara and Myra licenses has been submitted to the MNI. The first phase of the interpretation of the results of the 3D seismic data is expected to be completed and a report submitted to the MNI the first week of August, 2010, as per the agreed work program.

Determination of a drilling prospect on each license and engineering for those prospects is expected by December 31, 2010. A contract with a drilling contractor is expected March 31, 2011 followed by an expected spud date of Q3 2011.

Bontan is currently seeking interested parties to participate in the development of its 10.45% interest in the Sara and Myra licenses either through a farmout, option, partial sale of interest, assignment, debt or equity financing.

About The Offshore Israel Project

The Offshore Israel Project comprises two Licenses - Sarah and Myra - covering approximately 310 square miles and is located in the Levantine Basin near the recent 8.4 TCF Tamar 1, Tamar 2, and the Dalit natural gas discoveries by Noble Energy Inc.

The right to licences is held by a group comprising IPC Oil and Gas Ltd Partnership, Tel Aviv-based Emanuelle Energy Ltd, Modin Energy Partnership Limited, Emanuelle Energy Oil & Gas Limited Partnership and four other entities including the operator, GeoGlobal Resources (India) Inc.

Bontan's indirect working interest in these licenses is 10.45%.

A Prospective Resource Evaluation Report was prepared by Chapman Petroleum Engineering Ltd, an independent Calgary based consulting firm (http://www.chapeng.ab.ca/). Assuming a successful ultimate recovery of resources and using a discount rate of 10%, Chapman estimates the unrisked net present value of Bontan's 10.45% interest in the Sara and Myra licenses at approximately $727 million

About Bontan Corporation Inc.:

Bontan Corporation Inc. is an oil and gas exploration company that operates and invests in exploration prospects. Through its subsidiaries, Bontan seeks highly visible opportunities in countries around the globe with a history of natural resource production that offer exciting and attractive propositions. Bontan seeks to minimize risk by bringing in either joint venture, carried or working interest partners, depending on the size and scale of the project.

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, including: the effect of economic and political developments in Israel; the reliance on Emanuelle, Modin, IPC and others in the group as well as third-party consultants and contractors, to develop the Project; the ability of Bontan and IPC Cayman to raise sufficient capital and demonstrate adequate financial capability, and the associated dilution to current investors' interests associated with the issuance of additional debt and equity securities; the risk that the Data may show or suggest, or that the License sites ultimately may contain no, or limited amounts of, hydrocarbons; the volatility in commodity prices for crude oil and natural gas; the presence or recoverability of estimated reserves; the potential unreliability or other effects of geological and geophysical analysis and interpretation; exploration and development, drilling and operating risks; competition for development of the Project; environmental risks; government regulation or other action; potential disruption from terrorist activities or warfare in the region or at the Project site; general economic conditions; and other risks we identify from time to time in our filings with the U.S. Securities and Exchange Commission and securities regulators in Canada. Bontan assumes no obligation and expressly disclaims any duty to update the information in this Press Release.

SOURCE Bontan Corporation Inc.