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Animal Health News Release

Bioniche Life Sciences Inc. Enters into Two Distribution Agreements for New Animal Health Products

21/12/11

- Agreements signed with UK-based MedTrade Products Limited and U.S.-based Mueller Medical International LLC -

BELLEVILLE, ON, Dec. 21, 2011- Bioniche Life Sciences Inc. (TSX: BNC) (ASX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced that it has entered into two distribution agreements to expand its product offerings in North America.

MedTrade Distribution Agreement

The first agreement is with MedTrade Products Limited ("MedTrade"), a UK-based company. The agreement provides a number of equine and companion animal health products based on MedTrade's CeloxTM technology for exclusive distribution by Bioniche in Canada.

The CeloxTM technology uses chitosan, a natural polysaccharide, as a medical device in the animal health industry. The CeloxTM product line includes gauzes and granules that are utilized in wound healing. When mixed with blood, CeloxTM forms a gel-like clot in less than one minute, independent of the body's normal clotting processes. Unlike some other clotting agents, CeloxTM is non-exothermic so will not burn the patient or caregiver. In human medicine, CeloxTM has been used by military medics and emergency services workers for a number of years and has been proven to stop even potentially lethal bleeding quickly.

Mueller Medical Distribution Agreement

The second agreement is with Mueller Medical International LLC ("Mueller Medical"), a U.S.-based company. The agreement provides an equine product - Equine Gastrafate® - for exclusive distribution in Canada and the U.S. by Bioniche.

Equine Gastrafate® is a patented saccharide composition that is used to expedite management of gastrointestinal syndromes characterized by nausea, vomiting, diarrhea, colic and mucosal erosions. This product is often used by equine veterinarians who suspect ulcer colic in horses.

"Equine Gastrafate® has been field tested in all breeds of horses over a four-year period by 32 equine veterinarians in 19 U.S. states and has proven to be an effective treatment," said Mr. Andrew Grant, President of Bioniche Animal Health (global). "The CeloxTM product line is a good fit with our existing North American product offering for companion animal and equine wound healing, alongside such products as PERIDAN® Concentrate, to prevent adhesions in horses following abdominal surgery and Derma-GeL®, a topical isotonic hydrogel that promotes wound healing in horses and companion animals."

About Bioniche Life Sciences Inc.

Bioniche Life Sciences Inc. is a research-based, technology-driven Canadian biopharmaceutical company focused on the discovery, development, manufacturing, and marketing of proprietary products for human and animal health markets worldwide. The fully-integrated company employs 214 skilled personnel and has three operating divisions: Human Health, Animal Health, and Food Safety. The Company’s primary goal is to develop proprietary cancer therapies supported by revenues from marketed products in human and animal health. Bioniche has been named one of the Top 50 Best Small and Medium-Sized Employers in Canada for 2010. For more information, please visit www.Bioniche.com.

Except for historical information, this news release may contain forward-looking statements that reflect the Company’s current expectation regarding future events. These forward-looking statements involve risk and uncertainties, which may cause, but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process, and other risks detailed from time to time in the Company’s ongoing quarterly and annual reporting.

For further information, please contact:
Jennifer Shea, Vice-President, Communications, Investor & Government Relations
Bioniche Life Sciences Inc.
Telephone: (613) 966-8058
Cell: (613) 391-2097
jennifer.shea@bioniche.com

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