Israel: Bontan Provides Update on Sara and Myra Licences

Bontan Corporation Inc. issues the following update with respect to its indirect working interest of 5.23% in the Israeli project comprising Sara and Myra licenses located in the Levantine Basin:

Progress on Israeli Project:

Israel Rig Contract – Myra and Sara Licenses

The operator of the consortium of the Licenses has entered into an Assignment Agreement with a third party, whereby, the operator has taken assignment of a third party’s rights and obligations to an existing Drill Rig and Associated Services Contract for a Semisubmersible Drilling Rig, subject to certain terms and conditions.

Additional Information about the Offshore Israel Project

The rights in the Licenses for the Offshore Israel Project are held by a group consisting of IPC Israel, Emanuelle Energy Ltd, Modiin Energy Limited Partnership, Emanuelle Energy Oil and Gas Limited Partnership and other entities including the operator, GeoGlobal Resources (India) Inc.

Bontan’s share of the Working Interest in the Licenses is 5.23% through the holding of 50% equity in IPC Israel by Bontan’s subsidiary, IPC Cayman.

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.

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Source:Bontan corporation, April 29,2011;Image: GeoGlobal