Paladin Labs Inc. Announces Purchase of Shares of Afexa Life Sciences Inc.

MONTREAL, QUEBEC--(Marketwire - July 15, 2011) - Paladin Labs Inc. ("Paladin")PLB, a leading Canadian specialty pharmaceutical company, today announced it has acquired common shares of Afexa Life Sciences Inc. FXA through market purchases on the Toronto Stock Exchange that give Paladin beneficial ownership of a total of 15,421,300 common shares of Afexa or approximately 14.94% of Afexa's total issued and outstanding common shares. The 5,374,500 common shares of Afexa acquired today were purchased for prices between $0.36 and $0.55. Paladin is considering its options regarding its investment in Afexa, which may include acquiring additional shares, or making a public offer for further shares of Afexa.

About Paladin Labs Inc.

Paladin Labs Inc, headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian market. With this strategy, a focused national sales team and proven marketing expertise, Paladin has evolved into one of Canada's leading specialty pharmaceutical companies. Paladin's shares trade on the Toronto Stock Exchange under the symbol PLB. More information is available at www.paladinlabs.com. Paladin's registered and head office is located at 6111 Royalmount Avenue, Suite 102, Montreal, Quebec, H4P 2T4

This press release may contain forward-looking statements and predictions. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The Company considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions that these assumptions regarding the future events, many of which are beyond the control of the Company and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations, are discussed in the annual report as well as in the Company's Annual Information Form for the year ended December 31, 2010. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events and except as required by law. For additional information on risks and uncertainties relating to these forward-looking statements, investors should consult the Company's ongoing quarterly fillings, annual report and Annual Information Form and other fillings found on SEDAR at www.sedar.com.