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Qualified Canadians Still Able to Access Medical Marijuana from Health Canada

Only Unallocated Research Funds Affected

Yahoo Finance, September 26, 2006

TORONTO, Sept. 26 /CNW/ - Yesterday the Conservative government announced spending cuts scheduled over the next two years. Funding for academic medical marijuana research - originally made available through the Medical Marijuana Research Program (MMRP), established in 2003 - was included in that list.

According to Prairie Plants Systems (PPS) - the Saskatoon-based company in which Cannasat Therapeutics is a shareholder - the spending cuts will not impact PPS, which has been growing and distributing medical marijuana for Health Canada since December 2000.

"Accordingly, medical marijuana will continue to be grown and distributed by PPS to qualified patients through the Health Canada's Marihuana Medical Access Regulations (MMAR), including patients with multiple sclerosis, HIV/AIDS, cancer, severe arthritis, epilepsy and spinal cord injury or disease," states David Hill, Cannasat's Chief Executive Officer.

Hill continues, "Furthermore, as a private sector company that is not receiving any funding under the MMRP, Cannasat's current or planned research activities are not impacted by this announcement. Cannasat is entirely funded by other sources and remains focused on the development of cannabis-based pharmaceutical products to be introduced to the market through the traditional regulatory drug approval process."

Academic medical marijuana researchers can still apply for CIHR ("Canadian Institutes of Health Research") funding, but will no longer have access to these, remaining undistributed funds that were available through the MMRP. Originally $7.5 million was allocated to this task, of which approximately $3.5 million has already been awarded to researchers such as Dr. Mark Ware, a pain physician at the McGill University Health Centre (MUHC) Pain Centre and principal investigator for the 3-year, 350-patient COMPASS trial ("Cannabis for the Management of Pain: Assessment of Safety Study").

CIHR is the Government of Canada's health research funding agency supporting the work of up to 10,000 researchers and trainees in universities, teaching hospitals, and research institutes across Canada.

ABOUT CANNASAT THERAPEUTICS INC.

Cannasat Therapeutics Inc. is researching the therapeutic benefits of cannabis and developing new cannabinoid pharmaceutical products. Cannasat is pursuing two complementary business strategies. The first consists of development of novel cannabinoid-based pharmaceutical products through application of drug delivery technologies to be introduced to the market through the traditional regulatory drug approval process. The second is to promote medicinal cannabis research and education with Cannasat's business partner, Prairie Plant Systems Inc., the only government licensed grower and distributor of medicinal cannabis in Canada.