TORONTO, ONTARIO -- (Marketwire) -- 08/29/08 -- Cannasat Therapeutics Inc. (TSX VENTURE: CTH), a CNS drug development company, today announced its results for the six months ended June 30, 2008.

OPERATIONAL HIGHLIGHTS

- Continued to work with IntelGenx Corp. to refine CAT 310 prototype formulations, a potential treatment for patients with neuropathic pain, nausea/vomiting and other conditions.

- Continued early stage formulation development work on CAT 320, a safe and non-habit forming treatment for anxiety, schizophrenia and other mood disorders.

FINANCIAL HIGHLIGHTS

- Announced the sale the Company's 12% equity stake in Prairie Plant Systems. The $1.12 million sale price was equal to the price Cannasat originally paid for PPS shares in August 2004.

- Cash and cash equivalents at June 30, 2008 of $1,454,819 (December 31, 2007: $787,469).

- Net loss before equity gain on sale of PPS of $627,892 for the three months ended June 30, 2008 (June 30, 2007: $566,587), in line with expectation.

- Report 73,468,849 common shares outstanding at June 30, 2008.

- On August 12, 2008, announced the closing of a non-brokered private placement raising gross proceeds of $235,000.

In announcing the results, David Hill, Chief Executive Officer of Cannasat, said:

"During the second quarter, Cannasat divested its position in Prairie Plant Systems and ended the Strategic Alliance Agreement between the two companies. This decision marked an important and fundamental strategic shift for the Company, as we now focus all our efforts and resources developing safe and therapeutically effective CNS drug candidates. We look forward to the second half of 2008, as we continue to advance our innovative and promising CAT 310 and CAT 320 products."

ABOUT CANNASAT THERAPEUTICS

Founded in 2004, Cannasat is an early stage CNS (Central Nervous System) research and development company. Cannasat's current drug candidates have broad potential therapeutic applications, including the treatment of neuropathic pain, chronic pain, nausea/vomiting, anxiety, schizophrenia, and other mood disorders. More information about Cannasat (TSX VENTURE: CTH) is available at www.cannasat.com.

FORWARD LOOKING STATEMENTS

Certain statements in this release may constitute forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors, which may cause actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

Contacts:
Cannasat Therapeutics Inc.
Andrew Williams
COO & CFO
(416) 703-2449 (Ext. 253)
(416) 703-8752 (FAX)
Email: awilliams@cannasat.com
Website: www.cannasat.com