MONTREAL, QUEBEC--(Marketwire - July 14, 2008) - Mistral Pharma Inc. (TSX VENTURE:MIP) (the "Corporation"), announced that the Superior Court of Quebec has granted a motion to extend the delay to file a proposal under the bankruptcy and insolvency act. The Corporation has until August 25, 2008 to make a proposal to its creditors. This extension will help the Corporation to pursue ongoing negotiations concerning potential offers for its business and assets, and likely put forth a viable proposal to its creditors.

The Corporation has retained the firm of Demers Beaulne to act as trustee to the proposal.

The Corporation's creditors will be able to vote on the proposal at a meeting to be called within 21 days of the proposal's filing. If accepted by the creditors and ratified by the Court, the proposal is binding on all creditors. In order to be accepted, the Corporation's proposal will need to be approved by creditors representing the majority in number and at least 66.66% in value of the Corporation's debt.

Pending the filing of the proposal, all claims of the Corporation's creditors against the Corporation are stayed.

Forward-looking Statements

Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of Mistral Pharma. These statements are based on assumptions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for Mistral Pharma's products, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.

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