~Stock Charts and OPTION plays

[USF11]

BNTNF 12 Mil OS NO DEBT 2 Million is Cash! Way Oversold!

NEWS RELEASE:




BONTAN CORPORATION INC. ANNOUNCES TEST RESULTS ON ITS TEST WELL IN LOUISIANA

TORONTO, ON – October 24, 2005, Bontan Oil & Gas Corporation, a wholly owned subsidiary of Bontan Corporation Inc. (OTCBB: BNTNF) (“Bontan”), reported on October 19, 2005 that the drilling on its test well, Placide Richard No. 1 in Calcasieu Parish (“the Well”), Louisiana had reached its projected depth of 15,378’. The results of various technical tests completed over the past five days were as follows:

Electric log analysis completed by Baker Hughes Inc., Keystone Oil Company, the project operator and others were supported by data obtained from wireline formation tests completed by Baker Hughes Inc. and Schlumberger Limited. These lines of evidence led the project operator to conclude that a commercial completion could not be made and that Placide Richard No. 1 should be plugged and abandoned.

Bontan which had a 49% gross working interest in the project will not be renewing its interest in the lease. Further to these test results Bontan may conduct an independent review by a registered petroleum geologist or geophysicist of all the technical data pertinent to the area of interest.

Robert O. Gross, President of Keystone Oil Company Inc. commented: “Drilling of the No.1 Richard well validated our seismic methodology for mapping the thickness and distribution of high porosity channel sands. The objective sands, however, contained only residual gas rather than commercially producible gas volumes. Differentiating between high and low gas saturation reservoirs using seismic data has been an industry challenge for many years. While additional processing is planned to address this issue, we are recommending that the well should meanwhile be plugged.”

Mr. Kam Shah, CEO comments “We are of course disappointed by the results. Significant time, effort and money was invested into the prospect. We felt that the prospect offered an appropriate level of risk to reward potential based on the original technical indications including 3-D seismic and the many years experience of our partners in the project all of which are former senior oil and gas company executives. Going forward we intend to work hard to increase shareholder value and restore confidence in our securities. Fortunately, after our successful and profitable investment in the oil and gas exploration project in Papua New Guinea operated by InterOil Corp, in which the company made almost $1.9M and in addition with the exercise of warrants priced at $1.00. The Company has approximately $2M in cash and short term securities and has no debt. We remain extremely bullish on the natural resource sector and at this time are evaluating new oil and gas drilling prospects as well as joint venture opportunities. We are very confident that we will identify an appropriate opportunity relatively quickly. We appreciate the support of our existing shareholders and hope to reward them with success in the future.”