TLN Thallion Pharmaceuticals

Thallion Pharmaceuticals Inc. ("Thallion") (TSX VENTURE:TLN) announced today
that, in response to the press release dated June 18, 2013 issued by Jaguar
Financial Corporation ("Jaguar"), it reaffirms its support of the BELLUS Health
Inc. ("BELLUS") (TSX:BLU) proposed transaction outlined in Thallion's and
BELLUS' joint press release dated June 18, 2013.


The proposed transaction with BELLUS is the result of the strategic review
process of all available alternatives for Thallion and its shareholders
previously announced in February 2013, including a potential wind-up of the
corporation. The Special Committee, comprised of independent directors of the
Board, evaluated the BELLUS transaction versus the wind-up option (amongst
numerous alternative options) in terms of overall benefit to shareholders,
adjusted for time value, risk and various uncertainty factors.


Based on the advice of financial and legal advisors, the Special Committee
concluded that the BELLUS transaction was more compelling than a wind-up for
shareholders for various reasons, including the greater and more certain
up-front payment to shareholders pursuant to the BELLUS transaction and the
potential to participate in future revenues that may be generated from Shigamabs
pursuant to the terms of the contingent value rights forming part of the BELLUS
transaction.


The proxy circular to be mailed to Thallion shareholders no later than July 16,
2013 in connection with the annual and special meeting will contain further
details regarding the BELLUS transaction and the background leading to such
transaction, including the review process and reasons for the unanimous
recommendation of the Special Committee and Thallion's Board (excluding one
director who was required to abstain from voting) that the BELLUS transaction is
fair to the shareholders and in the bests interests of Thallion.


Corrections to certain statements made by Jaguar

Thallion is concerned that the press release dated June 18, 2013 issued by
Jaguar appears to contain misstatements of fact and/or misrepresentations of
Thallion's financial position at the expected time of closing of the BELLUS
transaction, including:




--  Failing to take into account certain material liabilities and future
    financial obligations of Thallion of approximately $1,400,000 as of
    February 28, 2013, in the determination of both the per share value of
    Thallion and its net cash position. Furthermore and subsequent to
    February 28, 2013, Thallion closed out its SHIGATEC Ph II clinical
    study, significantly reduced its employee base and continued to meet its
    ongoing financial commitments as a reporting issuer, all of which will
    be reflected as uses of cash related to operating activities for
    Thallion's second quarter ended May 31, 2013. 
--  Failing to take into account the 3,676,450 options outstanding (which
    all have an exercise price lower than the estimated cash amount of
    $0.1765 per share (subject to adjustments) under the BELLUS
    transaction), in the determination of certain per share amounts. Taking
    into account the number of shares underlying these options, a net cash
    amount of $7,500,000 represents $0.2091 per share (on a fully-diluted
    basis) and not $0.23 per share. 
--  Incorrectly characterizing previously and explicitly disclosed severance
    obligations by Thallion in the event of termination of Thallion's
    management, which are triggered upon any termination without cause,
    which would apply in the context of a wind-up. 
--  Incorrectly characterizing risks in connection with any wind-up of
    Thallion, whereby a substantial portion of available cash may not be
    distributed to shareholders before the expiry of certain indemnification
    obligations of Thallion, some of which apply until mid-2016. In
    addition, there are costs associated with a wind-up process which are
    not factored into by the Jaguar release. 
--  Subsequent to the announcement on June 18, 2013, Thallion has obtained
    additional shareholder support, representing an additional 4.38% of the
    shares outstanding of Thallion in addition to the previously obtained
    5.79% in shareholder support for a total of approximately 10.17%.



About Thallion (www.thallion.com)

Thallion is a biotechnology company developing pharmaceutical products in the
areas of infectious disease and oncology. Thallion's lead clinical program
Shigamabs(R) is a dual antibody product for the treatment of Shiga
toxin-producing E. coli bacterial infections and has recently completed a Phase
II clinical trial. Additional information about Thallion can be obtained at
www.thallion.com. 


Forward-Looking Statements

Certain statements contained in this news release, other than statements of fact
that are independently verifiable at the date hereof, may constitute
forward-looking statements. Such statements, based as they are on the current
expectations of management, inherently involve numerous risks and uncertainties,
known and unknown, many of which are beyond the control of BELLUS Health Inc. or
Thallion Pharmaceuticals Inc. Such risks include but are not limited to: amounts
available for distribution to shareholders in a wind-up process, the ability to
obtain Court and regulatory approvals, third party consents and to satisfy other
closing conditions, adjustments may be made to the cash consideration depending
on the net cash of Thallion, risks relating to the satisfaction of payment
conditions under the contingent value rights, the ability to obtain financing,
the impact of general economic conditions, general conditions in the
pharmaceutical and/or nutraceutical industry, changes in the regulatory
environment in the jurisdictions in which the BELLUS Health Inc. and Thallion
Pharmaceuticals Inc. do business, stock market volatility, fluctuations in
costs, changes to the competitive environment due to consolidation, achievement
of forecasted burn rate, achievement of forecasted clinical trial milestones,
and that actual results may vary once the final and quality-controlled
verification of data and analyses has been completed. Consequently, actual
future results may differ materially from the anticipated results expressed in
the forward-looking statements, and there can be no assurance that any amounts
will become payable under the CVRs. The reader should not place undue reliance,
if any, on any forward-looking statements included in this news release. These
statements speak only as of the date made and neither BELLUS Health Inc. nor
Thallion Pharmaceuticals Inc. is under any obligation to update or revise such
statements as a result of any event, circumstances or otherwise, and BELLUS
Health Inc. and Thallion Pharmaceuticals Inc. disavow any intention to do so,
unless required by applicable legislation or regulation. Please see the public
fillings of BELLUS Health Inc. and Thallion Pharmaceuticals Inc., including the
Annual Information Form of BELLUS Health Inc. for further risk factors that
might affect both companies and their respective businesses.


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Thallion Pharmaceuticals Inc.
Michael Singer
Chief Financial Officer
(514) 940-3600
(514) 336-2343 (FAX)
info@thallion.com
www.thallion.com

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