Bontan Corporation Obtains Significant Israel Offshore Oil and Gas Concessions

TORONTO, ONTARIO, Nov 23, 2009 (MARKETWIRE via COMTEX) --
BNTNF | Quote | Chart | News | PowerRating -- Bontan Corporation Inc. (Bontan) (OTCBB: BNTNF | Quote | Chart | News | PowerRating) is pleased to
announce that it has acquired, through its wholly owned subsidiary,
an indirect 71.63% working interest in two drilling licenses and one
exploration permit in the Levantine Basin, 40 kilometers off the West
coast of Israel in the eastern Mediterranean ("Project Assets").
Petroleum License 347 ("Mira") and Petroleum License 348 ("Sarah")
cover approximately 198,000 acres (803 sq. kilometers), and Petroleum
Preliminary Permit 199 ("Benjamin"), covers approximately 461,000
acres (1,865 sq kilometers).

Bontan's interest is held by its 75% equity interest in Israel
Petroleum Company, LTD. (IPC). IPC has acquired an undivided 95.5%
working interest in the Project Assets from a private company,
subject to approval of the transfer by the Israeli Ministry of
Infrastructure.

The consideration paid by Bontan in connection with the acquisition
of its interest in IPC was a cash consideration, 8.6 million common
shares and 22.8 million common share warrants. The warrants have a
term of 5 years and are exercisable at US$4 per share. The private
company retained a 3% overriding royalty in the Project Assets.

Bontan arranged for one-year loans to cover part of the acquisition
cost. The loans accrue interest at 10%, are payable without penalty
at any time, and are secured by a portion of the shares in IPC. A
total of 1.15 million common share warrants have been issued to the
lenders as compensation for the loans. The warrants have a five year
term and are exercisable at US $0.35 per share.

All shares and warrants issued are restricted from trading until
their resale is registered with the U.S. Securities and Exchange
Commission.

About the Project area

The Project Assets are located in the Levantine Basin near the recent
Tamar 1, Tamar 2, and the Dalit natural gas discoveries. The three
wells were drilled by Noble Energy Inc. (NBL.NYSE), who partnered
with Delek Energy Systems (DEOL.TA), Isramco (ISRA.TA), and Avner Oil
and Gas LP (AVNR.TA). The wells have a reported 6.8 TCF (1.02 BBOE)
of estimated proved, probable and possible reserves in the licensed
area, making this the second largest gas discovery in the world since
January 2008. South of the Project Assets is the existing Mari-B
field, also drilled by Noble, Delek, and Avner, which contains a
reported 1 TCF (150 MBOE) of estimated proved, probable and possible
reserves.

The required 3-D seismic for the license area is in the process of
being completed. The required 2-D seismic work for the permit has
been completed and application will be made to convert the permit to
a license.

Management of Project Assets

International Three Crown Petroleum LLC (ITC), managed by Howard
Cooper, owns a 22.5% equity interest in IPC and will operate the
Project Assets. Mr. Cooper has been involved in the international oil
and gas business for thirty years, having successfully developed
projects in the United States, Russia, and Kazakhstan. Mr. Cooper
commented, "Obtaining two licenses and an adjoining permit adjacent
to Noble Energy's estimated 6.8 TCF recent discoveries and north of
the existing Mari-B field is very exciting. Analysts have valued
Noble's 36% interest in their new discoveries at $1.5 billion. We are
very excited about the potential upside to this project."

Kam Shah, CEO of Bontan, commented, "The acquisitions of the Mira
License, Sarah License and the Benjamin Permit, covering over 2,660
square kilometres, provides Bontan with the long awaited opportunity
to participate in the development of Israel's offshore oil and gas
resources. With the 6.8 TCF discoveries north of the Project Assets,
the possibility of significant hydrocarbon deposits on our project
area exists."

About Bontan Corporation Inc.:

Bontan Corporation Inc. is an international diversified natural
resource company that operates and invests in exploration prospects.

Through its wholly owned subsidiaries, Bontan seeks highly visible
opportunities in countries around the globe with a history of natural
resource production that offer exciting and attractive propositions.
Bontan will seek to minimize risk by bringing in either joint
venture, carried or working interest partners, depending on the size
and scale of the project.

There are 48,338,429 shares outstanding and 44,024,478 warrants and
options outstanding as at November 24, 2009, for a total of
92,362,907 shares on a fully diluted basis.

Forward-Looking Statements

This news release may include forward-looking statements within the
meaning of the U.S. federal and Canadian securities laws. Any such
statements reflect Bontan's current views and assumptions about
future events and financial performance. No assurances can be given
that such future events or performance will occur. Important risks
and factors that could cause actual results or events to differ
materially from those indicated in the forward-looking statements,
include, without limitation, economic and political developments in
Israel, approval of the transfer of the two licenses and permit to
IPC by the Israeli Petroleum Commissioner, reliance on ITC as well as
third-party consultants and contractors to develop the project, the
ability of Bontan and IPC to raise sufficient capital, the risk that
no hydrocarbons may be found or that 2D and 3D seismic may diminish
the attractiveness of the assets, the volatility in commodity prices
for crude oil and natural gas, the presence or recoverability of
estimated reserves, geological and geophysical analysis and
interpretation, exploration and development risks, drilling and
operating risks, competition, environmental risks, government
regulation or other action, potential disruption from terrorist
activities and warfare in the region or at the project assets,
general economic conditions and other risks set forth from time to
time in Bontan's filings with the U.S. Securities and Exchange
Commission and securities regulators in Canada. Bontan assumes no
obligation and expressly disclaims any duty to update the information
contained herein.

Contacts:
Investor Relations:
Current Capital Corp.
John Robinson
416-860-0211
www.bontanoilandgas.com

SOURCE: Bontan Corporation Inc.

http://www.bontanoilandgas.com

For full details on (BNTNF) BNTNF. (BNTNF) has Short Term PowerRatings at TradingMarkets. Details on (BNTNF) Short Term PowerRatings is available at This Link.