Mistral Pharma Completes its $5 Million Placement with Notre-Dame Capital as Agent

Market Wire, May, 2006

Mistral Pharma Inc. (TSX VENTURE:MIP) ("Mistral") is pleased to announce today that is has closed the third and final tranche of its private placement announced by way of press release on March 15, 2006 for gross aggregate proceeds of $635,300. The 12,706,000 common shares issued at a price of $0.05 per share pursuant to this third tranche of the private placement have a four-month resale restriction which expires on September 19, 2006.

Notre-Dame Capital Inc., the exclusive agent for the private placement, has received, as compensation for this third tranche, a cash commission of $ 58,530 and 1,170,600 common share purchase warrants exercisable at a price of $0.10 per share until May 19, 2008. Brant Securities Limited has also received a cash commission of $ 5,000 and 100,000 common share purchase warrants as compensation for its participation in the realization of the third tranche of the private placement.

Mistral has thus raised gross aggregate proceeds of $5,000,000 through its private placement and has issued a total of 100,000,000 common shares. An aggregate commission of $454,375 and 10,000,000 common share purchase warrants was paid to the agents pursuant to the placement. The net proceeds will be used for general working capital purposes; mainly to pursue the development of its branded and generic product portfolio and to fund growth initiatives in the Canadian and US markets.

Mistral also announces today that the board of directors of Mistral has granted stock options to purchase an aggregate of 976,480 common shares of Mistral at an exercise price of $0.10 per share to certain officers of Mistral. The grant of such stock options is made in accordance with the stock option plan of Mistral and is subject to the approval of the TSX Venture Exchange. The granted options will expire on May 19, 2011.

Mistral wishes to rectify the information provided in its press release issued on May 8, 2006, announcing the closing of the second tranche of its private placement. The said press release states gross aggregate proceeds of $3,889,700 for 77,794,000 common shares of Mistral issued pursuant to the private placement, whereas it should have mentioned gross aggregate proceeds of $3,864,700 for 77,294,000 common shares of Mistral issued. This correction is due to the cancellation by Mistral of an unauthorized subscription.

About Mistral Pharma Inc.

Mistral is a pharmaceutical product oriented drug delivery company and its first branded product MIST-B01 showed positive results at its first pilot clinical trial. Mistral is also working on three control delivery generic products. Mistral positions itself as a development partner for generic and specialty pharmaceutical companies. Additional information about Mistral can be obtained on Mistral's website at www.mistralpharma.com

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

Contacts: Mistral Pharma Inc. Bertrand F. Bolduc, B.Pharm., MBA President and Chief Executive Officer (514) 920-0909 #24 bbolduc@mistralpharma.com Mistral Pharma Inc. Alain Provencher, CA Vice President and Chief Financial Officer (514) 920-0909 #22 aprovencher@mistralpharma.com