[2] Lorus Therapeutics Completes Early Exercise Of Warrants For Proceeds Of Approximately $6.0 Million.

TORONTO--(BUSINESS WIRE)--Dec. 16, 1999--

(TSE:LOR.) (ME:LOR.) (OTC Bulletin Board:LORFF)

Block of Shares Issued Under Exercise of Warrants Sold to

Large, Dedicated US Healthcare Institutional Investor 

Lorus Therapeutics Inc. ("Lorus") today announced that it has secured approximately $6.0 million in equity financing resulting from the early exercise of two series of outstanding common share purchase warrants. These new funds are in addition to the $10 million achieved recently with the private placement of Special Warrants.

Holders of 7.21 million common share purchase warrants, issued as part of the recent acquisition of GeneSense Technologies Inc., have exercised their warrants 36 months prior to their expiration date, generating approximately $5.0 million. Also, 2.67 million Series A Warrants issued as part of a January 1999 private placement of Special Warrants have been exercised providing Lorus with an additional $961,000. The Series A Warrants have an expiry date of January 8, 2000.

"We are pleased that some of our major investors have elected to exercise their warrants two and a half years before the warrants expire," said Philippe G. Lacaille, chairman and chief executive officer, Lorus. "It is also encouraging that a large, dedicated U.S. healthcare institutional investor has purchased a large block of shares that were issued from both series of warrants. This transfer of shares into the United States not only supports the U.S. listing of our shares, but it is also a significant step towards our goal of enhancing Lorus' profile in the United States.

This injection of financing will help fund Lorus' ongoing research and scientific development programs, including NuChem Analogues, GTI 2040, GTI 2501 and Virulizin(r).

Lorus recently announced that the U.S. Food and Drug Administration ("FDA") had approved the Company's Investigational New Drug ("IND") application to begin clinical trials of the anti-cancer drug, GTI 2040. The clinical trial will take place under the direction of Dr. Richard Schilsky of the Chicago Cancer Research Center.

Lorus is a biopharmaceutical company focused on the development of cancer therapies. Lorus' goal is to capitalize on its pre-clinical, clinical and regulatory expertise by developing new drug candidates that can be used, either alone, or in combination, to successfully manage cancer. Through an active acquisition and in-licensing program, Lorus is building a portfolio of promising anti-cancer drugs. Late stage clinical development and marketing will be done in cooperation with strategic pharmaceutical partners. Founded in 1986, Lorus Therapeutics Inc. is a public company listed on the Toronto Stock Exchange and the Montreal Stock Exchange under the symbol LOR and on the OTC BB exchange under the symbol LORFF.

Except for historical information, this press release contains forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from those statements. Those risks and uncertainties include, but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process, and other risks detailed from time-to-time in the Company's ongoing quarterly filings, annual reports and 20-F filings.

Lorus Therapeutics Inc.'s press releases are available through the Company's Internet site: www.lorusthera.com.