Altachem Pharma Ltd. Completes A $10,000,000 Private Placement.

Business Editors & Health/Medical Writers

BIOWIRE2K

EDMONTON, Alberta--(BW HealthWire)--March 1, 2002

Mr. Warren Jackson, President and CEO of Altachem Pharma Ltd. is pleased to announce the closing of an arm's length private placement of 8,540,242 units at a price of $1.20 per unit, for aggregate gross proceeds of $10,248,290.40 on February 28, 2002.

-- Each unit consists of one (1) common share of the Corporation and one (1)
warrant. Each warrant entitles the holder thereof to purchase one (1) common
share of the Corporation at a price of $1.55, if the warrant is exercised
within 12 months from the date of closing of this offer or $1.80, if the
warrant is exercised after 12 months but before 18 months from the date of
closing of this offer. The warrants are non-transferable. The closing date is
February 28, 2002.

-- The common shares issued will have a hold period of 12 months from the date
of closing, which will expire on February 28, 2003. Any common shares issued
upon exercise of the warrant component of the units will also have a hold
period of 12 months from the date of closing, which will expire on February 28,
2003.

Altachem Pharma hired a consulting firm to assist with the necessary translation, due diligence process and guidance on conducting business in Korea for 438,825 units at a value of $1.20 per unit which have the same conditions as stated above.

The proceeds from this private placement will be primarily used to conduct pre-clinical studies, GMP manufacturing of Hypocrellin-based products for cancer applications, human clinical trials and conducting business as per Altachem Pharma's corporate plans.

The Corporation has received conditional approval of this placement from the Canadian Venture Exchange ("CDNX"). Final acceptance is subject to the Corporation filing additional documentation as required by the CDNX.

Altachem Pharma Ltd. is a publicly traded (CDNX:AAF), Alberta-based pharmaceutical company committed to the development and commercialization of new pharmaceutical products to enrich and prolong the lives of people. The Corporation is developing a multi-tiered, integrated approach for the treatment of HIV/AIDS and Cancer. The lead products of the Corporation are based on its two proprietary drugs: HIP and HB. The Corporation's manufacturing facility is certified compliant with internationally recognized quality systems standards, ISO 9002:1994, ISO 13488:1996 and EN 46002:1997.

Certain information contained in this press release may be forward-looking and is subject to unknown risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct.

"The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this release."