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PROTOX SECOND CLOSING INCREASES PRIVATE PLACEMENT TO $10 MILLION

Vancouver, British Columbia, December 22, 2006 – ProtoxTM Therapeutics Inc. (TSX-V:PRX) announced today that it has closed a second tranche of its previously announced private placement. An additional 1,750,000 units were placed with new institutional and retail investors at a price of $0.50 per unit for total gross proceeds of $875,000. Each unit comprises one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share of Protox at a price of $0.65 on or before 22 December 2008. The Company paid customary commissions and issued 122,500 warrants to co-agents Jennings Capital Inc. and Canaccord Capital Corp. In addition, finder’s fees including 5,375 warrants were paid in respect of this transaction.

This placement is in addition to the 18,349,500 units placed on November 29, 2006 and brings the total gross proceeds raised through both placements to $10,049,750, for which a corporate finance fee in the amount of 200,000 common shares was issued. Upon completion, Protox will have 56,243,289 common shares issued and outstanding.

All securities issued as part of this additional placement are subject to a four-month hold period. Net proceeds will be used to support the Company’s clinical programs for PRX321 and PRX302, and for general corporate purposes.

About Protox
Protox is a leader in advancing novel, targeted protein toxin therapeutics for treatment of cancer and other proliferative diseases. The Company is actively developing two distinct but complementary platforms, INxin™ and PORxin™, and currently has three clinical programs in development. A Phase IIa clinical trial into the use of PRX321 (INxin) for the treatment of primary brain cancer has been completed and the drug has received Fast Track Designation and Orphan Drug Status from the US FDA. In addition, a Phase I trial has been completed for PRX321 to treat patients with renal cell carcinoma and non-small cell lung cancer. Patient enrolment is underway for a Phase I clinical study into the use of PRX302 to treat localized prostate cancer. Protox has received approval from Health Canada to commence a Phase I clinical study of PRX302 to treat benign prostatic hyperplasia.

NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS RELEASE. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

This press release does not constitute an offer to sell or solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Certain statements included in this press release may be considered forward-looking. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on Protox’ current beliefs as well as assumptions made by and information currently available to Protox and relate to, among other things, anticipated financial performance, business prospects, strategies, regulatory developments, market acceptance and future commitments. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by Protox in its public securities filings; actual events may differ materially from current expectations. Protox disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For further information visit our website at www.protoxtherapeutics.com, or contact:

Anthony Boone
Director, Investor Relations and Corporate Communications
Protox Therapeutics
T:604-688-4369
C:778-996-4369
aboone@protoxtherapeutics.com

Michael Moore
Investor Relations
The Equicom Group
T:416-815-0700 x 241
mmoore@equicomgroup.com