Bontan Corporation Inc. Announces Signing of Agreement For Diamond Projects in Brazil and New Corporate Web Site

TORONTO, May 28, 2004 (PRIMEZONE) -- Bontan Corporation Inc. ("BC") (OTCBB:BNTNF), through its wholly owned subsidiary, Bontan Diamond Corporation ("BDC"), is pleased to announce that it has acquired 100% equity in Astrogemas Mineracao Ltda ("AM"). The management of AM has the right to earn back a 40% interest subject to meeting certain agreed performance milestones.

AM is led by Mr. Francis Guardia who has signed a five-year consulting contract with BDC. He is a mineral exploration geologist with over 40 years of experience having worked in Canada, USA, Mexico, Spain, Guyana, UK and Brazil and for companies such as Francisco Gold Corp, Billiton Canada Ltd. and Campbell Chibougamou Mines Ltd. He will be the Chief Geologist of BDC and will head a technical team to be located in Brazil. The technical team comprises three other Brazilian geologists and prospectors who specialize in diamond exploration and had been major contributors to the prolific kimberlitic finds of De Beers throughout Brazil.

AM holds an option to acquire a 50% working interest in a joint venture with another non-related Brazilian corporation to explore for and produce diamonds from the alluvium of the valley of the Paranaiba River in the Coromandel region of Minas Gerais state in Brazil, in which the joint venture holds a mining license on an 800-hectare area. BDC has agreed to pay the exercise price to exercise the said option and has further committed to contribute to the exploration costs. A similar joint venture agreement has been signed on an alluvial diamond/gold project in the historic Diamantina camp.

Mr. Guardia, Chief Geologist, comments, "When I first started studying the diamond potential of Brazil, I was astonished that there were still untested kimberlites in regions that have produced world class diamonds. Now BDC is about to change all that with an aggressive program of bulk sampling of multiple targets."

BC is also pleased to announce that it has launched its new corporate web site at

About Bontan Corporation Inc.:

Bontan Corporation Inc. is a diversified natural resource company seeking high returns with minimal risks. Bontan operates, backs and invests in major exploitation and exploration plays run and organized by highly regarded geologists, geophysicists and executives.

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. The company 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.

For further information, please contact Kam Shah, CEO and CFO at 416-860-0175. Visit for more information.

For media relations, please contact Robert Kennedy at Current Capital Corp. at 416-860-0211 or visit the web site at

No regulatory authority has approved nor disapproved the content of this release.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "plans", "confident that", "believe", "expect", or "intend to", and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements.