December 1, 1997

Paladin Labs Posts Financial Results for the Nine Months Ended September 30, 1997.

Paladin Labs Inc. is pleased to announce that for the nine months ended September 30, 1997 that it had Revenue of $436,073 resulting in a Net Loss of $263,385 or $0.07/share.

Summary Statement of Operations Summary Balance Sheet

Nine Months Ended September 30 At September 30

1997 1996 1997 1996

Revenues 436,073 50,288 Assets

Expenses 699,458 321,174 Current Assets 674,537 820,245

R&D 374,689 0 Other Assets 2,491,537 4,356,367

Net Loss 263,385 270,886

Total Assets 3,166,07 5,176,613

Loss Per Share ($0.07) ($.07) Liabilities

Current Liabilities 33,457 46,662

Shareholder's Equity 3,132,617 5,129,951

Paladin Labs Inc. is a Canadian-based, emerging pharmaceutical company. The Company's strategy is to acquire, license and market innovative pharmaceuticals in niche therapeutic areas for the Canadian market and to develop late-stage innovative pharmaceuticals for a world market.

The Company participates in the generic market as a tactical measure designed to (1) generate stable and predictable earnings to fund the development of innovative products, and (2) counter-balance the inherent risk involved in developing innovative products.

Paladin Labs Inc. would be pleased to provide a copy of the full quarterly report to any security holder who requests it from the Company.

Paladin Labs Inc. is a public company whose shares trade on the Vancouver Stock Exchange under the symbol PLB.

Click here for the financial statements in PDF format.

The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

INFORMATION: Paladins Labs Inc.

6111 Royalmount Ave.

Montreal, Quebec

H4P 2T4

Canada

Tel: (514) 340-1112

Fax: (514) 344-4675

info@paladin-labs.com

http://www.paladin-labs.com