EDMONTON, ALBERTA--(Marketwire - Sept. 16, 2009) - Afexa Life Sciences Inc. ("Afexa" or the "Company") (TSX: FXA.TO) announced today that subject to court approval it has reached an agreement in principle to settle two proposed class action law suits commenced in Ontario and Alberta in August of 2007 against the Company, certain of its officers, former directors and former auditor. These claims remain unproven and the actions have not received court approval.

The agreement in principle provides for the settlement, release and dismissal of all claims asserted against the Company, its former auditor and the individual proposed defendants. Afexa's anticipated contribution to the settlement amount is to be funded through its insurance coverage. The agreement in principle remains subject to final settlement documents and receipt of court approval. The settlement does not constitute any admission of liability by Afexa or its officers, directors and employees.