Bontan Corporation Obtains Significant Israel Offshore Oil and Gas Concessions

TORONTO, November 23 - Bontan Corporation Inc. (Bontan) (OTCBB:BNTNF) is pleased to announce
that it has acquired, through its wholly owned subsidiary, an indirect 71.63%
working interest in two drilling licenses and one exploration permit in the
Levantine Basin, 40 kilometers off the West coast of Israel in the eastern
Mediterranean ("Project Assets"). Petroleum License 347 ("Mira") and
Petroleum License 348 ("Sarah") cover approximately 198,000 acres (803 sq.
kilometers), and Petroleum Preliminary Permit 199 ("Benjamin"), covers
approximately 461,000 acres (1,865 sq kilometers).

Bontan's interest is held by its 75% equity interest in Israel Petroleum
Company, LTD. (IPC). IPC has acquired an undivided 95.5% working interest in
the Project Assets from a private company, subject to approval of the
transfer by the Israeli Ministry of Infrastructure.

The consideration paid by Bontan in connection with the acquisition of
its interest in IPC was a cash consideration, 8.6 million common shares and
22.8 million common share warrants. The warrants have a term of 5 years and
are exercisable at US$4 per share. The private company retained a 3%
overriding royalty in the Project Assets.

Bontan arranged for one-year loans to cover part of the acquisition cost.
The loans accrue interest at 10%, are payable without penalty at any time,
and are secured by a portion of the shares in IPC. A total of 1.15 million
common share warrants have been issued to the lenders as compensation for the
loans. The warrants have a five year term and are exercisable at US $0.35 per
share.

All shares and warrants issued are restricted from trading until their
resale is registered with the U.S. Securities and Exchange Commission.

About the Project area

The Project Assets are located in the Levantine Basin near the recent
Tamar 1, Tamar 2, and the Dalit natural gas discoveries. The three wells were
drilled by Noble Energy Inc. (NBL.NYSE), who partnered with Delek Energy
Systems (DEOL.TA), Isramco (ISRA.TA), and Avner Oil and Gas LP (AVNR.TA). The
wells have a reported 6.8 TCF (1.02 BBOE) of estimated proved, probable and
possible reserves in the licensed area, making this the second largest gas
discovery in the world since January 2008. South of the Project Assets is the
existing Mari-B field, also drilled by Noble, Delek, and Avner, which
contains a reported 1 TCF (150 MBOE) of estimated proved, probable and
possible reserves.

The required 3-D seismic for the license area is in the process of being
completed. The required 2-D seismic work for the permit has been completed
and application will be made to convert the permit to a license.

Management of Project Assets

International Three Crown Petroleum LLC (ITC), managed by Howard Cooper,
owns a 22.5% equity interest in IPC and will operate the Project Assets. Mr.
Cooper has been involved in the international oil and gas business for thirty
years, having successfully developed projects in the United States, Russia,
and Kazakhstan. Mr. Cooper commented, "Obtaining two licenses and an
adjoining permit adjacent to Noble Energy's estimated 6.8 TCF recent
discoveries and north of the existing Mari-B field is very exciting. Analysts
have valued Noble's 36% interest in their new discoveries at $1.5 billion. We
are very excited about the potential upside to this project."

Kam Shah, CEO of Bontan, commented, "The acquisitions of the Mira
License, Sarah License and the Benjamin Permit, covering over 2,660 square
kilometres, provides Bontan with the long awaited opportunity to participate
in the development of Israel's offshore oil and gas resources. With the 6.8
TCF discoveries north of the Project Assets, the possibility of significant
hydrocarbon deposits on our project area exists."

About Bontan Corporation Inc.:

Bontan Corporation Inc. is an international diversified natural resource
company that operates and invests in exploration prospects.

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. Bontan
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.

There are 48,338,429 shares outstanding and 44,024,478 warrants and
options outstanding as at November 24, 2009, for a total of 92,362,907 shares
on a fully diluted basis.

Forward-Looking Statements

This news release may include forward-looking statements within the
meaning of the U.S. federal and Canadian securities laws. Any such statements
reflect Bontan's current views and assumptions about future events and
financial performance. No assurances can be given that such future events or
performance will occur. Important risks and factors that could cause actual
results or events to differ materially from those indicated in the
forward-looking statements, include, without limitation, economic and
political developments in Israel, approval of the transfer of the two
licenses and permit to IPC by the Israeli Petroleum Commissioner, reliance on
ITC as well as third-party consultants and contractors to develop the
project, the ability of Bontan and IPC to raise sufficient capital, the risk
that no hydrocarbons may be found or that 2D and 3D seismic may diminish the
attractiveness of the assets, the volatility in commodity prices for crude
oil and natural gas, the presence or recoverability of estimated reserves,
geological and geophysical analysis and interpretation, exploration and
development risks, drilling and operating risks, competition, environmental
risks, government regulation or other action, potential disruption from
terrorist activities and warfare in the region or at the project assets,
general economic conditions and other risks set forth from time to time in
Bontan's filings with the U.S. Securities and Exchange Commission and
securities regulators in Canada. Bontan assumes no obligation and expressly
disclaims any duty to update the information contained herein.

For further information: contact the company's investor relations, John
Robinson at Current Capital Corp. at +1-416-860-0211,
www.bontanoilandgas.com

For further information: contact the company's investor relations, John Robinson at Current Capital Corp. at +1-416-860-0211