News

Laval, Quebec, May 15, 2012 - Warnex Inc. (TSXV: WNX) ("Warnex") announced today financial results for the first quarter ended March 31, 2012.

Operating Highlights

• During the quarter ended March 31, 2012, Mr. François Jetté, Chief Financial Officer, left the Company in order to pursue other career opportunities. Upon his departure, his responsibilities were assumed on an interim basis by Jean Vézina, who has significant relevant experience, having previously served as the Chief Financial Officer of a publicly listed pharmaceutical company.

• Subsequent to the quarter, the Company reached an agreement with PCP, the holder of the Debentures, regarding the conversion of a portion of the Debentures and the repayment of the remaining balance. The conversion of CDN$725,000 in principal amount of the Debentures into an aggregate of 46,178,344 Common Shares of Warnex pursuant to a notice of conversion received by Warnex on March 16, 2012, was effected on April 5, 2012. As a result, PCP owns approximately 51.56% of the outstanding Common Shares. Furthermore, PCP had agreed to allow Warnex until April 13, 2012, subsequently extended until April 19, 2012 to repay the remaining balance of the amount owing under the Debentures.

• Subsequent to the quarter, the Company completed a new credit facility with Accord Financial Inc. pursuant to which Warnex was extended credit on the basis of its outstanding accounts receivable. Upon the closing of this credit facility, Warnex received initial funding in an amount which was sufficient to allow it to repay in their entirety the $975,947 ($887,402 at March 31, 2012) in principal amount of debentures held by PCP.

• Subsequent to the quarter, the Company announced the sale of its Analytical Services division to NEOPHARM LABS Inc. ("NEOPHARM"), the previously announced purchaser. Under the terms of the transaction, which has an effective date of April 2, 2012, Warnex realized cash proceeds of $300,000, subject to normal working capital adjustments which are to be finalized and settled by the parties post-closing. In addition, NEOPHARM will assume certain specific liabilities related to the division. The terms of the transaction also provide the Company with the right, subject to certain conditions, to terminate the lease for its Laval, Quebec facilities, which are owned by an affiliate of the purchaser, prior to the current expiry date of such lease. In addition, the purchaser has also assumed all of the Company's lease obligations for its Blainville facility. Concurrent with the transaction, the parties have terminated all legal proceedings between them.

• Subsequent to the quarter, the Company announced that its common shares would be delisted from Toronto Stock Exchange ("TSX") at the close of market on April 23, 2012. Effective April 24, 2012, the common shares have begun trading on the TSX Venture Exchange ("TSXV"). Further information can be found in the Company's Management Discussion and Analysis for the period ended March 31, 2012.

• The Company continues its review of strategic alternatives with a view to recognizing the full value of Warnex and/or its assets, strengthening its balance sheet and generating positive cash flow.
   

Financial Results

Consolidated revenue for the three-month period ended March 31, 2012, amounted to $3.7 million compared to $5.8 million for the same period last year. Most of the decrease is explained by the sale of the Medical Laboratories division, on December 8, 2001, which generated $1.4 million in revenues for Q1 of 2011 and nil for 2012.

Net loss for the quarter amounted to $863,945 or $0.01 per share compared to net loss of $67,814 or $0.00 per share for the same quarter in 2011.

General and administrative expenses for the quarter amounted to $1.1 million compared to $1.3 million for the same period last year following the sale of the Medical Laboratories division, on December 8, 2011.

Financial expenses for the quarter remained similar to last year at $0.3 million.

About Warnex

Warnex (www.warnex.ca) is a life sciences company which, through its Bioanalytical Services operations, provides bioequivalence and bioavailability studies for clinical trials at its facility located in Laval, Quebec.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this news release are forward-looking and are subject to numerous risks and uncertainties, known and unknown. For further information identifying known risks and uncertainties, relating to financial resources, liquidity risk, key customers and business partners, credit risk, foreign currency risk, government regulations, laboratory facilities, volatility of share price, employees, suppliers, and other important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the heading Risks and Uncertainties in Warnex's most recent Management's Discussion and Analysis, which can be found at www.sedar.com. Consequently, actual results may differ materially from the anticipated results expressed in these forward-looking statements.

For more information, please contact:

Michael Singer
Chairman of the Board of Directors, Warnex Inc.
Tel: (514) 940-3610
msinger@thallion.com