NEWS Release

NEGOTIATIONS WITH DEBENTURE HOLDERS FINALIZED

Toronto Stock Exchange Trading Symbol: WXI
http://www.wexpharma.com
E-mail: wex@wexpharma.com

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Vancouver, BC (December 23, 2005) – WEX Pharmaceuticals Inc. ("WEX" or "the Company") announces that it has finalized the negotiations with its unsecured convertible debenture holders in the aggregate principal amount of US$5.1 million that were issued in June 2004 by the Company’s wholly-owned subsidiary, Wex Medical Limited, to 3 investment funds managed by a major Asian financial institution (the “Institution”).  Under the amended terms, the Company has agreed with the Institution to repay the debentures in a series of installment payments over the next two years.  An initial payment of US$1.02 million will be made prior to December 31, 2005 and the final payment will be made on December 31, 2007. 

The remaining terms of the Debentures, including interest and conversion terms, remain unchanged.  The Debentures carry an annual coupon of 5.5%, payable semi-annually and are guaranteed by WEX.  The Debentures will be convertible at the option of the holders at any time until maturity into common shares of WEX at a conversion price of CDN$5.00 per share.  WEX may, at its option, force conversion of the Debentures provided the daily closing price of common shares in WEX equals or exceeds CDN$7.50 per share for 10 consecutive trading days.

The amendments are further to the Company’s news release dated August 10, 2005.  In connection with the amendments the Institution has agreed to release WEX from any claims arising from allegations that WEX breached certain representations and warranties contained in the agreements relating to the issue of the debentures, including a claim for early redemption of the debentures.

About WEX Pharmaceuticals Inc.

WEX Pharmaceuticals Inc. is dedicated to the discovery, development, manufacture and commercialization of innovative drug products to treat pain.  The Company’s principal business strategy is to derive drugs from naturally occurring toxins and develop proprietary products for the global market.  The Company’s Chinese subsidiary sells generic products manufactured at its facility in China.

Forward Looking Statements

This News Release contains forward-looking statements which may not be based on historical fact, including without limitation statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements.  These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments.

For additional information on our products, visit us at www.wexpharma.com or call Don Evans, V.P. Corporate Communications at 604-683-8880 or 1-800-722-7549.

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