|   | · | Eniluracil Phase 2 Study Update - On April 27, 2011, Adherex announced the enrollment of the first patient in the Phase 2 clinical trial for Metastatic Breast Cancer comparing the oral regiment of Eniluracil + 5-Fluorouracil (5-FU) and Leucovorin versus Capecitabine (Xeloda®).  The comparative study intends to enroll 140 patients at approximately 20 clinical sites in the United States and Russia in the next 12 to 14 months.   |
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|   | · | Rights Offering - The subscription period for the Company’s previously announced rights offering expired on March 29, 2011.  The proceeds received by the Company were approximately $2.5 million.  As of April 1, 2011, at which time the proceeds from the rights offering were collected, the Company had approximately $7.6 million in cash and 452,852,631 common shares outstanding.   The Company anticipates that available cash on hand will be sufficient to fund the Company's Phase 2 study along with related corporate expenses. |
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|   | · | Annual Meeting of Shareholders - Adherex would like to invite all shareholders to attend its Annual General and Special Meeting on Tuesday, June 28, 2011 at 12 pm ET at the Sofitel Montreal Golden Mile, Montreal, Quebec. |
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|  Consolidated Balance Sheets:     |   | March 31,2011 |   |   | December 31,2010 |   |
|--------------------------------------------------|--------|--------------------|--------|--------|-----------------------|--------|
| Assets:                                          |   |               |   |   |                  |   |
| Cash and cash equivalents                        |   | $                  | 5,023  |   |                  | $      | 5,947 |   |
| Subscription receivable                          |   |               | 2,547  |   |                  |   |   |   |
| Other current assets                             |   |               | 67     |   |                  |   | 46 |   |
| Total assets                                     |   | $                  | 7,637  |   |                  | $      | 5,993 |   |
|                                             |   |               |   |   |                  |   |   |   |
| Liabilities and stockholders’ equity:      |   |               |   |   |                  |   |   |   |
| Current liabilities                              |   | $                  | 556    |   |                  | $      | 467 |   |
| Derivative warrant liability                     |   |               | 7,366  |   |                  |   | 10,450 |   |
| Other long-term liabilities                      |   |               | -      |   |                  |   | - |   |
| Total stockholders’ equity                 |   |               | (285   | )      |                  |   | (4,924 | ) |
| Total liabilities and stockholders’ equity |   | $                  | 7,637  |   |                  | $      | 5,993 |   |

|                                                 |   | March 31,2011 |    |   | March 31,2010 |   |
|------------------------------------------------------|--------|--------------------|---------|--------|--------------------|--------|
|                                                 |   |               |    |   |               |   |
| Revenue                                              |   | $                  | -       |   |               | $      | - |   |
|                                                 |   |               |    |   |               |   |   |   |
| Operating expenses:                                  |   |               |    |   |               |   |   |   |
| Research and development                             |   |               | 315     |   |               |   | 163 |   |
| Impairment of Capital Assets                         |   |               | — |   |               |   | — |   |
| (Gain) on Deferred Lease Inducements                 |   |               | — |   |               |   | — |   |
| General and administrative                           |   |               | 706     |   |               |   | 203 |   |
|                                                 |   |               |    |   |               |   |   |   |
| Loss from operations                                 |   |               | (1,021  | )      |               |   | (366 | ) |
|                                                 |   |               |    |   |               |   |   |   |
| Other income                                         |   |               | 4       |   |               |   | - |   |
| Gain on derivative warrants                          |   |               | 5,680   |   |               |   | - |   |
| Interest income                                      |   |               | 6       |   |               |   | - |   |
|                                                 |   |               |    |   |               |   |   |   |
| Net income (loss) and comprehensive income (loss)    |   | $                  | 4,669   |   |               | $      | (366 | ) |
|                                                 |   |               |    |   |               |   |   |   |
| Basic and diluted net income (loss) per common share |   | $                  | 0.01    |   |               | $      | (0.00 | ) |

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