Research Triangle Park, NC, December 3, 2014 – – Fennec Pharmaceuticals Inc. (the “Company” or “Fennec”) (TSX: FRX, OTCQB: FENCF), announced today that it has completed a non-brokered private placement (the “Offering”) of 732,266 units for gross proceeds of US$2,196,798.

Each unit (a “Unit”) was issued at a price of US$3.00 per Unit and consists of one common share of the Company (the “Common Shares”) and one half of a common share purchase warrant (each whole warrant, a “Warrant” and collectively, the “Warrants”). Each whole Warrant will entitle the holder thereof to purchase one common share of the Company during the period ending on the day following the earlier of: (A) the day that is two years from the date of issue or (B) if at any time from the date of issue (i) the Common Shares trade on the Toronto Stock Exchange (the “TSX”) at a price greater than CDN$5.00 per Common Share (subject to customary adjustments) for at least twenty-five (25) trading days within any thirty (30) trading day period (the “Triggering Event”) and (ii) the Company elects to deliver a notice to the holder within 10 (ten) trading days of the Triggering Event, the day that is 30 days after such notice, in either event at a price equal to US$3.60 per whole Common Share. The Warrants contain customary anti-dilution provisions, including adjustments upon the payment of a dividend in Common Shares; subdivision or combination of the Common Shares; or the issuance of rights, options or warrants to all or substantially all holders of the Common Shares.  The current number of outstanding Common Shares of the Company, without giving effect to the Offering, is 9,860,442 (the “Undiluted Issued and Outstanding”).

The issue price of the Units represents approximately a 22.6% premium on the market price of the Common Shares on the date of a binding agreement, as defined by the TSX. Securities issued will be subject to a hold period, which will expire four months plus one day from the date of closing.

It is anticipated that the net proceeds of the Offering will be used by the Company for general working capital purposes.

The number of Common Shares issued in connection with the Offering is 732,266, comprised of 732,266 Common Shares (which represents 7.4% of the Undiluted Issued and Outstanding) and 366,133 whole Warrants (which, upon exercise, would represent 3.7% of the Undiluted Issued and Outstanding).

Forward-Looking Statements

Except for historical information described in this press release, all other statements are forward-looking, including statements or assumptions about regulatory approvals, anticipated use of proceeds and any other statements regarding the Company’s objectives (and strategies to achieve such objectives), future expectations, beliefs, goals or prospects. Forward-looking statements are subject to certain risks and uncertainties inherent in the Company’s business that could cause actual results to vary, including such risks that the necessary approvals by regulatory bodies are not obtained; that the Company requires the proceeds for a purpose other than that anticipated, that a material adverse change occurs in respect of the Company; that regulatory and guideline developments may change; that scientific data may not be sufficient to meet regulatory standards or receipt of required regulatory clearances or approvals; that clinical results may not be replicated in actual patient settings; that protection offered by the Company’s patents and patent applications may be challenged, invalidated or circumvented by its competitors; that the available market for the Company’s products will not be as large as expected; that the Company’s products will not be able to penetrate one or more targeted markets; that revenues will not be sufficient to fund further development and clinical studies; that the Company may not meet its future capital requirements in different countries and municipalities, and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission including its Annual Report on Form 10-K for the year ended December 31, 2013. Fennec Pharmaceuticals Inc. disclaims any obligation to update these forward-looking statements except as required by law.

For a more detailed discussion of related risk factors, please refer to our public filings available at www.sec.gov and www.sedar.com.

For further information, please contact:

Rosty Raykov

Chief Executive Officer

Fennec Pharmaceuticals Inc.

T: (919) 636-5144