Contacts:

Lorus Therapeutics Inc.

Media Contacts:

Grace Tse

Susana Hsu

Corporate Communications

Mansfield Communications

(416) 798-1200 ext. 380            

(416) 599-0024

ir@lorusthera.com

susana@mcipr.com

TSX:  

LOR

AMEX:

LRP  

LORUS THERAPEUTICS PROVIDES A FINANCING UPDATE

TORONTO, CANADA, August 16, 2006 – Lorus Therapeutics Inc. ('Lorus'), a biopharmaceutical company specializing in the discovery, research and development of pharmaceutical products and technologies for the management of cancer today provided an update on a financing agreement.  

As previously announced on July 14, 2006, Lorus entered into a subscription agreement with HighTech Beteiligungen GmbH & Co. KG to issue 28.8 million common shares at $0.36 per share for gross proceeds of $10.4 million.  The closing is subject to certain conditions, including approval from the Toronto Stock Exchange (the TSX), the American Stock Exchange (the AMEX), and the filing and clearance of a prospectus in Ontario. Lorus has received conditional approval for the transaction from both the TSX and the AMEX and filed a preliminary short form prospectus on August 11, 2006.  The transaction is now expected to close on or before August 28, 2006.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the common shares in any state in the United States in which such offer, solicitation or sale would be unlawful. The common shares have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended.

Forward Looking Statements

Except for historical information, this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which reflect the Company’s current expectation and assumptions,

and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated.  These forward-looking statements involve risks and uncertainties, including, but not limited to, changing market conditions, the Company’s ability to obtain patent protection and protect its intellectual property rights, commercialization limitations imposed by intellectual property rights owned or controlled by third parties, intellectual property liability rights and liability claims asserted against the Company, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process, product development delays, the Company’s ability to attract and retain business partners and key personnel, future levels of government funding, the Company’s ability to obtain the capital required for research, operations and marketing and other risks detailed from time-to-time in the Company’s ongoing quarterly filings, annual information forms, annual reports and 40-F filings. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.