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Anavex Announces Private Placement

Anavex Life Sciences Corp. (“ANAVEX” or the “Company”) (OTCBB: AVXL) announces that it closed a private placement and issued securities to settle debt owed by the Company.

Private Placement of Units

On November 18, 2010 the Company issued 397,482 units at a purchase price of US$2.75 per unit for gross proceeds of US$1,093,075. Each unit consists of one share of our common stock and one-half of one share purchase warrant. Each whole share purchase warrant entitles the holder to purchase one share of our common stock at a purchase price of US$4.50 per share for a period of 18 months. A finders fee of 10% of the gross proceeds may be paid to eligible finders.

Conversion of Convertible Notes

Pursuant to Convertible Notes outstanding in the amount of $1,919,418, on November 18, 2010, the Company issued 853,075 units to the note holders at a deemed price of $2.25 per unit. Each unit consists of one share of the Company’s common stock and one share purchase warrant. Each whole share purchase warrant entitles the holder to purchase one share of the Company’s common stock at a purchase price of US $3.00 per share for a period of 24 months.

Conversion of Interest Bearing Notes

The Company and certain of its creditors agreed to convert outstanding debt to common shares of the Company. On November 18, 2010, the Company issued 145,063 shares of common stock to the note holders of non-convertible, interest-bearing notes outstanding in the amount of $398,923 to retire those notes. The shares were issued at a deemed price of $2.75 per share.

Shares for Debt

On November 18, the Company issued 181,818 shares of the Company’s common stock at a deemed price of $2.75 per share to one creditor in settlement of $500,000 debt owing by the Company.

About Anavex Life Sciences Corp.

Anavex Life Sciences Corp. (www.anavex.com) is an emerging biopharmaceutical company engaged in the discovery and development of novel drug targets for the treatment of cancer and neurological diseases such as Alzheimer's, epilepsy and depression. The company's proprietary SIGMACEPTOR™ Discovery Platform involves the rational design of drug compounds that fulfill specific criteria based on unmet market needs and new scientific advances. Selected drug candidates demonstrate high, non-exclusive affinity for sigma receptors, which are involved in the modulation of multiple cellular biochemical signaling pathways.

ANAVEX's SIGMACEPTOR™-N program involves the development of novel and original drug candidates that target neurological and neurodegenerative diseases (Alzheimer's disease, epilepsy, depression, pain). The company's lead drug candidates exhibit high, non-exclusive affinity for sigma receptors with strong evidence for anti-amnesic and neuroprotective properties. The company believes that oxidative stress, not amyloid-beta, is the cause of Alzheimer's. ANAVEX 1-41 and ANAVEX 2-73 modulate sigma receptors, a unique class of receptor molecules, to guard against oxidative stress and repair cells compromised by its effects. So far, through the advanced pre-clinical phase of development, the compounds have performed extremely well in well-recognized animal models of Alzheimer's disease, underscoring the promise of the company’s new alternative approach to the disease.

ANAVEX’s SIGMACEPTOR™-C program involves the development of novel and original drug candidates targeting cancer. The company's lead drug candidates exhibit high, non-exclusive affinity for sigma receptors with strong evidence for selective pro-apoptotic, anti-metastatic and low toxicity properties in various types of solid cancers. ANAVEX 7-1037 has already demonstrated its ability to significantly delay the growth of cancerous tumors in patient-derived xenografts during advanced pre-clinical studies.

Contacts:

Anavex Life Sciences Corp.
Harvey Lalach, 1-800-689-3939
Research & Business Development
info@anavex.com
or
Shareholder & Media Relations
Toll-free: 1-866-505-2895
Outside North America: +1 416-489-0092
ir@anavex.com
www.anavex.com

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