Press Release

LONDON, ONTARIO -- (MARKET WIRE) -- May 14, 2010 -- Stellar Pharmaceuticals Inc. (OTCBB: SLXCF) ("Stellar" or "the Company"), a Canadian pharmaceutical developer and marketer of high quality, cost-effective products for select health care markets, today announced financial results for the quarter ended March 31, 2010. In this press release, all dollar amounts are expressed in Canadian currency and results are reported in accordance with United States generally accepted accounting principles (U.S. GAAP).

For the three-month period ended March 31, 2010, Stellar's total revenues were $577,879 as compared to $772,515 for the same period in 2009. The Company noted that the decrease in total revenues was driven primarily by the absence of licensing revenues in the first quarter of 2010, compared to $219,000 of license revenues being recorded in the same three-month period a year ago. Stellar's licensing revenue fluctuates based on the timing and terms of its global out-licensing agreements. Inclusive of $33,947 in non-cash stock options and $26,790 for amortization recorded in the first quarter of 2010, Stellar's net loss was $247,538, or $0.01 per share, compared to a net profit of $25,177, or $nil per share in the first quarter of 2009.

Stellar ended the quarter in a strong financial position, with no debt and working capital of $2,725,200.

Peter Riehl, Stellar's President and Chief Executive Officer, commented, "This quarter was characterized by some very unfortunate timing. While we had anticipated licensing fees in the first quarter of 2010, they did not materialize until May. Had these licensing revenues been recorded in the first quarter of 2010, total revenues would have shown growth over the first quarter of 2009. In addition, first quarter international sales were down by 6.1% due to one international NeoVisc® order which was rescheduled for delivery from March to May."

"The good news was that domestic NeoVisc®, domestic Uracyst® and international Uracyst® sales grew 10.8%, 13.8% and 30.0% respectively in the first quarter of 2010 compared to the same period in 2009. Although it can not be assured, these strong sales growth trends, combined with the inclusion of the aforementioned licensing fees and a return to international NeoVisc® sales growth, provides us with confidence that the second quarter will be much stronger," Mr. Riehl concluded.

About Stellar Pharmaceuticals Inc.

Stellar has developed and is marketing direct in Canada, and in countries around the world through out-license agreements, three products based on its core polysaccharide technology: NeoVisc® and NeoVisc® Single Dose, for the symptomatic treatment of osteoarthritis; and Uracyst®, its patented technology for the treatment of interstitial cystitis (IC), an inflammatory disease of the urinary bladder wall. Both NeoVisc and Uracyst have their CE Mark certification for the European Community. Stellar also has an in-licensing agreement for NMP22® BladderChek®, a proteomics-based diagnostic test for the diagnosis and monitoring of bladder cancer. For more information, please visit the company's website at www.stellarpharma.com.

Forward-Looking Statements

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the Company's business including increased competition; the ability of the Company to expand its operations, to attract and retain qualified professionals, technological obsolescence; general economic conditions; and other risks detailed from time to time in the Company's filings.

STELLAR PHARMACEUTICALS INC.
BALANCE SHEETS
(Expressed in Canadian dollars)

As at
As at March      December
31, 2010      31, 2009
------------- -------------

ASSETS
CURRENT                                                  2010          2009
------------- -------------
Cash and cash equivalents                        $  1,795,557  $  2,325,212
Accounts receivable, net of allowance of $nil
(2009 - $nil)                                        312,323       293,565
Inventories                                           652,045       721,061
Taxes recoverable                                      11,528         1,501
Loan receivable                                        15,818        15,818
Prepaids, deposits and sundry receivables             147,817       163,698
------------- -------------
Total current assets                              2,935,088     3,520,855
PROPERTY, PLANT AND EQUIPMENT, net                  1,557,765     1,390,296
OTHER ASSETS                                          122,227       114,553
------------- -------------
Total assets                                   $  4,615,080  $  5,025,704
------------- -------------
------------- -------------
LIABILITIES
CURRENT
Accounts payable                                 $     69,024  $    228,367
Accrued liabilities                                   132,900       175,637
Deferred revenues                                       7,937         2,890
------------- -------------
Total current liabilities                           209,861       406,894
------------- -------------

CONTINGENCIES AND COMMITMENTS

SHAREHOLDERS' EQUITY
CAPITAL STOCK
AUTHORIZED
Unlimited Non-voting, convertible, redeemable
and retractable
preferred shares with no par value
Unlimited Common shares with no par value

ISSUED
23,480,040 Common shares (2009 - 23,480,040)        8,183,638     8,183,638
Additional Paid-in capital options -
outstanding                                        123,509        89,562
Additional Paid-in capital options - expired        724,127       724,127
------------- -------------
9,031,274     8,997,327
DEFICIT                                            (4,626,055)   (4,378,517)
------------- -------------
Total shareholders' equity                        4,405,219     4,618,810
------------- -------------
Total liabilities and shareholders' equity     $  4,615,080  $  5,025,704
------------- -------------
------------- -------------


STELLAR PHARMACEUTICALS INC.
STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME
(Expressed in Canadian dollars)

For the Three Month Period
Ended March 31,
-------------------------------
2010            2009
--------------- ---------------

PRODUCT SALES                                  $    549,510    $    544,419
ROYALTIES & LICENSING REVENUE                        28,369         228,096
--------------- ---------------
TOTAL REVENUE FROM ALL SOURCES                      577,879         772,515
COST OF PRODUCTS SOLD                               203,757         154,955
--------------- ---------------
GROSS PROFIT                                        374,122         617,560
--------------- ---------------
EXPENSES
Selling, general and administrative               567,932         578,052
Research and development                           26,270           5,608
Amortization of assets (non-manufacturing
property, plant and equipment)                    13,663          13,698
--------------- ---------------
607,865         597,358
--------------- ---------------
(LOSS) INCOME FROM OPERATIONS                      (233,743)         20,202
INTEREST AND OTHER INCOME                             1,513           4,975
LOSS ON DISPOSAL OF EQUIPMENT                       (15,308)              -
--------------- ---------------
(LOSS) NET INCOME AND COMPREHENSIIVE (LOSS)
INCOME FOR THE PERIOD                             (247,538)         25,177
DEFICIT, beginning of period                     (4,378,517)     (4,615,553)
--------------- ---------------
DEFICIT, end of period                         $ (4,626,055)     (4,590,376)
--------------- ---------------
--------------- ---------------
(LOSS) EARNINGS PER SHARE - Basic and diluted  $      (0.01)   $       0.00
--------------- ---------------
--------------- ---------------
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING - Basic and diluted                 23,480,040      23,527,318
--------------- ---------------
--------------- ---------------


STELLAR PHARMACEUTICALS INC.
STATEMENTS OF CASH FLOWS
(Expressed in Canadian dollars)

For the Three Month Period
Ended March 31,
---------------------------
2010          2009

CASH FLOWS USED IN OPERATING ACTIVITIES
Net (loss) income                                $ (247,538)   $   25,177
Items not affecting cash
Amortization                                       26,785        34,995
Loss on disposal of equipment                      15,308            --
Issuance of equity instruments for services
rendered                                          33,947            --
Change in non-cash operating assets and
liabilities                                         (140,920)      203,043
------------- -------------
CASH FLOWS USED IN OPERATING ACTIVITIES              (312,419)      263,215

CASH FLOWS PROVIDED BY (USED IN) INVESTING
ACTIVITIES
Additions to property, plant and equipment         (221,853)         (197)
Increase in other assets                             (8,014)       (6,957)
Proceeds from sale of equipment                      12,630            --
------------- -------------
CASH FLOWS USED IN INVESTING ACTIVITIES              (217,237)       (7,154)
------------- -------------

CASH FLOWS USED IN FINANCING ACTIVITIES
Repurchase of common shares for cash                     --       (21,292)
------------- -------------
CASH FLOWS USED IN FINANCING ACTIVITIES                    --       (21,292)

------------- -------------
CHANGE IN CASH AND CASH EQUIVALENTS                  (529,655)      234,769

CASH AND CASH EQUIVALENTS, beginning of period      2,325,212     2,105,966
------------- -------------
CASH AND CASH EQUIVALENTS, end of period           $1,795,557    $2,340,735
------------- -------------
------------- -------------

Contacts:
Stellar Pharmaceuticals Inc.
Peter Riehl
President & CEO
(519) 434-1540
corpinfo@stellarpharma.com

Stellar Pharmaceuticals Inc.
Arnold Tenney
Chairman
(416) 587-3200

Investor Contact
Kilmer Lucas Inc.
Stephen Kilmer
President
(905) 690-2400 ext. 21
stephen@kilmerlucas.com

Media Contact
Kilmer Lucas Inc.
Leonard Zehr
Managing Director
(905) 690-2400 ext. 41
len@kilmerlucas.com