Hyal Pharmaceutical Corporation.

April 17, 2001

Order

IN THE MATTER OF

THE SECURITIES ACT

R.S.O. 1990, c.S.5, AS AMENDED (the "Act")

AND

IN THE MATTER OF

HYAL PHARMACEUTICAL CORPORATION

ORDER

(Section 144)

WHEREAS the securities of Hyal Pharmaceutical Corporation (the "Corporation") are subject to a Temporary Order of the Director dated March 3, 2000 made under section 127 of the Act and extended by an Order of the Director dated March 15, 2000 (collectively referred to as the "Cease Trade Order") directing that trading in securities of the Corporation cease;

AND WHEREAS, pursuant to section 144 of the Act, the Corporation has made an application to the Ontario Securities Commission (the "Commission") for an order revoking the Cease Trade Order;

AND UPON considering the application and recommendation of the staff of the Commission:

AND UPON the Corporation having represented to the Commission that:

1. The Corporation was incorporated under the laws of the Province of Ontario and its head office is located in British Columbia;

2. The Corporation is a reporting issuer in each of the Provinces of British Columbia, Alberta, Ontario, Quebec and Nova Scotia;

3. The share capital of the Corporation consists of an unlimited number of common shares and an unlimited number of preferred shares, issuable in series, of which there are approximately 31,788,776 common shares and no preferred shares issued and outstanding;

4. The common shares of the Corporation were delisted from The Toronto Stock Exchange on August 21, 2000 and are currently subject to the Cease Trade Order issued by the Ontario Securities Commission for a failure to comply with the continuous disclosure reporting obligations;

5. By order of the Ontario Superior Court of Justice, Commercial List (the "Court") dated August 16, 1999, PricewaterhouseCoopers Inc. (the "Trustee") was appointed the receiver and manager of the Corporation. Under a Court order dated August 26, 1999, the marketing plan of the Trustee was approved and the Trustee was directed to proceed in implementing the marketing process for the Corporation's assets;

6. As a result of its review of the Corporation, the Trustee concluded that the Corporation possessed two main assets, being certain intellectual property rights and certain tax benefits;

7. Following its marketing efforts, the Trustee received an offer from SkyePharma PLC ("SkyePharma") to purchase certain assets of the Corporation;

8. The sale to SkyePharma was completed and approved by the Court on October 24, 1999. The assets subject to the sale were essentially the fixed assets, inventory, patents and intellectual property of the Corporation;

9. On April 19, 2000 the Corporation filed a proposal under the Bankruptcy and Insolvency Act (Canada) (the "Proposal") and on the same date the Proposal was filed with the official receiver

10. The Proposal has been made to effect a restructuring of the indebtedness of the Corporation in order to satisfy the claims of the Corporation's creditors;

11. On or about April 27, 2000, a copy of the Proposal, a copy of the Trustees Report to the Creditors, a condensed Statement of Assets and Liabilities, an Operations Forecast for the three years from May 1, 2000 to May 1, 2003, a list of the creditors affected by the Proposal, a proof of claim and general proxy form with attached instructions and a voting letter were mailed to the unsecured creditors of the Corporation (the "Unsecured Creditors") along with the notice of the general meeting of creditors which was held on May 9, 2000. The foregoing materials contained prospectus level disclosure regarding the Corporation and the Proposal and have been filed with the Commission.

12. On May 9, 2000 the creditors of the Corporation approved the Proposal;

13. On May 31, 2000 all of the distributions contemplated by the Proposal were approved by the Court, as required under the BIA. The order approving the Proposal stated that the terms of the Proposal were fair, reasonable and calculated to benefit the general body of creditors;

14. As a consequence of the implementation of the Proposal, virtually all of the debt of the Corporation will either be compromised or assumed. All of the Unsecured Creditors are at arm's length to the Corporation;

15. The Corporation is currently up-to-date with its continuous disclosure obligations and is not in default of any requirement of the Act or rules or regulation made thereunder;

16. The shareholders of the Corporation have approved certain transactions at a meeting of shareholders held on March 16, 2001 all as set out in the management information circular dated February 14, 2001; and

17. Until the Cease Trade Order is revoked, shareholders of the Corporation will not be able to trade the shares they hold in the Corporation, nor will the Corporation be able to carry out the transactions which have been approved by the shareholders of the Corporation.

AND UPON the Director being satisfied that to do so would not be prejudicial to the public interest;

IT IS ORDERED, pursuant to section 144 of the Act, that the Cease Trade Order be and is hereby revoked.

April 17, 2001.

John Hughes