ALGORAE PHARMACEUTICALS LIMITED — Capital/Financing Update 2011

Mar 8, 2011

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Living Cell Technologies Limited Company Announcement

LCT Receives Funds from Pharmaceutical Investor

9 March 2011: Sydney, Australia & Auckland, New Zealand. Living Cell Technologies Limited (ASX: LCT; OTCQX: LVCLY), a global company pioneering the development of a cell implant therapy to treat diabetes, confirmed today the receipt of A$1.7 million from Jiangsu Aosaikang Pharmaceutical Co., Ltd (ASK) in return for 14,334,080 shares which is 4.7% of the company’s shares.

ASK is a private research-based pharmaceutical company, based in Nanjing, China. Established in 2005, ASK develops, produces and markets pharmaceuticals and healthcare products, and has over sixty pharmaceutical products in the market place. The Placement was announced on 31 January 2011.

LCT CEO Dr Ross Macdonald said: “We are very pleased to welcome Jiangsu Aosaikang Pharmaceutical as a strategic investor in LCT. The funding will allow us to progress development and clinical trials of our breakthrough lead product DIABECELL[®] , for the treatment of Type 1 diabetes.”

As announced in January, in addition to ASK’s investment the companies have also agreed to negotiate a collaborative research agreement, the terms of which are proposed to include LCT granting ASK a right of first refusal to negotiate a licence to commercialise the use of DIABECELL in China and become the sole agency to implant and treat patients with DIABECELL once the product is registered in China.

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For further information: www.lctglobal.com

At the company: Media and investor enquiries: Dr Ross Macdonald NZ and Australia: CEO, Living Cell Technologies Buchan Consulting Tel: +64 9 270 2690 Rebecca Wilson Mobile: +61 (0) 412119343 Tel: +61 3 9866 4722 rmacdonald@lctglobal.com Mobile: +61 417 382 391 rwilson@bcg.com.au

About Living Cell Technologies - www.lctglobal.com

Living Cell Technologies (LCT) is developing cell-based products to treat life threatening human diseases. The Company owns a biocertified pig herd that it uses as a source of cells for treating diabetes and neurological disorders. For patients with Type 1 diabetes, the Company transplants microencapsulated islet cells so that near-normal blood glucose levels may be achieved without the

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need for administration of insulin or at significantly reduced levels. The Company entered clinical trials for its diabetes product in 2007. For the treatment of Parkinson’s disease and other neurological disorders, the company transplants microencapsulated choroid plexus cells that deliver beneficial proteins and neurotrophic factors to the brain. LCT’s technology enables healthy living cells to be injected into patients to replace or repair damaged tissue without requiring the use of immunosuppressive drugs to prevent rejection. LCT also offers medical-grade porcine-derived products for the repair and replacement of damaged tissues, as well as for research and other purposes.

About Jiangsu Aosaikang Pharmaceutical Co., Ltd. - www.ask-pharm.com

Jiangsu Aosaikang Pharmaceutical Co., Ltd., a subsidiary of Nanjing Aosaikang Medicinal Group, is a research-based pharmaceutical company located in the Science Park in Nanjing, China. Established in September 2005, ASK is a hi-tech, modern, non-state owned enterprise integrating the research, development, production, market promotion and sales of medicine, fine chemicals and health care products. With specialized mass production as well as outstanding research and development capacity, it continually launches new products into the market. ASK has sixty plus products on market, covering categories of gastrointestinal, cardiovascular, anti-tumor, and antibiotics. ASK is currently one of the pharmaceutical companies in China with a variety of oncology products and also PPI injection drugs. ASK has three main facilities at its new $US 10 million state-of-the-art 120,000m[2 ] site, encompassing R&D, cGMP production, and retail sales and service. In 2006, ASK was named one of the Top 100 private enterprises in Nanjing. In 2010, ASK was awarded as a Top Ten National R&D Innovator and ranked in the Top 100 Chinese pharmaceutical companies.

LCT Disclaimer

This document contains certain forward-looking statements, relating to LCT’s business, which can be identified by the use of forward-looking terminology such as “promising,” “plans,” “anticipated,” “will”, “project”, “believe”, “forecast”, “expected”, “estimated”, “targeting”, “aiming”, “set to,” “potential,” “seeking to,” “goal,” “could provide,” “intends,” “is being developed,” “could be,” “on track,” or similar expressions, or by express or implied discussions regarding potential filings or marketing approvals, or potential future sales of product candidates. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. There can be no assurance that any existing or future regulatory filings will satisfy the FDA’s and other health authorities’ requirements regarding any one or more product candidates nor can there be any assurance that such product candidates will be approved by any health authorities for sale in any market or that they will reach any particular level of sales. In particular, management’s expectations regarding the approval and commercialization of the product candidates could be affected by, among other things, unexpected clinical trial results, including additional analysis of existing clinical data, and new clinical data; unexpected regulatory actions or delays, or government regulation generally; our ability to obtain or maintain patent or other proprietary intellectual property protection; competition in general; government, industry, and general public pricing pressures; and additional factors that involve significant risks and uncertainties about our products, product candidates, financial results and business prospects. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated or expected. LCT is providing this information and does not assume any obligation to update any forward-looking statements contained in this document as a result of new information, future events or developments or otherwise.

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