ALGORAE PHARMACEUTICALS LIMITED — Capital/Financing Update 2014

Oct 9, 2014

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Living Cell Technologies Limited

ACN: 104 028 042 ASX: LCT OTCQX: LVCLY

ASX ANNOUNCEMENT

LCT JV secures funds to realise the otential of DIABECELL p

10 October 2014 – Sydney, Australia & Auckland, New Zealand – Living Cell Technologies Limited (LCT) today announced that its 50% owned joint venture Diatranz Otsuka Limited (DOL) has agreed to a loan facility of up to NZD42m from its other shareholder Otsuka Pharmaceutical Factory, Inc. (OPF). The loan will be repaid from DOL’s cash flows. DOL has also agreed to licence DIABECELL[®] to OPF for use in USA and Japan for a fee of up to NZD15m.

These agreements are consistent with the restructure announced on 1 April 2014 where DOL controls the resources to realise the potential of DIABECELL and LCT focuses on developing cell therapies for neurodegenerative diseases from its intellectual property portfolio and core technologies.

Both LCT and OPF remain 50% shareholders in DOL and neither shareholder is required to advance any money to DOL unless they explicitly agree to do so. Under a services and products agreement DOL continues to supply LCT with facilities and piglets to manufacture NTCELL[®] .

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For further information: www.lctglobal.com

At the company: Media enquires: Ken Taylor Rachael Joel Chief Executive Botica Butler Raudon Partners Tel: +64 9 276 2690 Tel: +64 9 303 3862 Mobile: +64 21 796000 Mobile: +64 21 403 504 ktaylor@lctglobal.com rachaelj@botica.co.nz

About Living Cell Technologies

Living Cell Technologies (LCT) is an Australasian biotechnology company researching and developing cell therapies to treat diseases with high unmet clinical need.LCT’s lead product NTCELL[®] is an alginate coated capsule containing clusters of neonatal porcine choroid plexus cells. After transplantation NTCELL functions as a biological factory producing factors to promote new central nervous system growth and repair disease induced nerve degeneration.

NTCELL is in Phase I/IIa clinical trial in New Zealand for the treatment of Parkinson’s disease. It has the potential to be used in a number of other central nervous system indicationssuch as Huntington’s, Alzheimer’s and motor neuronediseases.

LCT’s proprietary encapsulation technology, IMMUPEL™, allows cell therapies to be used without the need for co-treatment with drugs that suppress the immune system.

LCT holds a 50% interest in Diatranz Otsuka Limited which is developing a cell therapy for type 1 diabetes.

LCT is listed on the Australian (ASX: LCT) and US (OTCQX: LVCLY) stock exchanges. The company is incorporated in Australia, with its operations based in New Zealand.

For more information visit www.lctglobal.com or follow @lctglobal on Twitter

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.