BIOTRON LIMITED — Capital/Financing Update 2010

Mar 17, 2010

==> picture [273 x 42] intentionally omitted <==

Level 2, 66 Hunter Street Sydney NSW 2000 Tel: (61-2) 9300 3344 Fax: (61-2) 9221 6333 E-mail: pnightingale@biotron.com.au Website: www.biotron.com.au

18 March 2010

The Manager Companies ASX Limited 20 Bridge Street Sydney NSW 2000

BIOTRON HCV DRUG: INTERNATIONAL PARTNER TO PROGRESS TRIAL

The Directors are pleased to advise that the Company has signed a major international partner to assist trialling the Company's revolutionary Hepatitis C drug, BIT225.

Biotron Limited (ASX: BIT) believes its alliance with the prestigious ACLIRES clinical research group will be critical to its success.

Chief Executive Officer Dr Michelle Miller said ACLIRES specialised in running clinical trials for both Hepatitis C and the HIV virus, with fully accredited facilities in South America and Asia.

“It has a long history of running successful Phase I and II trials of new drugs, with international pharmaceutical companies and US biotech companies among its clients,” she said.

“ACLIRES also has access to large numbers of eligible patient populations. This really is critical to the successful completion of the trial, as one of the biggest risk factors for trials is access to sufficient suitable patients.”

Unlike other Hepatitis C drugs, Biotron’s drug, BIT 225 works by targeting the p7 protein, a viral protein essential to virus production and replication.

The next stage of development is to determine how the drug works in combination with current approved treatments for HCV, Interferon and Ribavairin.

At its helm of ACLIRES is well regarded infectious diseases expert, Professor Rob Murphy, currently the Director of the Centre for Global Health at the prestigious Northwestern University in Chicago, USA.

Dr Miller added: “We are confident our drug trials are in the best possible position under Professor Murphy’s leadership.”

Yours faithfully

==> picture [110 x 71] intentionally omitted <==

Peter J. Nightingale Company Secretary

pjn5293

Enquiries

Dr Michelle Miller Managing Director Biotron Limited +61-2 9805 0488

Rudi Michelson Monsoon Communications +61-3 9620 3333

About Biotron

Biotron Limited is engaged in the research, development, and commercialisation of drugs targeting significant viral diseases with unmet medical need, with a major focus on HIV and HCV. The Company has BIT225 in clinical development for both HIV and HCV, and also has several earlier stage preclinical and research programs for several other viral infections including influenza, Dengue and Hepatitis B.

About BIT225 and HCV

BIT225 represents a first-in-class drug for treatment of HCV, targeting the p7 protein of HCV. It is estimated that in the USA alone, some 4 million people have been infected with Hepatitis C with 2.7 million suffering from chronic infection. Worldwide, 170 million people are infected. HCV causes inflammation of the liver, which may lead to fibrosis and cirrhosis, liver cancer and, ultimately, liver failure. Existing drugs for HCV have limited effectiveness and toxicity issues, leaving a significant need for new therapies. The worldwide market is currently almost US$3.0 billion, but is estimated that this market will expand to over US$10.0 billion as safe, effective therapies enter the market.

Monotherapy with interferon-α and combination therapy with interferon-α and the ribonucleoside analog ribavirin are the two different regimens currently approved as therapy for chronic hepatitis C. Treatment with interferon-α alone, or in combination with ribavirin, has limited effectiveness. The use of interferon based therapy for the treatment of HCV can be further limited by frequent side effects, injectable administration and poor patient tolerance and adherence. Many patients receiving interferon can experience influenza-like symptoms, fatigue and depression. Ribavirin can be problematic for patients with pre-existing anemia, kidney problems or heart disease.

BIT225 has been shown to be synergistic with interferon and ribavirin, the current approved drugs for HCV treatment, as well as with NS5B-inhibitors which are a new class in development. The use of BIT225 in combination with either the current standard of care treatment, or NS5B inhibitors, holds exciting potential therapeutic treatment of human HCV infections.