BPH ENERGY LTD — Annual Report 2008

Aug 26, 2008

BIOPHARMICA LTD ABN 41 095 912 002

Appendix 4E Preliminary Final Report For the year ended 30 June 2008

Appendix 4E - Preliminary Final Report BioPharmica Ltd For the year ended 30 June 2008

Results for announcement to the market

Results for announcement to the market
	$A'000
Revenues and other income from ordinary activities Loss from ordinary activities after tax attributable to members Net loss for the financial year attributable to members	Up 100% to 1,158 Down 8.30 % to (1160) Down 8.30 % to (1160)
Dividends (distributions)	Amount per security	Franked amount per security
Final dividend Interim dividend	nil	nil
Previous corresponding period	n/a	n/a

Other notes to the condensed financial statements

Ratios	Current period	Previous corresponding Period
Profit before tax / revenue Consolidated loss from ordinary activities before tax as a percentage of revenue	(101.17)%	(242.10)%
Profit after tax / equity interests Consolidated net loss from ordinary activities after tax attributable to members as a percentage of equity (similarly attributable) at the end ofthe period	(35.21)%	(19.06)%
NTA Backing	Current period	Previous corresponding Period
Net tangible asset backing per ordinary security	1.6cps	4.2cps

2

Income Statement for the year ended 30 June 2008

BioPharmica Ltd and its controlled entities

Note Revenue 2 Other income 2 Share of associates profit/(loss) Administration expenses Advertising and Promotion expenses Impairment expense Consulting and Legal expenses Research and Development expenses Depreciation and amortisation expense Employee expense Insurance expenses Mailing and Distribution expenses Listing and Prospectus expenses Service Fees Travelling expenses Other expenses from ordinary activities Operating Loss Before Income Tax Income tax expense Operating Loss from continuing operations Operating Loss for the year Operating Loss attributable to minority equity interest Operating Loss attributable to members of the parent entity Earnings Per Share – Basic earnings per share (cents per share) 4	Consolidated 2008 $ 2007 $ 173,836 197,125 984,216 381,311 (34,428) 2,701 (266,683) (125,719) - (1,392) - (216,935) (294,032) (338,673) (465,063) (624,499) (199,108) (213,954) (749,144) (175,834) (24,214) (8,830) (42,079) - - (2,824) (131,040) (131,040) (21,596) (47,594) (109,558) (33,234) (1,178,893) (1,339,391) - - (1,178,893) (1,339,391) (1,178,893) (1,339,391) 18,029 73,372 (1,160,864) (1,266,019) (1.68) (2.07)	Parent 2008 $ 2007 $
		168,767 249,406 654,538 318,672 (34,428) 2,701 (198,857) (103,101) - (894) - - (239,621) (292,851) (441) (115,884) (7,754) (3,984) (716,379) (59,950) (23,602) (6,067) (42,079) - - (2,824) (131,040) (131,040) (15,205) (47,579) (28,297) (26,328)
		(614,398) (219,723) - -
		(614,398) (219,723)
		(614,398) (219,723)
		- -
		(614,398) (219,723)

The accompanying notes form part of these financial statements.

3

Balance Sheet as at 30 June 2008

BioPharmica Ltd and its controlled entities

Note Current Assets Cash and cash equivalents Trade and other receivables Other current assets Total Current Assets Non-Current Assets Other non-current assets Financial assets Investments accounted for using the equity method Intangible assets Property, plant & equipment Total Non-Current Assets Total Assets Current Liabilities Trade and other payables Financial liabilities Short-term provisions Total Current Liabilities Non Current Liabilities Financial Liabilities Total Non Current Liabilities Total Liabilities Net Assets Equity Issued capital 5 Option Reserve Accumulated losses Minority equity interest Total Equity	Consolidated 2008 $ 2007 $	Parent 2008 $ 2007 $
	836,130 2,076,725 834,943 420,880 9,957 47,718	705,290 1,814,650 659,909 383,938 8,342 29,515
	1,681,030 2,545,323 646,862 21,153 242,846 182,118 - 255,893 1,314,269 1,262,269 173,515 368,130 2,377,492 2,089,563 4,058,522 4,634,886 259,551 379,510 228,700 155,129 7,507 19,020 495,758 553,659 224,284 279,040 224,284 279,040 720,042 832,699 3,338,480 3,802,187 7,081,809 6,588,464 333,032 111,191 (4,119,980) (2,959,116) 43,619 61,648 3,338,480 3,802,187	1,373,541 2,228,103
		2,124,914 471,930 901,228 1,545,971 - - 751,697 751,697 8,297 11,558
		3,786,136 2,781,156
		5,159,677 5,009,259
		90,074 149,400 - - 5,135 12,770
		95,209 162,170
		164,175 50,033
		164,175 50,033
		259,384 212,203
		4,900,293 4,797,056
		7,084,258 6,588,464 333,032 111,191 (2,516,997) (1,902,599) - -
		4,900,293 4,797,056

The accompanying notes form part of the financial statements.

4

Statement of Changes in Equity as at 30 June 2008

BioPharmica Ltd and its controlled entities

Note Balance at 1 July 2006 Shares issued during the financial year Transfer to option reserve Loss attributable to members of consolidated entity Minority equity interest Balance at 30 June 2007 Balance at 1 July 2007 Shares issued during the financial year Transfer to option reserve Inspecie Distribution Loss attributable to members of consolidated entity Minority equity interest Balance at 30 June 2008		Consolidated Ordinary Share Capital $ Accumulated losses $ Options $ Minority Interest $ Total $
		6,194,979 (1,693,097) 102,851 - 4,604,733 393,485 - - - 393,485 - - 8,340 - 8,340 - (1,266,019) - - (1,266,019) - - - 61,648 61,648
		6,588,464 (2,959,116) 111,191 61,648 3,802,187
		6,588,464 (2,959,116) 111,191 61,648 3,802,187 1,274,861 - - - 1,274,861 - - 221,841 - 221,841 (781,516) - - - (781,516) - (1,160,864) - - (1,160,864) - - - (18,029) (18,029)
		7,081,809 (4,119,980) 333,032 43,619 3,338,480

5

Statement of Changes in Equity as at 30 June 2008

BioPharmica Ltd and its controlled entities

Balance at 1 July 2006 Shares issued during the financial year Transfer to option reserve Loss attributable to members of parent entity Balance at 30 June 2007 Balance at 1 July 2007 Shares issued during the financial year Transfer to option reserve Inspecie Distribution Loss attributable to members of parent entity Balance at 30 June 2008	Note		Parent
			Ordinary Share Capital $ Accumulated losses $ Options $ Total $ 6,194,979 (1,682,875) 102,851 4,614,955 393,485 - - 393,485 - - 8,340 8,340 - (219,724) - (219,724) 6,588,464 (1,902,599) 111,191 4,797,056 6,588,464 (1,902,599) 111,191 4,797,056 1,277,310 - - 1,277,310 - - 221,841 221,841 (781,516) - - (781,516) - (614,398) - (614,398) 7,084,258 (2,516,997) 333,032 4,900,293

The accompanying notes form part of these financial statements.

6

Cash Flow Statement for the year ended 30 June 2008

Biopharmica Ltd and its controlled entities

Note Cash Flows From Operating Activities Receipts from customers Finance costs Payments to suppliers and employees Interest received Net cash used in operating activities Cash Flows From Investing Activities Amounts (to)/from other entities Payment for investments Payment for property, plant and equipment Net cash used in investing activities Cash Flows From Financing Activities Proceeds from capital raising Repayment of Borrowings Net cash provided by financing activities Net increase (decrease) in Cash Held Cash At the Beginning Of The Financial Year Cash At The End Of The Financial Year	Consolidated 2008 $ 2007 $ 593,696 235,413 - (45,514) (1,834,070) (1,086,417) 82,656 132,107 (1,157,718) (764,411) (454,666) - (641,000) (409,006) (4,493) (168,967) (1,100,159) (577,973) 1,172,411 393,485 (155,129) - 1,017,282 393,485 (1,240,595) (948,899) 2,076,725 3,025,624 836,130 2,076,725	Parent 2008 $ 2007 $
		371,624 273,993 - - (1,060,406) (1,007,194) 81,910 127,406
		(606,872) (605,795)
		(1,083,855) (552,801) (589,001) (115,997) (4,493) (6,660)
		(1,677,349) (675,458)
		1,174,861 393,485 - -
		1,174,861 393,485
		(1,109,360) (887,768) 1,814,650 2,702,418
		705,290 1,814,650

The accompanying notes form part of these financial statements.

7

Additional Stock Exchange Information BioPharmica Ltd and its controlled entities

1. Statement of Significant Accounting Policies

The financial report includes the consolidated financial statements and the notes of Biopharmica Limited and controlled entities (‘Consolidated Group’ or ‘Group’), and the separate financial statements and notes of Biopharmica Limited as an individual parent entity (‘Parent Entity’).

Basis of Preparation

The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions to which they apply. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. Material accounting policies adopted in the preparation of this financial report are presented below. They have been consistently applied unless otherwise stated.

The financial report has been prepared on an accruals basis and is based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

Accounting Policies

(a) Principles of Consolidation

A controlled entity is any entity BioPharmica Ltd has the power to control the financial and operating policies of so as to obtain benefits from its activities.

A list of controlled entities is contained in Note 20 to the financial statements. All controlled entities have a June financial year-end.

As at reporting date, the assets and liabilities of all controlled entities have been incorporated into the consolidated financial statements as well as their results for the year then ended. Where controlled entities have entered (left) the consolidated group during the year, their operating results have been included (excluded) from the date control was obtained (ceased). As at reporting date, the assets and liabilities of all controlled entities have been incorporated into the consolidated financial statements as well as their results for the year then ended. Where controlled entities have entered (left) the consolidated group during the year, their operating results have been included (excluded) from the date control was obtained (ceased).

All inter-company balances and transactions between entities in the economic entity, including any unrealised profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistencies with those policies applied by the parent entity.

8

BioPharmica Ltd and its controlled entities

Additional Stock Exchange Information

Where controlled entities have entered or left the economic entity during the year, their operating results have been included/excluded from the date control was obtained or until the date control ceased.

Minority equity interests in the equity and results of the entities that are controlled are shown as a separate item in the consolidated financial report.

(b) Income Tax

The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or disallowed items. It is calculated using the tax rates that have been enacted or are substantially enacted by the balance sheet date.

Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is credited in the income statement except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.

Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised.

The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the economic entity will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

BioPharmica Ltd and its wholly-owned Australian subsidiaries have formed an income tax consolidated group under the tax consolidation regime. BioPharmica Ltd is responsible for recognising the current and deferred tax assets and liabilities for the tax consolidated group. The group notified the Australian Taxation Office on 30 June 2006 that it had formed an income tax consolidated group to apply from 30 June 2006. The tax consolidated group has entered a tax sharing agreement whereby each company in the group contributes to the income tax payable in proportion to their contribution to the net profit before tax of the tax consolidated group.

(c) Property, Plant & Equipment

Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses.

Plant and equipment

Plant and equipment are measured on the cost basis.

9

Additional Stock Exchange Information

BioPharmica Ltd and its controlled entities

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

The cost of fixed assets constructed within the economic entity includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable overheads.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

Increases in the carrying amount arising on revaluation of land and buildings are credited to a revaluation reserve in shareholders' equity. Decreases that offset previous increases of the same asset are charged against fair value reserves directly in equity; all other decreases are charged to the income statement. Each year the difference between depreciation based on the revalued carrying amount of the asset charged to the income statement and depreciation based on the asset's original cost is transferred from the revaluation reserve to retained earnings.

Depreciation

The depreciable amount of all fixed assets including building and capitalised lease assets, but excluding freehold land, is depreciated on a straight-line basis over their useful lives to the economic entity commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

The depreciation rates used for each class of depreciable assets are:

Class of Fixed Asset	Depreciation Rate
Computers	33 %
Office furniture	15 %

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the income statement. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.

10

Additional Stock Exchange Information BioPharmica Ltd and its controlled entities

(d) Leases

Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership that are transferred to entities in the economic entity are classified as finance leases.

Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

Leased assets are depreciated on a straight-line basis over their estimated useful lives.

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred.

Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term.

(e) Financial Instruments

Recognition and Initial Measurement

Financial instruments, incorporating financial assets and financial liabilities, are recognised when the entity becomes a party to the contractual provisions of the instrument. Trade date accounting is adopted for financial assets that are delivered within timeframes established by marketplace convention.

Financial instruments are initially measured at fair value plus transactions costs where the instrument is not classified as at fair value through profit or loss. Transaction costs related to instruments classified as at fair value through profit or loss are expensed to profit or loss immediately. Financial instruments are classified and measured as set out below.

Derecognition

Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity is no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expire. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.

Classification and Subsequent Measurement

(i) Financial assets at fair value through profit or loss

Financial assets are classified at fair value through profit or loss when they are held for trading for the purpose of short term profit taking, where they are derivatives not held for hedging purposes, or designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Realised and unrealised gains and losses arising from changes in fair value are included in profit or loss in the period in which they arise.

11

Additional Stock Exchange Information BioPharmica Ltd and its controlled entities

(ii) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost using the effective interest rate method.

• (iii) Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the group’s intention to hold these investments to maturity. They are subsequently measured at amortised cost using the effective interest rate method.

• (iv) Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either designated as such or that are not classified in any of the other categories. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.

• (v) Financial Liabilities

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost using the effective interest rate method.

Fair value

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models.

Impairment

At each reporting date, the group assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the income statement.

(f) Impairment of Assets

At each reporting date, the group reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the asset's carrying value. Any excess of the asset's carrying value over its recoverable amount is expensed to the income statement.

Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.

12

BioPharmica Ltd and its controlled entities

Additional Stock Exchange Information

Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

(g) Investments in Associates

Investments in associate companies are recognised in the financial statements by applying the equity method of accounting. The equity method of accounting recognised the group’s share of post-acquisition reserves of its associates.

(h) Interests in Joint Ventures

The economic entity's share of the assets, liabilities, revenue and expenses of joint venture operations are included in the appropriate items of the consolidated financial statements.

The economic entity's interests in joint venture entities are brought to account using the equity method of accounting in the consolidated financial statements. The parent entity's interests in joint venture entities are brought to account using the cost method.

(i) Intangibles

Goodwill

Goodwill and goodwill on consolidation are initially recorded at the amount by which the purchase price for a business or for an ownership interest in a controlled entity exceeds the fair value attributed to its net assets at date of acquisition. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisition of associates is included in investments in associates.

Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.

Research and Development

Expenditure during the research phase of a project is recognised as an expense when incurred.

Development costs are capitalised only when technically feasibility studies identify that the project will deliver future economic benefits and these benefits can be measured reliably.

Development costs have a finite life and are amortised on a systematic basis matched to the future economic benefits over the useful life of the project.

(j) Employee Benefits

Provision is made for the company's liability for employee benefits arising from services rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits.

13

Additional Stock Exchange Information

BioPharmica Ltd and its controlled entities

Equity-settled compensation

The group operates a number of share-based compensation plans. These include both a share option arrangement and an employee share scheme. The bonus element over the exercise price of the employee services rendered in exchange for the grant of shares and options is recognised as an expense in the income statement. The total amount to be expensed over the vesting period is determined by reference to the fair value of the shares of the options granted.

(k) Provisions

Provisions are recognised when the group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

(l) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the balance sheet.

(m) Revenue and Other Income

Revenue from the sale of goods is recognised upon the delivery of goods to customers.

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

Dividend revenue is recognised when the right to receive a dividend has been established. Dividends received from associates and joint venture entities are accounted for in accordance with the equity method of accounting.

Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.

All revenue is stated net of the amount of goods and services tax (GST).

(n) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in income in the period in which they are incurred.

14

Additional Stock Exchange Information

BioPharmica Ltd and its controlled entities

(o) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense.

Receivables and payables in the balance sheet are shown inclusive of GST.

Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

(p) Government Grants

Government grants are recognised at fair value where there is reasonable assurance that the grant will be received and all grant conditions will be met. Grants relating to expense items are recognised as income over the periods necessary to match the grant to the costs they are compensating. Grants relating to assets are credited to deferred income at fair value and are credited to income over the expected useful life of the asset on a straightline basis.

(q) Comparative Figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

Critical accounting estimates and judgments

The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the group.

Key estimates — Impairment

The group assesses impairment at each reporting date by evaluating conditions specific to the group that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. No impairment has been recognised in respect of intangibles for the year ended 30 June 2008. The directors believe that the carrying value of all intangibles is appropriate after reviewing the status of each entity’s developments. The directors are confident that the products will provide the necessary returns to the Company.

Key judgements — Provision for Impairment of Receivables

Included in the accounts of Consolidated entity are amounts receivable from related entities of $646,792. The directors believe that the full amount of the debt will be recoverable from each entity and that no provision for impairment of receivables has been made at 30 June 2008.

15

Additional Stock Exchange Information

BioPharmica Ltd and its controlled entities

Key Judgments —Impairment of Intangible Assets

No impairment has been recognised in respect of intangible assets for the year ended 30 June 2008. The directors believe that the carrying value of all intangibles is appropriate after reviewing the status of each entity’s developments. The directors are confident that the products will provide the necessary returns to the Company.

The financial report was authorised for issue on 27[th] August 2008 by the board of directors.

16

Additional Stock Exchange Information

BioPharmica Ltd and its controlled entities

2. Revenue Revenue Interest revenue : other entities Cost recoveries Total revenue Other income Research & development rebate 3. Tax (a) The components of tax expense comprise: Current tax Deferred tax (b) The prima facie tax on profit from ordinary activities before income tax is reconciled to the income tax as follows: Prima facie tax payable on profit from ordinary activities before income tax at 30% (2007: 30%) Economic entity Parent entity Add tax effect of: Non deductible expenses Prior year tax loss used in Research and development clawback Tax benefit of revenue losses not recognised Less tax effect of: Research and development clawback income related to prior periods Income tax attributable to parent entity Balance of franking account at year end Weighted average rate of tax		Consolidated 2008 $ 2007 $ 94,435 142,253 79,401 54,872 173,836 197,125 984,216 381,311	Parent 2008 $ 2007 $
			81,910 127,406 86,857 122,000
			168,767 249,406
			654,538 318,672
		- - - - - - 353,668 401,817 - - 4,670 2,824 206,724 240,726 (306,657) (344,460) (258,405) (300,907) - - - - % % - -	- - - - - - - - 184,319 65,917 2,591 2,824 206,724 240,726 (135,229) (8,560) (258,405) (300,907) - - - - % % - -

17

Additional Stock Exchange Information

BioPharmica Ltd and its controlled entities

		Consolidated	Consolidated		Parent	Parent
		2008	2007	2008		2007
		$	$		$	$
	(c) Deferred Tax Assets
	Deferred tax assets not brought to account,
	the benefits of which will only be realised if
	the conditions for deductibility set out in
	Note 1b occur.
	Temporary difference	1,046	8,081		(962)	8,581
	Tax losses:
	- operating losses	1,181,552	874,895		671,157	535,928
	- capital losses	26,342	26,342		26,342	26,342
4.	Earnings per share
				Consolidated
				2008		2007
				$		$
	Reconciliation of Earnings to Profit or Loss
	Loss			(1,160,864)	(1,266,019)
	Earnings used to calculate basic EPS			(1,160,864)	(1,266,019)
				(1,160,864)	(1,266,019)
	The Company’s potential ordinary shares, being its options
	granted, are not considered dilutive as the conversion		of
	these options will result in a decreased net loss per share.
	Weighted average number of ordinary shares outstanding			No.		No.
	during the year used in calculating basic	EPS		69,144,857	61,305,992

18

Additional Stock Exchange Information

BioPharmica Ltd and its controlled entities

Note Issued Capital 70,210,788 (2006: 61,311,560) fully paid ordinary shares	Consolidated 2008 $ 2007 $ 7,081,809 6,588,464	Parent 2008 $ 2007 $
		7,084,258 6,588,464

5. Issued Capital

The Company has no authorised capital and the issued shares do not have a par value.

(a) Ordinary Shares At the beginning of reporting period Shares Issued during the year At reporting date	Consolidated 2008 $ 2007 $	Parent 2008 $ 2007 $
	No. No. 61,311,560 61,304,060 8,899,228 7,500 70,210,788 61,311,560	No. No. 61,311,560 61,304,060 8,899,228 7,500
		70,210,788 61,311,560

Capital Raising

Options were exercised during the year resulting in the issue of 3,318,228 (2007: 7,500) fully paid ordinary shares at 20c each raising $663,646 (2007: $1,500).

Fully Paid Ordinary Share Capital

Fully paid ordinary shares carry one vote per share and carry the right to dividends.

(b) Options

The market price of the company's ordinary shares at 30 June 2008 was 4.6 cents.

The holders of options do not have the right, by virtue of the option, to participate in any share issue

or interest issue of any other body corporate or registered scheme.

The difference between the total market value of options issued during the period, at the date of issue, and the total amount received from executives and employees is not recognised in the financial statements except for the purposes of determining directors' and executives’ remuneration

in respect of that period.

19

Additional Stock Exchange Information BioPharmica Ltd and its controlled entities

6. Segment Information

The Economic entity operates predominantly in one industry, namely the biomedical research sector through its wholly owned subsidiary Molecular Discovery Systems Pty Ltd. These activities are predominantly in Australia.

7. Events after the Balance Sheet Date

Other than referred to there have not been any matters or circumstance that have arisen since the end of the financial year, that have significantly affected, or may significantly affect, the operations of the economic entity, the results of those operations, or the state of affairs of the economic entity in future financial years.

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