BPH ENERGY LTD — Board/Management Information 2009

Jan 22, 2009

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23 January 2009

The Manager, Companies Australian Securities Exchange Ltd 5[th] Floor, 20 Bond Street Sydney NSW 2000

Dear Sir

ANNOUNCEMENT TO ASX

BIOPHARMICA LIMITED OPERATIONAL UPDATE

Biopharmica Limited announces as a result of the severe economic pressures and the withdrawal by the Federal Government of the Commercial Ready Grant it will implement a series of measures to reduce current expenditure levels to ensure the company can develop its projects to commercial status.

As part of this process Biopharmica’s Board of Directors has voluntarily suspended cash payments for Directors fees. The Board has agreed that all Directors’ fees will be paid via shares in Biopharmica Limited. A Notice of Meeting is currently being drafted and this will be distributed to all shareholders for consideration as soon as it has been finalised.

It is with regret also that Biopharmica announces that the position of CEO, occupied by Dr Peter King, has been made redundant. Dr King’s role will terminate on Friday 23[rd] January 2009. The Board of Directors would like to thank Peter for his excellent contributions to the Company during his employment, most notably the development of a number of assets to commercialisation status.

Biopharmica is currently in discussions with Dr King regarding a separate ongoing consulting arrangement.

The Board of Directors believes that these measures are necessary to implement for the ongoing viability of BioPharmica. These processes will allow Biopharmica to focus on the commercialisation of existing technologies to maximise capitalisation opportunities upon the emergence from this economic downturn.

Yours sincerely

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David Breeze

Managing Director