BPH ENERGY LTD — Capital/Financing Update 2009

Sep 20, 2009

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21 September 2009

Companies Announcements Office Australian Securities Exchange Limited 10[th] Floor, 20 Bond Street SYDNEY NSW 2000

Dear Shareholder

RE: EXTENSION OF SHAREHOLDER SHARE PURCHASE PLAN

The directors of BioPharmica Limited wish to announce the extension of the Shareholder Share Purchase Plan to Monday 28[th] September 2009.

Accordingly shareholders are encouraged to submit their Acceptance Form for the Shareholder Share Purchase Plan as soon as possible.

Investment in Advent Energy Limited

On the 11 September 2009 the Company announced an exclusive option to invest in Advent Energy Limited. The option gives BPH the opportunity to acquire between 9.7% and 19.4% of Advent’s share capital at 50c per share which is consistent with the Talbot Group Holdings investment. The investment will be subject to shareholder approval which will be sought at the 2009 Annual General Meeting which is anticipated to be held on the 11th November 2009.

To assist with the proposed investment in Advent, BPH intends to undertake a placement of BPH shares to sophisticated and institutional investors to raise approximately $20M before costs. Completion of the placement will be subject to approval by BPH shareholders, which is proposed to be sought at the 2009 Annual General Meeting.

Molecular Discovery Systems Spin Off

The extension of the SSPP offers shareholders a very important opportunity to increase their shareholding in BioPharmica before the planned spin off of Molecular Discovery Systems in which BioPharmica shareholders will receive a free share in Molecular Discovery Systems for every listed BioPharmica share they hold in BioPharmica 5 trading days after shareholder approval has been obtained. Shareholder approval for this transaction will be sought at the 2009 annual general meeting.

Cortical Dynamics

Preparation for the spinoff of Cortical Dynamics Limited continues and we hope to be able to advise shareholders in the near future of developments in this regard. You will have seen from recent announcements that Cortical Dynamics has been actively developing its technology despite being unlisted.

BioPharmica Limited

ACN 95 912 002 PO Box 317, North Perth 6906, Western Australia 14 View Street, North Perth, Western Australia 6006 admin@biopharmica.com.au www.biopharmica.com.au T: +61 8 9328 8366 F: +61 8 9328 8733

The delay in the stock exchange listing of Cortical has been as a result of soft investor sentiment for biotechnology stocks, and the removal by the Federal Government of key R&D Grant/Funding schemes. We are assessing the level of interest in biotechnology stocks and the improved market sentiment and hope to complete the Cortical Dynamics IPO as planned as soon as possible.

A timeframe has not yet been put in place but we will of course advise the market as to any developments in this regard as soon as that information is available.

This closing date of Shareholder Share Purchase Plan is indicative only. The company may vary the dates and times of the offer without notice.

The directors of BioPharmica Limited would like to thank all of its shareholders for their continued support.

Yours Sincerely

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David Breeze Managing Director