BPH ENERGY LTD — Capital/Financing Update 2009

Aug 11, 2009

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12[th] August 2009

Dear Shareholder,

Invitation to participate - BioPharmica Share Purchase Plan

The Directors of BioPharmica Limited are pleased to announce the introduction of a Shareholder Share Purchase Plan (“SSPP”).

The Company would like to give shareholders the opportunity to maximise the benefits of their current BioPharmica shareholding through the SSPP.

BioPharmica intends to seek an IPO for investee Molecular Discovery Systems on the Australian Securities Exchange. Molecular Discovery Systems will be a company dedicated to the Anti Mitotic Drug Discovery Development Program and the tumour suppressor gene HLS5.

Under a planned ‘spin off’ process, BioPharmica (ASX code: BPH) shareholders would receive a share at no cost in Molecular Discovery Systems for every listed BioPharmica share that they hold five days after the date of shareholder approval of the spin off.

This means that an eligible BioPharmica shareholder can participate in the SSPP and receive the same number of shares (at no cost) in the new IPO of Molecular Discovery Systems. The spin off and listing is subject to approval from shareholders and regulatory bodies.

Funds raised from the SSPP will be used for continuing research and development, commercialisation, additional working capital, funding the new IPO and to meet anticipated expenses of the issue estimated at $14,000.

Eligible shareholders can purchase shares, at a 20% discount to the weighted average price of the last 5 days prior to the day on which the issue is made.

The offer is limited to a minimum of $1000 and a maximum of $15,000 worth of shares per shareholder. The offer is subject to ASX granting the usual waiver for the increase of the maximum number of shares from $5000 worth of shares to $15,000 worth of shares. The offer is strictly limited to a maximum of 30% of the existing share capital and applications will be accepted on a first received basis .

Participation is entirely at the option of the shareholder and the offer is non-renounceable. The market price of the shares may change between the date of this offer and the date when the new shares are issued. Shares purchased through the SSPP are free of all brokerage fees and commissions.

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

t:- biopharmica ltd\capital raisings\bph sspp09\sspp annoucementamended.doc

The full timetable for the offer will be announced to the ASX in the near future. The offer document application form and detailed terms and conditions will be forwarded to eligible shareholders following this announcement.

Kind Regards

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David Breeze Managing Director