BPH ENERGY LTD — Capital/Financing Update 2011

Aug 15, 2011

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16 August 2011

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

Cortical Dynamics Ltd – Initial Public Offering

BPH Energy Ltd (ASX: BPH) is pleased to provide an update regarding the Cortical Dynamics‘ initial public offering.

Yours sincerely,

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Deborah Ambrosini Director and Company Secretary

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

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16 August 2011

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

Dear Investor,

Initial Public Offering – Extension of Offer

The Initial Public Offering (“IPO”) for Cortical Dynamics Ltd (“Cortical Dynamics”) was due to close today; however, given the recent volatility of the stock market the Board of Cortical Dynamics has decided to extend the offer period for the IPO to allow potential investors more time to consider market conditions.

The offer will now close on 5:00 WST Monday 26[th] September 2011.

Cortical Dynamics will offer of up to 10 million Shares at an issue price of $0.20 per Share together with one (1) free attaching Option exercisable at $0.20 on or before 30 September 2012 for every one (1) Share issued, to raise up to $2 million.

Oversubscriptions of up to a further 10 million Shares at an issue price of $0.20 per Share together with one (1) free attaching Option exercisable at $0.20 on or before 30 September 2012 for every one (1) Share issued, to raise up to a further $2 million may be accepted .

Cortical Dynamics is an Australian company which was incorporated in 2004 to commercialise technology developed at Swinburne University of Technology, Melbourne. Research managed by Associate Professor David Liley led to the invention of a new methodology of brain function monitoring using an algorithm to measure direct physiological responses and give real time feedback. The methodology was initially applied to monitoring the depth of anaesthesia and the BAR monitoring system was developed.

A copy of the prospectus can downloaded at www.corticaldynamics.com.

Should you have any questions please do not hesitate to contact the Company Secretary Ms Deborah Ambrosini on 08 9328 8366.

Yours sincerely

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Deborah Ambrosini Director and Company Secretary

Cortical Dynamics Ltd

ACN 107 557 620 PO box 317, North Perth, WA, 6906 14 View Street, North Perth, Western Australia T: +61 8 9328 8366 F: +61 8 9328 8733

contact@corticaldynamics.com www.corticaldynamics.com