CADOUX LIMITED — Capital/Financing Update 2005

Dec 22, 2005

88% TAKE-UP ON OPTION CANCELLATION OFFER

Summary:

• 88% take-up on Solbec's offer to exchange listed options for shares $\bullet$
• Solbec to allot 18,752,223 shares in exchange for 131,263,664 options cancelled

Perth, Australia. Friday, 23 December 2005: Solbec Pharmaceuticals (ASX: SBP) wishes to advise that there was an almost 90% take-up on its offer to exchange options for ordinary shares. Solbec will issue 18,752,223 ordinary shares in exchange for 131,263,664 options which will now be cancelled.

The final allotment number may vary slightly from that described above as postal acceptances are tallied. The Closing Date of this offer was 22 December 2005 5.00 PM Perth time. The estimated date of dispatch of holding statements will be on or about 10 January 2005 and said new shares will tradable by 12 January 2005.

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Further information:

David Sparling Business Development Manager Tel: (08) 9446 7555 Mob: 0417 721 972 Email: david.sparling@solbec.com.au

About Solbec

Solbec Pharmaceuticals Ltd identifies naturally-occurring compounds with potential in the development of better therapies for debilitating conditions and life-threatening diseases. The company is currently progressing its key project, Coramsine®, through Phase I/IIA clinical trials for the treatment of advanced solid tumours; and as a topical treatment for psoriasis. The two proprietary ingredients of Coramsine® were isolated from the fruit of a weed known as the Devil's Apple (Solanum linnaeanum). They show activity against some cancers and cause potentially therapeutic changes to the immune system. In addition to human health, Coramsine® has potential application to animal health and diagnostics. Solbec's business strategy is to partner or out-license Coramsine® for the final stages of pre-commercial development and marketing.

www.solbec.com.au