CADOUX LIMITED — Capital/Financing Update 2005

Aug 25, 2005

26 August 2005

DIRECTORS' COMMENT ON OPTIONS

Summary

• Directors advise that consideration is being given to the buy back of Options

Perth, Australia. Friday 26 August 2005: In the interests of maintaining a fully informed market the Directors of Solbec Pharmaceuticals Ltd (ASX:SBP) advise that they are currently considering a plan pursuant to which the Company may offer to buy back part or all of the listed options of the Company (ASX:SBPOA) in exchange for the issue of ordinary shares in the Company.

No decision has been made in relation to the plan nor what would be an appropriate ratio of options bought back to shares issued if the plan were to proceed. In any event any plan in this regard would require the approval of ordinary shareholders of the Company.

SBPOAs have an exercise price of 20 cents up to 19 September 2005 and 30 cents for the period as from then until 19 September 2006 at which time they expire.

The Directors will make a further announcement in relation to this no later than 9 September 2005.

Further information:

Tony Kiernan Chairman Tel: $(08)$ 9323 0999 Mob: 0418 912 843 Email: tony.kiernan@solbec.com.au