MACRO METALS LIMITED — Capital/Financing Update 2006

Jul 12, 2006

13 July 2006

Company Announcements Australian Stock Exchange Limited 20 Bond Street SYDNEY NSW 2000

RIGHTS ISSUE CLOSURE AND SHORTFALL NOTIFICATION

Brainytoys Limited ("Brainytoys") (ASX Code BRT) advises that the recent fully underwritten Rights Issue closed on 12 July 2006. The results of the Rights Issue are as follows:

• Total number of shares on offer	7,572,429
• Total number of shares validly applied for:	1,665,339
• Number of applications received:	86
• Pro Rata shortfall:	5,907,090
• Underwriters shortfall	5,907,090

The issue was fully underwritten by Leadenhall Australia Limited and Brainytoys confirms that a shortfall notice has been issued in accordance with the underwriting agreement dated 15 June 2006 and that when completed the total funds raised under the issue will be \$454,346 before issue costs.

JAY STEPHENSON COMPANY SECRETARY

JAY STEPHENSON COMPANY SECRETARY