MACRO METALS LIMITED — Capital/Financing Update 2007

Jul 11, 2007

ASX ANNOUNCEMENT

12 July 2007

SALES TO AUSTRALIAN/NZ AND US MARKETS - COMPANY UPDATE -

Brainytoys Limited (ASX Code: BRT) (Brainytoys) is pleased to announce that it has received initial orders for its Thomas and The Wiggles MemoToys™ line from MODERN BRANDS, its Australian and New Zealand distributor.

Brainytoys is working closely with MODERN BRANDS to develop a TV campaign that will support the launch of these products heading into the Christmas Season, which Brainytoys anticipates will result in significant further orders.

Brainytoys is also pleased to announce that it has received first trial orders for its Bee Movie and The Wiggles MemoToys™ products from TARGET.COM (USA) .

Target.com is a division of Target Corporation (Target) (Public, NYSE: TGT), one of the largest mass retailers, in the US, and ranked third largest Toy Retailer in the US. The Company sells through its 1,488 locations as well as through its target.com website.

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These initial sales have been exclusively generated from Brainytoys’ MemoToys™ product range, one of the ten key play patterns, or product lines that the Company has under development (See following pages for PRODUCT AND PRODUCTION UPDATE).

The combined total of these initial orders is approximately AU$150,000.

Brainytoys will start delivering its MemoToys™ products in August/September.

Brainytoys expects its order book to grow, as MemoToys™ production comes on full stream and product samples are distributed to other potential customers, in addition to further versions of MemoToys™ currently being developed.

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Brainytoys will be adding several new products to the Company’s sales lines, based on the new play-patterns. The Company will start showing these new product lines to US-based mass retail and other customers at the FALL TOY PREVIEW SHOW to be held in Dallas in October 2007 (See following pages for FALL TOY PREVIEW SHOW).

LICENSING UPDATE

Brainytoys management recently attended the Licensing show in New York and held meetings with key Licensor groups, toy companies and customers.

Brainytoys has received multiple expressions of purchase intentions for its MemoToys™ products from many markets around the world, subject to License availability, and the company is in negotiations with Licensors to extend its License coverage in order to service these markets.

The Company’s current key objectives in the Licensing area are:

• To extend key license coverage for the US, European, Latin American, and Asian markets.

• To identify further licensing opportunities.

PRODUCT AND PRODUCTION UPDATE

Brainytoys is focusing its development and manufacturing efforts on 10 innovative electronic toy play patterns, or product lines, primarily targeting the pre-school market.

It is important to note that each of these new product lines is capable of being delivered to the markets in multiple product forms, or versions:

• As Brainytoys-branded products; or

• By using multiple Licenses (i.e. Thomas, Wiggles, Bee Movie, etc).

Three MemoToys™ products are now in production:

• Thomas the Tank Engine - for sale in Australia and New Zealand market;

• The Wiggles Big Red Car - for sale in Australian; US, and Canadian markets;

• Bee Movie Car - for sale in Australian, New Zealand and US markets.

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Brainytoys is also proceeding with the manufacture of three other products:

• The Tootle Train Playset – An interactive electronic train set based on the lovable and very popular Little Golden Books series – For sale to US and Canadian markets.

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• The DigIChing – A unique electronic product (in English and Chinese Versions) based on the I-Ching (or Book of Changes) a 4,000 year old Chinese Book used widely as an oracle – Brainytoys has noted substantial interest generated from China for this product as there is a significant and strong re-awakening and recognition of ancient Chinese culture and traditions within China as the country modernizes – For world-wide sales.

Brainytoys is also developing a number of other Bee Movie products, with at least two being readied for production in the near future.

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FALL TOY PREVIEW - DALLAS OCTOBER 2007

The Dallas FALL TOY PREVIEW Show is one of the most important dates in the Toy Retailing Calendar for the US market, and is the first show of the US market’s buying cycle.

This is an invitation-only show for major US mass retailers to preview products from toys and games companies.

Brainytoys will have a strong presence at this show, with the aim of having eight to 12 new product lines on show, which will represent Brainytoys’ key products to be marketed over the next six to 12 months.

ABOUT BRAINYTOYS LIMITED

Brainytoys (www.brainytoys.com), headquartered in Perth Western Australia, is a global toy and games Development Company with a growing portfolio of products targeting various segments of the world’s toys and games industry, with an emphasis on electronics and software technology.

Listed under the Australian Stock Exchange (ASX) symbol BRT in March 2005 as the first and only public toys and games development issue on the Australian Stock Exchange, Brainytoys is emerging as a highly praised source of creative, innovative, new generation products for the world’s toys and games markets and global consumers.

ENDS

For further information contact:

Alex Aguero, Managing Director Ph: (08) 9331 8441 alexa@brainytoys.com

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