PHARMX TECHNOLOGIES LIMITED — Legal Proceedings Report 2011

Apr 6, 2011

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Market Release

7 April 2011

JUDGMENT IN OLIVEPRINCE PTY LTD V CORUM GROUP LIMITED

The Supreme Court of New South Wales has awarded damages of $627,656.50 plus interest and costs against the Company in an action brought by Oliveprince Pty Ltd, a company controlled by Michael Rowley, a former Executive Director of Corum Group Limited.

Oliveprince sued the Company for the termination of a consultancy agreement entered into for four years from September 2005. Oliveprince’s claim covered the period from 2007, when the Company claimed it ended, to 31 August 2009.

The Company has been seeking legal advice on the prospects of an appeal since the judgment was delivered on 25 March 2011. Corum received a demand for payment of the judgment last Friday (1 April 2011).

No provision for the payment of the judgment debt has been made in the Company’s audited accounts but, should an appeal not proceed or not be successful, the Company is in a position to pay the judgment damages, which total approximately $766,000 plus costs. Should an appeal not have resolved the matter by the end of the 2010-11 financial year, Directors will include a provision in the year end accounts that fully satisfies any liability and costs that may arise from the case.

Directors regret this matter has not been previously disclosed and are putting in place steps to ensure the market is kept fully informed about the case in future, including a decision on an appeal.

The Company reiterates its return to profitability, under the new management, is continuing with its debt reduced by $3.5 million in the past 18 months and solid cash flows from operations expected to continue.

Michael Shehadie

Chairman 02 9231 6399

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