PYC THERAPEUTICS LIMITED — Capital/Financing Update 2009

Dec 1, 2009

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2 December 2009

Ms Elizabeth Harris Issuers Adviser Australian Securities Exchange Exchange Plaza 2 The Esplanade PERTH WA 6000

By Facsimile: 9221 2020

Dear Elizabeth

Trading Halt

Phylogica Limited (“ Phylogica ” or “the Company ”) ( ASX Code: PYC ) requests an immediate trading halt be placed on its securities.

The company requests this trading halt whilst the company undertakes a capital raising of up to 15% of the expanded capital under Section 708 of the Corporations Act 2001.

The company previously advised shareholders on 26/8/2009 that the company was in advanced negotiations with a number of large pharmaceutical and biotechnology groups regarding new discovery partnerships utilizing the Company’s vast and unique library of protein fragments (phylomers).

Directors advise these negotiations have now moved to such an advanced stage that Phylogica hopes to complete formal documentation shortly and also needs to demonstrate a sound financial capacity to deliver these services.

Phylogica can see no reason why a trading halt should not be put on its securities. The Company’s securities are to remain in the trading halt until the earlier of the commencement of normal trading on Friday 4 December 2009 or when an announcement is released to the market.

If an announcement is not made at the end of the trading halt period, the Company will request a voluntary suspension of its securities.

Regards

Mr Gregory MacMillan Company Secretary

Suite 3, 257 York Street, Subiaco WA 6008 PO Box 8207, Subiaco East, WA 6008 Tel: (08) 9423 8888 Fax: (08) 9382 1766 www.phylogica.com ABN 48 098 391 961