PYC THERAPEUTICS LIMITED — Capital/Financing Update 2011

Dec 20, 2011

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21[st] December 2011

Company Announcements Office Australian Securities Exchange 20 Bridge Street SYDNEY NSW 3000

Dear Sir

NOTICE GIVEN UNDER SECTION 708A(5) OF THE CORPORATION ACT

Phylogica Limited confirms the issue on 21[st] December 2011 of 40,533,333 ordinary fully paid shares and 27,022,226 options, exercisable at $0.09 on or before 30 June 2016. The Company therefore gives notice under section 708A(5)(e) of the Corporations Act in relation to an issue of fully paid ordinary shares and options by the Company without disclosure to investors under Part 6D.2 of the Corporations Act.

As at the date of this notice, the Company has complied with:

• (a) the provisions of Chapter 2M of the Corporations Act as they apply to the Company; and

• (b) section 674 of the Corporations Act.

The Company confirms that, as at the date of this notice, there is no information that:

• (a) has been excluded from a continuous disclosure notice given to ASX in accordance with the ASX Listing Rules; and

• (b) investors and their professional advisers would reasonably require for the purpose of making an informed assessment of:

  • (i) the assets and liabilities, financial position and performance, profits and losses and prospects of the Company; and

  • (ii) the rights and liabilities attaching to fully paid ordinary shares.

to the extent to which it would be reasonable for investors and their professional advisers to expect to find such information in a disclosure document.

Yours faithfully Phylogica Limited

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G R Boden Company Secretary

Tel: (08) 9384 3284 Fax: (08) 9284 3801 PO Box 8207, Subiaco East WA 6008 Email: gboden@bigpond.net.au www.phylogica.com

ABN 48 098 391 961