PYC THERAPEUTICS LIMITED — Capital/Financing Update 2011

Mar 31, 2011

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1 April 2011

The Company Announcements Platform ASX Ltd Sydney NSW 2000

Appendix 3B - 1[st] Tranche Capital Raising (part)

The attached Appendix 3B represents part of the 1[st] Tranche of the capital raising announced on 25 March 2011comprising the shares and options issued for the funds received to date.

The remaining shares and options to be issued for the balance of the 1[st] Tranche of the capital raising will be completed as soon as the remaining institutional funds are received.

The attached Appendix 3B includes the application for listing of the new options being issued under the 1[st] Tranche of the capital raising and the top 20 options holders and spread of holders of the new options is included.

The attached Appendix 3B replaces the Appendix 3B lodged on 25 March 2011 for the issue of 28m shares and 14m options for the 1[st] tranche of the capital raising announced on 25 March 2011, a further Appendix 3B for the balance of the 28m shares and 14m options will be issued as soon as possible.

Regards

Greg Macmillan Company Secretary

PO Box 8207, Subiaco East, Western Australia 6008 Level 22 Allendale Square, 77 St Georges Tce, Perth, Western Australia 6000 Tel: +61 8 93828888 Fax: +61 8 93258088 www.phylogica.com ABN 48 098 391 961

Appendix 3B New issue announcement

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005.

Name of entity

PHYLOGICA LIMITED

ABN

48 098 391 961

We (the entity) give ASX the following information.

Part 1 ­ All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of +securities issued or to Ordinary Shares and Unquoted Options be issued 2 Number of[+] securities issued or to 22,576,272 Ordinary shares be issued (if known) or maximum 11,288,140 Options number which may be issued

3 Principal terms of the[+] securities Ordinary Shares: issued fully paid at 5.9 (eg, if options, exercise price and cents per share, Options issued for free. expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)

• See chapter 19 for defined terms.

24/10/2005

Appendix 3B Page 1

Appendix 3B New issue announcement

4 Do the[+] securities rank equally in Shares rank equally with existing ordinary all respects from the date of shares. allotment with an existing[+] class of quoted[+] securities? Options exercisable at $0.09 on or before 30 June 2016.

If the additional securities do not rank equally, please state:

• the date from which they do

• • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment

• the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

5 Issue price or consideration Shares: issue price 5.9 cents per share and nil per option 6 Purpose of the issue Enhance the Company’s drug discovery (If issued as consideration for the platform, including the purchase of new acquisition of assets, clearly capital equipment, and to support identify those assets) operational activities

7 Dates of entering[+] securities into 1 April 2011 uncertificated holdings or despatch of certificates

Number +Class 8 Number and +class of all 306,138,024 Ordinary Shares +securities quoted on ASX 47,150,353 Options exercisable ( including the securities in at $0.15 on or clause 2 if applicable) before 31 Aug 2011 11,288,140 Options exercisable at $0.09 on or before 30 Jun 2016

• See chapter 19 for defined terms.

Appendix 3B Page 2

24/10/2005

Appendix 3B New issue announcement

9 Number and +class of all +securities not quoted on ASX (including the securities in clause 2 if applicable)	Number	+Class
	400,000 9,856,164 7,237,500 2,500,000 2,500,000 1,340,000	Options 31/07/11 $0.25 Options 31/03/12 $0.075 Options 31/03/13 $0.075 Class B Options 31/03/12 $0.075 Class B Options 31/03/12 $0.10 Convertible notes 30/04/11

10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)

No dividend policy has been established

Part 2 ­ Bonus issue or pro rata issue

11	Is security holder	approval
	required?
12	Is the issue renounceable or non‐
	renounceable?
13	Ratio in which the+securities will
	be offered
14	+Class of+securities to	which the
	offer relates
15	+Record date to	determine
	entitlements
16	Will holdings on	different
	registers (or subregisters) be
	aggregated for	calculating
	entitlements?
17	Policy for deciding entitlements
	in relation to fractions
18	Names of countries in	which the
	entity has+security holders who
	will not be sent new issue
	documents
	Note: Security holders must be	told how their
	entitlements are to be dealt with.
	Cross reference: rule 7.7.
19	Closing date for receipt of
	acceptances or renunciations

• See chapter 19 for defined terms.

1/1/2003

Appendix 3B Page 3

Appendix 3B New issue announcement

20	Names of any underwriters
21	Amount of any underwriting fee
	or commission
22	Names of any brokers to the issue
23	Fee or commission payable to the
	broker to the issue
24	Amount of any handling fee
	payable to brokers who lodge
	acceptances or renunciations on
	behalf of+security holders
25	If the issue is contingent on
	+security holders’ approval, the
	date of the meeting
26	Date entitlement and acceptance
	form and prospectus or Product
	Disclosure Statement will be sent
	to persons entitled
27	If the entity has issued options,
	and the terms entitle option
	holders to participate on exercise,
	the date on which notices will be
	sent to option holders
28	Date rights trading will begin (if
	applicable)
29	Date rights trading will end (if
	applicable)
30	How do+security holders sell
	their entitlements_in full_through
	a broker?
31	How do+security holders sell
	_part_of their entitlements through
	a broker and accept for the
	balance?
32	How do+security holders dispose
	of their entitlements (except by
	sale through a broker)?

• See chapter 19 for defined terms.

Appendix 3B Page 4

1/1/2003

Appendix 3B New issue announcement

• 33 +Despatch date

Part 3 ­ Quotation of securities

You need only complete this section if you are applying for quotation of securities

• 34 Type of securities

• ( tick one )

• (a) � Securities described in Part 1

• (b)[All other securities ]

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

• 35 � If the[+] securities are[+] equity securities, the names of the 20 largest holders of the additional[+] securities, and the number and percentage of additional[+] securities held by those holders

• 36 � If the +securities setting out the number of holders in the categories[+] securities are[+] equity securities, a distribution schedule of the additional

• 37 A copy of any trust deed for the additional[+] securities

• See chapter 19 for defined terms.

1/1/2003

Appendix 3B Page 5

Appendix 3B New issue announcement

Entities that have ticked box 34(b)

38	Number of securities for which
	+quotation is sought
39	Class of +securities for which
	quotation is sought
40	Do the+securities rank equally in
	all respects from the date of
	allotment with an existing+class
	of quoted+securities?
	If the additional securities do not
	rank equally, please state:
	• the date from which they do
	• the extent to which they
	participate for the next
	dividend, (in the case of a trust,
	distribution) or interest
	payment
	• the extent to which they do not
	rank equally, other than in
	relation to the next dividend,
	distribution or interest
	payment
41	Reason for request for quotation
	now
	Example: In the case of restricted securities, end
	of restriction period
	(if issued upon conversion of
	another security, clearly identify
	that other security)

Number +Class 42 Number and +class of all +securities quoted on ASX ( including the securities in clause 38)

• See chapter 19 for defined terms.

Appendix 3B Page 6

1/1/2003

Appendix 3B New issue announcement

Quotation agreement

• 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the[+] securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the[+] securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those[+] securities should not be granted +quotation.

• An offer of the[+] securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any[+] securities to be quoted and that no‐one has any right to return any[+] securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the[+] securities be quoted.

• If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the[+] securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before +quotation of the +securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here:

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Date: 1 April 2011

Print name: Greg MacMillan Company Secretary

== == == == ==

• See chapter 19 for defined terms.

24/10/2005

Appendix 3B Page 7

PHYLOGICA LIMITED		Spread & Top	20 Listing	Date - 1/04/2011 Time - 6.56.33	Date - 1/04/2011 Time - 6.56.33
PHYLOGICA LIMITED OPTIONS EXPIRING 30/06/16 @ $0.09				User - TENEILLE SRSPTP
Page - 1		*- Current Status -*		*- As at: 0/00/00 -*
Holder name	Designation	Units	% of issued	Units	% of issued
1 CITICORP NOM PL		2,711,864	24.02%
2 AUST HERITAGE GRP PL	AUST HERITAGE A/C	1,355,932	12.01%
3 YELLOWROCK PL		1,035,932	9.18%
4 FITEL NOM LTD		474,576	4.20%
5 SCINTILLA STRATEGIC INV L		406,712	3.60%
6 GEORGES HEIGHTS PL	GEORGES HEIGHTS UN 332,674		2.95%
7 MAINVIEW HLDGS PL		320,000	2.83%
8 POOL KLAAS + HEATHER J		271,186	2.40%
9 CADEX PETROLEUM PL		228,388	2.02%
10 GIDDY SYBIL MARIE	SYDNEY DENNIS GIDD 200,441		1.78%
11 HEADLAND CAP PL		163,625	1.45%
12 THICK PHILIP ANDREW		139,900	1.24%
13 SEQUOI NOM PL	SEQUOI A/C	139,082	1.23%
14 PLATO PROSPECTING PL		130,900	1.16%
15 LORILAW PL	WINDSOR HOTEL A/C	130,573	1.16%
16 GREENBELL ENTPS PL	MCKENNA S/F A/C	106,357	.94%
17 EMSLIE NIGEL PAUL S		93,266	.83%
18 BLAIR SIMON DAVID		83,449	.74%
19 LONDON WALL INV PL	JENKINS FAM A/C	83,449	.74%
20 789 PL		83,199	.74%
		_____________	_______	___________	_______
*** Top 20 total ***		8,491,505	75.22%		%
** All holders included	* - Denotes merged holder

	PHYLOGICA LIMITED PHYLOGICA LIMITED OPTIONS EXPIRING 30/06/16 @ $0.09 Page - 2 Spread of holdings Holders NIL holding 1 - 1,000 1,001 - 5,000 1 5,001 - 10,000 10 10,001 - 100,000 87 100,001 - 16 _______ ___ Total on register 114 _______ ___ Total overseas holders 1 Analysis by location Overseas 1 Australia : ACT 0 NSW 21 VIC 23 QLD 59 SA 3 WA 7 TAS 0 NT 0 Address unknown 0 _______ ___ 114 _______ __	Securities 1,309 77,110 3,061,579 8,148,142 __________ 11,288,140 __________ 474,576 474,576 1,139,416 4,553,778 2,791,423 19,373 2,309,574 __________ 11,288,140 ___________	Spread Analysis Listing Date - 1/04/2011 Time - 6.56.33 User - TENEILLE SRSPTP % of issued capital .00 % .01 % .68 % 27.12 % 72.18 % ________ 100.00 % ________ 4.20 % 4.20 % .00 % 10.09 % 40.34 % 24.73 % .17 % 20.46 % .00 % .00 % .00 % ________ 100.00 % ________

  ** ALL holders included                  ***  Common holders merged into one holding