PYC THERAPEUTICS LIMITED — Capital/Financing Update 2013

Dec 2, 2013

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3 December 2013

Dear Share Holder

Non-Renounceable Entitlement Issue

On 11 November 2013, Phylogica Limited (Company) announced a pro-rata non-renounceable entitlement issue of fully paid ordinary shares on a two (2) for three (3) basis ( Shares ) issuing approximately 400,827,747 shares for Shareholders registered at 5.00pm (WST) on Tuesday 3 December 2013 (Record Date) at an issue price of 1.5 cents per New Share to raise approximately $6,012,416 (Entitlement Issue).

On 2 December 2013 the Company lodged an Offer Document (Offer) with ASX Limited (ASX) for the Entitlement Issue.

Fractional entitlements will be rounded up to the nearest whole Share. Shareholder approval is not required in relation to the Entitlement Issue.

A full copy of the Offer will be mailed to all shareholders who hold shares on the Record Date ( Shareholder ). However, the Offer will not constitute an offer to any Shareholder as at the Record Date, whose registered address is not situated in Australia or New Zealand. The Offer is sent to those Shareholders for information only.

This Offer will be available in electronic form on the ASX website at asx.com.au or the Company’s website phylogica.com.

It is intended that the proceeds, of the issue, will principally be used for research & development purposes and for general working capital.

Holders of existing options already on issue will be entitled to exercise their options prior to the Record Date in order to participate in the Entitlement Issue.

Under the Offer, 400,827,747 New Shares (depending upon whether the holders of existing options exercise those options before the Record Date) will be issued, as the offer has been fully underwritten.

The timetable for the Entitlement Issue is as follows:

e timetable for the Entitlement Issue is as follows:
Event	Date
Record Date to determine entitlement under Entitlement Issue	11 December 2013
Offer Document and Entitlement Form despatched	12 December 2013
Closing Dates for acceptances	30 December 2013
Allotment and issue of New Shares	8 January 2014
Despatch of shareholding statements for New Shares	8 January 2014
Trading of New Shares expected to commence	9 January 2014

Note: These dates are determined based upon the current expectations of the Directors and, subject to the Listing Rules, may be changed without notice. The Directors may extend the Closing Date by giving at least 6 Business Days notice to ASX prior to the Closing Date. As such, the date the Shares are expected to commence trading on ASX may vary.

For and on behalf of

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Phylogica Limited Mr Graeme Boden Company Secretary

PO Box 8207 Subiaco East WA 6008 Tel: +61 8 9286 1219 Fax: +61 8 9284 3801 www.phylogica.com ABN 48 098 391 961