PYC THERAPEUTICS LIMITED — Capital/Financing Update 2015

Jul 2, 2015

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3[rd] July 2015

Dear Share Holder

Non-Renounceable Entitlement Issue

On 2[nd] July 2015, Phylogica Limited (Company) announced a pro-rata non-renounceable entitlement issue of fully paid ordinary shares on a one (1) for one (1) basis ( Shares ) to Shareholders registered at 5.00pm (AWST) on Thursday 9[th] July 2015 (Record Date) at an issue price of 1 cent per Share to raise up to $10,020,694 (Entitlement Issue).

The Entitlement Issue is fully underwritten by Patersons Securities Limited.

On 2[nd] July 2015, the Company lodged an Entitlement Issue Prospectus (Prospectus) with ASX Limited (ASX) and Australian Securities and Investments Commission (ASIC) for the Entitlement Issue.

Shareholder approval is not required in relation to the Entitlement Issue.

A full copy of the Prospectus will be mailed to all shareholders who hold Shares on the Record Date ( Shareholder ). However, the Prospectus 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 Prospectus is sent to those Shareholders for information only.

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

Phylogica will use the proceeds from the Entitlement Issue to advance the company’s cancer programmes towards the clinical development stage. This marks a major transformation for Phylogica and follows the successful validation of its unique cell penetrating peptide (CPP) technology, which has been shown to boost the efficacy of new and existing drugs across a range of diseases. Beyond advancing its own drug candidates Phylogica will continue screening its library of novel compounds to endeavour to develop other drugs. The funds will also be used for 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 Issue, 1,002,069,367 Shares (depending upon whether the holders of existing options exercise those options before the Record Date) will be issued by the Company, as the offer has been fully underwritten.

The timetable for the Entitlement Issue is as follows:

Event	Date
Record Date to determine entitlement under Entitlement Issue	9 July 2015
Prospectus and Entitlement Form despatched	14 July 2015
Closing Dates for acceptances	23 July 2015
Allotment and issue of New Shares	30 July 2015
Despatch of shareholding statements for New Shares	30 July 2015
Trading of New Shares expected to commence	30 July 2015

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 3 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 Phylogica Limited

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Ms Natasha Forde 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