PYC THERAPEUTICS LIMITED — Interim / Quarterly Report 2009

Jan 28, 2010

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Rule 4.7B

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Introduced 31/3/2000. Amended 30/9/2001

Name of entity

Name of entity
PHYLOGICA LIMITED
ABN 48 098 391 961 Consolidated statement of cash flows	Quarter ended (“current quarter”)
	31 December 2009

	Cash flows related to operating activities 1.1 Receipts from customers 1.2 Payments for (a) staff costs (b) intellectual property (c) research and development (d) professional services (e) other working capital 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid/rebate 1.7 Other (Grant receipts) Net operating cash flows	Current quarter $A’000	Year to date (6 months) $A’000
		- (211) (45) (694) (41) (25) - 20 - - -	- (449) (131) (1,376) (77) (40) - 25 - - 89
		(996)	(1,959)

• See chapter 19 for defined terms.

Appendix 4C Page 1

30/9/2001

Appendix 4C Quarterly report for entities admitted on the basis of commitments

	Current quarter $A’000	Year to date (6 months) $A’000
1.8 Net operating cash flows (carried forward)	(996)	(1,959)
Cash flows related to investing activities 1.9 Payment for acquisition of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets 1.10 Proceeds from disposal of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets 1.11 Loans to other entities 1.12 Loans repaid by other entities 1.13 Other: cash from subsidiary acquisition Net investing cash flows 1.14 Total operating and investing cash flows	- - - (4) - - - - - - - - -	- - - (21) - - - - - - - - -
	(4)	(21)
	(1,000)	(1,980)
Cash flows related to financing activities 1.15 Proceeds from issues of shares, options, etc. 1.16 Proceeds from sale of forfeited shares 1.17 Proceeds from borrowings 1.18 Repayment of borrowings 1.19 Dividends paid 1.20 Other (share issue costs) Net financing cash flows	2,000 - 100 - - (120)	2,000 - 100 - - (120)
	1,980	1,980
Net increase (decrease) in cash held 1.21 Cash at beginning of quarter/year to date 1.22 Exchange rate adjustments to item 1.20 1.23 Cash at end of quarter	980 2,093 -	- 3,073 -
	3,073	3,073

• See chapter 19 for defined terms.

Appendix 4C Page 2

30/9/2001

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related entities

1.24 1.25	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.11	Current quarter $A'000
		131
		-
1.26	Explanation necessaryfor an understandingof the transactions
	Payments to Executive Directors or associate and Non-Executive Directors. The breakdown of the amount is as follows: Amount $000 Directors fees 70 Salary – Executive Directors 55 Superannuation 6 131

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

N/A

• 2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest

N/A

• See chapter 19 for defined terms.

Appendix 4C Page 3

30/9/2001

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

	3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
		-	-
		-	-

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
4.1 Cash on hand and at bank 4.2 Deposits at call 4.3 Bank overdraft 4.4 Other (provide details)	3,073	2,093
	-	-
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	3,073	2,093

Acquisitions and disposals of business entities

5.1 Name of entity 5.2 Place of incorporation or registration 5.3 Consideration for acquisition or disposal 5.4 Total net assets 5.5 Nature of business	Acquisitions (Item 1.9(a))	Disposals (Item 1.10(a))

• See chapter 19 for defined terms.

Appendix 4C Page 4

30/9/2001

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here: Date: 29/01/10 (Company secretary) Print name: GREGORY MACMILLAN

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position.

2. The definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to this report except for the paragraphs of the Standard set out below.

3. 6.2 - reconciliation of cash flows arising from operating activities to operating profit or loss

6. 9.2 - itemised disclosure relating to acquisitions

7. 9.4 - itemised disclosure relating to disposals

8. 12.1(a) - policy for classification of cash items

9. • 12.3 - disclosure of restrictions on use of cash

10. 13.1 - comparative information

11. See chapter 19 for defined terms.

Appendix 4C Page 5

30/9/2001