SYNTARA LIMITED — Capital/Financing Update 2005

Nov 30, 2005

pharmaxis

1 December 2005

Manager of Company Announcements Australian Stock Exchange Exchange Centre Level 3 20 Bridge Street Sydney NSW 2000

Dear Sir/Madam,

Exercise of Over-Allotment Option

As previously advised, the Company completed a public offering of 19.5 million ordinary shares in the form of 1.3 million American Depositary Shares (ADSs) in the United States on 11 November 2005 as part of a global capital raising. The US underwriting agreement contains an option for the US underwriters to acquire shares in the form of ADSs from two funds managed by GBS Venture Partners in order to satisfy over-allotments made by the US underwriters in the US public offering.

In accordance with the terms of the US underwriting agreement, the US underwriters have exercised their option to acquire an additional total of 2,635,890 ordinary shares in the form of 175,726 ADSs from the funds managed by GBS Venture Partners at the same price as the public offering of US\$24.16 per ADS. The option exercise closed in the US on 30 November 2005.

Sincerely,

David McGarvev Chief Financial Officer/Company Secretary

Unit 2 10 Rodborough Road Frenchs Forest NSW 2086 Australia

T 02 9454 7200 F 02 9451 3622 www.pharmaxis.com.au