SYNTARA LIMITED — Capital/Financing Update 2008

Aug 6, 2008

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.

Name of entity Pharmaxis Ltd ABN 75 082 811 630

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 be issued 2 Number of+securities issued or to be issued (if known) or maximum number which may be issued 3 Principal terms of the+securities (eg, if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)	Pharmaxis Ltd ordinary shares
	22,500
	Issue of fully paid ordinary shares upon exercise of options granted under the Pharmaxis Ltd Employee Option Plan.

• See chapter 19 for defined terms.

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4 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 5 Issue price or consideration 6 Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets) 7 Dates of entering+securities into uncertificated holdings or despatch of certificates 8 Number and +class of all +securities quoted on ASX (_including_the securities in clause 2 if applicable)	Yes	Yes
	22,500 shares: $0.508 (PXSAS)
	Exercise of options under Pharmaxis Ltd Employee Option Plan
	8 August 2008
	Number	+Class
	194,537,262	Ordinary fully paid shares

• See chapter 19 for defined terms.

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9 Number and+class of all +securities not quoted on ASX (including the securities in clause 2 if applicable)	Number	+Class
	1,220,000 4,186,000 500,000 15,000 235,000 290,000 747,500 70,000	Options expiring on various dates with an exercise price of $0.125 (ASX Code PXSAM) Options expiring on various dates with an exercise price of $0.3125 (ASX Code PXSAO) Options expiring 30 November 2013 with an exercise price of $0.376 (ASX Code PXSAQ) Options expiring 3 June 2014 with an exercise price of $0.426 (ASX Code PXSAU) Options expiring 1 February 2015 with an exercise price of $0.8340 (ASX Code PXSAY) Options expiring 11 May 2015 with an exercise price of $1.147 (ASX Code PXSAW) Options expiring 4 August 2015 with an exercise price of $1.79 (ASX Code PXSAZ) Options expiring 17 October 2015 with an exercise price of $2.772 (ASX Code PXSAA)

• See chapter 19 for defined terms.

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245,000 87,500 831,250 42,500 45,000 200,000 192,500 1,615,000 150,000 200,000

Options expiring 12 February 2016 with an exercise price of $2.194 (ASX Code PXSAB) Options expiring 31 May 2016 with an exercise price of $2.034 (ASX Code PXSAC) Options expiring 14 August 2016 with an exercise price of $1.917 (ASX Code PXSAD) Options expiring 19 September 2016 with an exercise price of $1.8918 (ASX Code PXSAE) Options expiring 13 December 2016 with an exercise price of $3.0710 (ASX Code PXSAF) Options expiring 15 March 2016 with an exercise price of $2.0680 (ASX Code PXSAG) Options expiring 17 June 2017 with an exercise price of $3.3155 (ASX Code PXSAH) Options expiring 9 August 2017 with an exercise price of $3.33890 (ASX Code PXSAL) Options expiring 9 August 2017 with an exercise price of $3.33890 (ASX Code PXSAI) Options expiring 14 November 2016 with an exercise price of $3.32258 (ASX Code PXSAK)

• See chapter 19 for defined terms.

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10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)	517,000 4,000 18,500 16,000 68,500	Options expiring 5 November 2017 with an exercise price of $4.2900 (ASX Code PXSAT) Options expiring 13 December 2017 with an exercise price of $4.1373 (ASX Code PXSAJ) Options expiring 7 February 2018 with an exercise price of $3.2666 (ASX Code PXSAN) Options expiring 10 April 2018 with an exercise price of $2.1135 (ASX Code PXSAP) Options expiring 22 June 2018 with an exercise price of $1.5990 (ASX Code PXSAR)
	n/a

Part 2 - Bonus issue or pro rata issue

11	Is security holder	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

• See chapter 19 for defined terms.

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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 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

• See chapter 19 for defined terms.

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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)?

• 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 ] 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over

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

Entities that have ticked box 34(b)

• See chapter 19 for defined terms.

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

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.

• See chapter 19 for defined terms.

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• 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.

• We warrant that if confirmation is required under section 1017F of the Corporations Act in relation to the[+] securities to be quoted, it has been provided 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.

• See chapter 19 for defined terms.

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• 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.

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Sign here: ............................................................ Date: .. 7[th] August 2008... (Company secretary) Print name: ......David McGarvey............ == == == == ==

• See chapter 19 for defined terms.

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