SYNTARA LIMITED — Capital/Financing Update 2008

Mar 3, 2008

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

Pharmaxis Ltd ordinary shares

• 2 Number of +securities issued or to be issued (if known) or maximum number which may be issued 5,000
• 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)

Issue of fully paid ordinary shares upon exercise of options granted under the Pharmaxis Ltd Employee Option Plan.

+ See chapter 19 for defined terms.

4	Do the +securities rank equally in allrespects from the date of allotmentwith an existing +class of quoted+securities?	Yes
	If the additional securities do notrank equally, please state:•the date from which they do•theextenttowhichtheyparticipate for the next dividend,(inthecaseofatrust,distribution) or interest payment•the extent to which they do notrankequally,otherthaninrelation to the next dividend,distribution or interest payment
5	Issue price or consideration	5,000 shares: $0.8340 (PXSAY)
6	Purpose of the issue(If issued as consideration for theacquisition of assets, clearly identify	ExerciseofoptionsEmployee Option Plan	underPharmaxisLtd
	those assets)
7	Dates of entering +securities intouncertificated holdings or despatchof certificates	5 March 2008
		Number	+Class
8	+classNumberandofall+securitiesquotedonASX(including the securities in clause2 if applicable)	194,513,512	Ordinaryfullypaidshares

+ See chapter 19 for defined terms.

		Number	+Class
9	+classNumberandofall	1,220,000	Optionsexpiringon
	+securities not quoted on ASX		various dates with an
	(including the securities in clause		exercisepriceof
	2 if applicable)		$0.125(ASXCode
			PXSAM)
		4,186,000	Optionsexpiringon
			various dates with an
			exercisepriceof
			$0.3125 (ASX Code
			PXSAO)
		500,000	Optionsexpiring30
			November 2013 with
			an exercise price of
			$0.376(ASXCode
			PXSAQ)
		22,500	Optionsexpiring24
			March 2014 with an
			exercisepriceof$0.508(ASXCode
			PXSAS)
		15,000	Optionsexpiring3
			June2014withan
			exercisepriceof
			$0.426(ASXCode
			PXSAU)
		235,000	Optionsexpiring1
			February 2015 with an
			exercisepriceof
			$0.8340 (ASX Code
			PXSAY)
		290,000	Optionsexpiring11
			May2015withan
			exercisepriceof
			$1.147(ASXCode
			PXSAW)
		756,874	Optionsexpiring4
			August 2015 with an
			exercise price of $1.79
		70,000	(ASX Code PXSAZ)Optionsexpiring17
			October 2015 with an
			exercisepriceof
			$2.772(ASXCode
			PXSAA)

+ See chapter 19 for defined terms.

260,000	Optionsexpiring12February 2016 with anexercisepriceof
87,500	$2.194(ASXCodePXSAB)Optionsexpiring31May2016withanexercisepriceof
837,750	$2.034(ASXCodePXSAC)Optionsexpiring14August 2016 with anexercisepriceof
46,250	$1.917(ASXCodePXSAD)Optionsexpiring19September 2016 withan exercise price of
45,000	$1.8918 (ASX CodePXSAE)Optionsexpiring13December 2016 withan exercise price of
200,000	$3.0710 (ASX CodePXSAF)Optionsexpiring15March 2016 with an
237,500	exercisepriceof$2.0680 (ASX CodePXSAG)Optionsexpiring17June2017withan
1,625,000	exercisepriceof$3.3155 (ASX CodePXSAH)Optionsexpiring9August 2017 with an
150,000	exercisepriceof$3.33890 (ASX CodePXSAL)Optionsexpiring9
	August 2017 with anexercisepriceof$3.33890 (ASX CodePXSAI)
200,000	Optionsexpiring14November 2016 withan exercise price of$3.32258 (ASX CodePXSAK)

+ See chapter 19 for defined terms.

	512,000	Optionsexpiring5
		November 2017 with
		an exercise price of
		$4.2900 (ASX Code
		PXSAT)
	4,000	Optionsexpiring13
		December 2017 with
		an exercise price of
		$4.1373 (ASX Code
		PXSAJ)
	18,500	Optionsexpiring7
		February 2018 with an
		exercisepriceof
		$3.2666 (ASX Code
		PXSAN)
10Dividend policy (in the case of atrust, distribution policy) on the	n/a
increased capital (interests)

Part 2 - Bonus issue or pro rata issue

11	Issecurityholderapprovalrequired?
12	Is the issue renounceable or nonrenounceable?
13	Ratio in which the +securities willbe offered
14	+Class of +securities to which theoffer relates
15	+Recorddatetodetermineentitlements
16	Will holdings on different registers(or subregisters) be aggregated forcalculating entitlements?
17	Policy for deciding entitlements inrelation to fractions

+ See chapter 19 for defined terms.

Appendix 3B New issue announcement

18	Names of countries in which theentity has +security holders whowillnotbesentnewissuedocumentsNote: Security holders must be told how theirentitlements are to be dealt with.Cross reference: rule 7.7.
19	Closingdateforreceiptofacceptances or renunciations
20	Names of any underwriters
21	Amount of any underwriting fee orcommission
22	Names of any brokers to the issue
23	Fee or commission payable to thebroker to the issue
24	Amountofanyhandlingfeepayabletobrokerswholodgeacceptances or renunciations onbehalf of +security holders
25	Iftheissueiscontingenton+security holders' approval, thedate of the meeting
26	Date entitlement and acceptanceform and prospectus or ProductDisclosure Statement will be sent topersons entitled
27	If the entity has issued options, andthe terms entitle option holders toparticipate on exercise, the date onwhich notices will be sent to optionholders
28	Date rights trading will begin (ifapplicable)
29	Date rights trading will end (ifapplicable)
30	How do +security holders sell theirentitlementsinfullthrougha

+ See chapter 19 for defined terms.

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 are +equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories 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.

Appendix 3B New issue announcement

38	Number of securities for which+quotation is sought
39	+securitiesClassofforwhichquotation is sought
40	Do the +securities rank equally in allrespects from the date of allotmentwith an existing +class of quoted+securities?
	If the additional securities do notrank equally, please state:•the date from which they do•theextenttowhichtheyparticipate for the next dividend,(inthecaseofatrust,distribution) or interest payment•the extent to which they do notrankequally,otherthaninrelation to the next dividend,distribution or interest payment
41	Reason for request for quotationnow
	Example: In the case of restricted securities, end ofrestriction period
	(ifissueduponconversionofanother security, clearly identify thatother security)
		Number	+Class
42	Number and +class of all +securities

quoted on ASX (including the securities in clause 38)

	Number	+Class
:S
e

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.

• 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.

• 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.

Sign here: ............................................................ Date: .. 4th March 2008... (Company secretary)

Print name: ......David McGarvey............

== == == == ==

+ See chapter 19 for defined terms.