SYNTARA LIMITED — Capital/Financing Update 2012

Jul 1, 2012

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2 July 2012

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

Dear Sir/Madam,

Proposed Issue of Securities to Chief Executvie Officer

In accordance with Listing Rule 3.10.3, Pharmaxis advises that the directors have, subsequent to a review of the Company’s performance over the past year, resolved to grant performance rights to the Chief Executive Officer under the Company’s employee incentive scheme. The grant requires shareholder approval which will be sought at the annual general meeting of the Company:

Company:
Class of security	Unlisted zero grant and zero exercise price employeeoptions over Pharmaxis Ltd ordinaryshares
Number to be issued	200,000
Issueprice	Nil
Exerciseprice	Nil
Vesting	Fifty percent of the Performance Rights granted will vestupon the second anniversary of grant (being 29 June 2014)and fifty percent of the Performance Rights granted willvest upon the third anniversary of grant (being 29 June2015 provided that Dr Robertson is an employee at thesetimes. Performance Rights are not capable of exerciseprior to vesting.
Conditions applicable to theshares issued on exercise ofPerformance Rights	1. Until the third anniversary of grant (29 June 2015), anyshares acquired upon exercise of Performance Rightsmay not be traded.2. Following the third anniversary of grant of thePerformance Rights, such shares may not be traded,except withprior approval of the Pharmaxis Board
Shareholder approval	Shareholder approval will be sought at the 2012 AnnualMeeting.
Purpose of issue	To be issued to the Chief Executive Officer under, and inaccordance with, the Pharmaxis employee incentivescheme.
Issue to class	No

Pharmaxis Ltd ABN 75 082 811 630

20 Rodborough Road T 02 9454 7200 Frenchs Forest NSW 2086 F 02 9451 3622 Australia www.pharmaxis.com.au

The Company will lodge the relevant Appendix 3B when required by the Listing Rules of Australian Securities Exchange. Further detail concerning Pharmaxis’ use of Performance Rights are set out in the 2011 Statutory Annual Report.

Sincerely,

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David McGarvey Company Secretary