SYNTARA LIMITED — Share Issue/Capital Change 2012

Aug 9, 2012

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10 August 2012 Manager of Company Announcements Australian Stock Exchange Exchange Centre Level 3 20 Bridge Street Sydney NSW 2000

Dear Sir/Madam,

Proposed Issue of Securities to Non Executive Director

In accordance with Listing Rule 3.10.3, Pharmaxis advises that the directors have resolved to grant 30,000 zero grant and zero exercise price employee options under the Company’s employee option plan to Dr Simon Buckingham, in connection with his appointment as a Non Executive Director earlier this year.

The Board’s policy as set out in the Company’s annual Remuneration Report, is to grant newly appointed directors, subject to shareholder approval in each instance, equity in the Company. The grant requires shareholder approval which will be sought at the annual general meeting of the Company:

Class of security	Unlisted zero grant and zero exercise price employee optionsover Pharmaxis Ltd ordinaryshares.
Number to be issued	30,000
Issueprice	Nil
Exerciseprice	Nil
Vesting	Three years from the grant date subject to Dr Buckinghambeinga director of the Companyat this time.
Conditions applicable to theshares issued on exercise ofPerformance Rights	While Dr Buckingham is a Director, the shares issued onexercise of options cannot be traded without prior approvalof the Board.
Shareholder approval	Shareholder approval will be sought at the 2012 AnnualMeeting.
Purpose of issue	To be issued to the non-executive director under, and inaccordance with the Pharmaxis employee option plan,followinghis appointment to the Board earlier in theyear.
Issue to class	No

Further details will be included in the notice of meeting for the 2012 Annual General Meeting.

Pharmaxis Ltd Unit 2, 10 Rodborough Road T 02 9454 7200 ABN 75 082 811 630 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.

Sincerely,

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David McGarvey Company Secretary