SYNTARA LIMITED — Share Issue/Capital Change 2017

Nov 13, 2017

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 Unlisted Employee Options over Pharmaxis Ltd issued ordinary shares (“Performance Rights”)

• 2 Number of[+] securities issued or to Performance Rights: 1,248,000 be issued (if known) or maximum number which may be issued

• See chapter 19 for defined terms.

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• 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)

Grant 1:

770,000 Performance Rights granted to Chief Executive Officer, Mr Gary Phillips Grant Price: Nil Exercise Price: Nil Expiry: 30 June 2027 Vesting:

• Fifty percent of the Performance Rights granted will vest and be exercisable on 30 June 2019, provided that Mr Phillips is an employee at that relevant vesting date;

• Fifty percent of the Performance Rights granted will vest and be exercisable on 30 June 2020, provided that Mr Phillips is an employee at that relevant vesting date.

• Restriction on shares issued on exercise while Mr Phillips is an employee:

• Until 30 June 2020, any shares acquired upon exercise of Performance Rights may not be traded in the ordinary course.

• Any shares acquired upon exercise of Performance Rights may not be traded in the ordinary course, except with prior approval of the Pharmaxis Board.

• Grant 2: 478,000 Performance Rights to four recently hired employees Grant Price: Nil Exercise Price: Nil Expiry: 30 June 2027 Vesting:  Fifty percent of the Performance Rights granted will vest and be exercisable on 1 September 2019, provided that the relevant holder is an employee at that relevant vesting date;

  • Fifty percent of the Performance

  • Rights granted will vest and be exercisable on 1 September 2020, provided that the relevant holder is an employee at that relevant vesting date.

• Restriction on shares issued on exercise:  Until 30 June 2020, any shares acquired upon exercise of Performance Rights may not be traded in the ordinary course.

4 Do the[+] securities rank equally in No, Performance Rights are being issued. all respects from the date of allotment with an existing[+] class of Shares issued upon exercise will rank equally quoted[+] securities? with existing ordinary shares (subject to trading restrictions referred to above). If the additional securities do not rank equally, please state:  the date from which they do To participate in a dividend, the ordinary shares  the extent to which they underlying the options would need to be issued participate for the next prior to the record date for the dividend. 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 Nil 6 Purpose of the issue Grant 1: (If issued as consideration for the Performance Rights granted to Mr Phillips as acquisition of assets, clearly part of the 2017 grant of Performance Rights identify those assets) under the employee incentive plan, for long term reward, incentive and retention. Grant 2: Performance Rights granted to 4 recently hired employees under the employee incentive plan, for the long term reward, incentive and retention of such managers and employees.

• 7 Dates of entering[+] securities into 14 November 2017 uncertificated holdings or despatch of certificates

Number +Class 8 Number and +class of all 319,720,344 Fully paid ordinary +securities quoted on ASX shares ( including the securities in clause 2 if applicable)

• 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
	Nil 3,000 4,000 1,500 100,500	Options expiring 5 November 2017 with an exercise price of $4.1500 (ASX Code PXSAT) Options expiring 7 February 2018 with an exercise price of $3.1266 (ASX Code PXSAN) Options expiring 10 April 2018 with an exercise price of $1.9735 (ASX Code PXSAP) Options expiring 22 June 2018 with an exercise price of $1.4590 (ASX Code PXSAR) Options expiring 11 August 2018 with an exercise price of $1.6770 (ASX Code PXSAS)

Number

+Class

200,000 2,500 5,000 86,500 10,000 202,000 30,000 192,750 12,939,500

Options expiring 22 June 2018 with an exercise price of $1.4590 (ASX Code PXSAV) Options expiring 22 October 2018 with an exercise price of $1.4660 (ASX Code PXSAAA) Options expiring 10 December 2018 with an exercise price of $1.0207 (ASX Code PXSAAB) Options expiring 22 June 2019 with an exercise price of $2.4098 (ASX Code PXSAAE) Options expiring 6 September 2020 with a zero exercise price (ASX Code PXSAAF) Options expiring 28 June 2022 with a zero exercise price (ASX Code PXSAG) Options expiring 17 October 2022 with a zero exercise price (ASX Code PXSAAO) Options expiring 6 June 2023 with a zero exercise price (ASX Code PXSAAP) Performance Rights (ASXCodePXSAAS)

• See chapter 19 for defined terms.

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Number +Class 10 Dividend policy (in the case of a N/A trust, distribution policy) on the increased capital (interests)

Part 2 - Bonus issue or pro rata issue

11	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
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 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 )

• See chapter 19 for defined terms.

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(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)

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.

• 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: .. 14 November 2017 (Company secretary) Print name: ......David McGarvey............