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Capital Raising

CAPITAL RAISING PharmAust Limited ( PAA PAAOA) is pleased to announce it has entered into agreements to raise $600,000 from the issue of 24,000,000 shares at 2.5 cents per share with one free attaching listed option (PAAO) exercisable at ten cents and expiry 30th March 2012. The placement will be to nonrelated parties utilising PAAs 15% placement capacity and will not require shareholder approval. Yours sincerely, Sam Wright Director Company Secretary.

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