QRxPharma : Response to ASX Price Query

27 May 2015

ASX Compliance Pty Limited

Exchange Centre

20 Bridge Street

SYDNEY NSW 2000

Attention: Stephanie So stephanie.so@asx.com.au

Dear Stephanie,

We refer to your letter dated 22 May 2015 in relation to the recent increase in the Company's share price and trading volumes. We respond as follows:

1. QRxPharma is not aware of any information that has not been announced to the market which, if known by some in the market, could explain the recent trading in its securities.

2. Not applicable.

3. QRxPharma is not aware of any other reason for the recent trading in its securities.

4. At the time of the price query QRxPharma confirms that it was in compliance with the Listing

Rules and, in particular, Listing Rule 3.1.

On 22 May 2015 at a time subsequent to the price query the Company passed resolutions to appoint

Timothy Heesh and Amanda Lott of TPH lnsolvency as Voluntary Administrators.

With the appointment of the Voluntary Administrators ali powers of the directors have been suspended. The Voluntary Administrator has authorised this response be sent to the ASX.

Yours sincerely

(él

Chris J Campbell

Company Secretary

ORxPharma Limited ABN 16 102 254 151

Level11, Suite 1,100 Walker S tr eet, Nor th Sydney NSW 2060 Tel: 61 2 840 4 4139 Fax: 61 2 8920 0314

Postal Address: PO Box 1810, Nor th Sydney, NSW 2059 Australia www.qrxpharma.com

22 May 2015
Mr Chris Campbell Company Secretary QRXPHARMA Limited Level 11
100 Walker Street
North Sydney NSW 2060
By email: chris.campbell@qrxpharma.com
Dear Mr Campbell,

We have noted a change in the price of the Entity's securities from a close of $0.016 on Thursday, 21 May 2015 to a high of $0.029 today, Friday, 22 May 2015.
We also note an increase in the trading volume of the Entity's securities.
In light of the price and volume increase, ASX asks you to respond separately to each of the following questions:
1. Is the Entity aware of any information concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in its securities?
2. If the answer to question 1 is "yes":
a) Is the Entity relying on Listing Rule 3.1A not to announce that information under Listing Rule 3.1?
Please note that the recent trading in the Entity's securities would suggest to ASX that such information may have ceased to be confidential and therefore the Entity may no longer be able to rely on Listing Rule 3.1A. Accordingly, if the answer to this question is "yes", you need to contact us immediately to discuss the situation.
b) Can an announcement be made immediately?
Please note, if the answer to this question is "no", you need to contact us immediately to discuss requesting a trading halt (see below).
c) If an announcement cannot be made immediately, why not and when is it expected that an announcemant will be made?
3. If the answer to question 1 is "no", is there any other explanation that the Entity may have for the recent trading in its securities?

4. Please confirm that the Entity is in compliance with the Listing Rules and, in particular, Listing Rule 3.1.

ASX Compliance

Pty Limited

ABN 26 087 780 489

20 Bridge Street

Sydney NSW 2000

www.asx.com.au

Customer service 13 12 79

T 61 2 9227 0125

E Stephanie.so@asx.com.au

This request is made under, and in accordance with, Listing Rule 18.7. Your response is required as soon as reasonably possible and, in any event, by not later than half an hour before the start of trading (ie before 9.30 a.m. AEST) on 25
May 2015. If we do not have your response by then, ASX will have no choice but to consider suspending trading in the
Entity's securities under Listing Rule 17.3.
You should note that if the information requested by this letter is information required to be given to ASX under Listing Rule 3.1 and it does not fall within the exceptions mentioned in Listing Rule 3.1A, the Entity's obligation is to disclose the information "immediately". This may require the information to be disclosed before the deadline set out in the previous paragraph.
ASX reserves the right to release a copy of this letter and your response on the ASX Market Announcements Platform under Listing Rule 18.7A. Accordingly, your response should be in a form suitable for release to the market.
Your response should be sent to me by e-mail. It should not be sent directly to the ASX Market Announcements Office. This is to allow me to review your response to confirm that it is in a form appropriate for release to the market, before it is published on the ASX Market Announcements Platform.

Listing Rule 3.1 requires a listed entity to give ASX immediately any information concerning it that a reasonable person would expect to have a material effect on the price or value of the entity's securities. Exceptions to this requirement are set out in Listing Rule 3.1A.
The obligation of the Entity to disclose information under Listing Rules 3.1 and 3.1A is not confined to, nor is it necessarily satisfied by, answering the questions set out in this letter.
In responding to this letter, you should have regard to the Entity's obligations under Listing Rules 3.1 and 3.1A and also to Guidance Note 8 Continuous Disclosure: Listing Rules 3.1 - 3.1B.

If you are unable to respond to this letter by the time specified above, or if the answer to question 1 is "yes" and an announcement cannot be made immediately, you should discuss with us whether it is appropriate to request a trading halt in the Entity's securities under Listing Rule 17.1.
If you wish a trading halt, you must tell us:

• the reasons for the trading halt;

• how long you want the trading halt to last;

• the event you expect to happen that will end the trading halt;

• that you are not aware of any reason why the trading halt should not be granted; and

• any other information necessary to inform the market about the trading halt, or that we ask for.

We may require the request for a trading halt to be in writing. The trading halt cannot extend past the commencement of normal trading on the second day after the day on which it is granted.

You can find further information about trading halts in Guidance Note 16 Trading Halts & Voluntary Suspensions.

If you have any queries or concerns about any of the above, please contact me immediately. Yours sincerely

[Sent electronically without signature]

Stephanie So

Senior Adviser, Listings Compliance (Sydney)

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