ASX Release 10th September 2012 Share Sale Deed executed for the sale of Pela Resources PharmAust Limited (ASX: PAA) is pleased to advise that it has executed a Share Sale Deed for the sale of its wholly owned subsidiary, Pela Resources Pty Ltd ("Pela"). Pela has an interest in a European high grade precious and base metal advanced exploration project called "Luke River", an advanced exploration project located in northeast Macedonia. In previous announcements to the ASX, the Company has stated its intention to sell the Luke River Tenements and to retain its focus on the Epichem business. The key terms of the transaction are that: ? the shares held in Pela be transferred to Diashi Mining Limited ("Diashi Mining"), an Australian public unlisted company, in consideration for shares in Diashi Mining; and ? the Company will then transfer all of the shares it holds in Diashi Mining to Shareholders on a pro rata basis by an in-specie distribution; On execution of this Deed, Diashi Mining will pay PharmAust a deposit of $100,000. Subject to receiving Shareholder approval the Company proposes to distribute all of the Diashi Shares held by it to Shareholders on a pro rata basis ("Distribution"). On completion of the Distribution, the Company will have disposed of its interest in the Luke River Tenements. Shareholders will continue to retain a substantial interest in the development and exploitation of the Luke River Tenements through their individual shareholding in Diashi Mining following the divestment. Shareholders will continue to retain their shareholding in PharmAust in the same proportion in which it is held prior to the Distribution. The divestment of the Luke River Tenements through Diashi Mining should allow for a better focus on the development of the Luke River Tenements while the Company continues to develop the separate and distinct Epichem business. The divestment of Diashi Mining from the Company will mean that both the Company and Diashi Mining will have a primary focus that will not be affected by events or occurrences relating to the other projects. The Company's primary focus will be on the Epichem business and Diashi Mining's focus will be on the Luke River Tenements. Diashi intends to pursue a listing on the ASX. Shareholders will hold both the Company Shares and Diashi Shares following the Distribution and, therefore, will be able to decide, on an individual project-by-project basis once Diashi Mining is spun off, if they wish to hold or sell their interest in the Luke River Tenements and/or the Epichem business. The transaction for the sale of Pela is subject to any necessary shareholder approval
