Qcide Update/Share Purchase Plan/Placement Document date: Wed 04...

Qcide Update/Share Purchase Plan/Placement

Document date: Wed 04 Sep 2002 Published: Wed 04 Sep 2002 10:51:07
Document No: 222414 Document part: A
Market Flag: Y
Classification: Placement , Issued Capital - Other , Progress Report - Other
BIOPROSPECT LIMITED 2002-09-04 ASX-SIGNAL-G

HOMEX - Perth

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The Board of BioProspect Limited is pleased to announce that it has
received some preliminary data from the field trials being performed
with Qcide, the natural insecticide.

The trials performed in the USA to date show that Qcide is showing
very high activity against a range of hard-to-kill pests. Tests have
been performed on almond, citrus and cotton crops, and Qcide has
proven to be very effective at low concentrations. Whilst these
results are only preliminary, they are extremely encouraging and
support the laboratory and greenhouse tests previously performed at
the University of Western Sydney.

Field trials continue in other northern hemisphere locations and
BioProspect expects to receive further results during September and
October. Southern hemisphere-based trials are expected to commence in
October as the temperature conditions and insect pressures increase.

Upon completion of further field trials, BioProspect anticipates
entering into commercial arrangements for exclusive rights to Qcide
early next year. Due to the large size of the targeted markets,
BioProspect believes that based on the initial trial results it will
be able to negotiate substantial upfront license fees, milestone
payments and ongoing royalties.

SHARE PURCHASE PLAN

The Board believes that the development of Qcide is now at the point
where further funding towards the commercialisation of the product is
warranted. In order to raise funds required for Qcide, the Company
will introduce a Share Purchase Plan (the "Plan") that will enable
existing shareholders to purchase new shares in BioProspect on
favourable terms to the existing market price.

Following past placements to clients of major stock broking
institutions, the Company received a number of requests from
Shareholders to participate in any further capital raisings. As a
result, the Board resolved to pursue the Plan, which particularly
benefits smaller shareholders.

The Plan entitles each BioProspect shareholder, irrespective of the
size of their shareholding, the right to purchase up to $3,000 worth
of fully paid ordinary shares in BioProspect at a 15% discount to the
market price, free of all brokerage, commission and stamp duty to the
subscriber. The minimum subscription under the Plan is $1,000.

The Board of Directors of BioProspect has appointed Findlay & Co
Stockbrokers Limited as Sponsoring Broker to the Plan.

In order to participate in the Plan, you must be an Eligible
Shareholder with a registered address in Australia or New Zealand as
at the Record Date of 5pm WST on Monday 16 September 2002.

The shares will be issued at a 15% discount to the weighted average
market price of the shares for the five trading days up to and
including the closing date of the issue, being Friday 18 October
2002.

The detailed terms and conditions of the Share Purchase Plan will be
forwarded to shareholders in due course.

SHARE PLACEMENT

The Board is pleased to announce that it has completed a placement of
2,777,777 ordinary fully paid shares to Findlay & Co Stockbrokers
Limited at a price of $0.09 to raise $250,000. The monies raised will
be used for working capital purposes.

Please find attached an Appendix 3B in regard to this issue.

In accordance with ASIC Class Order 02/334, the Company advises that
there is no information to disclose of the kind that would be
required to be disclosed under subsection 713(5) of the Corporations
Act, if a prospectus were to be issued in reliance of section 713 in
respect of the issue.


S Snell
CHIEF EXECUTIVE OFFICER

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