Starpharma Holdings Limited : Quarterly Cashflow Report

Melbourne Australia; 31 October 2012: Starpharma Holdings Ltd (ASX:SPL;OTCQX: SPHRY) today released its Appendix 4C - Quarterly Cashflow report for the period ended 30

September 2012.

The cash balance at 30 September 2012 was $37.6 million. Total operating and investing cash outflows for the quarter were $5.9 million; with net proceeds from the issue of shares totaling $0.8 million, resulting in a net decrease in cash of $5.1 million. The cash burn for the quarter is in line with budget, with the majority of expenditure being directed towards the VivaGel® bacterial vaginosis (BV) clinical program.

This program is nearing completion, and earlier this month the Company announced completion of recruitment in the two Phase 3 studies for VivaGel® as a treatment for BV. These trials were conducted across more than 30 international sites and recruited 250 patients per trial. Results are expected to be available by early December 2012, following the completion of patient follow-up, data collection and the necessary statistical analyses.

In addition a Phase 2 clinical trial to investigate the ability of VivaGel® to prevent the recurrence of BV is now also fully recruited, and completion of this trial is on track for Q4

2012 with results expected early in 2013.

In addition to the BV product, Starpharma's portfolio of commercial opportunities includes two licences for a VivaGel® -coated condom, a drug delivery program developing an improved version of the blockbuster cancer drug docetaxel (Taxotere®), and a number of agrochemical programs including an enhanced version of the leading herbicide glyphosate (the active ingredient in Roundup®). During the quarter significant partnering activities occurred, including the signing of agreements with AstraZeneca and Nufarm, both global leaders in their respective fields.

Starpharma Holdings Limited (ASX:SPL, OTCQX:SPHRY), located in Melbourne Australia, is an ASX 300 company and is a world leader in the development of dendrimer products for pharmaceutical, life science and other applications. Starpharma's underlying technology is built around dendrimers - a type of synthetic nanoscale polymer that is highly regular in size and structure and well suited to pharmaceutical uses. Starpharma has three core development programs: VivaGel® portfolio, drug delivery, and agrochemicals with the Company developing a number of products internally and others via commercial partnerships.

Starpharma's lead product is VivaGel® (SPL7013 Gel), a gel-based formulation of a proprietary dendrimer. VivaGel® is under clinical development for the treatment and prevention of bacterial vaginosis (BV) and also as a vaginal microbicide to prevent the transmission of sexually transmitted infections including HIV and genital herpes. Starpharma has also signed separate licence agreements with Ansell Limited (ASX:ANN) and Okamoto Industries Inc (Tokyo Stock Exchange) to market a value-added, VivaGel®-coated condom. Ansell manufactures and sells leading condom brands worldwide, including Lifestyles®, ZERO® and SKYN®. Okamoto is the market leader for condoms sold in Japan, the world's second largest condom market.

In the wider pharmaceutical and life science fields, Starpharma has both partnered and internal programs in Drug Delivery. Partners include GSK, Lilly and AstraZeneca. In its internal program Starpharma recently announced significant tumour- targeting results in its docetaxel (Taxotere®) program, with animal studies resulting in levels of the cancer drug in tumour tissue more than 40 times greater than seen with the convention formulation. The company is also exploring dendrimer opportunities in agrochemicals in a series of industry partnerships with leading industry players including Nufarm (ASX:NUF) as well as with internal programs including an enhanced version of glyphosate (the active ingredient in Roundup®).

Rebecca Wilson

Mob: +61 417 382 391 rwilson@buchanwe.com.au

Haley Price

Mob: +61 423 139 163 hprice@buchanwe.com.au

Dr Jackie Fairley, Chief Executive Officer

+61 3 8532 2704

Ben Rogers, Company Secretary ben.rogers@starpharma.com

www.starpharma.com

Forward Looking Statements

This document contains certain forward-looking statements, relating to Starpharma's business, which can be identified by the use of forward-looking terminology such as "promising", "plans", "anticipated", "will", "project", "believe", "forecast", "expected", "estimated", "targeting", "aiming", "set to", "potential", "seeking to", "goal", "could provide", "intends", "is being developed", "could be", "on track", or similar expressions, or by express or implied discussions regarding potential filings or marketing approvals, or potential future sales of product candidates. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. There can be no assurance that any existing or future regulatory filings will satisfy the FDA's and other health authorities' requirements regarding any one or more product candidates nor can there be any assurance that such product candidates will be approved by any health authorities for sale in any market or that they will reach any particular level of sales. In particular, management's expectations regarding the approval and commercialization of the product candidates could be affected by, among other things, unexpected clinical trial results, including additional analysis of existing clinical data, and new clinical data; unexpected regulatory actions or delays, or government regulation generally; our ability to obtain or maintain patent or other proprietary intellectual property protection; competition in general; government, industry, and general public pricing pressures; and additional factors that involve significant risks and uncertainties about our products, product candidates, financial results and business prospects. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated or expected. Starpharma is providing this information as of the date of this document and does not assume any obligation to update any forward-looking statements contained in this document as a result of new information, future events or developments or otherwise.

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Name of entity

ABN Quarter ended ("current quarter")

20 078 532 180 30 September 2012

Cash flows related to operating activities

1.1 Receipts from customers and grants
1.2 Payments for (a) staff costs
(b) advertising and marketing (c) research and development (d) other working capital
1.3 Dividends received
1.4 Interest and other items of a similar nature received
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Other

Net operating cash flows

Cash flows related to investing activities

1.9 Payment for acquisition of: (a) businesses (item 5)
(b) equity investments
(c) intellectual property
(d) physical non-current assets
(e) other non-current assets
1.10 Proceeds from disposal of: (a) businesses (item 5)
(b) equity investments
(c) intellectual property
(d) physical non-current assets
(e) other non-current assets
1.11 Loans to other entities
1.12 Loans repaid by other entities
1.13 Other

Net investing cash flows

1.14 Total operating and investing cash flows

Cash flows related to financing activities

Net increase (decrease) in cash held (5,109) (5,109)

Current quarter $A'000

1.24 Aggregate amount of payments to the parties included in item 1.2 (361)
1.25 Aggregate amount of loans to the parties included in item 1.11 -

1.26 Explanation necessary for an understanding of the transactions
Item 1.24 consists of the following:
(a) Remuneration paid to the Chief Executive Officer.
(b) Director's fees paid to non-executive directors.

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest
Nil

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

3.1 Loan facilities - Finance facility for laboratory equipment
3.2 Credit standby arrangements - Credit card facility
Item 3.1

A $97,000 lease facility and a $200,000 master asset finance facility with
National Australia Bank for laboratory equipment, guaranteed by term deposit.
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.

5.1 Name of entity
5.2 Place of incorporation or registration
5.3 Consideration for acquisition or disposal
5.4 Total net assets
5.5 Nature of business

1.
This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.
2. This statement does give a true and fair view of the matters disclosed.

31 October 2012
B P Rogers
Company Secretary

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