XTL BIOPHARMACEUTICALS LTD.

The information below provides estimates regarding the costs associated with the completion of the current development phase and our
current estimated range of the time that will be necessary to complete that development phase for Bicifadine. We also have provided information with
respect to our other drug candidates. We also direct your attention to the risk factors which could significantly affect our ability to meet these cost and
time estimates found in this report in Item 3 under the heading “Risk Factors-Risks Related to our Business.”
Bicifadine is currently undergoing a Phase 2b study and an open label safety trial. We estimate that the cost to complete the Phase 2b study
and the open label trial will be approximately $12 million. We believe that the Phase 2b study will be completed in the fourth quarter of 2008 and that
the open label trial will be completed in late 2009. Our estimates regarding the expected completion of these studies are based on patient enrollment,
and the potential need for increases in the number of patients included, among other factors. Due to the nature of clinical studies and our inability to
predict the results of such studies, we cannot estimate when such clinical development will end, and it is equally difficult to project the cost to complete
such development.
The DOS program is currently in preclinical development. The timing and results of pre-clinical studies are highly unpredictable. Due to the
nature of pre-clinical studies and our inability to predict the results of such studies, we cannot estimate when such pre-clinical development will end.
Under the terms of the license agreement, Presidio becomes responsible for all further development and commercialization activities and costs relating
to the DOS program.
The following table sets forth the research and development costs for our current and legacy clinical-stage projects, our pre-clinical activities,
and all other research and development programs for the periods presented. Whether or not and how quickly we complete development of our clinical
stage projects is dependent on a variety of factors, including the rate at which we are able to engage clinical trial sites and the rate of enrollment of
patients. As such, the costs associated with the development of our drug candidates may change significantly.
For a further discussion of factors that may affect our research and development, see “Item 3. Risk Factors - Risks Related to Our Business,”
and “Item 4. Information on the Company - Business Overview - Products Under Development” above.
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