BABYLON PUMP & POWER LIMITED — Interim / Quarterly Report 2014

Jul 30, 2014

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July%31%2014.%

IMI%ASX%Announcement%

Appendix%4C%Quarter%ended%30%June%2014%

Transition%to%the%Data%Centre%Sector%

IM%Medical%Limited%("IMI"%or%the%"Company") !continues!to!finalise!the!key!elements!of!its!proposed! transition!into!the!data!centre!sector.!As!previously!announced!the!Company’s!strategy!is!to!become! a!specialist!data!centre!management!company.!

The!terms!of!the!proposed!acquisition!of!White!Data!Limited!are!under!review,!and!the!Company!is! working!with!key!stakeholders!to!restructure!the!transaction!to!accommodate!the!acquisition!of!a! second!property!to!be!managed!by!the!data!centre!trust,!in!addition!to!the!proposed!Brisbane!data! centre!site!announced!previously.!!The!second!property!is!suitable!for!conversion!into!a!major!data! centre,!and!is!expected!to!provide!a!more!rapid!entry!into!the!provision!of!data!centre!services.!!If! concluded,!the!second!property!acquisition!is!expected!to!substantially!accelerate!the! implementation!of!the!Company’s!data!centre!management!strategy.!

This!process!has!taken!longer!than!anticipated,!with!the!timing!of!some!aspects,!including!obtaining! independent!valuations!of!the!properties,!being!outside!the!Company’s!control.!!IMI!expects!to!be! able!to!announce!further!details!regarding!finalisation!of!the!acquisition!terms!in!the!near!future.!!!

Equity%Finance%Facility%

The!Company!has!entered!into!a!standby!convertible!loan!agreement!under!which!certain!investors! have!agreed!to!provide!up!to!$200,000!in!funds!to!the!Company.!!The!convertible!loan!will!accrue! interest!at!10%!per!annum.!!Subject!to!shareholder!approval,!the!loan!funds!will!be!convertible!into! IMI!shares!at!0.2!cents!per!share.!!The!investors!are!parties!associated!with!the!promoters!of!the! data!centre!investment!opportunity.!!The!funds!may!be!drawn!down!by!the!Company!on!seven!days! notice,!subject!to!not!more!than!$100,000!being!drawn!in!any!30!day!period.!

Funds!raised!under!the!facility!will!be!used!to!support!the!Company’s!working!capital!requirements! until!completion!of!the!proposed!equity!capital!raising!previously!announced!in!connection!with!the! Company’s!change!of!business!into!the!data!centre!sector!(Equity!Raising).!!!!

Conversion!of!the!loan!funds!into!equity!is!subject!to!shareholder!approval.!!Following!shareholder! approval,!the!investors!may!request!conversion!of!the!securities!into!equity!at!0.2!cents!per!share!at! any!time,!and!the!conversion!will!be!automatic!if!the!funds!advanced!are!not!repaid!by!31!December! 2014.!!If!not!converted!prior,!the!Company!intends!to!repay!the!funds!advanced!using!proceeds!from! the!proposed!Equity!Raising.!!!!

Richard!Wadley! Director/Company!Secretary!

IM Medical Limited T 03 9607 8280 Level 40 F 03 9607 8285 140 William St. Melbourne VIC 3000 Aust E im.medical@icloud.com ACN 009 436 908 W immedical.com.au

Appendix(4C(( Quarterly(report(for(entities(( admitted(on(the(basis(of(commitments(

Rule%4.7B%

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Introduced!31/3/2000.!!Amended!30/9/2001,!24/10/2005.!

Introduced31/3/2000.Amended30/9/2001,24/10/2005.	Introduced31/3/2000.Amended30/9/2001,24/10/2005.
Nameofentity
IMMedicalLimited
ABN Quarterended(“currentquarter”) 47009436908 30June2014
47009436908	30June2014

Consolidated(statement(of(cash(flows

Cashflowsrelatedtooperatingactivities 1.1 Receiptsfromcustomers 1.2 Paymentsfor (a)staffcosts (b)advertisingandmarketing (c)researchanddevelopment (d)leasedassets (e)Administrative (f)Corporate (g)Other 1.3 Dividendsreceived 1.4 Interest and other items of a similar nature received 1.5 Interestandothercostsoffinancepaid 1.6 Incometaxespaid 1.7 Other(providedetailsifmaterial) Netoperatingcashflows	Currentquarter $’000	YTD $’000
	- " " " " (11) (36) " - - - - -	- " " " " (146) (237) - - - - -
	(47)	(383)

+!See!chapter!19!for!defined!terms.!

Appendix!4C!Page!1!

Appendix(4C(( Quarterly(report(for(entities(( admitted(on(the(basis(of(commitments(

Appendix4C Quarterlyreportforentities admittedonthebasisofcommitments
	Currentquarter $’000	YTD $’000
1.8 Netoperatingcashflows(carriedforward)	(47)	(383)
Cashflowsrelatedtoinvestingactivities 1.9 Paymentforacquisitionof: (a)businesses(item5) (b)equityinvestments (c)intellectualproperty (d)physicalnon\currentassets (e)othernon\currentassets 1.10 Proceedsfromdisposalof: (a)businesses(item5) (b)equityinvestments (c)intellectualproperty (d)physicalnon\currentassets (e)othernon\currentassets 1.11 Loanstootherentities 1.12 Loansrepaidbyotherentities 1.13 Other(providedetailsifmaterial) Netinvestingcashflows 01.14 Totaloperatingandinvestingcashflows	- - - - - - - - - - (3) " "	- - - - - - - - - - (24) 21 "
	(3)	(3)
	(50)	(386)
Cashflowsrelatedtofinancingactivities 1.15 Proceedsfromissuesofshares,options,etc. 1.16 Proceedsfromsaleofforfeitedshares 1.17 Proceedsfromborrowings 1.18 Repaymentofborrowings 1.19 Dividendspaid 1.20 Other(Capitalraisingcosts) Netfinancingcashflows	" " " " " "	248 " " " " (15)
	<	233
Netincrease(decrease)incashheld 1.21 Cashatbeginningofquarter/yeartodate 1.22 Exchangerateadjustmentstoitem1.20 1.23 Cashatendofquarter	(50) 130 "	(153) 233 "
	80	80

+!See!chapter!19!for!defined!terms.!

Appendix!4C!Page!2!

Appendix(4C(( Quarterly(report(for(entities(( admitted(on(the(basis(of(commitments(

Payments(to(directors(of(the(entity(and(associates(of(the(directors(

Payments(to(related(entities(of(the(entity(and(associates(of(the(related(entities(

• Current!quarter! $'000

• 1.24! Aggregate!amount!of!payments!to!the!parties!included!in!item!1.2! 25! 1.25! Aggregate!amount!of!loans!to!the!parties!included!in!item!1.11! !

• 1.26! Explanation!necessary!for!an!understanding!of!the!transactions!

NonEcash(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!

Financing(facilities(available(

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

• Amount!available! Amount!used! $’000!! $’000!

• 3.1! Loan!facilities!! ! !

• 3.2! Credit!standby arrangements!

+!See!chapter!19!for!defined!terms.!

Appendix!4C!Page!3!

Appendix(4C(( Quarterly(report(for(entities(( admitted(on(the(basis(of(commitments(

Reconciliation(of(cash(

Reconciliationofcash
Reconciliationofcashattheendofthequarter(as shownintheconsolidatedstatementofcashflows) totherelateditemsintheaccountsisasfollows.	Currentquarter $’000	Previousquarter $’000
4.1 Cashonhandandatbank 4.2 Depositsatcall 4.3 Bankoverdraft 4.4 Other(providedetails)	80	130
	"	"
	"	"
	"	"
Total:cashatendofquarter(item1.23)	80	130

Acquisitions(and(disposals(of(business(entities(

5.1 Nameofentity 5.2 Placeof incorporationor registration 5.3 Considerationfor acquisitionor disposal 5.4 Totalnetassets 5.5 Natureofbusiness	Acquisitions (Item1.9(a))	Disposals (Item1.10(a))

Compliance(statement(

• 1! This! statement! has! been! prepared! under! accounting! policies! which! comply! with! accounting! standards! as! defined! in! the! Corporations! Act! (except! to! the! extent! that! information!is!not!required!because!of!note!2)!or!other!standards!acceptable!to!ASX.!!

• 2! This! statement! does! / ~~does! not*!~~ (delete% one)% give! a! true! and! fair! view! of! the! matters! disclosed.!

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Sign!here:!! ............................................................! Date:!31!July!2014! (Director/Company!Secretary)!

Print!name:!! !Richard!Wadley!

+!See!chapter!19!for!defined!terms.!

Appendix!4C!Page!4!

Appendix(4C(( Quarterly(report(for(entities(( admitted(on(the(basis(of(commitments(

Notes(

• 1.! The! quarterly! report! provides! a! basis! for! informing! the! market! how! the! entity’s! activities!have!been!financed!for!the!past!quarter!and!the!effect!on!its!cash!position.!! An!entity!wanting!to!disclose!additional!information!is!encouraged!to!do!so,!in!a!note! or!notes!attached!to!this!report.!

• 2.! The!definitions!in,!and!provisions!of,! AASB%1026:%Statement%of%Cash%Flows !apply!to!this! report!except!for!the!paragraphs!of!the!Standard!set!out!below.!!

• 6.2! !reconciliation!of!cash!flows!arising!from!operating!activities!to! operating!profit!or!loss!

• • 9.2! !itemised!disclosure!relating!to!acquisitions! • 9.4! !itemised!disclosure!relating!to!disposals! • 12.1(a)! !policy!for!classification!of!cash!items! • 12.3! !disclosure!of!restrictions!on!use!of!cash! • 13.1! !comparative!information!

• 3.! Accounting( Standards.( ASX! will! accept,! for! example,! the! use! of! International! Accounting!Standards!for!foreign!entities.!!If!the!standards!used!do!not!address!a!topic,! the!Australian!standard!on!that!topic!(if!any)!must!be!complied!with.

+!See!chapter!19!for!defined!terms.!

Appendix!4C!Page!5!