Immuron Ltd — AGM Information 2006

Nov 13, 2006

November 14th, 2006

Company Announcement Office Australian Stock Exchange Ltd (ASX) 4^th Floor, 20 Bridge Street Sydney NSW 2000

Dear Sir/Madam

Please find herewith a company announcement "Chairman's Address and AGM Presentations" for release and distribution to the market immediately.

Yours sincerely

CONOR GRAHAM Managing Director & CEO

Anadis Limited AGM speech 2006

Fellow shareholders, ladies, and gentlemen,

Result for year

The first comment I should make relates to the result for the year. The net loss in the year ended 30 June 2006 is higher than previous vears. There are three principal reasons for this. Firstly, we spent money on promotion of Travelan, secondly our revenue flow was lower than prior years, a temporary impact in our operations for Aussie Bodies, and thirdly, we wrote off our goodwill from the Shannon Bioscience acquisition in late 2000.

Manufacturing.

The Company's manufacturing activities continue to be good. Just after year end, Anadis signed a further two year agreement with Aussie Bodies to continue preparing their products. This is a good result. Recently, the ultimate owner of Aussie Bodies, Healtheries, a New Zealand company, was sold to a private equity group, but we have no concern that this should impact our contract with Aussie Bodies.

In the first four months of July to October inclusive, we had Aussie Bodies turnover slightly under \$900,000. This augers well for the year.

Of course, we have a number of other manufacturing clients as well as Aussie Bodies.

Research & Development.

On the research side, we continue to be very effective. Our CEO, Conor Graham, will provide more detail on that after the meeting.

I shall speak later about EV71. However, our other projects all are progressing well. We continue to attract grants to assist our research, credit for which should go to Grant Rawlin, our research manager.

We have developed products that diagnose, contain, and provide respiratory protection against anthrax, the plague, ricin, and botulism. We are exploring the possibility of containing influenza (and recently appointed Assoc Prof Lorena Brown to our technical advisory panel). We are continuing to develop our product to counter gastritis, and exploring whether we can counter the new Clostridium difficile associated disease threat.

Executive remuneration.

One of the messages we are receiving from shareholders is that the senior executives do not participate in the risk of the company. We are taking steps to counter that.

Firstly, we are looking to change the company's constitution by removing clause 116. This clause prevents the company from issuing each employee with \$1000 in value of company shares. We want to do this, so that each employee has some –and it might seem minor- stake in the company. The benefit of this is that each employee then has a stake in the company (which potentially grows each year) and is consequently interested in the company's success.

Secondly, we would like to upgrade a bonus scheme whereby each of the senior executives can be rewarded with options. These options will be exercisable above the current share price. The board believes this change in remuneration gives each of the senior executives some incentive to ensure the company succeeds.

Travelan.

Our first product, Travelan, came onto the market approximately 2 years ago. It is a preventative product, and consequently the market needs to be persuaded to give the product a try. Certainly, any experiences we have had reported to us is usually strong in its praise. David Lyon, our marketing person will report at more length about Travelan. However, I can say that the sales to date have been less than we anticipated, although overseas markets are now showing some interest in this product. We have had our first order from Canada, and other places like USA, and South Africa have had distribution agreements completed. These distribution agreements require the distributor to take on the relevant advertising programmes in their countries.

One of the encouraging responses to Travelan from a significant number of users in the marketplace, has been its apparent benefit as an adjunct treatment for people with chronic diarrhoea problems such as Inflammatory Bowel Disease (IBD). These observations have come both from direct purchasers of the product and also from doctors. In response to these strong field reports we are now doing some research to determine if these observations are indeed scientifically supportable. If there is a real effect, Travelan might also become a drug to help relieve the symptoms of a number of chronic diarrhoea conditions. If this proves to be the case, it will provide additional major markets for Travelan. The trial is being run at in the Gastroenterology Department of St Vincent's Hospital in Melbourne under the leading IBD expert, Dr Bill Connell.

Cash position.

This leads on to the company's cash position. You will have noted in both the half year to 31 December 2005, and in the annual accounts that the auditor is concerned.

In June of this year, we had a capital raising, that yielded \$1.7 million. We shall need to raise more cash in the next few months. The major investor in that June capital raising was an existing shareholder, although we did manage to attract some new investors as well.

Our unaudited operations to October 2006 have resulted in a loss of approximately \$600,000. Our cash reserves at the end of October are \$1.48 million. We have achieved this result by keeping an eye on expenses, particularly promotion costs. The manufacturing operations continue to make a positive contribution.

One of the items on our agenda today, is a refreshment of the 15% limit on shares on issue. Without this "refresher", any share issues until June next year are limited to a little over 8%. We do not want to be constrained by this limit. There are no plans for any share issues currently, but we need the flexibility to be able to raise more than 8%.

Additionally, of course, we do own our premises in Campbellfield. It is unusual for a company our size to own our premises. There are a number of measures we could take to utilize this asset to raise cash. These strategies could release up to \$1 million in cash.

Directors' shareholdings.

There are two apparent reductions in directors' shareholdings during the year. They each deserve comment. The reduction in Conor Graham's shareholding arose from the forfeiture of the shares issued to him as part of the Shannon Bioscience acquisition in November 2000. Those shares were subject to the company's share price reaching certain levels, and this did not occur. The reduction in the shareholding of Dr Peter Jenkins arises from a transfer of shares to his superannuation fund.

EV71.

I would like to conclude my comments focusing on EV71.

As many of you will know, enterovirus 71 is a polio like disease prevalent in Asia. We have developed a nutraceutical which contains neutralising antibodies to that virus. The product is being designed to be taken by children up to 14 years of age during the summer months. We have injected the cattle, and we are now collecting the colostrum from the cows. This will be processed and then shipped to Taiwan by May of next year, in time for its summer. We are currently concluding distribution agreements in Taiwan, and expect the product to be successful.

Appreciation.

Finally, I would like to thank my board for its support. The board works well. I would also like to thank Conor Graham, our CEO, and his team for their continuing commitment and effort to the success of Anadis.

The board is very conscious of the need to get our share price moving, complete some deals, and enjoy some positive cash flow.

Thank you.

Philip Molyneux Chairman - Anadis Limited 14 November 2006.

Annual General Meeting November 2006

Mr. Philip Molyneux Chairman

Result for year ANADI

• Lower result for year due to:
• Travelan promotion
• Less revenue (temporary)
• Write off Shannon Bioscience Goodwill

Manufacturing

• New 2 year Aussie Bodies contract.
• Increasing number of other clients.
• Continued positive contribution to company.
• Facilitate future manufacture of our own high value products.

Research Programs

• Travelan expansion for other gastrointestinal conditions
• Biological Agent Management - Anthrax, Plague, Ricin, Botulism
• Influenza A (Flu) preventative
• H.pylori Pyloran
• Clostridium difficile associated disease
• Functional Foods

Executive Remuneration

• Remove clause 116 of constitution
• Allow staff to receive shares as remuneration
• Upgrade bonus based on options

Travelan

• Local sales slower then expected but small market.
• Overseas distribution expanding key markets for significant sales.
• Research on Inflammatory Bowel Disease / Irritable Bowel Syndrome.
• New Packaging.

• Loss to October \$600,000
• Cash on hand \$1.4 million
• Opportunities
• Freehold at Campbellfield
• Strategic Investment
• Government Grants

Directors' share movements

• Conor Graham forfeits shares from Shannon
• Peter Jenkins transfer to super fund

Enterovirus 71

• Polio like disease
• Cattle injected
• Colostrum collected
• Processing to occur
• Aiming for May distribution (Taiwan summer)
• Efficacy outstanding

Annual General Meeting November 2006

Mr. Conor Graham

Managing Director & CEO

Project Review

• Enterovirus 71
• $\cdot$ IBD / IBS
• H.pylori
• Inflenza A
• Biodefence
• Infant Formula & Immune Stimulating Foods
• C.difficle

Enterovirus 71

• Have short-listed potential distributors
• Product design registration underway
• Packaging & labeling being designed
• Final packaging contractor being sought in Taiwan
• Trade name "EVProtec" being sought

IBD/IBS

• Anecdotal evidence suggests Travelan may be of assistance for ulcerative colitis & Crohn's disease
• Close to finalising protocol for pilot study in patients at St. Vincent's Hosp. Melb.
• Market is well defined & accessible
• Travelan already approved for sale and available if study positive

• Human vaccine development proceeding
• Target antigens identified
• Possible animal trials next year- subject to funding & resources

Influenza

• Prof. Lorena Brown appointed to Anadis SSC to help investigate potential of colostral antibodies for Influenza
• "Proof Of Concept" study well underway
• Antibodies already produced
• Animal trials 1^st half of 2007
• If study positive will seek partner for further development & commercialisation

Biodefence

• Antibody trials in mice have been successful for Anthrax, Plague, Ricin & Botulinum
• Applications for both military & public health
• Technology also useful for diagnostic purposed
• Seeking further funding from Prime Minister in Cabinet to advance further

Immune Stimulating Foods

• Joint R&D and commercialisation venture with Tatura Milk Industries (TMI)
• R&D has shown that antioxidants can be expressed naturally in final product through proprietary feed regime in cows
• Bio-availability & take-up in mouse model now commencing
• TMI currently exploring commercialisation with Asian partners

• Hospital "Superbug" with resistance to antibiotics
• Major problem in North America and Europe with large no. of cases & spreading rapidly
• We intend to test effectiveness of colostral antibodies against C.difficile
• Currently negotiating a JV with Canadian Co. and Canadian research groups to conduct trial of our antibodies

Annual General Meeting November 2006

Mr. David Lyon

Sales & Marketing Manager

CONTENT

Travelan - What and who? The Marketing Model Travelan promotion International expansion Therapeutic extension

MARKETING STRATEGY

BASIC STANCE

Travelan^® is positioned to consumers as the unique and clinically proven diarrhoea solution that delivers superior natural prevention from Travellers' Diarrhoea*.

* In executional/consumer terms: Bali Belly, Montezuma's Revenge, Delhi Belly, etc...

MARKETING STRATEGY

TARGET MARKET

Adults who travel. Primary:

Adults who occasionally venture outside their Secondary: normal daily environments.

MARKETING STRATEGY- A MODEL

Packaging:

• Post launch colour change to address category understanding and global positioning and image.
• Additional travel clues.
• Change the couple and situation.
• Additional consumer information on Travellers' Diarrhoea.

TAYARD

Pricing:

• Retail pricing to be competitive.

NEW PACK

New pack livery:

Manual Property Party THEY GIET

Travelan®

MARKETING STRATEGY- A MODEL

Promotion:

-Focused activity during our 2^nd year.

• Informing the opinion leaders about Travelan.
• Educating the professionals at clinic and pharmacy level
• Targeting high profile testimonial led tie -in opportunities.

MARKETING STRATEGY- A MODEL

Testimonial led promotion:

• Our aim is to work with high profile sport people and sporting bodies, both in Australia and overseas to get the message about Travelan out to the general public

my world stuart macqill, cricketer -

A taste for the lot

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GREATEST TRAVEL LUKURY'T

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FANDURITE ALISSIE HEL INAN ZEIT 7

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Yalan

New in-pack leaflet.

New on-shelf leaflet.

New retailer club member / catalogue advertising

The benefits of Travelan

• . It works: Hospital clinical trials have proven that Travelan significantly reduces the risk of contracting Travellers' Diarrhoea.
• « Reduced risk of TD: Enables you to get more out of your travel.
• * It's Convenient: One single capiet, taken prior to meals provides targeted action.
• · Natural active incredients.
• . Travelari significantly reduces the symptoms of minor gastrointestinal discriders and associated discomforts.
• · It's cost effective.

Gastro intestinal disorders

Travelan will also significantly decrease the severity of the symptoms of minor gastro-intestinal upset, however if you do contract Travellers' Diarrhoea (TD) we recommend you seek medical advice if symptoms. persist after 48 hours.

Not suitable for children under 6 years of age except on professional health advice.

Why expose yourself to the debilitating effects of TD when you can reduce the risk with Travelan.

Risk Areas for Traveller's Diarrhoea

1D can occur at any time. whilst traveling cutside your normal environment, cire to the difference in bacterial that is present or because of poor hygiene practices.

Elowever your changes of gesting 1D are at critectly increased in certain areas... sach as South and Laster Araerica: Africa, the Middle East Asia and Indian Sub-Contract: Areas with poor samra ion, particularly of the water supply are presently. at high risk.

How does Travelan work?

Using patented technology. Travelan works against bacteria as they enter the body, preventing them from attaching to the intestinal walls and thereby neutralising. their ability to cause TD and its associated symptoms.

1. TRAVELART Á YTSEGLOTT CONTRACTORICIDE CONTRACTOR

INTERNATIONAL

INTERNATIONAL

WaXakin

.DISTRIBUTION - PARTNER REQUIREMENTS

• Solid & successful
• Interested & keen
• National sales company
• Presence in appropriate retail outlets
• Multi product not orphan drug company
• Finances to support Travelan launch
• Marketing support
• Technical service
• Strong industry relationships
• Market credibility

INTERNATIONAL

STATUS TO DATE

• Distribution Agreements signed covering 6 areas -USA, Canada, South Africa, South East Asia, Turkey & Eastern Europe and Korea
• MOU in place covering Pakistan and The Middle East
• Undertaking review of potential partners in India. To be finalised early 2007
• Working with 2 European companies on the road to the EU

Verekin

I ISA

CYNACON / OCUSOFT

• Houston TX based existing successful distributor.
• Offers national sales coverage and good key account contacts and expertise.
• Senior management well credentialed and experienced.

WaYakin

• Will set up support advisory board.
• Will promote Travelan as a Medical Food.
• Broader positioning than we could achieve.
• "Helps prevent and treat diarrhea."

CANADA

VALEO PHARMA

• Quebec based "one stop shop" Pharmaceutical company.

Travelan®

• OTC and prescription experience.
• The company is relatively young, it is flexible and hungry for growth.
• First order received

SOUTH AFRICA

Pharmaco

• Established Pharmaceutical distributor.
• Expertise in both pharmacy and medical industries.
• Full African continent coverage.
• OTC and prescription expertise.
• Currently working with large and small international pharmaceutical partners.

Travelan®

SOUTH EAST ASIA

reBorne Health

• Established OTC and complementary health products marketer and distributor in Singapore, Malaysia, Philippines and Indonesia.
• Full health industry coverage.
• Markets mass market consumer friendly products.

TURKEY & EASTERN EUROPE

BIO - GEN Pharma

• Significant supplier to the Turkish market and and offering a gateway to Eastern Europe
• Prescription, Medical Systems and OTC supplier.
• Sales coverage to 150 pharmaceutical warehouses, 15,000 pharmacies and all hospitals.

VRYSA

• Partners with several key global health care companies.
• Offers wholesaler opportunities.

KOREA

BL & H co

• Founded 1999, based in Seoul.
• A full service health care company
• R & D, Regulatory Affairs, Marketing & Distribution.

Travelan®

• Supplying:
• Pharmaceuticals OTC & prescription
• Medical devices
• Nutraceutical foods

OTHER INTERNATIONAL

• Working with a Pakistan based distributor in Pakistan and The Middle East markets
• Working with 2 European companies on the launch of Travelan into the EU - $(1)$ focus on UK & Scandinavia and (2) focus on Western Europe.

THERAPEUTIC EXTENSIONS

• Medical professionals and users have provided positive clinical feedback, that additional gastrointestinal indications have been alleviated during use of Travelan.
• Anadis intend to investigate the very significant Ulcerative Colitis (IBD) market opportunities.

TEYSEI

• Trial to begin recruiting very shortly.

• A real and significant consumer need for Travelan.

• A real and significant consumer need for Travelan.
• The market demand is primarily outside of Australia.

• A real and significant consumer need for Travelan.
• The market demand is primarily outside of Australia.
• Fear is the greatest influence on demand.

• A real and significant consumer need for Travelan.
• The market demand is primarily outside of Australia.
• Fear is the greatest influence on demand.
• Travelan is a considered purchase, post personal recommendation by respected promoter e.g. friend Doctor or Pharmacists etc.

Travelan®

• A real and significant consumer need for Travelan.
• The market demand is primarily outside of Australia.
• Fear is the greatest influence on demand.
• Travelan is a considered purchase, post personal recommendation by respected promoter e.g. friend Doctor or Pharmacists etc.

Traxelan®

• Travelan is a slow build product.

• A real and significant consumer need for Travelan.
• The market demand is primarily outside of Australia.
• Fear is the greatest influence on demand.
• Travelan is a considered purchase, post personal recommendation by respected promoter e.g. friend, Doctor or Pharmacists etc.
• Travelan is a slow build product.
• Significant time has been invested so far in identifying and signing-on "the right" distributor in overseas markets.

Travelan®

• A real and significant consumer need for Travelan.
• The market demand is primarily outside of Australia.
• Fear is the greatest influence on demand.
• Travelan is a considered purchase, post personal recommendation by respected promoter e.g. friend, Doctor or Pharmacists etc.
• Travelan is a slow build product.
• Significant time has been invested so far in identifying and signing-on "the right" distributor in overseas markets.
• Significant other therapeutic market opportunities are to be investigated during 2007.

Thank You