Immuron Ltd — Capital/Financing Update 2011

Nov 28, 2011

==> picture [53 x 35] intentionally omitted <==

==> picture [55 x 35] intentionally omitted <==

==> picture [55 x 35] intentionally omitted <==

==> picture [4 x 35] intentionally omitted <==

IMMURON SIGNS TRAVELAN® LICENCE DEAL WITH PALADIN LABS FOR CANADA, LATIN AMERICA & AFRICA

• Upfront licence fee of $500,000

• Potential milestone payments up to $115m over period of the agreement

• Immuron secures further $1.5m funding from Paladin

• Immuron retains all Travelan manufacturing rights

Melbourne, Australia, 29 November 2011 : Immuro n Limited (A S X: IMC) an d Paladin La b s Inc. (TSX: PLB) today announced that th e y have sign e d a license and distribu t ion deal under whi c h Paladin r e ceives the e x clusive rights to market and sell Tra v elan in Can a da, Latin Am e rica (includi n g Brazil, M e xico, Argen t ina and Col o mbia),as w e ll as sub-Sa h aran Africa (including South Africa). Tra v elan is a no v el, over the counter (OTC) product t h at is up to 90% effe c tive in prev e nting travellers’ diarrho e a (TD).

Under the terms of this agre e ment, Pala d in receives e xclusive rig h ts to comm e rcialise Tra v elan in t h e stated territories. In e x change Im m uron will re c eive an upfr o nt payment of $CAN50 0 ,000 and potential sales performa n ce milesto n e payments over the ter m of the agr e ement that c an agg r egate up to $CAN115 million. Immu r on also retains all produ c tion and m a nufacturing righ t s and will th e refore sup p ly finished p a cks of Trav e lan to Pala d in for each t erritory as t h e pro d uct is progr e ssively launched.

In a d dition to th e exclusive ri g hts to Trav e lan, Paladin was grante d an option t o consider t h e righ t s to Immuron’s potential influenza pr o duct (IMM 2 55) in the s a me territori e s. Any futur e arrangements b e tween the t w o compani e s in respect of IMM 255 w ill be the s u bject of a sep a rate agree m ent.

Im m uron and P a ladin have a lso entered i nto a fundin g agreement, subject to c ertain closing con d itions, und e r which Paladin will provide up to $C A N1.5 millio n to Immuron in the form o f a sec u red convert i ble debentu r e. It is inten d ed that this funding will b e used pri m arily for the ong o ing global c ommercialis a tion of Tra v elan and fut u re product d evelopment .

“Thi s is a major e vent in the h istory of Im m uron and an important s tep in our e x panded ma r ketfoc u sed comme r cialisation s t rategy,” sai d Joe Baini, Immuron’s C h ief Executi v e Officer. “ T his agr e ement highl i ghts the glo b al appeal o f our in-mar k et and flags h ip product T ravelan. O n the bac k of continu e d strong sal e s in Australia by our loc a l partner Nycomed, this a greement con f irms the gro w ing strategic interest in Travelan an d our platfor m technolog y .”

Pal a din Interim P resident an d Chief Exe c utive Officer, Mr Mark B e audet said “ T ravelan pro v ides Paladi n a unique a n d differentia t ed product f or the prevention of trav e llers’ diarrh o ea that will further e xpand both o ur OTC por t folio in Can a da and our s trategic foo t print across em e rging markets.” Ro b erts Mitani, LLC (www.robertsmita n i.com) ser v ed as strategic adviso r to Immur o n in con n ection with t his transaction.

Contact Joe Baini – Chief Executive O fficer Rudi Mi c helson +61 3 8637 110 7 Monsoon Communi c ations +61 3 9 6 20 3333 0411 4 0 2 737

About Travelan[®]

Travelan is an extremely effective product that prevents travellers’ diarrhoea (TD). It is a natural product derived from hyper-immune colostrum that is up to 90 per cent effective.

Travelan, made from Immuron’s hyper-immune colostrum technology, substantially reduces the risk of developing TD, an illness afflicting up to six-in-10 travellers to high risk destinations. The Travelan caplets neutralise the Escherichia coli bacteria – the leading cause of TD – before the onset of symptoms.

In a randomized, controlled clinical trial published in the peer-reviewed Scandinavian Journal of Gastroenterology in June 2011 , Australian and Polish researchers established the 90 per cent efficacy finding and that the Travelan oral formulation contains antibodies that significantly reduce the risk of diarrhoea and helps reduce the symptoms of minor gastrointestinal conditions.

About Immuron Limited

Immuron is a biopharmaceutical company focused on oral immunotherapy treatments using dairy-derived antibody products for humans. Immuron is uniquely positioned with a versatile technology platform capable of generating a wide range of products with a high safety profile. This high safety profile makes it possible to complete pre-clinical studies relatively quickly and increases the prospect that the clinical development of Immuron’s products will be expedited. Immuron’s current products and product candidates target infectious diseases of the gastrointestinal tract, chronic diseases such as fatty liver (NASH), and the prevention of influenza. Immuron has one product in the market, Travelan, for preventing travellers’ diarrhoea.

Immuron’s main scientific alliances are with Hadassah Medical Center (Israel), the University of Melbourne and Monash University (Australia).

About Paladin Labs Inc.

Paladin Labs Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products. With this strategy, a focused national sales team and proven marketing expertise, Paladin has evolved into one of Canada's leading specialty pharmaceutical companies. For more information, please visit the Company's web site at www.paladinlabs.com.

Paladin's strategy is to leverage its strong sales and marketing capabilities with the acquisition and in-licensing of complementary products. Continued growth will be fueled by the launch of innovative products - principally sourced from small to medium sized pharmaceutical and biotechnology companies with promising technology but no sales and marketing capabilities in Canada. Based on our proven track record for marketing and selling innovative pharmaceuticals in Canada, Paladin will become the partner of choice for these emerging new companies.