Immuron Ltd — Capital/Financing Update 2016

May 30, 2016

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Dear Shareholder;

IMMURON LIMITED - RIGHTS ISSUE

Immuron Limited (ASX: IMC) (Immuron) announced to ASX on 31 May 2016 a non-renounceable pro-rata Offer to eligible shareholders to subscribe for 3 new fully paid ordinary share in Immuron for every 10 shares held as at 3 June 2016 (the Record Date) at an offer price of $0.25 (25 cents) per share (Rights Issue) to raise approximately $6 million (before costs).

Eligible shareholders who participate in the Rights Issue Offer will receive a 1:1 free-attaching New Option exercisable at $0.50 per option, expiring 3 years from the date of issue for each New Share subscribed to. The issuance options will be subject to shareholder approval at the Company’s next forthcoming meeting of members.

The Rights Issue has received firm commitments from Directors and Major Investors of Immuron as well as Shortfall Applicants, to the value of $3M. Details of the potential effect of the thus far received commitment arrangements on Immuron are set out in the offer booklet.

Eligible shareholders who take up their entitlements in full will be able to apply for any additional new shares not taken up by eligible shareholders.

It is intended that net proceeds raised from the Offer will be used to fund the following activities:

1. NASH: Phase II Results of Interim Analysis and development of MHRA Protocol / Initiation of Phase II/III Study (Europe);

2. C-Difficile: Clinical supplies and initiation of Phase I;

3. OTC: Marketing and New Market expansion for Travelan and Protectyn;

4. Colitis: Completion of pre-clinical studies;

5. Corporate: Repayment of outstanding Convertible Note Facility;

6. Working Capital: Other working capital requirements including manufacturing improvements.

You should note that should the Company not raise the aggregate $6 million proposed under the Offer, the Company will review its proposed use of funds depending on the actual amount raised.

You will receive a copy of the offer booklet and (if eligible) an entitlement and acceptance form shortly. In accordance with section 708AA of the Corporations Act 2001, a prospectus is not required for this Rights Issue.

Details of the Rights Issue are set out in the offer booklet and Appendix 3B that has been lodged with ASX. Both documents are available on ASX's website (www.asx.com.au) and on the Company's website (www.immuron.com).

Suite 1, 1233 High Street Armadale, Victoria AUSTRALIA 3143

www.immuron.com ABN: 80 063 114 045

Phone: + 61 (0)3 9824 5254 Facsimile: + 61 (0)3 9822 7735

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Summary of Key Information	Summary of Key Information
Type of offer	Non-Renounceable pro rata offer to eligible shareholders of up to 24 million fully paidordinary shares. The New Shares will rank equally in all respects from the date of allotmentwith the existing class of quoted shares.
Offer Price	$0.25 (25 cents) per New Share.
Offer Ratio	3 New Shares for every 10 existing shares held at the Record Date.Fractions will be rounded up.
Additional New Shares	Eligible shareholders will have the opportunity to apply for additional shares asoversubscriptions on their Entitlement Form.
Ranking of New Shares	The New Shares will be fully paid and will rank equally in all respects with Immuron'sexisting issued ordinary shares.
Eligible shareholders	In accordance with the ASX Listing Rules, the Directors of Immuron have determined thatthe following shareholders will be eligible to participate in the Entitlement Offer:� holders of shares in Immuron, who are entered on the register of shareholders, as atthe Record Date;� who are resident in Australia and New Zealand;� who are not US Persons (as defined in Regulations made under the Securities Act1933 (US)); and� who are not acting on account for or on behalf of US Persons.

Indicative Timetable - Event	Date
Announcement of Rights Issue, Offer Document, Appendix 3B and cleansing notice lodged	Tues, 31 May 2016
with ASX
Offer Document lodged with ASX	Tues, 31 May 2016
Notice to Shareholders containing information required by Appendix 3B	Wed, 1 June 2016
Ex-date – the date on which Shares commence trading without the entitlement to	Thurs, 2 June 2016
participate in the Rights Issue
Record Date – the date for determining entitlements of Shareholders to participate in the	Fri, 3 June 2016
Rights Issue
Dispatch of Offer Document and Entitlement and Acceptance Form	Wed, 8 June 2016
Rights Issue opens for acceptances	Thurs, 9 June 2016
Closing Date	Mon, 20 June 2016
Notification to ASX of under-subscriptions	Thurs, 23 June 2016
Allotment of New Shares	Mon, 27 June 2016
Commencement of normal trading	Mon, 27 June 2016

• These dates are subject to change and are indicative only. Subject to compliance with the ASX Listing Rules, Immuron reserves the right to:

(i) not proceed with the Rights Issue and return any applications moneys received without interest; or

(ii) vary the dates and times above including closing the offer earlier or later.

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If you are eligible and wish to participate in the Rights Issue, it will be necessary for you to complete your personalised entitlement and acceptance form which will accompany your copy of the offer booklet and return it, with the appropriate application monies, to the company's share registry before 5:00pm WST Monday 20 June 2016.

If you have any questions in relation to the Rights Issue, please do not hesitate to contact Immuron on +61 (0)3 9824 5254.

For and on behalf of the Company;

Yours sincerely,

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Peter Vaughan Company Secretary Immuron Limited

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