Immuron Ltd — Management Reports 2012

May 16, 2012

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ABN: 80 063 114 045 Level 1, 39 Leveson Street North Melbourne, Vic 3051 Tel: +61 3 8637 1107 Fax: +61 3 9328 1675 www.immuron.com

17 May 2012

Dear Shareholder

CEO Letter to Shareholders

Over the last six months, Immuron has announced several important transactions that confirm that the globalisation of Travelan® is underway. There is now an increasing level of excitement and anticipation as we work to complete additional deals that will result in revenue streams many other biotechnology and drug development companies aim to achieve.

We thank you, our early investors, for standing by us through many years, and our newer investors for coming on board at such an exciting time. If it were not for you, we would not be here today. Through our meetings in person or by phone, you have confirmed that you rely on us to continue to not just build the Travelan business, but to develop new products that can treat diseases and positively impact people across the globe. Your confidence in Immuron will continue to drive our growth in 2012 and into the future.

So what have we achieved in the past 12 months?

• Restructuring the Board of Directors and the management team to align with our commercial biotechnology focus.

• Significant and targeted reductions in expenditure as foreshadowed at the 2011 AGM.

• Travelan licence to Paladin Laboratories Inc. for Canada, Latin America and African territories. This included a $500,000 up front (non-dilutive) licence fee, providing true value for our flagship product.

• Paladin Labs submitting Travelan for regulatory approval in Canada, the next step on their path to first orders and sales.

• US FDA clearance of the IND for the Fatty Liver/NASH product, IMM-124E, to allow commencement of the Phase IIb clinical trial.

• Travelan licence to IntegraMed for 5 countries in SE Asia.

• Travelan licence to Ziwell for 2 countries in SE Asia.

• Building a strong Intellectual Property portfolio to support current products and provide significant potential to capture value in the future.

• Building a market focused R&D program with our partners, Hadassah Medical Center, Monash University and the University of Melbourne.

As you know from our previous updates, NASH/fatty liver is regarded as the one of the “last frontiers” for liver disease since there is no approved product for treatment. The FDA’s approval to commence the Phase IIb clinical trial puts us in a great position to commence these trials once additional funding is available. The importance of being able to develop a product to treat this life threatening disease, together with the potential for significant revenues, is recognised by major pharmaceutical companies – we continue discussions with a number of these.

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Since IMM-124E provides Immuron with the opportunity to gain significant market value, it remains a focus for the company. When added to our pipeline which includes our Influenza and C. difficile products, it is easy to understand why the excitement is rising.

The company has never been in better shape. The completion of the recent capital raising through one of Australia’s most credible broking houses, Patersons Securities, is testament to this. While we recognise that the share price is a concern, it is important to note that in our view, it does not even reflect the value of globalisation of Travelan.

The new Board and management team have been instrumental in driving the necessary changes, and we firmly believe that we have the levers in place to create a strong future especially now that we have sufficient cash in the bank to enable Immuron to deliver more potential commercial licenses.

. I look forward to sharing with you the success of our company over the coming months and years. We appreciate your loyalty that is enabling us to bring the promises to fruition. I encourage you to continue your support of Immuron.

Yours sincerely

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Joe Baini Chief Executive Officer

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