Immuron Ltd — Capital/Financing Update 2012

Jan 15, 2012

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IMMURON FINALISES FUNDING FACILITY WITH PALADIN LABS

Melbourne, Australia, 16 January 2012 : Immuron Limited (ASX: IMC) announces that it has completed the debenture agreement that facilitates a funding arrangement under which Paladin will provide up to $CA 1.5 million to Immuron.

This follows the successful completion of the license agreement for Travelan[®] between both parties on 29 November 2011. Travelan[®] is a novel, over the counter (“OTC”) product that is up to 90% effective in preventing travellers’ diarrhoea (TD).

The initial drawdown under the debenture to be accessed immediately will be $CAD1.0 million and includes a coupon rate of 10% and will not be due for repayment until three (3) years from the date of the initial drawdown. Under the terms of the debenture Paladin has the right to convert all or part of the funds advanced into fully paid ordinary shares of the Company at an agreed conversion price of $A0.0473 per share.

The funding under the Paladin debenture will be used by Immuron for working capital and to continue expansion of its territories for Travelan. Further details of the conversion rights under the Paladin debenture is contained in the accompanying appendix 3B.

The license agreement terms stipulate that Paladin receives exclusive rights to commercialise Travelan in stated territories, including Canada, Latin America and sub-Saharan Africa. The upfront licence fee of $CA500,000 for those territories has been received from Paladin. As also announced on 29 November Immuron is entitled to receive additional performance milestone payments over the term of the license. Immuron retains all production and manufacturing rights and will therefore supply finished packs of Travelan[®] to Paladin for each territory as the product is progressively launched.

Roberts Mitani, LLC (www.robertsmitani.com) served as strategic advisor to Immuron in connection with this transaction.

Contact

Joe Baini – Chief Executive Officer Rudi Michelson +61 3 8637 1107 Monsoon Communications +61 3 9620 3333 0411 402 737

About Travelan

Travelan prevents travellers’ diarrhoea (TD). It is a natural product derived from Australian dairy cows that is up to 90 per cent effective.

Travelan®, made from Immuron’s bovine colostrum technology, substantially reduces the risk of developing TD, an illness afflicting up to six-in-10 travellers to high risk destinations. The caplets, which contain milk proteins derived from the colostrum of Australian dairy cows, 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 July , 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 for the Canadian and world markets. With this strategy, a focused national sales team and proven marketing expertise, Paladin has evolved into one of Canada's leading specialty pharmaceutical companies. Paladin's shares trade on the Toronto Stock Exchange under the symbol PLB. For more information about Paladin, please visit the Company's web site at www.paladinlabs.com.