Immuron Ltd — M&A Activity 2016

Oct 4, 2016

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Allergan’s USD$1.7B Acquisition of Tobira Therapeutics Highlights the Continued Demand for NASH Assets

Melbourne, Australia, Wednesday 5[th] October, 2016: The proposed US$1.7 billion takeover of Tobira by Allergan is a significant affirmation of Immuron’s strategy of progressing the Phase II clinical trials of its fatty liver drug, IMM-124E.

Thomas Liquard, CEO of Immuron commented:

“This takeover shows that large pharmaceutical companies, such as Allergan, are continuing to invest heavily in the nonalcoholic steatohepatitis (NASH) market space. With increasing rates of obesity and type-2 diabetes around the world, NASH is now becoming an epidemic chronic disease for which, at this stage, there are no approved treatments. This dynamic is driving a significant increase in licensing and M&A activity surrounding NASH assets.”

Allergan’s takeover was priced at a six times multiple of the previous closing trading price of Tobira. This resulted in Tobira’s market capitalisation to soar from just USD$89.2 million to USD$725 million in one day. Allergan’s acquisition of Tobira continued despite its lead drug candidate, cenicriviroc, having suffered a setback after meeting only one of the two primary endpoints in treating in its Phase II NASH clinical trial.

Allegan also paid USD$50 million plus milestone payments for privately held biopharmaceutical company Akarna Therapeutics, which has some complementary early NASH drug candidates.

Added Mr Liquard:

“As we have been reporting, the evidence is now mounting that NASH is a multi-factorial disease. This is a key driver of the increased level of licensing/M&A activity in NASH, as it is likely that there will be several therapies needed to control this condition and therefore the opportunity for several $Billion winners.

Unlike our competitors, which target only one or two pathways, Immuron’s IMM-124E works upstream and on several pathways to reduce liver inflammation and is thus a completely unique option. The great therapeutic potential of this broad and unique mechanism of action, is a key reason why IMM124E was selected as the principal investigational agent for two NIH-funded clinical trials, and why Dr Arun Sanyal requested to be the Principal Investigator of our Phase II NASH clinical trial.

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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Based on all the evidence presented by our competitors’ trials to date, as well as the increasing activities in the business development market, we not only continue to believe in IMM-124E’s potential as one of the key assets in development for NASH, but also that our investments in the fatty-liver disease space are on the right path.

The increased M&A activity in NASH highlights the potential value that can be extracted from our IMM-124E programs as the NASH market is increasingly recognised by the investment community. This was likely a driving factor behind Immuron’s oversubscription, which was announced yesterday (4[th] October 2016).”

Immuron is currently running three Phase II clinical trials in fatty-liver diseases with IMM-124E including NASH, ASH (Alcoholic Steatohepatitis) and Pediatric NASH. Both the ASH and Pediatric NASH trials are funded by the US National Institutes of Health (NIH).

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Company Contact: Immuron Media Relations: Thomas Liquard John Beveridge Chief Executive Officer Monsoon Communications AUS Ph: +61 (0)3 9824 5254 AUS Ph: +61 (0)3 9620 3333 thomasliquard@immuron.com johnb@monsoon.com.au

About Immuron:

Immuron Ltd (ASX: IMC; OTCQB: IMROY) is a microbiome company focused on developing and commercialising oral immunotherapeutics for the treatment of a many gut mediated diseases. Immuron has a unique and safe technology platform that enables a shorter development therapeutic cycle. The Company currently markets and sells Travelan® for the prevention of Travellers’ diarrhoea, whilst its lead product candidate IMM-124E is in Phase 2b clinical trials for NASH and ASH. These products together with the Company’s other preclinical immunotherapy pipeline products targeting immune-related diseases currently under development, will meet a large unmet need in the market.

For more information visit: http://www.immuron.com/

Forward-Looking Statements:

Certain statements made in this release are forward-looking statements and are based on Immuron’s current expectations, estimates and projections. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “guidance” and similar expressions are intended to identify forward-looking statements. Although Immuron believes the forward-looking statements are based on reasonable assumptions, they are subject to certain risks and uncertainties, some of which are beyond Immuron’s control, including those risks or uncertainties inherent in the process of both developing and commercialising technology. As a result, actual results could materially differ from those expressed or forecasted in the forward-looking statements. The forward-looking statements made in this release relate only to events as of the date on which the statements are made. Immuron will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this release except as required by law or by any appropriate regulatory authority.

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