IMUGENE LIMITED — Capital/Financing Update 2007

Dec 16, 2007

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17 December 2007

Australian Securities Exchange 2 The Esplanade PERTH WA 6000

Dear Sir,

Shareholder correspondence

The attached letter will be posted to shareholders today.

Yours sincerely,

Alex Neuling Company Secretary

Perth Office

Sydney Office

Level 20, Allendale Square 77 St Georges Terrace Perth WA 6000 Tel: +61 8 9440 2660 Fax: +61 8 9440 2699

Registered Office Level 1, 14 – 20 Delhi Road North Ryde NSW 2113 Tel:+61 2 9870 7330 Fax:+61 2 9888 9338

ABN: 99 009 179 551

www.imugene.com

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17 December 2007

Dear Shareholder

Non-renounceable Rights Issue

Entitlement Forms & Offer Document

As you will be aware from our recent announcement and the letter sent to you earlier this month, the Company is undertaking a Rights Issue offer on the basis of 1 share for every 10 shares you held as at 11 December 2007. The Rights Issue shares are offered at 14 cents per share which is a 36% discount to the weekly weighted average price of Imugene shares over the preceding 12 months.

Your Offer Document and Entitlement Form was posted to you last week. If you wish to take up all or part of your entitlement to the new shares, the completed Entitlement Form together with your cheque in Australian dollars, crossed “Not Negotiable” and made payable to "Imugene Limited – Application Account" is required to be sent to the Company’s share Registry, Computershare, by the Closing Date of 15 January 2007.

By Delivery	By Post
Computershare Investor Services Pty Ltd	Computershare Investor Services Pty Ltd
Level 2, 45 St Georges Terrace	PO Box D182
Perth WA 6000	Perth WA 6840

or ask your stockbroker or investment advisor to accept the offer on your behalf.

Application for Shortfall Shares

Following the announcement of the issue a number of shareholders have approached the Board to enquire about purchasing additional shares in the issue beyond their rights entitlement. If you wish to apply for shares in excess of your entitlement, please contact the Company’s Underwriter, Southern Cross Equities Ltd, and register your interest. Please contact:

Mrs. Trudy Hoy Southern Cross Equities Ltd Level 32, Aurora Place Phone: 02 9231 0880 Phillip Street Facsimile: 02 9231 058888 Sydney NSW 2000

ENDS

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