IMUGENE LIMITED — Capital/Financing Update 2010

Jul 1, 2010

==> picture [567 x 99] intentionally omitted <==

ASX Announcement

Shareholder Update

2 July 2010

Commercial Negotiations

Imugene has progressed the commercial licensing negotiations since the last shareholder update. Following discussions with several parties over the past few months, Imugene has selected a preferred partner from the shortlist of potential partners and entered into extensive due diligence.

Imugene’s preferred bidder, an international animal health company, is finalising the due diligence review on Imugene’s technology and worldwide intellectual property position. During this time discussions with the other interested parties are on hold.

Imugene is offering a worldwide, exclusive licence to all of its intellectual property in return for reimbursements of expenditure, fees, milestone payments and royalties.

Dr Warwick Lamb, CEO of Imugene said “It is our priority to secure a deal that will deliver the best possible value for shareholders and see Imugene’s portfolio of animal vaccines and productivity enhancers commercialised and taken to market. Taking the necessary time to select the right partner and ensuring both parties expectations are aligned is critical to achieving this outcome.

“I am pleased to report that following several months of discussions with a number of strong candidates, several who remain interested parties, we have advanced into the final due diligence stages with one preferred partner. Financial terms are still being negotiated and we intend to have an outcome this current quarter.”

Imugene advised that the name of the potential partner and possible terms must remain commercial in confidence until negotiations are completed.

PRRS vaccine trial underway in US

In parallel with partnering discussions, Imugene has continued to advance the development of its vaccines, including the Porcine Reproductive and Respiratory Syndrome (PRRS) vaccine.

ABN 99 009 179 551

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

www.imugene.com

Shareholder Update – July 2010

==> picture [85 x 32] intentionally omitted <==

A PRRS challenge trial is now underway in the USA. The purpose of the trial is to determine evaluate certain aspects of the vaccine which will assist with advancing the product development process including manufacturing cell line selection.

In terms of trial progress, two vaccine doses have been administered to 60 pigs, without any reaction or health issues. All pigs including the control pigs have now been challenged with the PRRS virus. The trial will finish in the coming weeks and trial results are expected in the coming quarter.

• ENDS -

About Imugene

Imugene specialises in commercialising animal health products for production animals including pigs and poultry.

Imugene owns the worldwide rights to the Fowl Adenoviral Vector Delivery System for poultry and the Porcine Adenoviral Vector Delivery System for pigs. Since establishing a laboratory at La-Trobe University, Victoria, additional vaccine technology has been developed for the pig and poultry industries.

Imugene's poultry and pig vaccine portfolio is targeting a worldwide US$3 billion annual market with several lead vaccine products under development and a strong product pipeline. Consumer demands for disease free and residue free food will bolster Imugene's prospects.

For more information please visit the Imugene Website www.imugene.com or contact:

Dr Warwick Lamb Mr Graham Dowland Managing Director Executive Chairman +61 2 9870 7330 +61 8 9440 2660

Page 2 of 2