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Half Year Financial Results and Operations Report

February 2012

Imugene Limited (ASX Code: IMU) specialises in the development and commercialisation of novel animal health products for pigs and poultry. Our range of products under development includes vaccines to prevent important livestock diseases and productivity enhancers to improve the economics of raising commercial livestock.

Imugene has today released its Interim Financial results for the six month period ended 31 December 2011 reporting revenues of $243,743 and a net loss of $2,680,557. Closing cash balance at 31 December 2011 was $1.5 million.

Full details of the financials are contained in the attached report. The following commentary provides an update on corporate activity and operational highlights for the previous two quarters.

Highlights

Negotiations continue on existing technology
Investigating new business opportunities

Technology Review

During the final quarter of calendar 2011, Imugene completed a review of its vaccine products and intellectual property portfolio to determine the most appropriate path to follow after the termination of the global license agreement effected late September 2010. The review included some information from our former licensee, including the results of two trials that were undertaken by them.

The review considered both the commercial and scientific aspects of our vaccine products and intellectual property portfolio. The key conclusions are that there are components of our technology that have strong commercial prospects, particularly the pig vaccines. The strong trial results we have generated over the years seem not to always be reproducible when our protocols for determining vaccine concentrations and doses are not followed precisely. Additionally, Imugene has no control over the commercial parameters set or chosen for the successful progression of the vaccines through a partners product development program.

We are considering new approaches for delivering certain vaccines to maximize the efficacy of these vaccines, concentrating on the Porcine Reproductive and Respiratory Syndrome (PRRS) vaccine initially. We are undertaking discussions with interested parties to determine the level of commercial interest in progressing our technology.

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

Interim Financial Report & Update – February 2012

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The cocci vaccine program has been placed on hold following the review of trial results. Whilst the original vaccine showed great promise against the main strain of coccidiosis seen commercially, an effective vaccine would also need to protect against at least two other strains. This was not achieved in the trial and the time to make the additional components of the vaccine to provide that protection would not be commercially viable.

Given the shorter patent lives of the poultry products and the significant amount of further development required for the cocci vaccine, we are placing the development of all poultry vaccines on hold at this time.

We have also taken a prudent approach to all expenditure, research and overhead expenses, for 2012. As stated in previous announcements, laboratory development work has been completed and the laboratory facility at La Trobe University in Melbourne was closed down at the end of October 2011.

New Business Opportunities

The Board is investigating new business opportunities to add value to the Company’s assets. The Company will update when progress is made.

About Imugene

Imugene Limited (ASX:IMU) specialises in the development of animal health products for pigs and poultry, including vaccines and productivity enhancers.

These biologically-based vaccines:

Improve the health and welfare of pigs and poultry
Reduce or eliminate the use of antibiotics, chemicals and drugs, and;
Result in economic gains for the industries that use them.

Imugene's product portfolio targets a worldwide US$3 billion animal health market and contains vaccines at each stage of the development process.

Imugene’s vaccines address some of the major diseases and health issues threatening pig and poultry production worldwide, such as Porcine Reproductive and Respiratory Syndrome (PRRS), which causes losses of up to US$1 billion every year.

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

Dr Warwick Lamb Kyahn Williamson Managing Director Investor Relations Buchan Consulting +61 8 9440 2660 +61 (0) 40 1018 828

Page 2 of 2

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ABN 99 009 179 551

Appendix 4D – 31 December 2011 Half-Year Report

1. Reporting Period

The current reporting period is the period ended 31 December 2011 and the previous corresponding period is for the period ended 31 December 2010.

2. Results for Announcement to the Market

	31 December 2011	31 December 2010	% Change
	$	$
2.1 Revenue from ordinary activities.	243,743	1,744,294	86% Decrease
2.2 Profit (loss) from ordinary activities after tax attributable to members.	(2,680,557)	743,581	460% Decrease
2.3 Net profit (loss) for the period attributable to members.	(2,680,557)	743,581	460% Decrease
2.4 Amount per security and franked amount per security of interim dividend.	No interim dividends have been paid or provided for during the period.
2.5 Record date for determining entitlements to the dividends and payment date.	Not applicable.
2.6 Brief explanation of any of the figures in 2.1 to 2.4 necessary to enable the figures to be understood.	See Directors Report – Financial Report for the Half-Year Ended 31 December 2011.

3. Net Tangible Assets Per Security

Net Tangible Assets Per Security
	31 December 2011	31 December 2010
	Cents	Cents
Net tangible assets per security	1.2	1.5

Imugene Limited Appendix 4D – 31 December 2011 Page 1

4. Gain or Loss of Control Over Entities

Not applicable.

5. Details of Dividend and Distribution Payments

No dividends or distributions have been paid or provided for during the period.

6. Dividend Reinvestment Plans

There are no dividend or distribution reinvestment plans in operation.

7. Associates and Joint Venture Entities

Not applicable.

8. Foreign Entities

Not applicable.

9. Audit Dispute or Qualification

None.

Imugene Limited Appendix 4D – 31 December 2011 Page 2

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ABN 99 009 179 551

Interim Financial Report for the Half-Year Ended 31 December 2011

ABN 99 009 179 551

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	Page
Corporate Directory	1
Directors’ Report	2
Auditor’s Independence Declaration	4
Independent Review Report	5
Directors’ Declaration	7
Consolidated Statement of Comprehensive Income	8
Consolidated Statement of Financial Position	9
Consolidated Statement of Changes in Equity	10
Consolidated Statement of Cash Flows	11
Notes to the Financial Statements	12

ABN 99 009 179 551

Corporate Directory

Directors

Mr Graham Dowland – Non-Executive Chairman Dr Warwick Lamb – Managing Director Mr Roger Steinepreis – Non-Executive Director

Company Secretary

Ms Julie Foster

Registered and Principal Office

Level 20, Allendale Square 77 St Georges Terrace Perth WA 6000 Telephone: (61 8) 9440 2660 Facsimile: (61 8) 9440 2699

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Solicitors

Steinepreis Paganin Level 4, 16 Milligan Street Perth WA 6000

Patent Attorney

McAndrews Held & Malloy Ltd 500 West Madison Street 34[th ] Floor Chicago, IL 60661

Auditor

BDO Audit (WA) P/L 38 Station Street Subiaco, WA 6008

Laboratory

C/ - La Trobe University Kingsbury Drive Bundoora Victoria 3086

Bankers

Australia and New Zealand Banking Group Limited 77 St Georges Terrace Perth WA 6000

Share Register

Computershare Investor Services Pty Ltd Level 2, Reserve Bank Building 45 St Georges Terrace Perth WA 6000 Australia

Securities Exchange Listing

Imugene Limited shares are listed on the Australian Securities Exchange (Symbol: IMU)

Website and Email

Telephone: 1300 557 010 International: (61 8) 9323 2000 Facsimile: (61 8) 9323 2033

www.imugene.com [email protected]

Directors’ Report

ABN 99 009 179 551

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The Directors of Imugene Limited present their report on the Consolidated Entity consisting of Imugene Limited (“the Company” or “Imugene”) and the entities it controlled (“Consolidated Entity” or “Group”) during the half-year ended 31 December 2011.

Directors

The names of the Directors of Imugene in office during the half-year and until the date of this report are:

Mr Graham Dowland Dr Warwick Lamb Mr Roger Steinepreis

Each Director held office from 1 July 2011 until the date of this report.

Review and Results of Operations

Operating Results

The Company recorded a net after tax loss of $2,680,557 (2010: net profit of $743,581) for the half-year ended 31 December 2011.

Summary Review of Operations

We have also taken a prudent approach to all expenditure, research and overhead expenses, for 2012.

As stated in previous announcements, laboratory development work has been completed and the laboratory facility at La Trobe University in Melbourne was closed down at the end of October 2011.

Directors’ Report

ABN 99 009 179 551

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Events Occurring After Reporting Date

As at the date of this report there are no other matters or circumstances, which have arisen since 31 December 2011 that would materially affect or may significantly affect the operations of the Consolidated Entity, the results of the Consolidated Entity or the state of affairs of the Consolidated Entity not otherwise disclosed in the Consolidated Entity’s half-year financial report.

Auditor’s Independence Declaration

The auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 4.

Signed in accordance with a resolution of the directors made pursuant to section 306 (3) of the Corporations Act 2001 .

On behalf of the Directors

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GRAHAM DOWLAND

Chairman

Perth, Western Australia 29[th] February 2012

ABN 99 009 179 551

Auditor’s Independence Declaration

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Independent Review Report

ABN 99 009 179 551

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