IMUGENE LIMITED — Interim / Quarterly Report 2018

Jul 30, 2018

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Business Update - Appendix 4C for the quarter ended 30 June 2018

MELBOURNE Australia July 31, 2018: Imugene Limited (ASX: IMU), an immuneoncology Company is pleased to release its Appendix 4C for the quarter ended 30[th] June 2018.

Quarter highlights:

• Successfully raised $20.1 million (before costs), completed post quarter’s end;

• New cancer programs accelerate clinical development by 24 months;

• Established a clinical presence in the US with leaders in B-cell therapeutics;

• HER-Vaxx trial recruitment continues with new trial sites in Europe.

The recent quarter was one of the most significant in the growth of our company.

Imugene is now well funded to support our commercial and clinical milestones, guided by the experience of several recognised leaders in immuno-oncology.

• The successful capital raising, completed post quarter, and acquisition of new B- cell vaccine programs from the Ohio State University and The Mayo Clinic, has expanded our portfolio aimed at confirming the safety, tolerability and efficacy of several promising new immuno-oncology treatments/targets for multiple cancers including PD-1, HER1, HER2, HER3, VEGF, IGF-1R, CD28 peptides and combinations thereof.

IMUGENE LIMITED ACN 009 179 551 Telephone +61 3 9824 5254 Fax +61 3 9822 7735 Website www.imugene.com

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Current Phase 1b gastric study

During the quarter our established HER-Vaxx Phase 1b/2 gastric cancer study continued recruitment with five trial sites added in recent months. Study sites have reported no safety, toxicity or tolerability issues in treated patients. All vaccinated patients have developed immune responses and antibodies to HER2.

On completion of patient recruitment of Phase 1b of the study, the data will be analysed, a recommended Phase 2 dose chosen, and we will report results to the market.

Financial position

The expansion of our activities will see an increase in expenditures.

We continue to keep a close eye on costs and manage our resources prudently. Imugene had $7.8 million in the bank as at 30 June 2018. Subsequent to the quarter, an additional $20.1 million in funding (before costs) was raised from existing and new shareholders.

We look forward to providing further updates as we navigate several promising new therapies for multiple cancers through the clinic and into the hands of the many medical professionals and patients around the world who need them.

Leslie Chong CEO and Managing Director Imugene Limited July 2018

IMUGENE LIMITED ACN 009 179 551 Telephone +61 3 9824 5254 Fax +61 3 9822 7735 Website www.imugene.com

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

+Rule 4.7B

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

Name of entity

Imugene Limited

ABN 99 009 179 551

Quarter ended (“current quarter”)

30 June 2018

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) research and development (b) product manufacturing and operating costs (c) advertising and marketing (d) leased assets (e) staff costs (f) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other –GST refunded 1.9 Net cash from / (used in) operating activities	- (1,516) - - - (235) (391) - 24 - - - 38	- (3,577) - (14) - (1,053) (1,209) - 48 (1) - 1,137 236
	(2,080)	(4,433)

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) businesses (see item 10) (c) investments (d) intellectual property (e) other non-current assets 2.2 Proceeds from disposal of: (a) property, plant and equipment (b) businesses (see item 10) (c) investments (d) intellectual property (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) – Transactions costs related to Zenith Argo Group acquisition 2.6 Net cash from / (used in) investing activities	- - - (477) - - - - - - - - -	- - - (477) - - - - - - - - -
	(477)	(477)
3. Cash flows from financing activities 3.1 Proceeds from issues of shares 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from exercise of share options 3.4 Transaction costs related to issues of shares, convertible notes or options 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities*	- - 2 (71) - - - - -	8,731 - 47 (860) - - - - -
	(69)	7,918

* In July 2018, as announced on the prospectus released on 7 June 2018, the Company completed the capital raise of A$20.1 million (before costs).

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of quarter/year to date 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of quarter	10,448 (2,080) (477) (69) -	4,814 (4,433) (477) 7,918 -
	7,822	7,822
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	1,800 6,024 - -	4,448 6,000 - -
	7,822	10,448
6. Payments to directors of the entity and their associates Current quarter $A'000 6.1 Aggregate amount of payments to these parties included in item 1.2 106 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 - 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2
		Current quarter $A'000
		106
		-
Salaries, directors’ fees and consulting fees at normal commercial rates. Excludes GST where applicable.

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B	Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B	Appendix 4C ct to Listing Rule 4.7B
7. Payments to related entities of the entity and their associates Current quarter $A'000 7.1 Aggregate amount of payments to these parties included in item 1.2 - 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 - 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2		Current quarter $A'000
		-
		-
-
8. Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 8.1 Loan facilities - - 8.2 Credit standby arrangements - - 8.3 Other (please specify) - - 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.
	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
	-	-
	-	-
	-	-
-

9. Estimated cash outflows for next quarter	$A’000
9.1 Research and development 9.2 Product manufacturing and operating costs 9.3 Advertising and marketing 9.4 Leased assets 9.5 Staff costs 9.6 Administration and corporate costs 9.7 Other (provide details if material) 9.8 Total estimated cash outflows	(2,916) - - - (359) (723) -
	(3,998)

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

10. Acquisitions and disposals of business entities (items 2.1(b) and 2.2(b) above)	Acquisitions	Disposals
10.1 Name of entity	-	-
10.2 Place of incorporation or registration	-	-
10.3 Consideration for acquisition or disposal	-	-
10.4 Total net assets	-	-
10.5 Nature of business	-	-

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

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Sign here: ............................................................

Date: 31 July 2018

Company Secretary

Print name: Phillip Hains

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms 1 September 2016

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