IMUGENE LIMITED — Proxy Solicitation & Information Statement 2013

Nov 17, 2013

IMUGENE!LIMITED!

ACN!009!179!551!

NOTICE!OF!GENERAL!MEETING!

A!General!Meeting!of!the!Company!will!be!held!at!Giorgios!Function!Room,! 1233!High!Street,!Armadale,!VIC,!3143,!on!Friday!20!December!2013!at!9:00!a.m.! AEDT.!

Stantons!International!Securities!has!prepared!an!independent!expert’s!report!on!the!proposed! Acquisition!and!has!concluded!that!the!proposed!Acquisition!is!not!fair!but!reasonable!to!the!nonS associated!Shareholders.!!Refer!to!Section!3.12!for!further!information.!

This%Notice%of%General%Meeting%should%be%read%in%its%entirety.%%If%Shareholders%are%in%doubt%as%to%how%they% should%vote,%they%should%seek%advice%from%their%accountant,%solicitor%or%other%professional%adviser%prior%to% voting.%

Should'you'wish'to'discuss'any'matter'please'do'not'hesitate'to'contact'the'Company'by'telephone'on'

+61'3'9824'5254'

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IMUGENE!LIMITED! ACN!009!179!551!

NOTICE!OF!GENERAL!MEETING!

Notice!is!hereby!given!that!a!general!meeting!of!Shareholders!of!Imugene!Limited!( Company )!will!be! held!at!Giorgios!Function!Room,!1233!High!Street,!Armadale,!VIC,!3143,!on!Friday!20!December!2013!at! 9:00!a.m.!AEDT!(Meeting).!

The!Explanatory!Memorandum!to!this!Notice!provides!additional!information!on!matters!to!be! considered!at!the!Meeting.!!The!Explanatory!Memorandum!and!the!Proxy!Form!form!part!of!this!Notice.!

The!Directors!have!determined!pursuant!to!regulation!7.11.37!of!the!Corporations!Regulations!2001! (Cth)!that!the!persons!eligible!to!vote!at!the!Meeting!are!those!who!are!registered!as!Shareholders!on! 18!December!2013!at!5pm!(AEDT).!!

Terms!and!abbreviations!used!in!this!Notice!and!Explanatory!Memorandum!are!defined!in!Section!11.!

AGENDA

1. Resolution1–!Approval(of(AcquisitionofBiolife!

To!consider!and,!if!thought!fit,!to!pass,!with!or!without!amendment,!the!following!as!an! ordinary!resolution:!

“That,!subject!to!the!passing!of!Resolutions!2!and!3,!pursuant!to!and!in!accordance!with! Listing% Rule%10.1%and%for%all%other%purposes,%Shareholders%approve%the%acquisition%by%the%Company%of% Biolife%(which%is%partly%owned%by%a%related%party%of%the%Company)%in%accordance%with%the% Acquisition%Agreement%and%the%performance%by%the%Company%of%its%obligations%under%the% Acquisition%Agreement%on%the%terms%and%conditions%set%out%in%the%Explanatory%Memorandum."%

Voting!Exclusion!

The!Company!will!disregard!any!votes!cast!on!this!Resolution!by!Biolife,!the!Vendors!and!any! of!their!associates.!!

However,!the!Company!will!not!disregard!a!vote!if:!

• (a) it!is!cast!by!a!person!as!proxy!for!a!person!who!is!entitled!to!vote,!in!accordance!with! directions!on!the!Proxy!Form;!or!

• (b) it!is!cast!by!the!Chairman!as!proxy!for!a!person!who!is!entitled!to!vote,!in!accordance! with!a!direction!on!the!Proxy!Form!to!vote!as!the!proxy!decides.!!

Stantons!International!Securities!has!prepared!an!independent!expert’s!report!on!the! proposed!Acquisition!and!has!concluded!that!the!proposed!Acquisition!is!not!fair!but! reasonable!to!the!nonSassociated!Shareholders.!!Refer!to!Section!3.12!for!further! information.!

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2. Resolution2–!Approval(of(Change(in(Scale&of&Activities!

To!consider!and,!if!thought!fit,!to!pass!with!or!without!amendment,!the!following!resolution!as! an!ordinary!resolution:!

“That,% subject% to% the% passing% of% Resolutions% 1% and% 3,% pursuant% to% and% in% accordance% with% Listing%Rule%11.1.2%and%for%all%other%purposes,%Shareholders%approve%the%significant%change%in% the% scale% of% the% Company's% activities% resulting% from% the% Acquisition% on% the% terms% and% conditions%set%out%in%the%Explanatory%Memorandum."%

Voting!Exclusion!

The!Company!will!disregard!any!votes!cast!on!this!Resolution!by!a!person!who!might!obtain!a! benefit!(except!a!benefit!solely!in!the!capacity!of!a!holder!of!ordinary!securities)!if!the! Resolution!is!passed!and!any!of!their!associates.!!

However,!the!Company!will!not!disregard!a!vote!if:!

• (a) it!is!cast!by!a!person!as!proxy!for!a!person!who!is!entitled!to!vote,!in!accordance!with! directions!on!the!Proxy!Form;!or!

• (b) it!is!cast!by!the!Chairman!as!proxy!for!a!person!who!is!entitled!to!vote,!in!accordance! with!a!direction!on!the!Proxy!Form!to!vote!as!the!proxy!decides.!

3. Resolution3–!Approval(of(Issue(of(Consideration(Shares!

To!consider!and,!if!thought!fit,!to!pass!with!or!without!amendment,!the!following!resolution!as! an!ordinary!resolution:!

“That,% subject% to% the% passing% of% Resolutions% 1% and% 2,% pursuant% to% and% in% accordance% with% Listing% Rules% 7.1% and% 10.11% and% for% all% other% purposes,% Shareholders% approve% the% issue% of% 300,000,000%Shares%to%the%Vendors%pursuant%to%the%terms%of%the%Acquisition%Agreement%on%the% terms%and%conditions%set%out%in%the%Explanatory%Memorandum."%

Voting!Exclusion!

The!Company!will!disregard!any!votes!cast!on!this!Resolution!by!the!Vendors!and!any!person! who!might!obtain!a!benefit!(except!a!benefit!solely!in!the!capacity!of!a!holder!of!ordinary! securities)!if!the!Resolution!is!passed!and!any!of!their!associates.!!

However,!the!Company!will!not!disregard!a!vote!if:!

• (a) it!is!cast!by!a!person!as!proxy!for!a!person!who!is!entitled!to!vote,!in!accordance!with! directions!on!the!Proxy!Form;!or!

• (b) it!is!cast!by!the!Chairman!as!proxy!for!a!person!who!is!entitled!to!vote,!in!accordance! with!a!direction!on!the!Proxy!Form!to!vote!as!the!proxy!decides.!!

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4. Resolution*4!–!Appointment)of)Dr#Axel#Hoos!as#a#Director!

To!consider!and,!if!thought!fit,!to!pass!with!or!without!amendment,!the!following!resolution!as! an!ordinary!resolution:!

"That,%pursuant%to%and%in%accordance%with%Article%6(c)%of%the%Constitution%and%for%all%other% purposes,%and%with%effect%from%Completion%of%the%Acquisition,%Dr%Axel%Hoos%be%appointed%as%a% Director."%

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Resolution*5!–!Ratification)of)Initial'Placement)!

To!consider!and,!if!thought!fit,!to!pass!with!or!without!amendment,!the!following!resolution!as! an!ordinary!resolution:!

"That,%pursuant%to%and%in%accordance%with%Listing%Rule%7.4%and%for%all%other%purposes,% Shareholders%ratify%the%issue%of%85,000,000%Shares%( Initial'Placement'Shares )%each%at%an%issue% price%of%$0.01%( Initial'Placement )%on%the%terms%and%conditions%set%out%in%the%Explanatory% Memorandum.”%

Voting!Exclusion!

The!Company!will!disregard!any!votes!cast!on!this!Resolution!by!a!person!who!participated!in! the!Initial!Placement!(and!any!of!their!associates).!!

However,!the!Company!will!not!disregard!a!vote!if:!

• (a) !it!is!cast!by!the!person!as!proxy!for!a!person!who!is!entitled!to!vote,!in!accordance! with!directions!on!the!Proxy!Form;!or!

• (b) !it!is!cast!by!the!Chairman!as!proxy!for!a!person!who!is!entitled!to!vote,!in!accordance! with!a!direction!on!the!Proxy!Form!to!vote!as!the!proxy!decides.!

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Resolution*6!–!Authority)to)Issue)Subsequent)Placement)Shares)!

To!consider!and,!if!thought!fit,!to!pass!with!or!without!amendment,!the!following!resolution!as! an!ordinary!resolution:!

"That,%pursuant%to%and%in%accordance%with%Listing%Rules%7.1%and%for%all%other%purposes,% Shareholders%approve%and%authorise%the%Directors%to%issue%up%to%165,000,000% Shares% ( Subsequent'Placement'Shares )%each%at%an%issue%price%of%$0.01%( Subsequent'Placement )%on%the% terms%and%conditions%set%out%in%the%Explanatory%Memorandum.”%

Voting!Exclusion!

The!Company!will!disregard!any!votes!cast!on!this!Resolution!by!a!person!who!may!participate! in!the!issue!of!the!Subsequent!Placement!Shares!and!a!person!who!might!obtain!a!benefit! (except!a!benefit!solely!in!their!capacity!as!holder!of!ordinary!securities)!if!the!Resolution!is! passed!and!any!associates!of!those!persons.!

However,!the!Company!will!not!disregard!a!vote!if:!

• (a) !it!is!cast!by!the!person!as!proxy!for!a!person!who!is!entitled!to!vote,!in!accordance! with!directions!on!the!Proxy!Form;!or!

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(b) !it!is!cast!by!the!Chairman!as!proxy!for!a!person!who!is!entitled!to!vote,!in!accordance! with!a!direction!on!the!Proxy!Form!to!vote!as!the!proxy!decides.!

7. Resolution*7!–!Authority)to)Issue)Shares)to)Dr)Nicholas)Ede!

To!consider!and,!if!thought!fit,!to!pass!with!or!without!amendment,!the!following!resolution!as! an!ordinary!resolution:!

"That,%pursuant%to%and%in%accordance%with%Listing%Rule%10.11%and%for%all%other%purposes,% Shareholders%approve%and%authorise%the%issue%of%up%to%10,000,000%Shares%each%at%an%issue%price% of%$0.01%to%Dr%Nicholas%Ede%(or%his%nominee)%on%the%terms%and%conditions%set%out%in%the% Explanatory%Memorandum.”%

Voting!Exclusion!

The!Company!will!disregard!any!votes!cast!on!this!Resolution!by!Dr!Nicholas!Ede!and!his! associates.!

However,!the!Company!will!not!disregard!a!vote!if:!

• (a) !it!is!cast!by!the!person!as!proxy!for!a!person!who!is!entitled!to!vote,!in!accordance! with!directions!on!the!Proxy!Form;!or!

• (b) !it!is!cast!by!the!Chairman!as!proxy!for!a!person!who!is!entitled!to!vote,!in!accordance! with!a!direction!on!the!Proxy!Form!to!vote!as!the!proxy!decides.!

Dated!18!November!2013!

BY!ORDER!OF!THE!BOARD!

==> picture [73 x 72] intentionally omitted <==

Justyn!Stedwell! Company!Secretary!

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IMUGENE!LIMITED! ACN!009!179!551!

EXPLANATORY!MEMORANDUM!

1. Introduction!

This!Explanatory!Memorandum!has!been!prepared!for!the!information!of!Shareholders!in! connection!with!the!business!to!be!conducted!at!the!Meeting!to!be!held!at!Giorgios!Function! Room,!1233!High!Street,!Armadale,!VIC,!3143,!on!Friday!20!December!2013!at!9:00!a.m.!AEDT.!

This!Explanatory!Memorandum!should!be!read!in!conjunction!with,!and!forms!part!of,!the! accompanying!Notice.!!The!purpose!of!this!Explanatory!Memorandum!is!to!provide! information!to!Shareholders!in!deciding!whether!or!not!to!pass!the!Resolutions!set!out!in!the! Notice.!

A!Proxy!Form!is!located!at!the!end!of!the!Explanatory!Memorandum.!

2. Action'to'be'taken'by'Shareholders!

Shareholders!should!read!the!Notice!and!this!Explanatory!Memorandum!carefully!before! deciding!how!to!vote!on!the!Resolutions.!

2.1 Proxies!

A!Proxy!Form!is!attached!to!the!Notice.!!This!is!to!be!used!by!Shareholders!if!they!wish!to! appoint!a!representative!(a!'proxy')!to!vote!in!their!place.!!All!Shareholders!are!invited!and! encouraged!to!attend!the!Meeting!or,!if!they!are!unable!to!attend!in!person,!sign!and!return! the!Proxy!Form!to!the!Company!in!accordance!with!the!instructions!thereon.!!Lodgment!of!a! Proxy!Form!will!not!preclude!a!Shareholder!from!attending!and!voting!at!the!Meeting!in! person.!

Please!note!that:!

• (a) a!member!of!the!Company!entitled!to!attend!and!vote!at!the!Meeting!is!entitled!to! appoint!a!proxy;!

• (b) a!proxy!need!not!be!a!member!of!the!Company;!and!

• (c) a!member!of!the!Company!entitled!to!cast!two!or!more!votes!may!appoint!two! proxies!and!may!specify!the!proportion!or!number!of!votes!each!proxy!is!appointed! to!exercise,!but!where!the!proportion!or!number!is!not!specified,!each!proxy!may! exercise!half!of!the!votes.!

The!enclosed!Proxy!Form!provides!further!details!on!appointing!proxies!and!lodging!Proxy! Forms.!

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3. Overview'of'Acquisition'and'Change$of$Scale$of$Activities!

3.1 Overview!of!the!Company!

The!Company!is!an!Australian!pharmaceutical!company!with!a!drug!delivery!platform!at!the! centre!of!its!assets!focusing!on!consumer!healthcare!products!and!Vitamin!D!therapeutics.!! The!platform!technology,!known as Linguet™, allows!drugs!in!tablet!form!to!be!delivered! straight!into!the!blood!stream!via!the!mouth!accelerating!onset!of!action!and!reducing!side! effects!of!absorption!in!the!stomach.!!

Consumer'Healthcare'

Imugene!is!developing!firstly!a!vitamin!D!supplement!tablet,!which!melts!in!the!mouth,!better! known!as!a!“meltlet”.!!The!novel!formulation,!which!utilises!the!Company’s!Linguet™! technology,!is!designed!to!address!issues!of!the!unpleasant!taste!of!vitamins,!and!alleviate!the! stress!that!millions!of!people!face!worldwide!who!suffer!with!difficulty!in!swallowing! particularly!different!forms!of!vitamin!tablets.!!During!the!2012/2013!financial!year,!Imugene! commissioned!its!own!research!to!firstly!validate!the!issues!people!have!with!swallowing!and! secondly,!confirm!a!meltcincthecmouth!tablet!is!a!solution!that!is!desired.!!The!Company’s! research!has!been!supported!by!discussions!held!with!Australian!nutraceutical!companies.!!The! vitamins!and!supplements!industry!is!big!business!in!Australia,!worth!an!estimated!$1.5bn! each!year!and!the!industry!is!growing!at!up!to!12%!annually.!

Therapeutic'Program'

Onecthird!of!Australian!adults!are!Vitamin!D!deficient.!!Imugene!will!develop!a!prescription! Vitamin!D!tablet!for!buccal!delivery.!!Linguet!supports!“buccal”!administration!of!drugs!straight! to!the!blood!stream!via!absorption!through!the!lining!of!the!mouth.!!There!are!direct!links! between!several!diseases!such!as!diabetes,!cancer!and!chronic!kidney!disease!and!a!deficiency! of!vitamin!D.!

While!current!vitamin!D!supplements!are!available!over!the!counter!and!by!prescription,!they! do!not!deliver!sufficient!amounts!or!consistent!amounts!of!Vitamin!D!due!to!the!varying! absorption!of!the!drug!when!it!is!passed!through!the!gastrocintestinal!tract!via!an!oral!delivery! method.!

Commercialisation'Progress'

Imugene’s!formulations!of!Vitamin!D!have!now!advanced!through!formulation!development.!! There!is!a!high!level!of!interest!amongst!pharmaceutical!and!nutraceutical!companies!for!new! and!innovative!forms!of!Vitamin!D!given!the!rising!rates!of!deficiency!and!the!lack!of!novel! dosage!forms!in!development.!!Imugene!has!commenced!preliminary!licensing!discussions!for! its!nutritional!supplement!form!of!Vitamin!D.!

Intellectual'Property'

Imugene!currently!has!rights!to!a!family!of!patents/patent!applications!and!trademarks!that! protect!the!core!drug!delivery!platform!technology!(Linguet™).!!The!future!competitive! position!of!Imugene!will!depend!on!its!ability!to!obtain!and!maintain!patent!protection!of! existing!and!future!intellectual!property,!including!its!platform!technology,!improvements,! products,!clinical!uses!and!production!processes.!

A!key!activity!for!Imugene!is!to!obtain!maximum!protection!of!its!Linguet!technology!and!to! retain!a!position!of!exclusivity!for!this!approach.!!Prosecution!of!the!current!patent!

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applications!is!continuing!with!granted!patents!in!Australia,!Japan,!China,!New!Zealand!and! Russia!and!pending!patents!in!other!jurisdictions.!!However,!Imugene!will!also!focus!on! strengthening!its!position!by!identifying!potential!vulnerabilities!in!these!patent!applications,! undertaking!research!to!address!these!issues!and!applying!for!new!patents!to!protect!the! research!outcomes.!

Imugene!will!also!seek!patent!protection!for!new!intellectual!property,!including! improvements!to!the!platform!technology,!specific!Linguet!candidates!and!their!applications.! As!a!minimum,!patent!applications!will!be!made!in!the!US,!the!European!Union,!Canada,!China,! Japan,!Australia!and!New!Zealand!and!most!other!Englishcspeaking!countries.!

3.2 Change!of!Scale!of!Activities!–!Acquisition!of!Biolife!

On!23!October!2013,!the!Company!announced!to!ASX!that!it!had!entered!into!a!share!purchase! agreement!( Acquisition!Agreement )!with!Biolife!Science!Qld!Limited!( Biolife )!and!the! shareholders!of!Biolife!( Vendors ) under!which!the!Company!has!agreed!to!acquire!all!of!the! shares!in!Biolife!( Acquisition ).!!!The!Acquisition!is!consistent!with!the!Company’s!strategy!to! diversify!through!acquisition.!

The! consideration! to! be! paid! to! the! Vendors! for! the! Acquisition! will! be! the! issue! of! 300,000,000!Shares!( Consideration!Shares ),!which!will!be!apportioned!amongst!the!Vendors!in! the! amounts! set! out! in! Schedule!1.! ! The! Shares! may! be! subject! to! a! period! of! escrow! determined! by! ASX.! ! To! the! extent! that! the! ASX! does! not! impose! escrow! restrictions! the! Vendors!have!agreed!the!Consideration!Shares!will!be!voluntary!escrowed!for!a!period!of!12! months.!

The!Acquisition!is!conditional!on!the!following!conditions!precedent:!

• (a) the!Company!completing!legal!due!diligence!investigations!into!Biolife,!Biolife's! intellectual!property!and!the!Vendors'!ownership!of!the!Vendor!Shares!and!being! satisfied,!in!its!sole!and!absolute!discretion,!with!the!results!of!that!due!diligence;!

• (b) the!Company's!Shareholders!passing!all!resolutions!as!are!required!under!the!Listing! Rules,!the!Constitution!and!the!Corporations!Act!to!give!effect!to!the!transactions! contemplated!by!the!Acquisition!Agreement!(as!set!out!in!the!Resolutions);!!

• (c) the!Company's!Shareholders!approving!the!Acquisition!in!accordance!with!Listing! Rule!11.1.2!(as!set!out!in!Resolution!2);!and!

• (d) the!Company!completing!a!successful!capital!raising!of!at!least!$2,000,000!(as!set!out! in!Resolutions!5!and!6),!!

(together,!the! Conditions ).!

The!Conditions!must!be!satisfied!or!waived!by!31!January!2014!(or!another!date!agreed!by!the! parties!in!writing).!!

The!Acquisition!Agreement!includes!standard!commercial!warranties!that!are!usual!for!a! transaction!of!this!type!including!warranties!from!the!management!Vendors!in!relation!to! Biolife's!intellectual!property.!

Completion!of!the!Acquisition!will!not!change!the!Company’s!existing!business!as!a!drug! development!and!pharmaceutical!company.!!However,!given!the!size!of!the!Acquisition!it!will! significantly!increase!the!scale!of!the!Company's!activities.!!

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Please!refer!to!Section!3.3!below!for!further!details!about!Biolife!and!its!assets.!

3.3 Background!on!Biolife!and!its!assets!

Biolife!is!an!Australian!proprietary!limited!company!which!has!the!rights!to!a!novel!cancer! immunotherapy!platform!that!has!been!developed!by!scientists!at!the!University!Medical! School!in!Austria.!!!

The!scientists!have!developed!a!peptidecbased!immunotherapy!that!induces!a!polyclonal! antibody!response!against!HERc2/neu!associated!tumours,!including!breast!cancer!and!gastric! cancer!( HERSVaxx ).!!HERc2/neu!is!a!known!and!validated!receptor!that!is!overcexpressed!on! various!cancerous!tumours,!including!gastric,!breast,!ovarian!and!pancreatic!cancers.!!Having! already!successfully!completed!a!Phase!I!human!study!in!breast!cancer,!a!Phase!II!study!in! gastric!cancer!is!planned!to!potentially!commence!in!calendar!2015,!subject!to!FDA!approval.!

Key!information!on!the!Biolife!technology,!intellectual!property,!market!potential!and!previous! studies!is!set!out!below.!

The'Technology'

The!intellectual!property!being!acquired!relates!to!a!potential!novel!immunotherapy,!HERc Vaxx,!that!has!to!date!been!shown!to!trigger!an!immune!response!to!HERc2!present!on!certain! types!of!breast!and!gastric!cancers.!!HERcVaxx!is!a!peptide!vaccine!that!induces!an!antibody! response!targeted!against!tumours!that!exhibit!a!great!number!of!HERc2!receptors!upon! tumour!cells.!

HERc2!communicates!molecular!signals!from!outside!the!cell!to!inside!the!cell!and!controls!the! activation!of!genes,!which!in!turn!control!cell!multiplication,!proliferation!and!tumour!cell! spread.!!In!some!cancerous!cells,!including!those!present!in!certain!types!of!breast!and!gastric! cancer,!HERc2!is!overcexpressed,!causing!cancer!cells!to!reproduce!uncontrollably.!!HERc2!is! overcexpressed!in!15%!of!invasive!breast!as!well!as!in!19%!gastric!cancers.!

One!of!the!most!prevalent!and!effective!treatments!for!HERc2!positive!cancers!is!a! pharmaceutical!known!as!Trastuzumab.!!Trastuzumab!is!a!monoclonal!antibody!that!was! developed!by!Roche!Ltd!and!Genentech!Inc.!and!is!marketed!as!"Herceptin®".!!Although! Herceptin®!has!proven!to!be!effective!in!the!treatment!of!early!stage!and!metastatic!breast! cancer,!a!course!of!Herceptin®!treatment!can!cost!as!much!as!US$100,000!per!year.!!While! certain!private!insurance!companies!in!the!United!States!and!state!health!care!providers!in! Canada,!the!United!Kingdom!and!elsewhere!do!provide!reimbursement!for!Herceptin®! treatment!for!certain!patients,!some!companies!and!state!health!care!providers!do!not!include! it!as!a!covered!treatment.!

The!original!studies!of!Herceptin®!indicated!that!it!improved!overall!survival!in!latecstage! (metastatic)!breast!cancer!from!20.3!to!25.1!months.!!It!is!commonly!administered!in! conjunction!with!chemotherapy.!

Herceptin®!operates!by!binding!to!one!particular!site!(epitope)!on!HERc2!and!blocks!the! growth!signals!that!cause!the!cancerous!cells!to!proliferate.!!It!acts!to!slow!the!rate!of!growth! of!cancerous!cells!and!acts!through!several!mechanisms!to!kill!tumour!cells.!

The!following!diagram!shows!how!cell!growth!is!controlled!in!normal!and!HERc2! overexpressing!cells!and!how!Herceptin®!slows!the!rate!of!growth!of!cancerous!cells:!

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==> picture [453 x 240] intentionally omitted <==

Source:!Biolife!

HERcVaxx's!delivery!mechanism!is!different,!and!potentially!superior,!to!that!of!Herceptin®.!! Instead!of!regularly!injecting!a!monoclonal!antibody!that!recognises!only!one!specific!segment! of!HERc2,!HERcVaxx!comprises!a!peptide!that,!when!introduced!to!the!body,!is!designed!to! induce!a!polyclonal!antibody!response!that!targets!more!than!one!site!of!HERc2.!!It!therefore! may!potentially!elicit!a!more!powerful!antictumour!effect!and!should!result!in!the!treatment! being!able!to!target!cancer!at!an!earlier!stage!than!Herceptin®.!!The!following!diagram! illustrates!how!HERcVaxx!is!intended!to!work:!

==> picture [452 x 159] intentionally omitted <==

• ����������������

Rather!than!injecting!a!readycmade!antibody,!HERcVaxx!is!a!vaccine!that!activates!a!patient's! own!immune!system!to!produce!its!own!antibodies,!effectively!turning!the!patient's!body!into! a!"Herceptin®!factory".!In!contrast!to!Herceptin®,!which!requires!regular!injections,!with!HERc Vaxx!the!body!produces!a!constant!supply!of!antibodies.!

Furthermore,!because!HERcVaxx!is!an!immunotherapy,!it!may!achieve!a!longerclasting!immune! response!than!Herceptin®,!which!does!not!inhibit!tumour!recoccurrence.!!Furthermore,!by! choosing!a!selection!of!peptide!epitopes!it!can!potentially!target,!one!of!which!is!proximate!to! the!Herceptin®!binding!region,!similar!mechanisms!of!action!can!be!anticipated.!

10!

HERcVaxx!comprises!three!nonccontiguous!peptides!derived!from!sequences!of!HERc2.!!In!prec clinical! in%vivo !experiments!as!well!as!Phase!I!clinical!trials!in!humans!undertaken!in!relation!to! HERcVaxx,!it!proved!to!induce!a!humoral!and!cellular!immune!response!directed!against!HERc2! with!negligible!toxicity.!

Commercial'Opportunity'

Gastric!or!stomach!cancer!is!the!second!most!common!cause!of!cancercrelated!death!in!the! world,!with!over!1,000,000!worldwide!cases!of!gastric!cancer!diagnosed!each!year.!!Sales!of! gastric!cancer!pharmaceuticals!are!expected!to!experience!growth!over!the!next!decade!with! sales!expected!to!increase!to!nearly!US$2.3!billion!by!2021.!

Approximately!19%!of!patients!with!metastatic!gastric!cancer!are!HERc2!positive.!!This!is! commonly!treated!by!surgery!and/or!a!combination!of!chemotherapy!and!Trastuzumab!/! Herceptin®.!

Breast!cancer!is!the!most!common!invasive!cancer!in!women!and!was!estimated!to!have! caused!half!a!million!deaths!in!2008.!!The!incidence!of!breast!cancer!is!most!common!in! developed!countries,!including!North!America,!Europe!and!Oceania,!largely!as!a!result!of! modern!lifestyles.!!25%!to!30%!of!breast!cancers!are!HERc2/neu!positive!and!the!principal!form! of!treatment!is!with!monoclonal!antibodies,!such!as!Herceptin®,!combined!with! chemotherapy.!

Herceptin®!has!annual!sales!of!over!US$6.4!billion!and!is!currently!approved!for!inclusion!on! the!Pharmaceutical!Benefits!Scheme!by!the!Therapeutic!Goods!Administration!(TGA)!for!the! treatment!of!breast!cancer.!!A!course!of!Herceptin®!costs!in!the!order!of!$50,000!in!Australia! and!as!much!as!US$70,000!in!the!United!States.!!!

Intellectual'Property'

The!patents!and!intellectual!property!( IP )!have!been!developed!by!a!group!of!prominent! Austrian!oncologists!and!immunologists!at!the!University!of!Vienna!Medical!School!and!the! patents!and!IP!will!be!transferred!to!Biolife!post!Acquisition.!!!

Further'Information'

Further!information!on!Biolife!and!the!Acquisition!is!set!out!in!the!Company's!ASX! announcements!made!on!23!October!2013.!

3.4 Capital!Raising!!

The!Company!issued!85,000,000!Shares!at!$0.01!per!Share!( Initial!Placement!Shares )!to! sophisticated!and!professional!investors!on!30!October!2013!( Initial!Placement )!using!the! Company's!share!issue!capacity!under!Listing!Rules!7.1!and!7.1A.!!Resolution!5!seeks! Shareholder!approval!to!ratify!the!issue!of!the!Initial!Placement!Shares!(refer!to!Section!8!for! further!details).!!!!

The!Company!intends!to!issue!a!further!165,000,000!Shares!at!$0.01!per!Share!( Subsequent! Placement!Shares ) to!sophisticated!and!professional!investors!( Subsequent!Placement ).!! Resolution!6!seeks!Shareholder!approval!for!the!issue!of!the!Subsequent!Placement!Shares! (refer!to!Section!9!for!further!details).!!The!Company!also!intends!to!issue!10,000,000!Shares!at! $0.01!per!Share!to!Dr!Nicholas!Ede!(or!his!nominee).!!Resolution!7!seeks!Shareholder!approval! for!the!issue!of!these!Shares.!!

11!

The!Company!intends!to!use!the!funds!raised!by!the!Initial!Placement,!Subsequent!Placement! and!issue!to!Dr!Nicholas!Ede!($2,600,000!in!aggregate!before!costs)!to!fund:!

• (a) research!and!development!of!the!Company's!existing!intellectual!property!(including! the!Linguet™!technology)!and!the!Biolife!intellectual!property!(including!a!Phase!II! trial!of!HERcVaxx!immunotherapy!in!gastric!cancer,!subject!to!FDA!approval);!and!

• (b) general!working!capital.!!

3.5 ProSforma!Balance!Sheet!

Set!out!in!Schedule!3!is!a!procforma!audited!consolidated!statement!of!financial!position!of!the! Company!as!at!30!June!2013.!!It!ignores!any!further!losses!incurred!by!the!Company!post!30! June!2013.!!In!addition,!we!disclose!a!procforma!consolidated!statement!of!financial!position! that!assumes!the!following:!

• (a) the!September!2013!issue!of!2,000,000!Shares!at!a!cost!of!$10,000!to!acquit!fees! payable;!

• (b) the!issue!of!2,400,000!Shares!at!a!deemed!cost!of!1!cent!each!to!eliminate!a!fee! payable!of!$24,000;!

• (c) the!issue!of!250,000,000!Shares!at!1!cent!each!to!raise!a!gross!$2,500,000!(the! Company!has!commitments!for!this!amount!but!has!only!issued!85,000,000!Shares!to! date!and!the!remaining!165,000,000!Shares!will!be!issued!following!shareholder! approval!as!requested!in!resolution!6!to!the!Notice;!

• (d)

• the!issue!of!10,000,000!Shares!to!Dr!Ede!to!raise!a!gross!$100,000;!

• (e) the!payment!of!capital!raising!costs!estimated!at!$125,000!and!other!costs!pertaining! to!the!acquisition!of!all!of!the!shares!in!Biolife!estimated!at!$100,000;!

• (f) the!issue!of!300,000,000!Shares!at!a!deemed!cost!of!2.0!cents!each!(the!Share!price! as!at!28!October!2013)!to!acquire!100%!of!the!shares!in!Biolife!(deemed!share!cost!of! $6,000,000)!and!assuming!Biolife!had!no!material!booked!assets,!liabilities!did!not! exceed!$100,000!(paid!out!by!the!Company),!the!payment!of!$65,000!of!the!! $665,000!owing!to!acquire!the!Biolife!IP!and!that!$6,765,000!is!attributable!to!the! Biolife!IP;!

• (g) the!payment!of!30!June!2013!accounts!payable!of!$160,991;!and!!

• (h) the!incurring!of!administration,!corporate!and!other!costs!to!be!occurred!by!the! Imugene!Group!from!1!July!2013!to!30!November!2013!estimated!at!$200,000.!

3.6 Effect!of!the!Acquisition!on!the!Company!

The! capital! structure! of! the! Company! following! the! Acquisition,! Subsequent! Placement! and! issue!to!Dr!Nicholas!Ede!is!set!out!below [1] :!!

12!

SHARES
Currentissuedsharecapital	465,562,516
SharesissuedtoVendors	300,000,000
SharesissuedunderSubsequentPlacement	165,000,000
SharesissuedtoDrNicholasEde	10,000,000
TOTALSHARES	940,562,516
OPTIONS Optionsexercisableat$0.02onorbefore31December2015 50,000,000
TOTALOPTIONS	50,000,000

1! This! assumes! that! no! other! Shares! are! issued! prior! to! completion! of! the! Acquisition,! Subsequent! Placement!and!issue!to!Dr!Nicholas!Ede!(including!as!a!result!of!the!exercise!of!Options).!The!number!of! shares!currently!on!issue!includes!the!Initial!Placement!Shares

3.7 Advantages!of!the!Acquisition!

The!Directors!are!of!the!view!that!the!following!noncexhaustive!list!of!advantages!may!be! relevant!to!a!Shareholder's!decision!on!how!to!vote!on!Resolutions!1,!2!and!3.!!Refer!to! sections!8.2c8.4!of!the!Independent!Expert’s!Report!for!further!advantages:!

• (a) If!the!Acquisition!is!approved,!Shareholders!will!be!exposed!to!the!potential!upside! from!commercialization!of!the!Biolife!intellectual!property!/!HERcVaxx! immunotherapy.!!

• (b) The!Company!will!be!able!to!increase!its!value!if!it!is!able!to!achieve! commercialization!of!the!Biolife!intellectual!property!/!HERcVaxx!immunotherapy.!!

• (c) The!Company’s!ability!to!raise!funds!and!attract!expertise!may!be!improved.!

• (d) The!Acquisition!may!encourage!new!investors!in!the!Company!because!the!Company! is!acquiring!new!intellectual!property.!!This!improvement!in!the!attractiveness!of!an! investment!in!the!Company!may!lead!to!an!increased!liquidity!of!Shares!and!greater! trading!depth!than!currently!experienced!by!Shareholders.!

• (e) Shareholders!may!be!exposed!to!further!debt!and!equity!opportunities!that!they!did! not!have!prior!to!the!Acquisition.!

• (f) The!appointment!of!Dr!Axel!Hoos!adds!substantial!big!pharma!oncology!experience! to!a!Board!already!represented!by!Directors!with!global!pharmaceutical,!oncology,! vaccine!and!immunotherapy!experience.!

3.8 Disadvantages!of!the!Acquisition!

The!Directors!are!of!the!view!that!the!following!noncexhaustive!list!of!disadvantages!may!be! relevant!to!a!Shareholder's!decision!on!how!to!vote!of!Resolution!1,!2!and!3.!!Refer!to!sections! 8.5c8.6!of!the!Independent!Expert’s!Report!for!further!disadvantages:!

• (a) the!Company!will!be!changing!the!scale!of!its!activities,!which!may!not!be!consistent! with!the!objectives!of!Shareholders.!!

13!

• (b) Should! the! Acquisition! be! completed,! the! Company's! Shareholders! will! have! their! voting!power!reduced.!!As!such,!the!ability!of!the!existing!Shareholders!to!influence! decisions,! including! the! composition! of! the! Board! or! the! acquisition! or! disposal! of! assets!will!be!reduced!accordingly.!

• (c) The!Company!will!be!exposed!to!the!risks!associated!with!the!change!of!scale!of!the! Company's! activities,! or! rather! associated! with! Biolife's! business! and! operations! (refer!to!Section!3.10!for!further!information).!

3.9 Timetable!

An!indicative!timetable!for!the!completion!of!the!Acquisition!and!the!Subsequent!Placement!is! set!out!below:!

setoutbelow:
Event	Date*
ShareholderMeeting(SharessuspendedfromtradingonASX)	20December2013
IssueofSubsequentPlacementShares	20December2013
CompletionofAcquisition	20December2013

*Dates!in!the!above!table!are!indicative!only.!!

3.10 Risk!Factors!

The!Company!has!commenced!and!will!continue!until!completion!of!the!Acquisition!the! requisite!due!diligence!process!(including!title,!legal,!technical!and!other!risks).!!While!this! process!is!undertaken!to!identify!any!material!risks!specific!to!Biolife!and!its!intellectual! property,!it!should!be!noted!that!the!usual!risks!associated!with!drug!development!and! pharmaceutical!companies!with!a!small!market!capitalisation!are!expected!to!remain!after!the! completion!of!due!diligence.!!

Shareholders!and!investors!should!also!be!aware!that!the!Acquisition!Agreement!to!acquire! Biolife!is!conditional!on!a!number!of!events!(refer!to!Section!3.2!above).!Accordingly!there!is!a! risk!that!the!Acquisition!may!not!be!completed.!!

Investing!in!a!company!involves!risks!of!various!kinds,!some!of!which!are!within!the!realms!of! influence!of!the!Company!and!some,!arising!from!external!factors,!which!may!be!beyond!the! control!of!the!Company.!!A!summary!of!the!risks!associated!with!the!Acquisition!and!ongoing! research!and!development!(and!potential!commercialization)!of!the!Biolife!technology!are! outlined!in!Schedule!2.!

3.11 Plans!for!the!Company!if!the!Acquisition!is!not!completed!

If!the!Company!does!not!complete!the!Acquisition,!the!Company!will!continue!with!its!current! activities!(including!developing!and!commercialising!a!vitamin!D!supplement!tablet!which! melts!in!the!mouth!and!a!prescription!vitamin!D!tablet!for!buccal!delivery)!and!continue!to! undertake!due!diligence!on!new!opportunities!for!growth!and!diversification.!!

3.12 Independent!Expert's!Report!

The!Directors!resolved!to!appoint!Stantons!International!Securities!as!an!independent!expert! and!commissioned!it!to!prepare!a!report!to!provide!an!opinion!as!to!whether!or!not!the!

14!

Acquisition!is!fair!and!reasonable!to!the!existing!Shareholders!(whose!votes!on!Resolution!1! are!not!to!be!disregarded).!

What!is!fair!and!reasonable!must!be!judged!by!the!independent!expert!in!all!the!circumstances! of!the!proposal.!!This!requires!taking!into!account!the!likely!advantages!to!Shareholders!if!the! proposal!is!approved!and!comparing!them!with!the!disadvantages!to!them!if!the!proposal!is! not!approved.!

Stantons!International!Securities!has!concluded!that!the!proposed!Acquisition!is!not!fair!but! reasonable!to!the!existing!Shareholders!(whose!votes!on!Resolution!1!are!not!to!be! disregarded).

As!a!result!of!the!nature!of!the!business!of!Imugene!and!Biolife,!Stantons!were!unable!to! ascribe!a!fair!value!to!Biolife’s!shares!and!therefore!could!not!form!an!opinion!as!to!whether! the!proposal!under!Resolution!1!is!fair.!!In!the!absence!of!a!fair!value!Stantons!must!conclude! that!the!Acquisition!is!not!fair!to!existing!shareholders!who!are!not!Vendors.!!

The!Company!strongly!recommends!that!you!read!the!Independent!Expert's!Report!in!full,!a! copy!of!which!is!in!Annexure!A!to!this!Explanatory!Memorandum.!

3.13 Directors’!Recommendation!in!relation!to!Acquisition!

Mr!Paul!Hopper!declines!to!make!a!recommendation!to!Shareholders!in!relation!to!Resolutions! 1,!2!and!3!due!to!his!interest!in!the!outcome!of!those!Resolutions!(Vendors!associated!with! him!will!be!issued!68,296,875!Consideration!Shares!on!Completion!of!the!Acquisition).!!

The!other!Directors!(the! NonSassociated!Directors ),!being!Mr!Steve!Harris!and!Dr!Nicholas!Ede,! do!not!have!an!interest!in!Resolutions!1,!2!and!3!(other!than!Dr!Ede's!interest!arising!solely!in! his!capacity!as!a!Shareholder!of!the!Company).!!Based!on!the!information!available,!including:!

• (a) !the!information!contained!in!this!Explanatory!Memorandum;!and!

• (b) !the!Independent!Expert's!Report!in!Annexure!A,!!

the!Noncassociated!Directors!consider!that!the!Acquisition!is!in!the!best!interests!of!the! Company!and!recommend!that!Shareholders!vote!in!favour!of!Resolutions!1,!2!and!3.!

Each!of!the!Noncassociated!Directors!voted!for!the!proposal!to!be!put!to!Shareholders.!!

Dr!Ede!will!vote!his!Shares!in!favour!of!the!Acquisition.!!Mr!Harris!does!not!hold!any!Shares.!

Resolutions!1,!2!and!3!are!interdependent,!meaning!that!Shareholders!must!pass!all!of! Resolutions!1,!2!and!3!for!the!Acquisition!to!proceed.!

3.14 Forward!looking!statements!

The!forward!looking!statements!in!the!Notice!are!based!on!the!Company’s!current! expectations!about!future!events.!They!are,!however,!subject!to!known!and!unknown!risks,! uncertainties!and!assumptions,!many!of!which!are!outside!the!control!of!the!Company!and!its! Directors,!which!could!cause!actual!results,!performance!or!achievements!to!differ!materially! from!future!results,!performance!or!achievements!expressed!or!implied!by!the!forward!looking! statements!in!the!Notice.!These!risks!include!but!are!not!limited!to,!the!risks!referred!to!in! Schedule!2.!!Forward!looking!statements!include!those!containing!words!such!as!‘anticipate’,! ‘estimates’,!‘should’,!‘will’,!‘expects’,!‘plans’!or!similar!expressions.!

15!

4. Resolution1–!Approval(of(Acquisition(of!Biolife!

4.1 General!

As!outlined!in!Section!3.2,!the!Company!has!entered!into!the!Acquisition!Agreement!under! which!the!Company!has!agreed!to!acquire!all!of!the!Vendor!Shares!from!the!Vendors.!!!!!!!!

The!Acquisition!Agreement!is!subject!to!the!Conditions!set!out!in!Section!3.2!above,!including! the!requirement!to!obtain!Shareholder!approval.!

A!detailed!description!of!the!proposed!Acquisition!and!Biolife's!assets!and!prospects!is! outlined!in!Section!3!above.!

Resolution!1!seeks!Shareholder!approval!under!Listing!Rule!10.1!to!acquire!Biolife!(which!is! partly!owned!by!a!related!party!of!the!Company)!in!accordance!with!the!Acquisition! Agreement.!!Resolution!1!is!an!ordinary!resolution.!!!!

4.2 Listing!Rule!10.1!

Listing!Rule!10.1!prevents!a!company!from!acquiring!a!substantial!asset!from!a!related!party! without!shareholder!approval.!

Kilinwata!Investments!Pty!Ltd!( Kilinwata ),!Moreglade!Pty!Ltd!( Moreglade )!and!Deborah! Coleman!hold!18,212,500!Vendor!Shares!(approximately!22.76%!of!the!Vendor!Shares)!in! aggregate!that!are!being!acquired!by!the!Company!as!part!of!the!Acquisition.!!Kilinwata,! Moreglade!and!Deborah!Coleman!are!related!parties!of!the!Company!as!they!are!related!to!Mr! Paul!Hopper,!a!Director!of!the!Company.!!!!!!

The!effect!of!passing!Resolution!1!will!be!to!allow!the!Company!to!complete!the!Acquisition! without!breaching!Listing!Rule!10.1.!

For!the!purposes!of!Listing!Rule!10.10,!the!following!information!is!provided:!

• (a) the!Independent!Expert's!Report!in!Annexure!A!sets!out:!

• (i) the!effect!of!the!Acquisition!on!the!Company;!and!

• (ii) whether!the!Acquisition!is!fair!and!reasonable!to!Shareholders;!and!

• (b) a!voting!exclusion!statement!is!included!in!the!Notice.!

5.

Resolution*2!–!Approval(of(Change(in(Scale(of(Activities!

5.1 General!

Resolution!2!seeks!Shareholder!approval!under!Listing!Rule!11.1.2!for!the!significant!change!in! the!scale!of!the!Company's!activities!resulting!from!the!Acquisition.!

Resolution!2!is!an!ordinary!resolution.!!!!

16!

5.2 Listing!Rule!11.1.2!

Listing!Rule!11.1!provides!that!where!a!company!proposes!to!make!a!significant!change,!either! directly!or!indirectly,!to!the!nature!or!scale!of!its!activities,!it!must!provide!full!details!to!ASX!as! soon!as!practicable!and!comply!with!the!following:!

• (a) provide!to!ASX!information!regarding!the!change!and!its!effect!on!future!potential! earnings,!and!any!information!that!ASX!asks!for;!

• (b) if!ASX!requires,!obtain!the!approval!of!holders!of!its!shares!and!comply!with!any! requirements!of!ASX!in!relation!to!the!notice!of!meeting!(the!notice!of!meeting!must! include!a!voting!exclusion!statement);!and!

• (c) if!ASX!requires,!meet!the!requirements!of!Chapters!1!and!2!of!the!Listing!Rules!as!if! the!company!were!applying!for!admission!to!the!official!list!of!ASX.!

ASX!has!indicated!to!the!Company!that!given!the!change!in!the!scale!of!the!Company’s! activities!resulting!from!the!Acquisition!it!requires!the!Company!to!obtain!Shareholder! approval.!!The!Company!is!not!required!to!reccomply!with!the!admission!requirements!set!out! in!Chapters!1!and!2!of!the!Listing!Rules.!!A!voting!exclusion!is!included!in!the!Notice.!

6. Resolution*3!–!Approval(of(Issue%of"Consideration"Shares!

6.1 General!

Resolution!3!seeks!Shareholder!approval!under!Listing!Rules!7.1!and!10.11!to!issue!the! Consideration!Shares!to!the!Vendors!pursuant!to!the!terms!of!the!Acquisition!Agreement.!!

Resolution!3!is!an!ordinary!resolution.!!!!

6.2 Listing!Rule!7.1!

Listing!Rule!7.1!provides!that!a!company!must!not!(subject!to!specified!exceptions),!without! the!approval!of!shareholders,!issue!or!agree!to!issue!during!any!12!month!period!any!equity! securities,!or!other!securities!with!rights!to!conversion!to!equity!(such!as!an!option),!if!the! number!of!those!securities!exceeds!15%!of!the!number!of!ordinary!securities!on!issue!at!the! commencement!of!that!12!month!period.!

Given!the!Shares!to!be!issued!under!Resolution!3!will!exceed!the!15%!threshold!and!none!of! the!exceptions!contained!in!Listing!Rule!7.2!apply,!Shareholder!approval!is!required!under! Listing!Rule!7.1.!!!

The!following!information!is!provided!in!relation!to!Resolution!3!pursuant!to!and!in!accordance! with!Listing!Rule!7.3:!

• (a) the!maximum!number!of!Shares!to!be!issued!to!the!Vendors!(other!than!Kilinwata,! Moreglade!and!Deborah!Coleman)!is!231,703,125!Shares;!

• (b) the!Shares!will!be!issued!no!later!than!3!months!after!the!date!of!the!Meeting!(or! such!later!date!to!the!extent!permitted!by!any!ASX!waiver!or!modification!of!the! Listing!Rules)!and!it!is!intended!that!the!Shares!will!be!issued!on!the!same!date,!being! the!Completion!Date!of!the!Acquisition;!

17!

• (c) the!Shares!will!be!issued!for!nil!cash!consideration!as!they!are!being!issued!as!the! consideration!for!the!Acquisition.!Accordingly!no!funds!will!be!raised!from!the!issue! of!the!Shares;!

• (d) the!Shares!will!be!issued!to!the!Vendors!(other!than!Kilinwata,!Moreglade!and! Deborah!Coleman)!in!amounts!set!out!in!Schedule!1!to!this!Notice;!

• (e) none!of!the!Vendors!(other!than!Kilinwata,!Moreglade!and!Deborah!Coleman)!are! related!parties!of!the!Company;!and!

• (f) the!Shares!issued!will!be!fully!paid!ordinary!shares!in!the!capital!of!the!Company! issued!on!the!same!terms!and!conditions!as!the!Company’s!existing!Shares.!

6.3 Listing!Rule!10.11!

Listing!Rule!10.11!provides!that!a!company!must!not!(subject!to!specified!exceptions)!issue!or! agree!to!issue!equity!securities!to!a!related!party!without!the!approval!of!shareholders.!!!

As!noted!in!Section!4.2,!Kilinwata!and!Moreglade!are!related!parties!of!the!Company!as!they! are!associated!with!Mr!Paul!Hopper,!a!Director!of!the!Company.!

Given!Kilinwata!and!Moreglande!are!to!be!issued!Shares!under!Resolution!3!and!none!of!the! exceptions!contained!in!Listing!Rule!10.12!apply,!Shareholder!approval!is!required!under! Listing!Rule!10.11.!!If!approval!is!given!under!Listing!Rule!10.11,!Shareholder!approval!is!not! required!under!Listing!Rule!7.1.!!!

The!following!information!is!provided!in!relation!to!Resolution!3!pursuant!to!and!in!accordance! with!Listing!Rule!10.13:!

• (a) the!maximum!number!of!securities!to!be!issued!to!Kilinwata,!Moreglade!and! Deborah!Coleman!is:!

• (i) Kilinwata!–!26,953,125!Shares;!!

• (ii) Moreglade!–!27,562,500!Shares;!and!

• (iii) Deborah!Coleman!–!13,781,250.!

• (b) Kilinwata,!Moreglade!and!Deborah!Coleman!are!related!to!Mr!Paul!Hopper,!a! Director!of!the!Company;!

• (c) the!Shares!will!be!issued!no!later!than!1!month!after!the!date!of!the!Meeting!(or!such! later!date!to!the!extent!permitted!by!any!ASX!waiver!or!modification!of!the!!Listing! Rules)!and!it!is!intended!that!the!Shares!will!be!issued!on!the!same!date,!being!the! Completion!Date!of!the!Acquisition;!

• (d) the!Shares!will!be!issued!for!nil!cash!consideration!as!they!are!being!issued!as!the! consideration!for!the!Acquisition.!Accordingly!no!funds!will!be!raised!from!the!issue! of!the!Shares;!and!

• (e) the!Shares!issued!will!be!fully!paid!ordinary!shares!in!the!capital!of!the!Company! issued!on!the!same!terms!and!conditions!as!the!Company’s!existing!Shares.!

18!

7. Resolution*4!–!Appointment)of)Director!

7.1 Background!

Article!6(c)!of!the!Constitution!provides!that!the!Company!in!general!meeting!may!by!ordinary! resolution!appoint!any!person!as!a!Director.!

Biolife!has!nominated!Dr!Axel!Hoos!as!its!nominee!to!be!appointed!as!a!Director.!!Accordingly,! Dr!Hoos!seeks!approval!to!be!appointed!as!a!Director!with!effect!from!Completion!of!the! Acquisition.!!Resolution!4!is!an!ordinary!resolution.!!

The!Company’s!current!NoncExecutive!Chairman,!Mr!Steve!Harris,!will!retire!from!the!Board! following!Completion!of!the!Acquisition.!!

7.2 Candidate!Director’s!Profile!–!Dr!Axel!Hoos

Dr!Hoos!will!be!a!NoncExecutive!Director.!!!

Dr!Hoos!is!Vice!President,!Oncology!R&D!at!GlaxoSmithKline!where!he!directs!clinical!and! translational!research!on!molecular!mechanisms!of!cancer!and!tumourchost!interactions!for! rational!combination!of!therapies!to!optimise!patient!outcomes.!!

Prior!to!his!current!role,!Dr!Hoos!was!the!medical!lead!in!immunology/oncology!at!Bristolc Myers!Squibb!where!he!developed!the!Yervoy!monoclonal!antibody!in!melanoma!and!other! indications.!!Yervoy!is!the!first!therapy!to!extend!survival!in!metastatic!melanoma.!!Dr!Hoos! has!previously!been!CocDirector!of!the!influential!thinkctank!Cancer!Immnunotherapy! Consortium.!!Imugene!will!be!Dr!Hoos!only!Board!seat!worldwide.!

8. Resolution*5!–!Ratification)of)Initial)Placement!

8.1

General!

On!30!October!2013,!the!Company!issued!85,000,000!Shares!at!an!issue!price!of!$0.01!each!to! sophisticated!and!professional!investors!to!raise!$850,000!(before!costs).!!!

The!funds!raised!from!the!issue!of!the!Initial!Placement!Shares!have!been,!or!will!be,!used!to! fund:!

• (a) research!and!development!of!the!Company's!existing!intellectual!property!(Linguet™! technology)!and!the!Biolife!intellectual!property!(including!a!Phase!II!trial!of!HERcVaxx! immunotherapy!in!gastric!cancer,!subject!to!FDA!approval);!and!

• (b) general!working!capital.!

The!Initial!Placement!Shares!were!issued!within!the!Company's!Listing!Rule!7.1!and!7.1A! placement!capacity!without!the!need!for!Shareholder!approval.!!!

Listing!Rule!7.4!provides!that!where!a!company!in!general!meeting!ratifies!a!previous!issue!of! securities!made!pursuant!to!Listing!Rule!7.1!(and!provided!that!the!previous!issue!did!not! breach!Listing!Rule!7.1)!those!securities!will!be!deemed!to!have!been!issued!with!shareholder! approval!for!the!purpose!of!Listing!Rule!7.1.!

Resolution!5!seeks!Shareholder!approval!for!the!ratification!of!the!issue!of!the!Initial! Placement!Shares!pursuant!to!Listing!Rule!7.4.!!The!effect!of!Shareholders!passing!Resolution!5!

19!

will!be!to!allow!the!Company!to!issue!securities!in!the!future!up!to!the!15%!annual!placement! capacity!set!out!in!Listing!Rule!7.1,!without!obtaining!prior!Shareholder!approval.!

Resolution!5!is!an!ordinary!resolution.!

8.2 Specific!information!required!by!Listing!Rule!7.5!

Pursuant!to!and!in!accordance!with!Listing!Rule!7.5,!the!following!information!is!provided!in! relation!to!Resolution!5:!

• (a) 85,000,000!Initial!Placement!Shares!were!issued;!

• (b) the!Initial!Placement!Shares!were!issued!at!$0.01!each;!

• (c) the!Initial!Placement!Shares!are!all!fully!paid!ordinary!shares!in!the!capital!of!the! Company!and!rank!equally!in!all!respects!with!the!Company’s!other!existing!Shares! on!issue;!

• (d) the!Initial!Placement!Shares!were!issued!to!various!sophisticated!and!professional! clients!of!Forrest!Capital!Pty!Ltd!who!are!not!related!parties!or!associates!of!related! parties!of!the!Company;!and!!

• (e) the!funds!raised!from!the!issue!of!the!Initial!Placement!Shares!have!been,!or!will!be,! used!to!fund:!

• (i) research!and!development!of!the!Company's!existing!intellectual!property! (Linguet™!technology)and!the!Biolife!intellectual!property!(including!a! Phase!II!trial!of!HERcVaxx!immunotherapy!in!gastric!cancer,!subject!to!FDA! approval);!and!

• (ii) general!working!capital.!!

9. Resolution*6!–!Authority)to)issue)Subsequent)Placement)Shares!

9.1 General!

As!announced!to!the!ASX!on!23!October!2013,!the!Company!intends!to!undertake!a!placement! of!165,000,000!Shares!at!an!issue!price!of!$0.01!each!to!raise!$1,650,000!(before!costs)!to! fund:!

• (a) research!and!development!of!the!Company's!existing!intellectual!property!(Linguet™! technology)!and!the!Biolife!intellectual!property!(including!a!Phase!II!trial!of!HERcVaxx! immunotherapy!in!gastric!cancer,!subject!to!FDA!approval);!and!

• (b) general!working!capital.!!

Given!the!Subsequent!Placement!Shares!to!be!issued!under!Resolution!6!will!exceed!the!15%! threshold!set!out!in!Listing!Rule!7.1!and!none!of!the!exceptions!contained!in!Listing!Rule!7.2! apply,!Shareholder!approval!is!required!under!Listing!Rule!7.1.!!A!summary!of!Listing!Rule!7.1!is! set!out!in!Section!6.2!above.!

Resolution!6!seeks!Shareholder!approval!pursuant!to!Listing!Rule!7.1!for!the!issue!of!the! Subsequent!Placement!Shares.!!Resolution!6!is!an!ordinary!resolution.!

20!

9.2 Specific!information!required!by!Listing!Rule!7.3!

Pursuant!to!and!in!accordance!with!Listing!Rule!7.3,!the!following!information!is!provided!in! relation!to!Resolution!6:!

• (a) the!maximum!number!of!Subsequent!Placement!Shares!to!be!issued!is!165,000,000;!

• (b) the!Subsequent!Placement!Shares!will!be!issued!no!later!than!three!months!after!the! date!of!the!Meeting!(or!such!later!date!to!the!extent!permitted!by!any!ASX!waiver!or! modification!of!the!Listing!Rules)!and!it!is!intended!that!all!of!the!Subsequent! Placement!Shares!will!be!issued!on!the!same!date;!!

• (c) the!Subsequent!Placement!Shares!will!be!issued!at!an!issue!price!of!$0.01!each.!

• (d) the!Subsequent!Placement!Shares!will!be!issued!to!sophisticated!and!professional! clients!of!Forrest!Capital!Pty!Ltd!who!are!not!related!parties!of!the!Company;!

• (e) the!Subsequent!Placement!Shares!will!be!fully!paid!ordinary!shares!in!the!capital!of! the!Company!and!will!rank!equally!in!all!respects!with!the!Company’s!existing!Shares! on!issue;!and!

• (f) the!funds!raised!from!the!Subsequent!Placement!will!be!used!to!fund:!

• (i) research!and!development!of!the!Company's!existing!intellectual!property! (Linguet™!technology)!and!the!Biolife!intellectual!property!(including!a! Phase!II!trial!of!HERcVaxx!immunotherapy!in!gastric!cancer,!subject!to!FDA! approval);!and!

• (ii) general!working!capital.!!

10. Resolution*7!–!Authority)to)issue)Shares)to)Dr)Nicholas)Ede!

10.1 General!

Dr!Nicholas!Ede!(a!Director),!or!his!nominee,!intends!to!subscribe!for!up!to!10,000,000!Shares! at!an!issue!price!of!$0.01!each,!the!same!terms!as!the!Initial!Placement!and!Subsequent! Placement.!!Dr!Ede!is!a!related!party!of!the!Company!by!virtue!of!being!a!Director!and! therefore!approval!is!required!under!Listing!Rule!10.11.!!A!summary!of!Listing!Rule!10.11!is!set! out!in!Section!6.3!above.!!If!approval!is!given!under!Listing!Rule!10.11,!Shareholder!approval!is! not!required!under!Listing!Rule!7.1.!

Resolution!7!seeks!Shareholder!approval!pursuant!to!Listing!Rule!10.11!for!the!issue!of!the! Shares!to!Dr!Ede.!!Resolution!7!is!an!ordinary!resolution.!

10.2 Specific!information!required!by!Listing!Rule!10.13!

Pursuant!to!and!in!accordance!with!Listing!Rule!10.13,!the!following!information!is!provided!in! relation!to!the!issue!of!Shares!to!Dr!Nicholas!Ede!(or!his!nominee):!

• (a) the!maximum!number!of!Shares!to!be!issued!to!Dr!Nicholas!Ede!(or!his!nominee)!is! 10,000,000;!!

21!

• (b) the!Shares!will!be!issued!no!later!than!1!month!after!the!date!of!the!Meeting!(or!such! later!date!to!the!extent!permitted!by!any!ASX!waiver!or!modification!of!the!!Listing! Rules)!and!it!is!intended!that!all!of!the!Shares!will!be!issued!on!the!same!date;!

• (c) the!Shares!will!be!issued!at!an!issue!price!of!$0.01!each;!!

• (d) the!Shares!will!be!fully!paid!ordinary!shares!in!the!capital!of!the!Company!and!will! rank!equally!in!all!respects!with!the!Company’s!existing!Shares!on!issue;!and!

• (e) the!funds!raised!from!the!issue!of!Shares!to!Dr!Ede!will!be!aggregated!with!and!used! for!the!same!purpose!as!the!funds!raised!for!the!Subsequent!Placement.!!

11. Definitions!

$ !means!Australian!Dollars.!

Acquisition! has!the!meaning!in!Section!3.2.

Acquisition!Agreement! has!the!meaning!in!Section!3.2.!

AEDT !means!Australian!Eastern!Daylight!Time,!being!the!time!in!Melbourne,!Victoria.

ASIC !means!Australian!Securities!and!Investments!Commission.!!

ASX !means!ASX!Limited!(ACN!008!624!691)!and,!where!the!context!permits,!the!Australian! Securities!Exchange!operated!by!ASX.!

Biolife! means!Biolife!Science!Qld!Limited!ACN!158!039!831.!

Board !means!the!board!of!Directors.!

Chairman! means!the!chairman!of!this!Meeting.

Company! or! Imugene! means!Imugene!Limited!ACN!009!179!551.!

Completion! means!the!completion!of!the!sale!and!purchase!of!Biolife!in!accordance!with!the! Acquisition!Agreement.!

Completion!Date! means!the!date!which!is!5!business!days!after!the!satisfaction!(or!waiver)!of! the!Conditions!or!any!other!date!which!is!agreed!in!writing!by!the!parties!to!the!Acquisition! Agreement.!

Conditions! has!the!meaning!in!Section!3.2.!

Consideration!Shares! has!the!meaning!in!Section!3.2.!

Constitution !means!the!current!constitution!of!the!Company.!

Corporations!Act !means!the!Corporations!Act!2001!(Cth).!

Director !means!a!director!of!the!Company.!

Explanatory!Memorandum !means!the!explanatory!memorandum!attached!to!the!Notice.!

FDA! means!the!U.S.!Food!and!Drugs!Administration.!

22!

HERSVaxx! has!the!meaning!in!Section!3.3.!

Independent!Expert’s!Report! means!the!independent!expert’s!report!prepared!by!Stantons! International!Securities!in!Annexure!A!of!this!Notice.!!

Initial!Placement! has!the!meaning!in!Section!3.4.!

Initial!Placement!Shares! has!the!meaning!in!Section!3.4.!

Kilinwata! has!the!meaning!in!Section!4.2.!

Listing!Rules !means!the!listing!rules!of!ASX.!

Meeting !has!the!meaning!in!the!introductory!paragraph!of!the!Notice.!

Moreglade! has!the!meaning!in!Section!4.2.!

Notice !means!this!notice!of!meeting.!

Option! means!an!option!to!acquire!a!Share.!

Proxy!Form !means!the!proxy!form!attached!to!the!Notice.!

Resolution !means!a!resolution!contained!in!this!Notice.!

Schedule !means!a!schedule!to!this!Notice.!

Section !means!a!section!contained!in!this!Explanatory!Memorandum.!

Share !means!a!fully!paid!ordinary!share!in!the!capital!of!the!Company.!

Shareholder !means!a!shareholder!of!the!Company.!

Stantons!International!Securities !means!Stantons!International!Pty!Ltd!(trading!as!Stantons! International!Securities).!

Subsequent!Placement! has!the!meaning!in!Section!3.4.!

Subsequent!Placement!Shares! has!the!meaning!in!Section!3.4.!

Vendors! means!the!shareholders!of!Biolife!as!detailed!in!Schedule!1.!

Vendor!Share! means!a!fully!paid!ordinary!share!in!Biolife.!

In!this!Notice,!words!importing!the!singular!include!the!plural!and!vice!versa.!!

23!

Schedule!1 –!Vendors!

Part!A!–!Management!Vendors!

PartA–ManagementVendors
Nameandaddress	NumberofShares	Relevant Proportion(%)	Numberof ConsiderationShares
MrRogerAston LaCorniche, Unit7,120NorthSteyne MANLYNSW2095	7,350,000	9.19%	27,562,500
KilinwataInvestmentsPtyLtd 87BrightonBoulevard NORTHBONDINSW2026	7,187,500	8.98%	26,953,125
MsDeborahAnneColeman 8/768NewSouthHeadRoad ROSEBAYNSW2029	3,675,000	4.59%	13,781,250
MoregladePtyLtd Suite802 Level8,37BlighStreet SYDNEYNSW2000	7,350,000	9.19%	27,562,500
ViriathusLimited ClarendonHouse ChurchStreet HamiltonHMCX Bermuda	4,593,750	5.74%	17,226,563
BrianLeedmanandNatasha Leedman 6MarimontStreet NORTHPERTHWA6006	4,593,750	5.74%	17,226,563
AxelHoos 306SpruceStreet PhiladelphiaPA19106 USA	2,000,000	2.50%	7,500,000
BerbayPtyLtdA/C> 99BelfordRoad KEWEASTVIC3102	1,500,000	1.88%	5,625,000
BerbayPtyLtd 99BelfordRoad KEWEASTVIC3102	500,000	0.63%	1,875,000
EuropaInvestmentServicesLtd c/cStephenScreech KSGSeniorManager BasTrustCorporationLimited	1,000,000	1.25%	3,750,000

24!

Nameandaddress	NumberofShares	Relevant Proportion(%)	Numberof ConsiderationShares
GenevaBranchMemberofthe Basel
PhillipJohnCoulson 20BoscombeAvenue CITYBEACHWA6015	1,500,000	1.88%	5,625,000
NutsvillePtyLtd 403EnmoreRoad MARRICKVILLENSW2204	650,000	0.81%	2,437,500
MsJaclynStojanovski,MrChris Retzos,MrsSusieRetzos 1/1SobraonStreet SHEPPARTONVIC3630	650,000	0.81%	2,437,500
AtlantisMGPtyLtd c/cAccoladeServices GPOBoxD150 PERTHWA6840	350,000	0.44%	1,312,500
G&NLordSuperannuationPty Ltd Level2 70ParkStreet SOUTHMELBOURNEVIC3205	500,000	0.63%	1,875,000
KirzyPtyLtd c/cAccoladeServices GPOBoxD150 PERTHWA6840	250,000	0.31%	937,500
ChinNomineesPtyLtd DrChongYoonChin 25CanningBeachRoad APPLECROSSWA6153	1,250,000	1.56%	4,687,500
MargusEhatamm 163RidgewoodAvenue LeonRidge NJ07028 USA	1,250,000	1.56%	4,687,500
PermacSealAustraliaPtyLtd LaurrieBarichello 673HeidelbergRoad APHINGTONVIC3084	500,000	0.63%	1,875,000
SiatYoonChin DrChongYoonChin 25CanningBeachRoad APPLECROSSWA6153	1,250,000	1.56%	4,687,500
JakeMounsey C/cPFSFinancialAdvisers POBox7366 StKildaRoad	200,000	0.25%	750,000

25!

Nameandaddress	NumberofShares	Relevant Proportion(%)	Numberof ConsiderationShares
MELBOURNEVIC3000
YondroPtyLtd 6PierStreet PORTMELBOURNEVIC3207	350,000	0.44%	1,312,500
GiovanniSpagnolo 13EmmalineStreet NORTHCOTEVIC3070	250,000	0.31%	937,500
SeefledInvestmentsPtyLtd 8BarkerPlace KARRINYUPWA6018	250,000	0.31%	937,500
MarcoLongo Unit113 8–10TheEsplanade STKILDAVIC3182	1,000,000	1.25%	3,750,000
NefcoNomineesPtyLtd GPOBoxW2024 PERTHWA6846	350,000	0.44%	1,312,500
AaronGrantCaratti 302MarmionStreet COTTESLOEWA6011	200,000	0.25%	750,000
DylidePtyLtd 73BowerStreet,Manly,NSW 2095	750,000	0.94%	2,812,500
JKNomineesPtyLtdACN064 939546 19DalgetyStreet,East Fremantle,WA6158	7,900,000	9.88%	29,625,000
TisiaNomineesPtyLtdACN008 919346FAMILYA/C> 4BrockmanAvenue,Dalkeith, WA6009	7,900,000	9.88%	29,625,000
OaktoneNomineesPtyLtdACN 074566635 POBoxZ5248ofStGeorges Terrace,Perth,WA6831	7,900,000	9.88%	29,625,000
MrJason&MrsLisaPeterson POBox1773,WestPerth,WA 6872	1,350,000	1.69%	5,062,500
ConceptBiotechPtyLtdACN117 956573 28AlbertStreet,Claremont,WA 6010	1,850,000	2.31%	6,937,500

26!

Nameandaddress	NumberofShares	Relevant Proportion(%)	Numberof ConsiderationShares
WarambiSARL 7SenteDuGrand,Champtier 78240,Chambourcy	1,850,000	2.31%	6,937,500
Total	80,000,000	100%	300,000,000

27!

Schedule!2 –!Risks!!!

1. Introduction!

There!are!a!number!of!risks!associated!with!the!Acquisition!that!may!have!an!impact!on!the! financial!returns!received!by!Shareholders.!!These!risks!are!important!for!Shareholders!to! understand.!

Shareholders!are!already!exposed!to!a!number!of!risks!through!their!existing!shareholding!in! the!Company.!!A!number!of!these!risks!are!inherent!in!investing!in!securities!generally!and!also! inherent!in!any!pharmaceutical!and!drug!company!such!as!that!of!the!Company.!

The!risk!factors!include,!but!are!not!limited!to,!those!detailed!below.!!Additional!risks!not! presently!known!to!the!Company,!or!if!known,!not!considered!material,!may!also!have!an! adverse!impact.!

The!Directors!believe!that!the!advantages!of!the!Acquisition!outweigh!the!associated!extent!of! the!risks.!

2. Specific!Risks!

(a) Development!and!Commercialisation!of!Intellectual!Property!

The!Company!is!relying!on!its!ability!to!develop!and!commercialise!intellectual!property.!A! failure!to!successfully!develop!and!commercialise!intellectual!property!could!lead!to!a!loss!of! opportunities!and!adversely!impact!on!the!Company's!operating!results!and!financial!position.!

(b) Intellectual!Property!Rights!

Securing!rights!to!intellectual!property,!and!in!particular!patents,!is!an!integral!part!of!securing! potential!product!value!in!the!outcomes!of!pharmaceutical!research!and!development.!! Competition!in!retaining!and!sustaining!protection!of!intellectual!property!and!the!complex! nature!of!intellectual!property!can!lead!to!expensive!and!lengthy!patents!disputes!for!which! there!can!be!no!guaranteed!outcome.!

The!granting!of!a!patent!does!not!guarantee!that!the!rights!of!others!are!not!infringed!or!that! competitors!will!not!develop!competing!intellectual!property!that!circumvents!such!patents.! The!Company's!success!depends,!in!part,!on!its!ability!to!obtain!patents,!maintain!trade!secret! protection!and!operate!without!infringing!the!proprietary!rights!of!third!parties.!!Because!the! patent!position!of!pharmaceutical!companies!can!be!highly!uncertain!and!frequently!involve! complex!legal!and!scientific!evaluation,!neither!the!breadth!of!claims!allowed!in! pharmaceutical!patents!nor!their!enforceability!can!be!predicted.!!There!can!be!no!assurance! that!any!patents!the!Company!may!own!or!control!or!licence!now!and!in!the!future!will!afford! the!Company!commercially!significant!protection!of!the!intellectual!property,!or!that!any!of! the!projects!that!may!arise!from!the!intellectual!property!will!have!commercial!applications.!

Further,!there!is!always!a!risk!of!third!parties!claiming!involvement!in!technological!and! medical!discoveries,!and!if!any!disputes!arise,!they!could!adversely!affect!the!Company.!

Although!the!Company!will!implement!all!reasonable!endeavours!to!protect!its!intellectual! property,!there!can!be!no!assurance!that!these!measures!will!be!sufficient.!

(c) Freedom!to!operate!!

28!

The!Company!has!not!undertaken!a!formal!'freedom!to!operate'!search!with!regard!to!either! the!Biolife!IP!due!to!the!early!stage!nature!of!the!development!of!HERcVaxx!immunotherapy.! Exhaustive!freedom!to!operate!investigations!would!typically!only!be!undertaken!once!the! pharmaceutical!product!has!gone!beyond!the!initial!testing!phases.!Biolife!has!determined!that! an!exhaustive!freedom!to!operate!investigation!is!not!yet!warranted!as:!!

(i)!!the!majority!of!patents!are!granted!in!major!jurisdictions!and!the!respective!patent!offices! have!therefore!concluded!that!they!are!novel,!innovative!and!that!there!is!no!prior!art;!!

(ii)!!the!scientists!who!invented!the!Biolife!IP!are!globallycrecognised!leaders!in!their!field,!have! been!published!in!a!number!of!peercreviewed!journals!and!are!at!the!forefront!of!cancer! vaccine!development!and!should!be!aware!of!any!developments!that!may!jeopardize!the! status!of!the!Biolife!IP;!and!!

(iii)!!enquiries!have!been!made!with!the!various!individual!inventors!of!the!Biolife!IP!as!to!their! awareness!of!any!third!parties!who!are!likely!to!challenge!the!Biolife!IP's!ownership!or!the! freedom!to!operate.!Each!of!those!persons!who!were!queried!has!advised!the!company!that! they!are!not!aware!of!any!such!third!parties.!!

Nonetheless,!there!is!a!risk!that!the!owner!of!the!Biolife!IP!does!not!have!freedom!to!operate! and!that!a!challenge!to!the!Biolife!IP!may!be!forthcoming.!!

.

(d) Intellectual!property!limitations!!

There!are!two!patent!families!that!are!relevant!to!HERcVaxx!immunotherapy!and!that!are!the! subjects!of!the!Assignment!Deed.!The!initial!patent,!covering!two!of!the!relevant!target! sequences,!was!filed!on!27!February!2002,!has!been!granted!in!the!European!region,!United! States,!Canada,!Israel!and!Australia!and!generally!expires!February!2022.!The!second! application,!covering!the!third!sequence,!was!filed!on!25!October!2007!and!will!expire!in! October!2027.!The!patent!has!been!granted!in!the!European!region!and!is!pending!in!other! countries!but!has!not!been!granted!in!the!United!States.!!It!should!be!noted!that!in!the!United! States,!a!major!pharmaceutical!market,!the!application!has!been!abandoned!and!that!without! an!extension!to!the!life!of!the!earlier!patent,!the!available!period!of!exclusivity!in!the!United! States!is!not!long.!!

(e) Corporate!Structure!

Through!the!proposed!Acquisition,!the!Company!bears!the!legal,!commercial!and!other!risks! that!ordinarily!accompany!a!share!acquisition!transaction.!!Although!the!Acquisition! Agreement!is!drafted!to!minimize!those!risks,!they!cannot!be!eliminated!entirely!and!the! Company!also!bears!the!risk!of!parties!to!the!Acquisition!Agreement!breaching!its!terms!or! other!adverse!consequences!arising!from!the!Acquisition.!

(f) Third!Party!Risks!

If!the!HercVaxx!immunotherapy!is!viable,!which!has!not!been!established,!it!will!require!the! involvement!of!a!number!of!third!parties,!including!suppliers,!distributors,!contractors!and! customers.!!The!Company!(including!Biolife)!will!also!rely!heavily!on!third!parties!to!progress! the!development!of!the!HercVaxx!immunotherapy!,!such!as!a!clinical!research!organization,! manufacturing!partners,!technical!and!regulatory!experts!and!others.!!Financial!failure,!default! or!contractual!nonccompliance!on!the!part!of!such!third!parties!may!have!a!material!impact!on!

29!

the!Company's!(including!Biolife's)!operations!and!performance.!!It!is!not!possible!for!the! Company!to!predict!or!protect!itself!against!all!such!risks.!

(g) Reliance!on!Key!Personnel!

The!Company!is!dependent!on!its!management!and!its!team!of!scientists,!the!loss!of!whose! services!could!materially!and!adversely!affect!the!Company!and!impede!the!achievements!of! its!research!and!development!objectives.!

Because!of!the!specialised!nature!of!the!Company's!business,!its!ability!to!commercialise!its! products!and!maintain!its!research!programme!will!depend!in!part!upon!its!ability!to!attract! and!retain!suitably!qualified!management,!scientists!and!research!people!over!time.!

There!can!be!no!assurance!that!the!Company!will!be!able!to!attract!or!retain!sufficiently! qualified!personnel!on!a!timely!basis,!retain!its!key!scientific!and!management!personnel,!or! maintain!its!relationship!with!key!scientific!organisations.!

(h) Product!Liability,!Development!and!Uninsured!Risks!

The!Company’s!(including!Biolife's)!business!exposes!it!to!potential!product!liability!risks!that! are!inherent!in!the!research!and!development,!manufacturing,!marketing!and!use!of!its! products.!!It!is!anticipated!that!the!Company!will!need!to!secure!sufficient!levels!of!insurance! to!cover!various!product!liability!risks!in!the!course!of!maintaining!its!business.!

However,!there!can!be!no!assurance!that!adequate!or!necessary!insurance!coverage!will!be! available!at!an!acceptable!cost!or!in!sufficient!amounts,!if!at!all,!or!that!product!liability!or! other!claims!would!not!materially!and!adversely!affect!the!business!or!financial!condition!of! the!Company.!

Product!development!risks!also!affect!the!Biolife!intellectual!property.!!For!example,!the!Herc Vaxx!immunotherapy!!may!be!shown!to!be!difficult!or!impossible!to!manufacture!on!a!large! scale!or!may!be!unable!to!compete!with!products!marketed!by!third!parties.!!

Although!the!Company!endeavours!to!work!to!rigorous!standards!there!is!still!the!potential!for! its!products!to!contain!defects!which!may!result!in!failures.!!Even!if!the!intellectual!property!is! commercialized,!which!has!not!yet!occurred,!these!defects!or!problems!could!result!in! operating!problems,!the!loss!of!or!delay!in!generating!revenue,!loss!of!market!share,!failure!to! achieve!market!acceptance,!diversion!of!development!resources,!injury!to!the!Company's! reputation,!litigation!or!other!legal!or!regulatory!sanctions,!patient!injury!or!loss!of!life,! increased!insurance!costs!and!other!risks.!!If!the!Company!(including!Biolife)!fails!to!meet! clients'!expectations,!the!Company's!reputation!could!suffer!and!it!could!be!liable!for!damages.!!

1. General!Risks!

2. (a) Additional!Requirements!for!Capital!

The!Company's!capital!requirements!depend!on!numerous!factors.!!Depending!on!the! Company's!ability!to!generate!income!from!its!operations,!the!Company!may!require!further! financing!in!the!future.!!Any!additional!equity!financing!will!dilute!shareholdings,!and!debt! financing,!if!available,!may!involve!restrictions!on!financing!and!operating!activities.!!If!the! Company!is!unable!to!obtain!additional!financing!as!needed,!it!may!be!required!to!reduce!the! scope!of!its!operations!and!scale!back!its!development!programmes!as!the!case!may!be.!

The!Company!is!raising!funds!to!undertake!a!Phase!2!clinical!trial.!Biolife!has!developed!a! budget!for!the!manufacture!of!the!vaccine!and!the!Phase!2!trial!based!on!discussions!with!

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manufacturers!and!Contract!Research!Organisations!who!may!be!engaged!to!undertake!the! trial.!There!is!a!risk!that!funds!raised!may!be!insufficient!to!undertake!the!trial!as!planned.!The! Company!may!therefore!need!to!raise!additional!funds!to!achieve!its!clinical!and!commercial! objectives.!

The!Company!may!also!need!to!raise!additional!funds!to!obtain!regulatory!approvals!if!the! clinical!trials!are!successful!and!to!commercialize!its!vaccine!if!regulatory!approvals!are! obtained.!Unfavourable!trial!results!may!adversely!affect!the!Company's!ability!to!raise! funding.!The!Company!may!also!incur!additional!expenses!in!pursuing!other!indications!for!its! vaccine.!

Even!if!the!vaccine!receives!regulatory!approval!for!commercialisation,!it!may!not!achieve! commercial!success.!Commercial!revenues,!if!any,!will!be!derived!from!the!sales!of!a!vaccine! which!may!not!become!commercially!available!for!several!years,!if!at!all.!

In!addition!to!the!expenses!of!developing!a!vaccine,!the!Company!will!incur!substantial! additional!expenses!to!operate!as!a!public!company,!to!protect!its!intellectual!property!rights! and!to!defend!against!intellectual!propertycrelated!claims.!

Accordingly,!the!Company!may!require!additional!financing!subsequent!to!the!Offer!to!achieve! its!business!objectives.!Additional!financing!may!not!be!available!on!acceptable!terms,!or!at!all.! Further!issues!of!securities!may!dilute!the!holdings!of!existing!shareholders.!If!funding!is!not! available,!the!Company!may!have!to!slow!or!otherwise!limit!the!testing!and!development!of!its! vaccine,!limit!the!number!of!other!products!it!attempts!to!develop,!delay!commercialisation!or! reduce!the!scope!of!any!sales!and!marketing!activities.!

(b) Potential!Acquisitions!

As!part!of!its!business!strategy,!the!Company!may!make!acquisitions!of,!or!significant! investments!in,!complementary!companies!or!assets.!!Any!such!transactions!will!be! accompanied!by!risks!commonly!encountered!in!making!such!acquisitions.!

(c) Market!Conditions!

Share!market!conditions!may!affect!the!value!of!the!Company’s!quoted!securities!regardless!of! the!Company’s!operating!performance.!!Share!market!conditions!are!affected!by!many!factors! such!as:!

• (i) general!economic!outlook;!

• (ii) interest!rates!and!inflation!rates;!

• (iii) currency!fluctuations;!

• (iv) changes!in!investor!sentiment!towards!particular!market!sectors;!

• (v) the!demand!for,!and!supply!of,!capital;!and!

• (vi) terrorism!or!other!hostilities.!

The!market!price!of!securities!can!fall!as!well!as!rise!and!may!be!subject!to!varied!and! unpredictable!influences!on!the!market!for!equities!in!general!and!pharmaceutical!stocks!in! particular.!!Neither!the!Company!nor!the!Directors!warrant!the!future!performance!of!the! Company!or!any!return!on!an!investment!in!the!Company.!

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(d) Research!and!Development!

The!Company!can!make!no!representation!that!any!of!its!proposed!research!into!or! development!of!its!intellectual!property!(including!the!Biolife!intellectual!property)!necessary! to!achieve!commercial!production!will!be!successful,!that!development!milestones!will!be! achieved,!or!that!the!intellectual!property!will!be!developed!into!products!that!are! commercially!exploitable.!

There!are!many!risks!inherent!in!the!development!of!pharmaceutical!products,!particularly! where!the!products!are!in!the!early!stages!of!development.!!Projects!can!be!delayed!or!fail!to! demonstrate!sufficient!benefit,!or!research!may!cease!to!be!viable!for!a!range!of!scientific!and! commercial!reasons.!

(e) Technical!risks!

Cancer!drugs!have!a!lower!likelihood!of!getting!through!all!development!stages!than!do! products!for!other!indications.!Cancer!development!is!notorious!for!its!failure!rates!due!to!the! complex!biology!and!limited!understanding!of!the!disease!with!no!such!thing!as!a!cure!in!any! cancer!form.!

The!development!and!commercialisation!of!pharmaceutical!products!is!subject!to!the!inherent! risk!of!failure,!including!the!possibility!that!the!products!proposed!to!be!developed!by!the! Company!may:!

• (i) !be!found!to!be!unsafe!or!ineffective;!!

• (ii) !fail!to!demonstrate!any!material!benefit!or!advancement!in!safety!and/or! efficacy!of!an!existing!product;!!

• (iii) !fail!to!receive!necessary!regulatory!approvals;!!

• (iv) are!difficult!or!impossible!to!manufacture!on!the!necessary!scale;!!

• (v) are!uneconomical!to!market!or!otherwise!not!commercially!exploitable;!!

• (vi) fail!to!be!developed!prior!to!the!successful!marketing!of!a!similar!product! by!competitors;!!

• (vii) compete!with!products!marketed!by!third!parties!that!are!superior;!and!!

• (viii) fail!to!achieve!the!support!or!acceptance!of!physicians,!patients!or!the! medical!!community.!!

(f) Regulatory!risks!!!

The!pharmaceutical!regulatory!regime,!which!includes!precclinical!studies!and!clinical!trials!of! each!product!in!order!to!establish!its!safety!and!efficacy,!is!uncertain,!can!take!significant! periods!of!time!and!require!the!expenditure!of!significant!resources.!Data!obtained!from!prec! clinical!and!clinical!activities!are!susceptible!to!varying!interpretations,!which!could!delay,!limit! or!prevent!regulatory!approval!or!clearance.!Before!the!Company!can!market!and!sell!its! vaccine,!it!must!demonstrate!that!the!vaccine!is!safe!and!effective!and!must!obtain!necessary! approvals!from!the!FDA!for!clinical!trials.!HERcVaxx's!immunotherapy!technology!is!based!on!a! relatively!new!form!of!cancer!therapy!that!presents!novel!issues!for!regulatory!authorities!to! consider.!This!may!subject!the!Company!to!heightened!scrutiny!in!the!regulatory!process!with! the!clinical!trials!subject!to!unscheduled!and!unannounced!regulatory!inspections.!If!inspectors!

32!

determine!that!the!trial!sites!do!not!comply!with!regulatory!requirements,!the!regulators!may! stop!our!trials.!The!Company!will!depend!on!clinical!investigators!and!medical!institutions!to! enrol!patients!in!its!clinical!trials!and!other!third!parties!to!perform!data!collection!and! analysis.!As!a!result,!it!may!face!costs!and!delays!outside!of!its!control.!!

(g) Liability!!!

The!testing,!manufacturing!and!marketing!of!human!healthcare!products!entails!an!inherent! risk!of!liability.!The!company!intends!to!obtain!insurance!appropriate!to!the!scope!of!its! operations!but!it!may!not!be!able!to!acquire!product!liability!insurance!at!a!reasonable!cost.!A! product!liability!claim!may!damage!the!Company's!reputation!by!raising!questions!about!the! vaccine's!safety!and!efficacy.!!

(h) Competition!

Competition!from!other!organisations,!along!with!existing!and!new!technologies,!could!impact! on!the!Company's!performance.!!

There!can!be!no!assurance!that!the!Company's!intellectual!property!(including!the!Biolife! intellectual!property)!will!be!commercially!successful!or!competitive!with!the!Company's! numerous!current!and!potential!future!competitors,!such!as!large,!multinational!organisations! with!worldwide!distribution,!academic!institutions,!hospitals,!government!agencies!and!other! public!and!private!research!organisations.!!Similarly,!there!can!be!no!assurance!that!new! innovations!will!not!render!the!targeted!function!of!the!intellectual!property!obsolete.!!Any! failure!by!the!Company!to!compete!effectively!will!result!in!a!deterioration!of!its!financial! performance!and!value.!!

(i) Insurance!

The!Company!will,!where!possible!and!economically!practicable,!endeavor!to!mitigate!some! risks!by!procuring!relevant!insurance!cover.!!However,!such!insurance!cover!may!not!always!be! available!or!economically!justifiable!!the!policy!provisions!and!exclusions!may!render!a! particular!claim!by!the!Company!outside!the!scope!of!the!insurance!cover.!

While!the!Company!will!undertake!all!reasonable!due!diligence!in!assessing!the! creditworthiness!of!its!insurance!providers,!there!will!remain!the!risk!that!an!insurer!defaults! in!payment!of!a!legitimate!claim!by!the!Company!under!an!insurance!policy.!

(j) Regulatory!Risk!

The!introduction!of!new!legislation!or!amendments!to!existing!legislation!by!governments,! developments!in!existing!common!law,!or!the!respective!interpretation!of!the!legal! requirements!in!any!of!the!legal!jurisdictions!which!govern!the!Company's!(including!Biolife's)! operations!or!contractual!obligations,!could!impact!adversely!on!the!assets,!operations!and,! ultimately,!the!financial!performance!of!the!Company!and!its!Shares.!!In!addition,!there!is!a! commercial!risk!that!legal!action!may!be!taken!again!the!Company!(including!Biolife)!in! relation!to!commercial!matters.!

(k) Forward!Looking!Information!

Certain!information!in!this!Notice!constitutes!forward!looking!information!that!is!subject!to! risks!and!uncertainties!and!a!number!of!assumptions,!which!may!cause!actual!future!events!to! be!materially!different!from!the!expectations!expressed!or!implied!in!this!Notice.!

(l) Growth!

33!

There!is!a!risk!that!the!Company!may!be!unable!to!manage!its!future!growth!successfully.!!The! ability!to!hire!and!retain!skilled!personnel!and!third!party!personnel!may!also!be!a!significant! obstacle!to!growth.!!

• (m) Investment!Highly!Speculative!

The!above!list!of!risk!factors!ought!not!to!be!taken!as!exhaustive!of!the!risks!faced!by!the! Company!or!by!investors!in!the!Company.!!The!above!factors,!and!others!not!specifically! referred!to!above!may,!in!the!future,!materially!affect!the!financial!performance!of!the! Company!and!the!value!of!the!Company's!securities.!!

Therefore,!the!Shares!carry!no!guarantee!with!respect!to!the!payment!of!dividends,!returns!of! capital!or!the!market!value!of!the!Shares.!

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Schedule!3 –!Pro!Forma!Balance!Sheet!

Current Assets Cash Receivables Non Current Assets Intangible assets Goodwill Total Assets Current Liabilities Trade and other payables Provisions Owing to BSFE Non Current Liabilities Other financial liabilities Total Liabilities Net Assets Equity Issued capital Reserves Accumulated losses Net Equity	Imugene Group Audited 30 June 2013 $ Imugene Group Pro-forma Unaudited 30 June 2013 (as adjusted) $ 565,629 2,414,638 53,522 53,522
	619,151 2,468,160
	1,004,817 7,769,817 960,527 960,527
	1,965,344 8,730,344
	2,584,495 11,198,504
	160,991 - 5,571 5,571 - 600,000
	166,562 605,571
	531,467 531,467
	531,467 531,467
	698,029 1,137,038
	1,886,466 10,061,466
	17,280,072 25,765,072 966,003 966,003 (16,359,609) (16,669,609)
	1,886,466 10,061,466

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Annexure!A!–!Independent!Expert’s!Report!

36!

PO Box 1908 West Perth WA 6872 Australia

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Level 2, 1 Walker Avenue West Perth WA 6005 Australia

Tel: +61 8 9481 3188 Fax: +61 8 9321 1204

14 November 2013

The Directors Imugene Limited Suite 1, 1233 High Street Armadale VIC 3142

ABN: 84 144 581 519 AFS Licence No: 418019 www.stantons.com.au

Summary of Conclusion

In our opinion, the proposal as outlined in resolution 1 on a market-based approach is on balance, reasonable to the shareholders of Imugene not associated with the Vendors of Biolife (including the interests of Paul Hopper). Owing to the nature of the business of Biolife, valuations depend on the values placed on the IP and patent interests. The valuation of IP and patent interests and the valuation of future profitability and cash flows are extremely subjective as they involve assumptions regarding future events that are not capable of independent substantiation. Since we cannot determine a fair value for the IP and patent interests of Biolife, we have concluded that the proposal is not fair.

Dear Sirs

• RE: IMUGENE LIMITED (“IMUGENE” OR “COMPANY”) (ACN 009 179 551) - MEETING OF SHAREHOLDERS PURSUANT TO AUSTRALIAN SECURITIES EXCHANGE (“ASX”) LISTING RULE 10.1 ON THE PROPOSAL TO ACQUIRE ALL OF THE SHARES IN BIOLIFE SCIENCE QLD LIMITED (“BIOLIFE”) FOR THE CONSIDERATION OF 300,000,000 SHARES IN IMUGENE AND IN PARTICULAR THE ISSUE OF 68,296,875 IMUGENE SHARES TO PARTIES ASSOCIATED WITH PAUL HOPPER.

1. Introduction

• 1.1 We have been requested by the directors of Imugene to prepare an Independent Expert’s Report to determine the fairness and reasonableness relating to the proposals pursuant to resolution 1 as detailed in the Notice of Meeting to Imugene shareholders (the “Notice”) and the Explanatory Memorandum to Shareholders (“EM”) accompanying the Notice that is to be forwarded to shareholders in November 2013.

• 1.2 Under resolution 1 it is proposed that Imugene will acquire 100% of the issued capital of Biolife who owns or will own certain intellectual property (“IP”) and patents pertaining to breast cancer and gastric cancer biotechnology as more fully described elsewhere in this report and the EM attached to the Notice for a purchase consideration of 300,000,000 ordinary shares in Imugene (resolution 3 relates to approval to issue the 300,000,000 shares). For the purposes of this report the 300,000,000 shares to be issued by Imugene are described as the Consideration Shares and the shareholders of Biolife are known as the Vendors. It is expected that the Consideration Shares will be escrowed for a period of 12 months commencing on the date the Consideration Shares are issued. For the purpose of this report the proposed acquisition of all of the shares in Biolife is known as “the Transaction”. The completion of the Transaction is subject to a number of conditions precedent; including completion of satisfactory due diligence into the specified IP and ownership of the shares in Biolife and Imugene obtaining all necessary shareholder and regulatory approvals, including, inter-alia approval under ASX Listing Rules 10.1 and 11.1.2 for the Transaction and Imugene raising a minimum of $2,000,000.

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Liability limited by a scheme approved under Professional Standards Legislation

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• 1.3 Mr Paul Hopper is the Chief Operating Officer of Biolife and is a non executive director of Imugene (holds no shares in Imugene). Kilinwata Investments Pty Ltd (“Kilinwata”) and Moreglade Pty Ltd (“Moreglade”) hold 14,537,500 Vendor Shares (approximately 18.2% of the Vendor Shares) in aggregate that are being acquired by the Company as part of the Acquisition. Kilinwata and Moreglade are related parties of the Company as they are controlled by Mr Paul Hopper, a Director of the Company. In addition, Ms Deborah Anne Coleman (“Coleman”) is deemed associated with Paul Hopper and Coleman owns 3,675,000 Vendor Shares. If the Transaction proceeds, the interests of Mr Paul Hopper will receive a combined 68,296,875 shares in Imugene (refer section 4.5 of the EM) that will represent approximately 7.26% of the expanded issued capital of Imugene (see further details below).

• 1.4 If the acquisition of all of the shares in Biolife by Imugene proceeds, the Vendors collectively will be issued with a total of 300,000,000 Consideration Shares in Imugene as consideration for the sale of the shares in Biolife, representing approximately 31.90% of the expanded ordinary issued capital of Imugene (940,562,516 shares will be on issue) before the exercise of any share options or any other share issues (other than shares issued to raise a total of $2,600,000 as noted elsewhere in this report). The non associated Vendors (excludes the interests of Paul Hopper as noted above) will receive a collective 231,703,125 Consideration Shares that will represent an approximate collective 24.63% shareholding interest in Imugene.

• 1.5 ASX Listing Rule 10.1 prevents a company from acquiring a substantial asset from a related party without shareholder approval. As noted above, three of the Vendors, Kilinwata. Moreglade and Coleman are related parties of the Company. The effect of passing resolution 1 will be to allow the Company to complete the Transaction without breaching ASX Listing Rule 10.10. ASX Listing Rule 10.10 requires the notice of meeting for the Transaction to include a report on the Transaction from an independent expert stating the expert's opinion on whether the Transaction is fair and reasonable to the non-associated shareholders of the Company.

• 1.6 The directors have requested that Stantons International Securities prepare an Independent Expert's Report in accordance with ASX Listing Rule 10.10.

• 1.7 We have not undertaken any due diligence on the IP of Biolife and the validity and strength of the IP, patents and patent applications. We are also not reporting on the fairness and reasonableness of the other proposals (resolutions 3 to 7) but do note that the passing of resolutions 1 to 3 are inter-dependent and all form part of the recapitalisation of Imugene.

• 1.8 In determining the fairness and reasonableness of the proposed Transaction (resolution 1 refers) we have had regard to the definitions set out by the Australian Securities and Investments Commission (“ASIC”) in its Regulatory Guide 111, “Content of Expert Reports”. Regulatory Guide 111 states that an opinion as to whether an offer is fair and/or reasonable shall entail a comparison between the offer price and the value that may be attributed to the securities under offer (fairness) and an examination to determine whether there is justification for the offer price on objective grounds after reference to that value (reasonableness). The concept of “fairness” is taken to be the value of the offer price, or the consideration, being equal to or greater than the value of the securities in the above mentioned offer. Furthermore, this comparison should be made assuming 100% ownership of the “target” and irrespective of whether the consideration is scrip or cash. An offer is “reasonable” if it is fair. An offer may also be reasonable, if despite not being “fair”, there are sufficient grounds for security holders to accept the offer in the absence of any higher bid before the close of the offer

Accordingly, our report relating to the Imugene Acquisition that will result in the issue of the Consideration Shares to the Vendors is concerned with the fairness and reasonableness of the proposals with respect to the existing non-associated shareholders of Imugene.

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• 1.9 Apart from this introduction, this report considers the following:

• Summary of opinion;

• Implications of the proposals;

• Corporate history and nature of business of Imugene and Biolife

• Future directions of Imugene;

• Basis of valuation of Imugene shares as consideration;

• Basis of valuation of the shares in Biolife;

• Conclusion as to fairness;

• Reasonableness of the proposals under resolution 1;

• Conclusion as to reasonableness;

• Sources of information; and

• Appendix A and our Financial Services Guide.

• 1.10 In our opinion, the proposal as outlined in resolution 1 on a market-based approach is on balance, reasonable to the shareholders of Imugene not associated with the Vendors of Biolife (including the interests of Paul Hopper). Owing to the nature of the business of Biolife, valuations depend on the values placed on the IP and patent interests. The valuation of IP and patent interests and the valuation of future profitability and cash flows are extremely subjective as they involve assumptions regarding future events that are not capable of independent substantiation. Since we cannot determine a fair value for the, IP and patent interests of Biolife, we have concluded that the proposal is not fair.

The opinions expressed above must be read in conjunction with the more detailed analysis and comments made in this report.

2. Implications of the Proposals

• 2.1 As at 22 October 2013, there are 378,162,516 fully paid shares on issue in Imugene. The major shareholders at 21 October 2013 as noted in the share register are as follows:

Consegna Group Limited Tisia Nominees Ltd (Henderson Family Account) J K Nominees Pty Ltd (The JK Fund Account) Delin Nominees Pty Ltd Wainford Holdings Pty Ltd	No. of shares % of issued shares 25,000,000 6.61 18,900,000 5.00 18,250,000 4.83 17,500,000 4.63 12,835,207 3.39
	92,485,207 24.46

The Top 20 shareholders at 21 October 2013 owned approximately 52.96% of the ordinary issued capital of the Company.

On 23 October 2103, the Company announced that it has raised a total of $2,500,000 at 1 cent per share (250,000,000 shares known as the Placement Shares). However, due to ASX Listing Requirements, only 85,000,000 Placement Shares (“Tranche 1 Placement Shares”) have been allotted ($850,000) and the balance of 165,000,000 Placement Shares (the “Tranche 2 Placement Shares”) ($1,650,000) can only be allotted subject to shareholder approval. Resolution 4 in the Notice refers to the approval to issue 165,000,000 Tranche 2 Placement Shares (and resolution 3 refers to the ratification of 85,000,000 Tranche 1 Placement Shares). It is noted that the $2,500,000 Placement is part of the conditions precedent for the Transaction (acquisition of all of the shares in Biolife) to occur. It is also expected to issue 10,000,000 Imugene shares to Nicholas Ede, a director of Imugene at 1 cent each to raise a gross $100,000 (“Ede Placement”). On 30 October 2013, the Company also issued 2,400,000 shares as consideration for capital raising fees payable of $24,000.

• 2.2 The movement in the share capital of Imugene following completion of the Transaction (and the Placement and Ede Placement to raise a gross $2,600,000) is as follows:

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Shares on issue 22 October 2013 Issue of the Tranche 1 Placement Shares Issue of shares for fees payable Shares on issue as at 30 October 2013 Issue of Tranche 2 Placement Shares Issue of the Consideration Shares Issue of shares to Ede Shares on issue post the Transaction	378,162,516 85,000,000 2,400,000
	_ 465,562,516 165,000,000 300,000,000 10,000,000
	940,562,516

Currently, there are 50,000,000 share options outstanding, exercisable at 2 cents each, on or before 31 December 2015.

• 2.3 The Company would own 100% of the share capital of Biolife (that owns or is to own the Specifed IP) and a pro-forma consolidated statement of financial position is disclosed elsewhere in this report.

• 2.4 If the acquisition of all of the shares in Biolife by Imugene proceeds, the interests of Paul Hopper will be issued with a total of 68,296,875 Consideration Shares in Imugene as consideration for the sale of the shares in Biolife, representing approximately 7.26% of the expanded ordinary issued capital of Imugene (940,562,516 shares will be on issue) before the exercise of any share options or any other share issues.

The collective interests of the Vendors of Biolife will own 300,000,000 shares in Imugene that will represent an approximate 31.90% shareholding interest in Imugene post completion of the Transaction. The existing (as at 22 October 2013) shareholders interest in Imugene post completion of the Transaction will approximate 40.21% and the Placement Investors’ collective shareholding will approximate 26.58%.

• 2.5 The current Board of Directors comprises Dr Nicholas Ede (Executive Director), Mr Paul Hopper (Non Executive Director) and Mr Steve Harris (Non Executive Chairman). Mr Phillip Hains is the CFO and joint Company Secretary. The other joint Company Secretary is Mr Justyn Stedwell. If resolution 1 is passed and consummated, it is contemplated to change the Board and appoint Dr Axel Hoos as a Non Executive Director. Resolution 2 in the Notice refers to his proposed appointment. Mr Steve Harris will resign as a director of Imugene following completion of the Transaction. Further directors may be appointed later as needs dictate.

3. Corporate History and Nature of Business

Imugene

• 3.1 Imugene is an ASX listed company that operates in the pharmaceuticals, biotechnology and life sciences industries. The main venture of Imugene presently (before the proposed Transaction) is in the research and development of formulations for Vitamin D. It has announced that it has completed formulation development of its novel Linguet Vitamin D and is progressing commercialisation discussions with Australian vitamin manufacturers and suppliers. In August 2013, the Company announced the official granting of a key Japanese patent application for the Company’s novel drug delivery technology “Linguet”. In September 2013, the Company announced that the European Patent Office had issued an Intention to Grant Communication for the Company’s novel drug delivery technology “Linguet”. The Linguet patents, licences and other rights were acquired in July 2012, by Imugene acquiring 100% of the share capital of Lingual Consegna Pty Ltd from the Consegna Group Limited (now a major shareholder in Imugene) at a cost of $1,400,000. $1,004,817 was allocated to capitalised Patents, Licences and Other Rights, $960,527 to Goodwill and accounted for a discounted Expected Future Royalties Payable of $531,467.

In September 2013, the Company announced the discontinuation of its Ibuprofen Programme. Further details on Imugene are outlined in section 3.1 of the EM.

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Biolife

• 3.2 Biolife is a cancer vaccine company targeting HER-2 specific cancers, particularly for breast cancer and gastric cancers. As noted in a release to the market (via ASX platform), the vaccine has the potential to be more effective than Herceptin ®), a monoclonal antibody with 2012 sales of $6.4 billion which improves the survival rates of women with HER-2 positive breast cancer and prevents its recurrence. Phase 1 human trials have been successfully completed and Phase 11 trials under an FDA Investigational New Drug Application (IND) are to commence in 2015. The novel cancer vaccine platform has been developed by scientists at the University Medical School in Austria. The patents and IP will be transferred to Imugene on completion of the Transaction. A Phase 11 Study in gastric cancer is planned to potentially commence in calendar 2015, subject to FDA approval. Further details on Biolife and its IP, patents and patent applications are outlined in further detail in the EM and announcements made by Imugene to the ASX. All shareholders are encouraged to read the announcements before deciding on how to vote on resolution 1.

Biolife has executed a Intellectual Assignment Deed (“Assignment Deed”) dated 13 and 14 November 2013) with Biolife Science Forschungs-und Entwicklungsges m.b.HH (“BSFE”) to acquire ownership of two families of granted and pending patents and known as the Specified IP. The Specified IP forms the basis of HER- Vaax, a multi-epitope vaccine targeting certain types of cancers. Pursuant to the Assignment Deed, BSFE shall transfer to Biolife all right, title and interest in the Specified IP on the date that Biolife notifies BSFE that the following conditions are satisfied:

• (a) Biolife completing due diligence investigations on the Specified IP and being satisfied with the outcome to those investigations (condition satisfied); and

• (b) Biolife completing an initial public offer of its share capital on ASX or a reverse merger into an ASX listed company.

The consideration payable by Biolife to BSFE is $700,000 and a royalty of 18% granted to BSFE. The royalty is 18% of gross revenues less the costs Incurred by Biolife in the manufacture, sale or exploitation of products or processes, or provision of services, that utilises the Specified IP. To date, $35,000 has already been paid under the Assignment deed, $65,000 will be paid on the date that the Assignee (Biolife) notifies the Assignor (BSFE) that the Conditions precedent are satisfied and 10% of all capital successfully raised by the Assignee will be paid to the Assignor after the Effective Date will be paid to the assignor, until the balance is paid.

Further details on Biolife are outlined in section 3.3 of the EM. Negotiations are continuing with another party to acquire further IP licence interests that may cost €200,000.

4. Future Directions of Imugene

4.1 We have been advised by the directors and management of Imugene that:

• There are no proposals currently contemplated whereby Imugene will acquire any further property or assets from the Vendors (however Imugene will issue 300,000,000 Consideration Shares to the Vendors of Biolife above to acquire 100% of the share capital of Biolife) or where Imugene would transfer any of its property or assets to the Vendors;

• The composition of the Board will change in the immediate future as noted in paragraph 2.5 above;

• As a result of acquiring Biolife (if approved by shareholders), the Company may consider raising further working capital in 2014 and thereafter. As noted above the Company is completing the $2,500,000 Placement and the Ede Placement to raise $100,000 and much of these funds will be allocated to expenditure requirements of Biolife;

• No dividend policy has been set and it is not proposed to be set until such time as the Company is profitable and has a positive cash flow; and

• The Company will endeavour to enhance the value of Biolife and its existing biotechnology interests.

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5. Basis of Valuation of Imugene Shares

• 5.1 Shares

• 5.1.1 In considering the proposals outlined in resolution 1, we have sought to determine if the consideration payable by Imugene to the Vendors is fair and reasonable to the existing nonassociated shareholders of Imugene.

• 5.1.2 The offer pursuant to resolution 1 would be fair to the existing non-associated shareholders if the value of the assets (shares in Biolife) being acquired by Imugene is greater than the implicit value of the Consideration Shares being offered as consideration. Accordingly, we have sought to determine a theoretical value that could reasonably be placed on Imugene ordinary shares for the purposes of this report.

• 5.1.3 The valuation methodologies we have considered in determining a theoretical value of an Imugene ordinary share are:

  • Capitalise maintainable earnings/discounted cash flow;

  • Takeover bid—the price at which an alternative acquirer might be willing to offer;

  • Adjusted net backing and windup values; and

  • The market price of Imugene shares.

• 5.2 Capitalise maintainable earnings and discounted cash flows.

• 5.2.1 Owing to Imugene’s current operations, a lack of profit history arising from business undertakings and the lack of a reliable future cash flow from an existing current business activity, we have considered these methods of valuation not to be relevant for the purpose of this report. The Company to 30 June 2013 has estimated trading losses of over $16,000,000.

• 5.3 Takeover Bid

• 5.3.1 It is possible that a potential bidder for Imugene could purchase all or part of the existing shares; however, no certainty can be attached to this occurrence. To our knowledge, there are no current bids in the market place and the directors of Imugene have formed the view (that we concur with) that there is unlikely to be any takeover bids made for Imugene in the immediate future. However following the completion of the proposal under resolution 1, the Vendors collective ownership of Imugene will be approximately 31.98%.

• 5.4 Net Asset Backing

• 5.4.1 Set out below is a pro-forma audited consolidated statement of financial position of Imugene as at 30 June 2013. It ignores any further losses incurred by Imugene post 30 June 2013. In addition, we disclose a pro-forma consolidated statement of financial position that assumes the following:

• The September 2013 issue of 2,000,000 shares at a cost of $10,000 to acquit fees payable;

• The issue of 2,400,000 shares at a deemed cost of 1 cent each to eliminate a capital raising fee payable of $24,000;

• The issue of 250,000,000 Placement Shares at 1 cent each to raise a gross $2,500,000 (the Company has commitments for this amount but has only issued 85,000,000 Tranche 1 Shares to date and the remaining 165,000,000 Tranche 2 Shares will be issued following shareholder approval as requested in resolution 4 to the Notice;

• The issue of 10,000,000 shares in Imugene to Dr Ede to raise a gross $100,000;

• The payment of capital raising (Placement) costs estimated at $125,000 and other costs pertaining to the acquisition of all of the shares in Biolife estimated at $100,000;

• The issue of 300,000,000 Consideration Shares at a say 2.0 cents each (the share price of an Imugene share as at 28 October 2013) to acquire 100% of the shares in Biolife (deemed share cost of $6,000,000) and assuming Biolife had no material booked assets and liabilities did not exceed $100,000 (paid out by Imugene), the payment of $65,000 of the $665,000 owing to BSFE and that $6,765,000 is attributable to Specified IP;

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• The payment of 30 June 2013 accounts payable of $160,991; and

• The incurring of administration, corporate and other costs to be occurred by the Imugene Group from 1 July 2013 to 30 November 2013 estimated at $200,000.

Current Assets Cash Receivables Non Current Assets Intangible assets Goodwill Total Assets Current Liabilities Trade and other payables Provisions Owing to BSFE Non Current Liabilities Other financial liabilities Total Liabilities Net Assets Equity Issued capital Reserves Accumulated losses Net Equity	Imugene Group Audited 30 June 2013 $ Imugene Group Pro-forma Unaudited 30 June 2013 (as adjusted) $ 565,629 2,414,638 53,522 53,522
	619,151 2,468,160
	1,004,817 7,769,817 960,527 960,527
	1,965,344 8,730,344
	2,584,495 11,198,504
	160,991 - 5,571 5,571 - 600,000
	166,562 605,571
	531,467 531,467
	531,467 531,467
	698,029 1,137,038
	1,886,466 10,061,466
	17,280,072 25,765,072 966,003 966,003 (16,359,609) (16,669,609)
	1,886,466 10,061,466

• 5.4.2 Based on the adjusted pro-forma book values as at 30 June 2013, this equates to a value per fully paid ordinary share of approximately 0.49 cents (ignoring the value, if any, of nonbooked tax benefits and losses that may have been incurred post 30 June 2013) and assuming 378,162,516 fully paid ordinary shares are on issue. Post the Transaction (acquisition of all of the shares in Biolife) and assuming the completion of the $2,500,000 Placement and Ede Placement, the net assets may total approximately $10,061,466 or approximately 1.06 cents (940,562,516 shares on issue) (approximately 0.19 cents net cash asset backing).

• 5.4.3 No detailed review was made by us on the assets and liabilities disclosed in the audited balance sheet as at 30 June 2013. We have been assured by the management of Imugene that they believe the carrying value of all current and non-current assets and liabilities at 30 June 2013 are fair and not materially misstated.

• 5.4.4 We also note it is not the present intention of the directors of Imugene to liquidate the Company and therefore any theoretical value based on wind-up value or even net book value, is just that, theoretical. It is our view that the market is fully informed and they have placed a value on the shares in Imugene of between 0.6 cents and 1.2 cents prior to the announcement of the Transaction (refer paragraph 5.5 below). The shareholders (minority and majority), existing and future, must acquire shares in Imugene based on the market perceptions of what the market considers an Imugene share to be worth. It would not be unreasonable to ascribe the issue price of the Placement Shares to the Consideration Shares proposed to be issued (that is 1.0 cents each). Furthermore, for accounting purposes under Australian Equivalents to International Financial Reporting Standards

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(“IFRS”), the consideration for the issue of shares in Imugene to acquire the shares in Biolife will be booked at the share price of a Imugene share at the date of completion of the Transaction (presumed to be the date the Consideration Shares are issued to the Vendors. Accordingly, for the reasons outlined above, we believe that for the purpose of this report, it is not appropriate to use any technical value of an Imugene share in assessing whether the proposal to acquire the shares in Biolife is fair and reasonable. However, we have compared the value of the Consideration Shares based on a 0.49 cent asset backing as a “reasonableness test” against our preferred methodology. We believe a share marketbased approach is a more suitable basis of assessing whether the proposed Transaction is fair and/or reasonable.

5.5 Market Price of Imugene fully paid shares

5.5.1 We set out below a summary of Imugene’s share prices since 1 May 2013 to 21 October 2013 (two days before the announcement of the Transaction and Placement as the Company went into a Trading Halt on 21 October 2013).

2013	High Cents	Low Cents	Last Sale Cents	Volume Trade 000’s
May	1.0	0.6	0.6	1,132
June	0.7	0.4	0.4	5,795
July	0.7	0.4	0.5	2,187
August	1.6	0.6	0.7	71,332
September	0.9	0.5	0.9	123,752
October(to22nd)	1.3	0.8	1.2	35,723

On 8 August 2013, 37,271,566 shares were traded on ASX at between 0.6 cents and 1.6 cents and closed at 0.8 cents. On that day, the Company announced that the Vitamin D development programme was at the commercialisation stage. Post 8 August and to 31 August 2013, the shares traded between 0.6 cents and 0.9 cents.

On 18 September 2013, 97,041,420 shares were traded on ASX at between 0.5 cents and 0.7 cents and closed at 0.7 cents. On that day, the Company announced that it was discontinuing development of the Ibuprofen biotechnology. Post 18 September 2013 and to 30 September 2013, the shares traded between 0.8 cents and 0.9 cents.

On 8 October 2013, 10,968,466 shares were traded on ASX at between 0.9 cents and 1.0 cents and closed at 1.0 cent notwithstanding there were no price sensitive announcements made on that date or the week before 8 October 2013.

It is noted that the share price rose from the 0.8 cents/0.9 cents range from 1 October 2013 to 14 October 2013 to trade between 1.0 cent and 1.2 cents before the Trading Halt on 21 October 2013. We believe that the share price rise may possibly be due to speculation of an imminent announcement relating to a transaction to expand the Company. Ignoring the speculation factor, it is our view that the market believed the share value of an Imugene share was in the 0.7 cent to 0.9 cent range.

Generally, the market is a fair indicator of what a share is worth, however the theoretical technical value based on the underlying value of assets and liabilities may be lower or higher. Based on 30 June 2013 book values of Imugene's assets, Imugene has net equity of approximately $1,886,000 that results in an asset backing of around 0.49 cents and if 0.49 cents was used, the value of the Consideration Shares would approximate $1,470,000. In the case of Imugene, the monthly volume of trades on the ASX is arguably large enough (considering that a large parcel of shares is tied up in the hands of the 5 major shareholders) to argue that an orderly market exists for Imugene’s shares. The “market” arguably is fully informed of its activities. It is our opinion that it is appropriate to use a range of recent trading market values as fair values to attribute to the Consideration Shares to be issued to the Vendors. It is noted that on 4 June 2013, the Company issued 33,888,932 shares as a result of a Share Purchase Plan announced on 30 April 2013 and the issue price was 0.54 cents.

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In effect, the shares in Imugene before the announcement of the Transaction have a fair market value of between 0.7 cent and 0.9 cents after eliminating speculative issues as noted above.

• 5.5.2 The future value of a Imugene ordinary share after the Transaction (acquisition of all of the shares in Biolife) will depend on, inter-alia:

• The future commercialisation of the Specified IP to be obtained by Biolife and any potential commercialisation of Imugene’s current Vitamin D biotechnology;

• The state of Australian and overseas stock markets;

• Foreign exchange movements;

• Membership, control and quality of the Board and management;

• The cash position of the Company;

• General economic conditions;

• Liquidity of shares in the Company; and

• New ventures entered into by Imugene.

6.

Basis of Valuation of the shares in Biolife

6.1 The usual approach to the valuation of an asset is to seek to determine what an informed, willing but not anxious buyer would pay to an informed, willing but not anxious seller in an open market. To estimate the fair market value of the Specified IP rights to be acquired by Biolife and valuing the shares in Biolife we have considered valuation methodologies recommended by ASIC Regulatory Guideline 111 regarding valuation reports of independent experts and common market practice. These are discussed below.

6.2 Market based methods

Market based methods estimate a company’s fair market value by considering the market price of transactions in its shares or market value of comparable companies. Market based methods include:

• Capitalisation of maintainable earnings;

• Analysis of a company’s recent share trading history; and

• Industry specific methods.

The capitalisation of maintainable earnings methods estimates fair market value based on the company’s future maintainable earnings and an appropriate earnings multiple. An appropriate earnings multiple is derived from market transactions involving comparable companies. The capitalisation of maintainable earnings is appropriate where the company’s earnings are relatively stable. The most recent share trading history provides evidence on the fair market value of the shares in a company where they are publicly traded in an informed and liquid market. Industry-specific methods estimate market value using rules of thumb for a particular industry. Generally, rules of thumb provide less persuasive evidence on market value of a company, since they may not account for company-specific factors.

6.3 Discounted cash flow method

The discounted cash flow method estimates market value by discounting a company’s future cash flows to their present value. This method is appropriate where a projection or forecast of future cash flows can be made with a reasonable degree of confidence. The discounted cash flow method is commonly used to value early stage companies or projects with a finite life.

6.4 Asset-based methods

Asset-based methods estimate the market value of a company’s shares based on the realisable value of its identifiable net assets. Asset-based methods include:

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• Orderly realisation of assets method;

• Liquidation of assets method; and

• Net asset on a going concern basis.

The orderly realisation of assets method estimates fair market value by determining the amount that would be distributed to shareholders, after payment of all liabilities, including realisation costs and taxation charges that arise, assuming the company is wound up in an orderly manner. The liquidation method is similar to the orderly realisation of assets method except the liquidation method assumes the assets are sold in a shorter timeframe. Since winding up or liquidation of the company may not be contemplated, these methods in their strictest form may not necessarily be appropriate. The net assets on a going concern basis, estimates the market values of the net assets of the company but does not take account of realisation costs.

These approaches ignore the possibility that the company’s value could exceed the realisable value of its assets. Asset-based methods are appropriate when companies are not profitable or a significant proportion of a company’s assets are liquid.

6.5 Selection of Valuation Methodologies

All of the valuation methodologies considered above have significant limitations or restrictions in their application to valuing the shares in Biolife and the underlying Specified IP Rights to be obtained by Biolife from BSFE as noted above.

Capitalisation of maintainable earnings and discounted cash flow methodologies are not appropriate because no reliable prospective financial information is available (refer below). An asset-based method and market based method is also not suitable as the Specified IP is limited by the fact that the Specified IP that has yet to be commercially exploited.

6.6 In this section we consider the valuation of Biolife. We have considered the valuation of Biolife in assessing whether or not the proposal outlined in resolution 1 is fair and reasonable for Imugene’s non-associated shareholders. In forming our opinion on the value of Biolife we have:

• Considered the stage of development of Biolife and the prospective financial information available;

• Considered the appropriateness of the valuation methodologies available; and

• Considered the ability of Biolife to continue as a going concern without funding.

6.7

• Valuation of Biolife and the underlying Specified IP Rights

As discussed, the capitalisation of maintainable earnings, discounted cash flow and assetbased methodologies have limitations in their application to the Specified IP Rights. It is noted that there are no internal valuations prepared and no formal adoption of cash flow and profit and loss forecasts.

6.8 Valuation of Biolife

As discussed, the capitalisation of maintainable earnings, discounted cash flow and assetbased methodologies have limitations in their application to Biolife. It is noted that there are no internal valuations prepared and no formal adoption of cash flow and profit and loss forecasts.

6.9 Summary of valuation methodology and conclusion

We are unable to conclude upon a meaningful valuation range for Biolife due to the lack of readily available and reliable financial projections and information. The unaudited statement of financial position of Biolife as at 30 June 2013 discloses minimal values to current assets and current liabilities (no capitalised costs relating to biotechnology) and under the Share Purchase Agreement of October 2013 between the Vendors of Biolife and Imugene, Biolife warrants that liabilities of Biolife will not exceed $100,000 at completion of the Transaction

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(Biolife will have the commitment to pay $665,000 to BSFE as noted elsewhere in this report.

• 6.10 We have relied on Imugene undertaking the necessary due diligence to satisfy themselves on:

• Ownership of Biolife and validity and enforcement of the contract with BSFE;

• No unrecorded liabilities in the books of Biolife;

• Current legal directors of Biolife;

• Ownership and interest of Biolife biotechnical projects; and

• Other factors that may affect the ultimate ownership and value of Biolife.

• 6.11 We have been informed that all necessary due diligence has been completed to the best ability of the Biolife directors. However, no guarantee can be given as to the long-term value of Biolife (and Imugene). This will depend on many factors, including inter-alia:

• Future commercial success or otherwise of Biolife biotechnical projects (and Imugene’s biotechnical projects)

• Foreign and Australian stock exchange markets;

• Ability to raise capital to develop the businesses and commercialise the biotechnical projects;

• Relationships with future customers, and

• Quality of the Board and management.

It is noted that the then vendors of Biolife proposed a back door listing with the ASX listed company, Acuvax Limited (“Acuvax”) in February 2013. A prospectus was released by Acuvax dated 25 March 2013 to raise a gross minimum of $4,000,000 as this was one of the conditions in place to acquire all of the shares in Biolife (then called Biolife Science Limited) for the consideration of 20,000,000 ordinary shares (to be valued at valued at 20 cents each for a value of $4,000,000) along with 10,000 A Class Performance Shares and 10,000,000 B Class Performance Shares that would convert to ordinary shares in Acuvax on Biolife meeting certain performance conditions centred around obtaining a successful IND Application from the US FDA in respect to an immunotherapy treatment for HER-2 positive gastric or breast cancer and Biolife administering the first dose of Phase 2 trials in respect to an immunotherapy treatment for HER-2 positive gastric or breast cancer with such administration being verified by the clinical research organisation engaged to conduct the Phase 2 trial. No values were attributable to the Class A and B Performance Shares in the Acuvax prospectus either by Acuvax or the Investigating Accountant. The maximum amount sought to be raised by Acuvax was $5,000,000 (25,000,000 shares at 20 cents each). Acuvax for a number of reasons failed to achieve the minimum subscription of $4,000,000 and on 4 July 2013 announced that as a result of not being able to obtain new funding of $4,000,000 the proposed acquisition of Biolife was at an end and the conditional contract to acquire Biolife was terminated. Included in the aborted Acuvax prospectus is an Independent Technical Report on the IP owned or to be owned in early March 2013 by Biolife. Imugene shareholders can access the Acuvax prospectus and Acuvax announcements on its proposed acquisition of Biolife by reviewing announcements made by Acuvax to the ASX in 2013 (Acuvax ASX code is ACU).

Notwithstanding that Acuvax did not proceed with its plan to acquire all of the shares in Biolife, there is some indication of value attributable to Biolife. If the Acuvax prospectus had been completed, the market capitalisation of Acuvax post acquisition of Biolife and the capital raising using 20 cents per share (the proposed capital raising issue price) would have been around $11,292,000 compared with the pre capital raising/acquisition of Biolife of around $2,292,000. If $5,000,000 was raised, the imputed value to Biolife arguably may have approximated $4,000,000.

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7. Conclusion as to Fairness

• 7.1 The proposal pursuant to resolution 1 is believed fair to Imugene’s non-associated shareholders if the value of the consideration offered is equal to or less than the value of the shares in Biolife to be acquired.

• 7.2 Owing to the nature of the business of Imugene and Biolife, valuations depend on the value placed on the technology interests of the companies. The valuation of technology interests and valuing future profitability and cash flows is extremely subjective because it involves assumptions regarding future events that are not capable of independent substantiation.

• 7.3 We have been unable to determine a fair value for Biolife. In arriving at our view that we are unable to form an opinion on the value of Biolife, we have, inter-alia, referred to the following factors:

• The relative newness of the biotech technologies;

• The ability to produce positive cash flow and profits over a period of time is still uncertain;

• Biolife needs to obtain sufficient working capital to meet its planned objectives;

• The lack of cash flow models;

• The risks associated with commercialisation.

• 7.4 We have concluded that we are unable to ascribe a fair value to Biolife’s shares and therefore cannot form an opinion as to whether the proposal under resolution 1 is fair. In the absence of a determination of fair value, we conclude that the proposal pursuant to resolution 1 is not fair and thus also conclude that the related party proposal under resolution 1 is also not fair.

It is noted that based on a share price of Imugene of say 1.0 cents (most sales leading up to 21 October 2013 were below this figure but subsequently the share price is above 1.5 cents), the market capitalisation of Imugene post the consummation of the Transaction would approximate $9,405,000 compared with a pre announcement of Transaction market capitalisation of between $2,627,000 and $3,403,000 and after taking into account the $2,500,000 Placement cash, arguably the imputed value to Biolife may approximate between $3,377,000 and $4,153,000 (assuming no significant announcements on Imugene’s existing biotechnology). The imputed value may be higher based on the rise in the share price of an Imugene share following the announcement of the proposed Transaction.

8. Reasonableness of the Proposal under resolution 1

• 8.1 We set out below some of the advantages and disadvantages and other factors pertaining to the proposal pursuant to resolution 1.

Advantages

• 8.2 There may be significant upside potential to acquiring all of the shares in Biolife that owns or will own the Specified IP and there is a possibility that the Specified IP pertaining to immunotherapies targeting HER-2 specific cancers may be more fully commercialised in the future and may become profitable and cash flow positive. However, there are always risks in investing in non-fully commercialised biotechnology that still requires some further development. If the Specified IP is commercialised successfully it will bring benefits to Imugene and its shareholders.

• 8.3 Since the Vendors are receiving 300,000,000 Consideration Shares, there is every incentive to ensure commercialisation of Biolife’s biotechnologies and ensure Imugene is a successful and profitable company. Mr Paul Hopper (includes his associates) who will have a significant shareholding in Imugene post the acquisition of Biolife will have added incentive to commercialise both Biolife’s biotechnology as well as the existing biotechnology of Imugene. Paul Hopper is an existing director of Imugene and Dr Axel Hoos will become a director of Imugene following completion of the Transaction.

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• 8.4 Imugene’s current primary focus is on commercialisation of its Linguet Vitamin D biotechnology. Research and development companies need to have a range of projects and by acquiring all of the shares in Biolife the Company is providing itself with an opportunity to move into other potential biotechnologies with a focus on anti cancer commercialisation particularly in the areas of breast and gastric cancers.

Disadvantages

• 8.5 There is a risk that the Biolife biotechnology will not be commercially successful and that, in the event that losses are incurred by Imugene, the share price of an ordinary share in Imugene may fall below the 1.0 cent Placement issue price noted above. Because Imugene will need to lend funds to Biolife in the short/medium term, any funds lent may not be fully recoverable.

• 8.6 The acquisition of the shares in Biolife will result in the issue of shares to the Vendors which will have a significant dilutionary effect on the current holding of shareholders of Imugene. The 22 October 2013 shareholders interest in Imugene post completion of the Transaction will approximate 40.21%. Refer section 2.4 of this report. However, it is noted that the shares in Imugene trading on ASX before the announcement of the Transaction traded in the main below 1.0 cent and post the announcement of the Transaction, the shares traded on ASX in Imugene have been above 1.5 cents and as high as 2.3 cents (last sale 7 November 2013, 1.8 cents).

Other Factors and Information

• 8.7 There will be a significant non-associated shareholding in Imugene after the passing of resolutions 1 to 7. In addition, shareholders are not required to sell or dispose of their shares but are given the opportunity to retain a shareholding in a company (Imugene) that is obtaining an interest in the Specified IP that Biolife will acquire that may have significant upside potential. Section 3.10 and Schedule 2 of the EM outlines some of the risks.

• 8.8 We cannot ascribe a fair value to the intangible interest, being the Specified IP being obtained by Biolife from BSFE. It may be that in time the investment in Biolife may need to be written down in the event of non commercialisation of the Specified IP.

• 8.9 It is expected that the Consideration Shares will be voluntarily escrowed (treated as restricted securities) for a 12 month period.

• 8.10 It is the view of the Board of Imugene that the investment in Biolife is in the best interests of all shareholders. It is noted that the market capitalisation of Imugene post the Transaction being completed will approximate between $9,405,000 (1 cent share price) to up to approximately $21,632,000 (share price 2.3 cents) which at the lower market capitalisation is significantly less than many other ASX listed biotechnology companies that have IP either in the pre-clinical phase or the Phase 1 trial stage. It would appear that the market rates the proposed acquisition of Biolife as a reasonable deal as the share price has risen from below 1 cent (pre-announcement of the Transaction) to trade above 1.8 cents per share over the past week to 7 November 2013.

• 8.11 The Company will need to fund the commitments of Biolife and thus loans will be made to Biolife so Biolife can pay its debts as and when they fall due. Biolife will need to pay BSFE $665,000 of which $65,000 is expected to be paid shortly and $600,000 will be paid via 10% of all capital successfully raised by the Assignee will be paid to the Assignor after the Effective Date will be paid to the assignor, until the balance is paid.

9. Conclusion as to Reasonableness

• 9.1 After taking into account the factors referred to in Section 8 above and elsewhere in this report, we are of the opinion that the proposal as outlined in resolution 1 may, on balance, be considered reasonable to the non-associated shareholders of Imugene.

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10. Sources of Information

• 10.1 In making our assessment as to whether the proposal pursuant to resolution 1 is fair and reasonable, we have reviewed relevant published available information and other unpublished information of the Company and Biolife that is relevant to the current circumstances. We have also held discussions with the management of Imugene about the present and future operations of Imugene. Statements and opinions contained in this report are given in good faith but in the preparation of this report, we have relied in part on information provided by the directors and consultants of Imugene.

• 10.2 Information we have received includes, but is not limited to:

• Draft Notices of General Meeting of Shareholders of Imugene and draft Explanatory Memorandum to Shareholders prepared in October and November 2013;

• Discussions and correspondence with management, directors or consultants of Imugene;

• Shareholding details of Imugene as at 21 October 2013 and 30 October 2013;

• Unaudited pro-forma statement of financial position of Biolife as at 30 June 2013;

• Annual Report of Imugene for the year ended 30 June 2013;

• Draft management accounts (unaudited) of the Imugene Group for the period 1 July 2013 to 30 September 2013;

• Information on Acuvax as noted on the ASX, including the aborted prospectus;

• Announcements made by Imugene to ASX from 1 January 2013 to 14 November 2013 (4.25pm);

• Cash flow forecasts of Imugene for the year ended 30 June 2014;

• Various research papers on Biolife technology; and

• Intellectual Property Assignment Deed between Biolife and BSFE dated 13 and 14 November 2013

10.3 Our report includes Appendix A and our Financial Services Guide attached to this report.

Yours faithfully STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD (Trading as Stantons International Securities)

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J P Van Dieren – FCA Director

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APPENDIX A

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AUTHOR INDEPENDENCE AND INDEMNITY

This annexure forms part of and should be read in conjunction with the report of Stantons International Securities dated 14 November 2013, relating to the issue of 68,296,875 Consideration Shares to the interests of Paul Hopper as noted in section 4.2 of the EM (as part of the issue of 300,000,000 Consideration Shares to acquire 100% of the share capital of Biolife) as noted in resolution 1 and as noted in the Notice of Meeting to Shareholders and the EM proposed to be distributed to the Imugene shareholders in November 2013.

At the date of this report, Stantons International Securities does not have any interest in the outcome of the proposal. There are no relationships with Imugene, Biolife and the Vendors of Biolife other than acting as an independent expert for the purposes of this report. Before accepting the engagement Stantons International considered all independence issues and concluded that there were no independence issues in accepting the assignment to prepare the Independent Experts Report. There are no existing relationships between Stantons International Securities and the parties participating in the transactions detailed in this report which would affect our ability to provide an independent opinion. The fee to be received for the preparation of this report is based on the time spent at normal professional rates plus out of pocket expenses and is estimated at a maximum of $20,000. The fee is payable regardless of the outcome. With the exception of the fee, neither Stantons International Securities nor John P Van Dieren have received, nor will, or may they receive, any pecuniary or other benefits, whether directly or indirectly, for or in connection with the making of this report.

Stantons International Securities does not hold any securities in Imugene or Biolife. There are no pecuniary or other interests of Stantons International Securities that could be reasonably argued as affecting its ability to give an unbiased and independent opinion in relation to the proposal. Stantons International Securities and Mr J Van Dieren have consented to the inclusion of this report in the form and context in which it is included as an annexure to the Notice.

QUALIFICATIONS

We advise Stantons International Securities is the holder of an Australian Financial Services Licence (no 418019) under the Corporations Act 2001 relating to advice and reporting on mergers, takeovers and acquisitions that involve securities. The directors of Stantons International Audit and Consulting Pty Ltd are the directors of Stantons International Securities. Stantons International Securities has extensive experience in providing advice pertaining to mergers, acquisitions and strategic for both listed and unlisted companies and businesses.

Mr John P Van Dieren, FCA, the person responsible for the preparation of this report, has extensive experience in the preparation of valuations for companies and in advising corporations on takeovers generally and in particular on the valuation and financial aspects thereof, including the fairness and reasonableness of the consideration offered.

The professionals employed in the research, analysis and evaluation leading to the formulation of opinions contained in this report, have qualifications and experience appropriate to the task they have performed.

DECLARATION

This report has been prepared at the request of the Directors of Imugene in order to assist them to assess the merits of the issue of 68,296,875 Consideration Shares to the interests of Paul Hopper as noted in Section 4.2 of the EM (as part of the issue of 300,000,000 Consideration Shares to acquire 100% of the share capital of Biolife) as noted in resolution 1 and as noted in the Notice and the EM proposed to be distributed to the Imugene shareholders in November 2013. This report has been prepared for the benefit of Imugene’s shareholders and does not provide a general expression of Stantons International Securities opinion as to the longer term value of Imugene and Biolife and their assets. Stantons International Securities does not imply, and it should not be construed, that is has carried out any form of audit on the accounting or other records of Imugene or

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Biolife. Neither the whole nor any part of this report, nor any reference thereto may be included in or with or attached to any document, circular, resolution, letter or statement, without the prior written consent of Stantons International Securities to the form and context in which it appears.

DUE CARE AND DILEGENCE

This report has been prepared by Stantons International Securities with due care and diligence. The report is to assist shareholders in determining the fairness and reasonableness of the proposal set out in resolution 1 to the Notice and each individual shareholder may make up their own opinion as to whether to vote for or against resolution 1.

DECLARATION AND INDEMNITY

Recognising that Stantons International Securities may rely on information provided by Imugene and its officers (save whether it would not be reasonable to rely on the information having regard to Stantons International Securities experience and qualifications), Imugene has agreed:

• (a) To make no claim by it or its officers against Stantons International Securities (Stantons International Audit and Consulting Pty Ltd) to recover any loss or damage which Imugene may suffer as a result of reasonable reliance by Stantons International Securities on the information provided by Imugene; and

• (b) To indemnify Stantons International Securities (Stantons International Audit and Consulting Pty Ltd) against any claim arising (wholly or in part) from Imugene or any of its officers providing Stantons International Securities any false or misleading information or in the failure of Imugene or its officers in providing material information, except where the claim has arisen as a result of wilful misconduct or negligence by Stantons International Securities.

A draft of this report was presented to Imugene directors for a review of factual information contained in the report. Comments received relating to factual matters were taken into account, however the valuation methodologies and conclusions did not alter.

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FINANCIAL SERVICES GUIDE FOR STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD (Trading as Stantons International Securities) Dated 14 November 2013

1. Stantons International Securities ABN 84 144 581 519 and Financial Services Licence 418019 (“SIS” or “we” or “us” or “ours” as appropriate) has been engaged to issue general financial product advice in the form of a report to be provided to you.

2. Financial Services Guide

In the above circumstances we are required to issue to you, as a retail client a Financial Services Guide (“FSG”). This FSG is designed to help retail clients make a decision as to their use of the general financial product advice and to ensure that we comply with our obligations as financial services licensees.

This FSG includes information about:

• who we are and how we can be contacted;

• the services we are authorised to provide under our Australian Financial Services Licence, Licence No: 418019;

• remuneration that we and/or our staff and any associated receive in connection with the general financial product advice;

• any relevant associations or relationships we have; and

• our complaints handling procedures and how you may access them.

3. Financial services we are licensed to provide

We hold an Australian Financial Services Licence which authorises us to provide financial product advice in relation to:

• Securities (such as shares, options and notes)

We provide financial product advice by virtue of an engagement to issue a report in connection with a financial product of another person. Our report will include a description of the circumstances of our engagement and identify the person who has engaged us. You will not have engaged us directly but will be provided with a copy of the report as a retail client because of your connection to the matters in respect of which we have been engaged to report.

Any report we provide is provided on our own behalf as a financial services licensee authorised to provide the financial product advice contained in the report.

4. General Financial Product Advice

In our report we provide general financial product advice, not personal financial product advice, because it has been prepared without taking into account your personal objectives, financial situation or needs. You should consider the appropriateness of this general advice having regard to your own objectives, financial situation and needs before you act on the advice. Where the advice relates to the acquisition or possible acquisition of a financial product, you should also obtain a product disclosure statement relating to the product and consider that statement before making any decision about whether to acquire the product.

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5. Benefits that we may receive

We charge fees for providing reports. These fees will be agreed with, and paid by, the person who engages us to provide the report. Fees will be agreed on either a fixed fee or time cost basis.

Except for the fees referred to above, neither SIS, nor any of its directors, employees or related entities, receive any pecuniary benefit or other benefit, directly or indirectly, for or in connection with the provision of the report.

6. Remuneration or other benefits received by our employees

All our employees receive a salary. Our employees are eligible for bonuses based on overall productivity but not directly in connection with any engagement for the provision of a report.

7. Referrals

We do not pay commissions or provide any other benefits to any person for referring customers to us in connection with the reports that we are licensed to provide.

8. Associations and relationships

SIS is ultimately a wholly division of Stantons International Audit and Consulting Pty Ltd a professional advisory and accounting practice. Stantons International Audit and Consulting Pty Ltd also trades as Stantons International that provides audit, corporate services, internal audit, probity, Shareholder consulting, accounting and IT audits.

From time to time, SIS and Stantons International Audit and Consulting Pty Ltd and/or their related entities may provide professional services, including audit, accounting and financial advisory services, to financial product issuers in the ordinary course of its business.

9. Complaints resolution

• 9.1 Internal complaints resolution process

As the holder of an Australian Financial Services Licence, we are required to have a system for handling complaints from persons to whom we provide financial product advice. All complaints must be in writing, addressed to:

The Complaints Officer Stantons International Securities Level 2 1 Walker Avenue WEST PERTH WA 6005

When we receive a written complaint we will record the complaint, acknowledge receipt of the complaints within 15 days and investigate the issues raised. As soon as practical, and not more than 45 days after receiving the written complaint, we will advise the complainant in writing of our determination.

9.2 Referral to External Dispute Resolution Scheme

A complainant not satisfied with the outcome of the above process, or our determination, has the right to refer the matter to the Financial Ombudsman Service Limited (“FOSL”). FOSL is an independent company that has been established to provide free advice and assistance to consumers to help in resolving complaints relating to the financial services industry.

Further details about FOSL are available at the FOSL website www.fos.org.au or by contacting them directly via the details set out below.

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Financial Ombudsman Service Limited PO Box 3 MELBOURNE VIC 8007

Toll Free: 1300 78 08 08 Facsimile: (03) 9613 6399

1. Contact details

You may contact us using the details set out above. Telephone 08 9481 3188 Fax 08 9321 1204 Email jvdieren@stantons.com.au

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IMUGENE'LIMITED'' ACN'009'179'551'

PROXY'FORM'

The!Company!Secretary! Imugene!Limited!!

By!delivery:! Suite!1,!1233!High!Street! Armadale!!VIC!!3143!

By!post:! By!facsimile:! PO!BOX!8694! +61!3!9822!7735!! Armadale!VIC!3143!

Name'of'Shareholder:'

Address'of' Shareholder:'

Number'of'Shares' entitled'to'vote:'

Please'mark' ! to'indicate'your'directions.''Further'instructions'are'provided'overleaf.'

Proxy'appointments'will'only'be'valid'and'accepted'by'the'Company'if'they'are'made'and'received'no'later'than'48'hours' before'the'Meeting.'

Step'1'T'Appoint'a'Proxy'to'Vote'on'Your'Behalf'

The'Chairman'of'the' OR' if!you!are! NOT !appointing!the!Chairman!of!the! Meeting'(mark'box)' " Meeting!as!your!proxy,!please!write!the!name!of!the! person!or!body!corporate!(excluding!the!registered! shareholder)!you!are!appointing!as!your!proxy!

or!failing!the!person/body!corporate!named,!or!if!no!person/body!corporate!is!named,!the!Chairman!of!the!Meeting,!as!my/our! proxy!to!act!generally!at!the!meeting!on!my/our!behalf,!including!to!vote!in!accordance!with!the!following!directions!(or,!if!no! directions!have!been!given,!and!to!the!extent!permitted!by!law,!as!the!proxy!sees!fit),!at!the!Meeting!of!the!Company!to!be! held!at!Giorgios!Function!Room,!1233!High!Street,!Armadale,!VIC,!3143,!on!Friday!20!December!2013!at!9:00!a.m.!AEDT!and!at! any!adjournment!or!postponement!of!that!Meeting.!

Step'2'T'Instructions'as'to'Voting'on'Resolutions'

The!proxy!is!to!vote!for!or!against!the!Resolutions!referred!to!in!the!Notice!as!follows:!

		ForAgainstAbstain	ForAgainstAbstain
Resolution1 ApprovalofAcquisitionofBiolife Resolution2 ApprovalofChangeinScaleofActivities Resolution3 ApprovalofIssueofConsiderationShares Resolution4 AppointmentofDrAxelHoosasaDirector Resolution5 RatificationofInitialPlacement Resolution6 AuthoritytoIssueSubsequentPlacementShares Resolution7 AuthoritytoIssueSharestoDrNicholasEde

The'Chairman'of'the'Meeting'intends'to'vote'all'available'proxies'in'favour'of'each'Resolution.'

Authorised'signature/s This!section! must !be!signed!in!accordance!with!the!instructions!below!to!enable!your!voting!instructions!to!be!implemented.!

IndividualorShareholder1 SoleDirectorandSoleCompanySecretary _______ ContactName 1InsertnameandaddressofShareholder	Shareholder2 Shareholder3 Director Director/CompanySecretary _____ _______ ContactDaytimeTelephone Date 2Insertnameandaddressofproxy *Omitifnotapplicable	Shareholder3

Proxy'Notes:

A!Shareholder!entitled!to!attend!and!vote!at!the!Meeting!may!appoint!a!natural!person!as!the!Shareholder's!proxy!to!attend! and! vote! for! the! Shareholder! at! the! Meeting.! ! If! the! Shareholder! is! entitled! to! cast! 2! or! more! votes! at! the! Meeting! the! Shareholder!may!appoint!not!more!than!2!proxies.!!Where!the!Shareholder!appoints!more!than!one!proxy!the!Shareholder!may! specify!the!proportion!or!number!of!votes!each!proxy!is!appointed!to!exercise.!!If!such!proportion!or!number!of!votes!is!not! specified! each! proxy! may! exercise! half! of! the! Shareholder's! votes.! ! A! proxy! may,! but! need! not! be,! a! Shareholder! of! the! Company.!

If!a!Shareholder!appoints!a!body!corporate!as!the!Shareholder’s!proxy!to!attend!and!vote!for!the!Shareholder!at!that!Meeting,! the!representative!of!the!body!corporate!to!attend!the!Meeting!must!produce!the!Certificate!of!Appointment!of!Representative! prior!to!admission.!A!form!of!the!certificate!may!be!obtained!from!the!Company’s!share!registry.!

You!must!sign!this!form!as!follows!in!the!spaces!provided:!

Joint!Holding:! where!the!holding!is!in!more!than!one!name!all!of!the!holders!must!sign.! Power!of!Attorney:! if! signed! under! a! Power! of! Attorney,! you! must! have! already! lodged! it! with! the! registry,! or! alternatively,!attach!a!certified!photocopy!of!the!Power!of!Attorney!to!this!Proxy!Form!when!you! return!it.! Companies:! a!Director!can!sign!jointly!with!another!Director!or!a!Company!Secretary.!!A!sole!Director!who!is! also! a! sole! Company! Secretary! can! also! sign.! ! Please! indicate! the! office! held! by! signing! in! the! appropriate!space.!

If!a!representative!of!the!corporation!is!to!attend!the!Meeting!the!appropriate!"Certificate!of!Appointment!of!Representative"! should!be!produced!prior!to!admission.!!A!form!of!the!certificate!may!be!obtained!from!the!Company’s!Share!Registry.!

Proxy!Forms!(and!the!power!of!attorney!or!other!authority,!if!any,!under!which!the!Proxy!Form!is!signed)!or!a!copy!or!facsimile! which!appears!on!its!face!to!be!an!authentic!copy!of!the!Proxy!Form!(and!the!power!of!attorney!or!other!authority)!must!be! deposited!at!or!received!at!the!registered!office!of!the!Company!(Suite!1,!1233!High!Street,!Armadale,!Victoria!3143!or!by!post! to!PO!BOX!8694!Armadale,!Victoria!3143!or!Facsimile!(03)!9822!7735!if!faxed!from!within!Australia!or!+61!3!9822!7735!if!faxed! from!outside!Australia![or!by!email!at!info@imugene.com])!not!less!than!48!hours!prior!to!the!time!of!commencement!of!the! Meeting!(AEDT).!