INVION LIMITED — Capital/Financing Update 2010

Jun 20, 2010

Appendix 3B New issue announcement

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005.

Name of entity

CBio Limited

ABN

76 094 730 417

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

• 1 +Class of +securities issued or to be Convertible Note (the Note ) issued

• 2 Number of[+] securities issued or to A$150,000 Note be issued (if known) or maximum number which may be issued

3 Principal terms of the+securities (eg, if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)

Note  The principal amount of the Note is A$150,000 (thePrincipal Amount).  The Note does not bear interest and is unsecured.  On maturity, the Note shall convert into new Ordinary Shares of the Company determined by dividing the Principal Amount to be converted by the lesser of: 1. 140% of the average of the daily VWAPs per Share for the twenty (20) consecutive Trading Days immediately prior to 16 May 2010; and 2. 90% of the lowest daily VWAP per Share during the twenty (20) Trading Days immediately prior to the Repayment Date of that Repayment, (theConversion Price)

• See chapter 19 for defined terms.

24/10/2005 Appendix 3B Page 1

Appendix 3B New issue announcement

	The Ordinary Shares issued upon conversion
	of the Note will rank pari passu with existing
	Ordinary Shares.
	On each repayment date, the Company shall
	grant the Investor, or its nominee or designee,
	Options in the number equal to 20% of the
	number of the new Ordinary shares (calculated
	as per point 1 & 2 above) issued or issuable on
	that repayment date, exercisable at a price equal
	to 130% of the Conversion Price applicable to
	the repayment.
	The Note does not carry any voting rights at
	meetings of shareholders of the Company, and
	has no rights of participation in any rights issue
	undertaken by the Company prior to conversion
	of the Note.

• See chapter 19 for defined terms.

24/10/2005

Appendix 3B Page 2

4 Do the[+] securities rank equally in all On conversion of the Note, the Ordinary Shares will respects from the date of allotment rank pari passu with existing Ordinary Shares. with an existing[+] class of quoted +securities? The Options issued on conversion of the Note will not be quoted and the Ordinary Shares issued upon If the additional securities do not exercise of the Options will rank equally with rank equally, please state: existing Ordinary Shares.  the date from which they do  the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment  the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 5 Issue price or consideration A$150,000 cash 6 Purpose of the issue Issue of Note pursuant to the Convertible Loan (If issued as consideration for the Agreement, details of which were announced to the acquisition of assets, clearly identify market on 17 May 2010. those assets)

7 Dates of entering[+] securities into 21 June 2010 uncertificated holdings or despatch of certificates

Number + Class 8 Number and +class of all 63,999,342 Ordinary Shares +securities quoted on ASX ( including the securities in clause 9,506,895 Share options 2 if applicable) exercisable at $1.00 each on or before 31 December 2012

• See chapter 19 for defined terms.

Appendix 3B Page 3

1/1/2003

Number +Class 9 Number and +class of all See Attachment A Restricted fully paid +securities not quoted on ASX shares and share options, ( including the securities in clause unlisted share options 2 if applicable) and convertible notes. 10 Dividend policy (in the case of a Not applicable trust, distribution policy) on the increased capital (interests)

Part 2 - Bonus issue or pro rata issue

11 Is security holder approval required? 12 Is the issue renounceable or non- renounceable? 13 Ratio in which the+securities will be offered 14 +Class of+securities to which the offer relates 15 +Record date to determine entitlements 16 Will holdings on different registers (or subregisters) be aggregated for calculating entitlements? 17 Policy for deciding entitlements in relation to fractions 18 Names of countries in which the entity has+security holders who will not be sent new issue documents Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7. 19 Closing date for receipt of acceptances or renunciations	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable

• See chapter 19 for defined terms.

24/10/2005

Appendix 3B Page 4

20 Names of any underwriters 21 Amount of any underwriting fee or commission 22 Names of any brokers to the issue 23 Fee or commission payable to the broker to the issue 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of+security holders 25 If the issue is contingent on +security holders’ approval, the date of the meeting 26 Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled 27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders 28 Date rights trading will begin (if applicable) 29 Date rights trading will end (if applicable) 30 How do+security holders sell their entitlements_in full_through a broker? 31 How do+security holders sell_part_ of their entitlements through a broker and accept for the balance?	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable

• See chapter 19 for defined terms.

Appendix 3B Page 5

1/1/2003

• 32 How do[+] security holders dispose of their entitlements (except by sale through a broker)?

• 33 +Despatch date

Not applicable

Not applicable

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

• 34 Type of securities ( tick one )

• (a)[Securities described in Part 1 ]

• (b)[All other securities ]

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

35 If the[+] securities are[+] equity securities, the names of the 20 largest holders of the additional[+] securities, and the number and percentage of additional[+] securities held by those holders

36 If the[+] securities are[+] equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over

37 A copy of any trust deed for the additional[+] securities

• See chapter 19 for defined terms.

Appendix 3B Page 6

1/1/2003

Entities that have ticked box 34(b)

38 Number of securities for which Not applicable +quotation is sought 39 Class of +securities for which Not applicable quotation is sought 40 Do the[+] securities rank equally in all Not applicable respects from the date of allotment with an existing[+] class of quoted +securities? If the additional securities do not rank equally, please state:  the date from which they do  the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment  the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 41 Reason for request for quotation Not applicable now Example: In the case of restricted securities, end of restriction period (if issued upon conversion of another security, clearly identify that other security) Number +Class 42 Number and[+] class of all[+] securities Not applicable quoted on ASX ( including the securities in clause 38)

• See chapter 19 for defined terms.

Appendix 3B Page 7

1/1/2003

Quotation agreement

• 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the[+] securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the[+] securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those[+] securities should not be granted[+] quotation.

• An offer of the[+] securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any[+] securities to be quoted and that no-one has any right to return any[+] securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the[+] securities be quoted.

• If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the[+] securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before[+] quotation of the[+] securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here: (Company secretary)

Date: 21 June 2010

Print name: BEN GRAHAM

• See chapter 19 for defined terms.

Appendix 3B Page 8

1/1/2003

ATTACHMENT A

Number and[+] class of all[+] securities not quoted on ASX ( including the securities in clause 2 if applicable)

(a) ASX Restricted Securities (not quoted)

Number	+Class
3,359,744	Ordinary fully paid shares, classified by ASX as restricted securities and to be held in escrow for a period of 24 months from the commencement of official quotation
11,597,253	Ordinary fully paid shares, classified by ASX as restricted securities and to be held in escrow for a period of 12 months from the date of issue
15,087,494	Share options exercisable at $1.00 each on or before 31 December 2012,classified by ASX as restricted securities and to be held in escrow for a period of 24 months from the commencement of official quotation
4,780,460	Share options exercisable at $1.00 each on or before 31 December 2012,classified by ASX as restricted securities and to be held in escrow for a period of 12 months from the date of issue.

(b) Securities Not Quoted

Number	+Class
710,000	Share options exercisable at $2.00 each on or before 31 December 2012
600,000	Share options exercisable at $3.00 each on or before 31 December 2012
50,000	Share options exercisable at $0.517 each on or before 16 May 2015
148,148	Share options exercisable at $0.351 each before 15 June 2015

• See chapter 19 for defined terms.

24/10/2005 Appendix 3B Page 9

(c) Convertible Notes on Issue

		Shares
Value	Conversi- on Rate	issued if converted	Options issued if	Option exercise price
$	$		converted	$	Note expiry
125,000	0.50	250,000	125,000	1.00	31 Dec 2010
2,000,000	0.50	4,000,000	2,500,000	1.00	30 Jun 2011
2,000,000	0.286	7,000,000	2,500,000	1.00	31 Dec 2011
150,000	(i)	(i)	(ii)	(ii)	16 July 2010
4,275,000	-	11,250,000	5,125,000	-	-

• (i) On maturity, the Note shall convert into new Ordinary Shares of the Company determined by dividing the Principal Amount to be converted by the lesser of:

• 140% of the average of the daily VWAPs per Share for the twenty (20) consecutive Trading Days immediately prior to 16 May 2010; and

• 90% of the lowest daily VWAP per Share during the twenty (20) Trading Days immediately prior to the Repayment Date of that Repayment,

(the Conversion Price )

• (ii) On each repayment date, the Company shall grant the Investor, or its nominee or designee, Options in the number equal to 20% of the number of the new Ordinary Shares (calculated as per (i) above) issued or issuable on that repayment date, exercisable at a price equal to 130% of the Conversion Price applicable to the repayment.

• See chapter 19 for defined terms.

Appendix 3B Page 10

1/1/2003