INVION LIMITED — Interim / Quarterly Report 2014

Oct 30, 2013

ASX ANNOUNCEMENT: APPENDIX 4C

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31 October 2013

The Manager Company Announcements Office ASX Limited 20 Bridge St SYDNEY NSW 2000

Dear Sir

APPENDIX 4C

Invion Limited (ASX:IVX) is pleased to lodge its Appendix 4C for the quarter ending 30 September 2013.

The Company held cash reserves of $1.750 million at the end of September. Cash outflows during the quarter relating to operating expenses ($1.406 million) were lower than in the previous quarter ($2.059 million), largely reflecting a prior quarter higher spend on establishment costs for R&D and clinical trial related activities for the company’s INV102 (nadolol) and INV103 (ala-Cpn10) assets.

During the quarter the Company received approximately $114,000 from directors and other related parties, further to shareholder approval at the EGM held 13 August 2013, for the private placement of shares to these parties (on the same terms as the private placement of shares to sophisticated and professional investors announced in June 2013).

During the quarter, the Company announced that it had satisfied the criteria under AusIndustry’s R&D Tax Incentive Scheme for an advance finding with respect to overseas R&D activities conducted in the development of INV103 (ala-cpn10), and that the Company was eligible to receive a cash rebate of approximately $1.46 million. All requisite documentation has been lodged with relevant Government Departments, and the Company anticipates these funds to be received in the coming weeks.

Subsequent to the end of the quarter the Company announced the in-licence of INV104 (zafirlukast) which will be developed as an inhaled non-steroidal, anti-inflammatory treatment for asthma, complementing Invion’s existing INV102 asset - also targeted as a therapy for asthma and COPD.

Invion’s pipeline consists of three drug assets targeting inflammation in respiratory and autoimmune disease. Invion has three phase II clinical trials underway including its study of INV102 in asthma patients which is funded by the US National Institutes of Health in excess of USD$4 million.

An Appendix 4C accompanies this announcement.

For and on behalf of the Board of Invion Limited

MELANIE FARRIS Company Secretary

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Invion Limited ABN 76 094 730 417

GPO Box 1557, Brisbane, QLD 4073 P +61 7 3295 0500 F +61 7 3295 0599 www.inviongroup.com

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Introduced 31/3/2000. Amended 30/9/2001

Name of entity
INVION LIMITED
Consolidated statement of cash flows ABN 76 094 730 417	Quarter ended(“currentquarter”)
	30-September-2013
Cash flows related to operating activities Payments for (a) staff costs (b) patent costs (c) research and development (d) leased assets (e) other working capital 1.3 Dividends received 1.4 1.5 1.6 Income taxes paid 1.7 Other (a) Research & Development tax refund (b) Other Interest and other costs of finance paid Net operating cash flows 1.1 Receipts from customers 1.2 Interest and other items of a similar nature received	Current quarter $A’000	Year to date (3 months) $A’000
	(472) (60) (448) (3) (447) - 16 (0) - - - 8	(472) (60) (448) (3) (447) - 16 (0) - - - 8
	(1,406)	(1,406)

Appendix 4 C Page 1

Appendix 4C Quarterly report for entities admitted on the basis of commitments

	Current quarter $A’000	Year to date (3 months) $A’000
1.8 Net operatingcash flows(carried forward)	(1,406)	(1,406)
(a) businesses (b) equity investments (c) intellectual property (d) physical current assets (e) other non-current assets (a) businesses (b) equity investments (c) intellectual property (d) physical current assets (e) other non-current assets 1.11 Loans to other entities 1.12 1.13 Other Net investing cash flows 1.14 Total operating and investing cash flows Cash flows related to investing activities 1.9 1.10 Proceeds from disposal of: Payment for acquisition of: Loans repaid by other entities	- - - - - - - - - - - - -	- - - - - - - - - - - -
	-	-
	(1,406)	(1,406)
1.15 1.16 1.17 1.18 1.19 Dividends paid 1.20 Net financing cash flows Proceeds from shares not yet issued Other Creditors (costs of fund raising) Proceeds from borrowings Repayment of borrowings Cash flows related to financing activities Proceeds from issues of shares	114 - - - - (9)	114 - - - - (9)
	105	105
1.21 1.22 1.23 Exchange rate adjustments Cash at end ofquarter/year to date Net increase (decrease) in cash held Cash at beginning of quarter/year to date	(1,301) 3,029 22	(1,301) 3,029 22
	1,750	1,750

Appendix 4 C Page 2

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.24 1.25 Aggregate amount of payments to the parties included in item 1.2 (a) Aggregate amount of loans to the parties included in item 1.11	Current quarter $A'000
	206
	-
1.26 Explanation necessary for an understanding of the transactions

Payments to directors includes directors fees to non-executive directors and salaries and other payments to executive directors. Separate to the amounts noted at 1.24 above, for the September quarter, approximately $56,550 in fees were paid or were payable to McCullough Robertson Lawyers in connection with the provision of legal advisory services to the Company, and disbursements - including Court fees and fees payable to Counsel engaged on the Company’s behalf. Mr Brett Heading is a Partner at McCullough Robertson Lawyers.

Non-cash financing and investing activities

Details of financing and investing transactions which have had a material effect on consolidated assets and 2.1 liabilities but did not involve cashflows

N/A

Details of outlays made by other entities to establish or increase their share in businesses in which the reporting 2.2 entity has an interest

N/A

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

3.1 Loan facilities 3.2 3.3 Convertible loan facility Credit standby arrangements	Amount available $A’000	Amount used $A’000
	-	-
	-	-
	-	-

Appendix 4 C Page 3

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
4.1 4.2 Deposits at call 4.3 Bank overdraft 4.4 Other (provide details) Cash on hand and at bank	1,750	3,029
	-	-
	-	-
	-	-
Total: cash at end of quarter(item 1.23)	1,750	3,029

Acquisitions and disposals of business entities

5.1 Name of entity 5.2 5.3 5.4 Total net assets 5.5 Nature of business Place of incorporation or registration Consideration for acquisition or disposal	Acquisitions	Disposals
	N/A	N/A

Compliance statement

This statement has been prepared under accounting policies which comply with accounting standards as defined 1 in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.

2 This statement does give a true and fair view of the matters disclosed.

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Sign here: Original signed (Company Secretary)

Date: 31-October-2013

Print name: Melanie Farris

Appendix 4 C Page 4