INVION LIMITED — Interim / Quarterly Report 2013

Jul 30, 2013

ASX ANNOUNCEMENT: APPENDIX 4C

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31 July 2013

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

Dear Sir

APPENDIX 4C

30 June 2013.

The Company held cash reserves of $3.029 million at the end of June. Cash outflows during the quarter relating to operating expenses ($2.059 million) were higher than the previous quarter ($1.438 million). This is largely the result of R&D and patent costs ($1.026 million) being higher than the previous quarter ($643,000) and a reflection of increased spend associated with advance costs of commencing clinical trials of the company’s two current assets - INV102 (nadolol) and INV103 (ala-Cpn10).

During the quarter the company raised approximately $1.11 million under Share Purchase Plan from existing shareholders and $1.92 million from the private placement of shares to sophisticated and professional investors, for a total positive cash flow from financing activities of $3.03 million.

During the quarter the company announced, in relation to the action to recover approximately $1.2 million from four former executives, that it had reached a confidential settlement with one of the Defendants to the action pursuant to which the Defendant agreed, with no admission as to liability, to pay the company an amount representing principal, interest and costs.

Subsequent to the end of the quarter the company announced the commencement of its phase II clinical trial of INV102 (nadolol) in chronic bronchitis patients (smoking cessation); and the commencement of its phase II clinical trial of INV103 (ala-cpn10) in patients with lupus.

Invion now 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

Unit 2, 120 Bluestone Circuit, Seventeen Mile Rocks, QLD 4073 P +61 7 3295 0500 F +61 7 3295 0599 www.invion.com.au

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
ABN 76 094 730 417	Quarter ended(“currentquarter”)
76 094 730 417	30-June-2013

Consolidated statement of cash flows

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 (12 months) $A’000
	(585) (181) (845) (3) (445) - 14 0 - - 68 41	(2,019) (398) (1,540) (15) (2,598) - 111 (1) - 2,227 68 98
	(1,936)	(4,067)

Appendix 4 C Page 1

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

	Current quarter $A’000	Year to date (12 months) $A’000
1.8 Net operatingcash flows(carried forward)	(1,936)	(4,067)
(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 Cash acquired on takeover of subsidiary 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	- - - - (27) - - - 6 - - - -	- - - (5) (30) - - - 44 - - - 7
	(21)	16
	(1,957)	(4,051)
1.15 1.16 1.17 1.18 1.19 Dividends paid 1.2 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	3,030 - - - - (115)	3,030 - - (20) - (115)
	2,915	2,895
1.21 1.22 1.23 Exchange rate adjustments to item 1.20 Cash at end ofquarter/year to date Net increase (decrease) in cash held Cash at beginning of quarter/year to date	958 2,071 -	(1,156) 4,185 -
	3,029	3,029

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
	482
	-

• 1.26 Explanation necessary for an understanding of the transactions Payments to directors includes directors fees, and salaries and other payments, including termination payments, to executive directors.

Separate to the amounts noted at 1.24 above, for the June quarter, approximately $147,400 in fees were paid or were payable to McCullough Robertson Lawyers. 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
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	3,029	2,071
	-	-
	-	-
	-	-
Total: cash at end of quarter(item 1.23)	3,029	2,071

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

• 1 defined 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 Date: (Company Secretary)

31-July-2013

Print name: Melanie Farris

Appendix 4 C Page 4