INVION LIMITED — Interim / Quarterly Report 2012

Jan 30, 2013

ASX ANNOUNCEMENT: APPENDIX 4C

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31 January 2013

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

Dear Sir

APPENDIX 4C

31 December 2012.

The Company held cash reserves of $3.433 million at the end of December. Cash outflows during the quarter relating to operating expenses ($1.350 million) were lower than the previous quarter ($1.723 million).

Total spend on R&D ($303,000) was higher than the previous quarter ($245,000) in line with project costs associated with the progression of the clinical programs of the company’s two current assets - INV102 (nadolol) and INV103 (ala-Cpn10) - in the following indications: asthma, chronic bronchitis and lupus.

Aggregate amounts of payments to directors ($228,000) is higher than the previous quarter ($171,000) reflecting the executive director salaries of the Managing Director & CEO and Executive Vice President & CMO who were appointed on 1 September 2012.

An Appendix 4C accompanies this announcement.

For and on behalf of the Board of Invion Limited

MELANIE FARRIS Company Secretary

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	31-December-2012

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 Research & Development tax refund 1.1 Receipts from customers 1.2 Interest and other items of a similar nature received Interest and other costs of finance paid Net operating cash flows	Current quarter $A’000	Year to date (6 months) $A’000
	(517) (76) (303) (3) (451) - 39 - - - 4	(1,024) (113) (548) (9) (1,379) - 74 - - 2,227 20
	(1,307)	(752)

Appendix 4 C Page 1

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

	Current quarter $A’000	Year to date (6 months) $A’000
1.8 Net operatingcash flows(carried forward)	(1,307)	(752)
(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 Loans repaid by other entities Cash flows related to investing activities 1.9 1.10 Proceeds from disposal of: Payment for acquisition of: Total operating and investing cash flows	- - - (5) (3) - - - - - - - -	- - - (5) (3) - - - 1 - - - 7
	(8)	-
	(1,315)	(752)
1.15 1.16 1.17 1.18 1.19 Dividends paid 1.2 Net financing cash flows Proceeds from issues of shares Cash flows related to financing activities Proceeds from shares not yet issued Other Creditors (costs of fund raising) Proceeds from borrowings Repayment of borrowings	- - - - - -	- - - - - -
	-	-
1.21 1.22 1.23 Net increase (decrease) in cash held Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20 Cash at end ofquarter/year to date	(1,315) 4,748 -	(752) 4,185 -
	3,433	3,433

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
	228
	-

• 1.26 Explanation necessary for an understanding of the transactions

• Separate to the amounts noted at 1.24 above, for the December quarter approximately $50,000 in fees were paid or were payable to McCullough Robertson Lawyers. Mr Brett Heading is a Partner at McCullough Robertson.

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	1,433	2,733
	2,000	2,015
	-	-
	-	-
Total: cash at end of quarter(item 1.23)	3,433	4,748

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.

Sign here: Original signed Date: 31-January-2013 (Company Secretary)

Print name: Melanie Farris

Appendix 4 C Page 4