INVION LIMITED — Interim / Quarterly Report 2014

Jan 30, 2014

ASX ANNOUNCEMENT: APPENDIX 4C

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31 January 2014

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 31 December 2013.

The Company held cash reserves of $1.864 million at the end of December. Cash outlfows relating to operating expenses ($1.451 million) were slightly higher than the previous quarter ($1.406 million). Net operating cashflows for the quarter were +$0.54 million, largely as a result of the receipt of R&D Tax Incentive funds of approximately $1.46 million.

During 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
ABN 76 094 730 417	Quarter ended(“currentquarter”)
76 094 730 417	31-December-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 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
	(373) (109) (476) (2) (489) - 26 (0) (2) 1,477 1 1	(845) (169) (924) (5) (936) - 42 (0) (2) 1,477 1 9
	54	(1,352)

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)	54	(1,352)
(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 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	- - - - 60 - - - - - - - -	- - - - 60 - - - - - - -
	60	60
	114	(1,292)
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	- - - - - -	114 - - - - (9)
	-	105
1.21 1.22 1.23 Cash at end ofquarter/year to date Net increase (decrease) in cash held Cash at beginning of quarter/year to date Exchange rate adjustments	114 1,732 18	(1,187) 3,029 22
	1,864	1,864

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
	205
	-

• 1.26 Explanation necessary for an understanding of the transactions

Payments to directors includes directors fees, salaries and other payments, to executive directors.

Separate to the amounts noted at 1.24 above, for the December quarter, approximately $84,326 in fees were paid and/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	1,864	1,732
	-	-
	-	-
	-	-
Total: cash at end of quarter(item 1.23)	1,864	1,732

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 (Company Secretary)

Date: 31-January-2014

Print name: Melanie Farris

Appendix 4 C Page 4