Corporate Governance Immuron Limited and its Board of Directors are committed to implementing and achieving an effective corporate governance framework. Our Corporate Governance Statement can be found on our website at w

Corporate Governance

Immuron Limited and its Board of Directors are committed

to implementing and achieving an effective corporate governance framework. Our Corporate Governance Statement can be found on our website

at www.immuron.com.au.

On behalf of the Immuron Board, I am

pleased to present the 2022-2023 annual report.

During FY23, your company continued

to pursue opportunities to develop and commercialise our proprietary oral immunotherapeutic products. The company is pleased to report

an uplift of sales in Australia and the USA as international travel continues to increase and significant progression of Immuron's

North America, Travelan sales

were up by 14%, reaching AU $644,020 in FY23, compared to AU $564,400 in FY22. North America, Travelan sales were up by 147%,

reaching AU $1,744,745 in FY23, compared to AU $707,778 in FY22. Global sales of Travelan and Protectyn increased

by 136% in the 2023 fiscal year to AU $1,804,705, compared to AU $765,193 in FY22. This growth was attributable to increasing sales

in both Australian pharmacy and US Passport Health Travel Clinics. Sales numbers in Australia were 90% of the pre-pandemic peak in

FY20 while cumulative Australian resident short-term departures during the 12 months to June 2023 were 74% of those during the pre-

pandemic 12 months to June 2019.

Immuron's FY22 decision to focus

on the clinical development of our most advanced stage therapeutic drug candidates has yielded positive outcomes with the US Food and

Drug Administration (FDA) approval of Investigational New Drug (IND) applications for both Travelan and our new Campylobacter

ETEC therapeutic developed in collaboration with the US Naval Medical Research Command.

The strength and character of our international

relationships, particularly with the United States Department of Defense (DoD) and its agencies the Naval Medical Research Centre (NMRC)

and the Uniformed Services University of the Health Sciences (USU), continue to shine.

Following Institutional Review Board

(IRB) human ethics approval, Immuron received approval from the US Army Medical Research and Development Command (USAMRDC) Office of Human

and Animal Research Oversight (OHRO) to proceed with the clinical trial to evaluate the efficacy of Travelan to prevent

infectious diarrhoea caused by enterotoxigenic Escherichia coli (ETEC). Immuron appointed clinical research organisation (CRO), Pharmaron

to commence screening of candidates for a Phase 2 clinical trial which is designed to evaluate the safety and efficacy of Travelan

compared to placebo in a controlled human infection model (CHIM) in up to 60 healthy participants.

FDA Clinical Hold on the Campylobacter

ETEC IND was lifted in May 2023 and the NMRC will launch two controlled human infection model trials in the US. One trial will focus on

the ability of the hyperimmune product to prevent infectious diarrhea caused by ETEC and the second trial will focus on protecting volunteers

against moderate to severe campylobacteriosis.

USU also reported details of its clinical

trial program to evaluate Travelan in a major field study to assess the products ability to maintain normal gut function

during deployment or travel to high-risk destinations for Travelers' Diarrhea.

The grant of European Patent entitled

"Methods and Compositions for the treatment and/or prophylaxis of Clostridium difficile associated disease" extended our commercial

and legal safety net in the region. In June 2023, the Immuron Board approved proceeding with IMM-529 cGMP manufacturing and to proceed

with FDA pre-IND submission. IMM-529 was developed for the treatment of Clostridioides difficile infection (CDI). CDI can cause life-

threatening diarrhoea and is one of the leading healthcare-related gastrointestinal infections in the world.

In addition to the further commercial

development of our lead candidates, Immuron remains committed to pursuing in parallel organic and M&A growth strategies focusing on

increasing penetration of existing products in existing markets while seeking to increase product offering, market geographies and sales

channels to drive revenue growth and ultimately shareholder value. In November 2022, Immuron completed a strategic investment in Ateria

Health Limited to advance the company's objective to enter the broader IBS market with leading products and to strengthen distribution

of Immuron's Travelan product through B2C online platforms and pharmacy and retail channels (B2B) in target markets.

a loss for the year of A$3,786,507, increasing 33% on 2021-22 as a result of a 136% increase in sales, a 105% in cost of goods sold, a

171% increase in other income, a 68% increase in total expenses and an increase of A$640,770 in other gains/(losses).

I thank my fellow Directors for their dedication and focus

which has helped achieve these positive outcomes.

Independent Non-Executive Chairman

Review of operations and activities

The company is pleased to report an uplift

of sales in Australia and the USA as international travel continued to increase. Australia, Travelan sales were up by

147%, reaching AU $1,744,745 in FY23, compared to AU $707,778 in FY22. North America, Travelan sales were up by 14%,

reaching AU $644,020 in FY23, compared to AU $564,400 in FY22. Global sales of Travelan and Protectyn increased

by 136% in the 2023 fiscal year to AU $1,804,705, compared to AU $765,193 in FY22. This growth was attributable to increasing sales in

both Australian pharmacy and US Passport Health Travel Clinics. Sales numbers in Australia were 90% of the pre-pandemic peak in FY20

while cumulative Australian resident short-term departures during the 12 months to June 2023 were 8274% in April 2023 compared to April

2019of those during the pre-pandemic 12 months to June 2019.

Immuron Board approves IMM-529 manufacturing and

to proceed with FDA pre-IND submission

Immuron reported on June 21, 2023, that it has approved

proceeding with IMM-529 cGMP manufacturing and to proceed with FDA pre-IND submission.

IMM-529 was developed for treatment of Clostridioides

difficile (C. difficile) which is an anaerobic, spore-forming, gram-positive bacillus typically associated with gastrointestinal

disease. Transmission of C. difficile occurs by ingestion of spores either through person-to-person contact, animal-to-person contact

or environment-to-person contact. C. difficile infection (CDI) can cause life-threatening diarrhoea and is the leading healthcare-related

gastrointestinal infection in the world.

European patent awarded to Immuron on drug composition

to treat Clostridioides difficile associated disease

Notification of grant of European

patent entitled "Methods and Compositions for the treatment and/or prophylaxis of Clostridium difficile associated

disease" was received in January 2023 from the European Patent Office (EPO).

Recruitment and Screening Update

for Travelan for use by US military forces

In October 2022, Immuron executed a

clinical trial agreement with US-based clinical research organisation, Pharmaron. On December 5, 2022, Immuron submitted an investigational

new drug (IND) application to the US Food and Drug Administration (FDA) for Travelan . On December 23, 2022, Immuron received FDA

approval for the Travelan IND. On May 30, 2023, following Institutional Review Board (IRB) human ethics approval, Immuron received

approval from the US Army Medical Research and Development Command (USAMRDC) Office of Human and Animal Research Oversight (OHRO) to proceed

with the clinical trial to evaluate the efficacy of Travelan to prevent infectious diarrhoea caused by enterotoxigenic Escherichia

coli (ETEC). On June 22, 2023, Immuron reported that Pharmaron had selected 81 potential candidates for in-person screening visits

which were anticipated to commence on June 28, 2023, at Pharmaron's Clinical Research Facility Inpatient Unit located in Baltimore,

Maryland, US. The Phase 2 clinical trial is designed to evaluate the safety and efficacy of Travelan compared to placebo in a controlled

human infection model (CHIM) in up to 60 healthy participants.

of AU$6.2 million for a research agreement with the US Department of Defense entitled "Biologics License Application (BLA)

of a therapeutic Bovine Immunoglobulin supplement targeting Travelers' Diarrhea caused by Enterotoxigenic Escherichia Coli (ETEC)".

The company was awarded AU$4.8M (US$3.43M) from

the US Department of Defense to test the efficacy of one large daily dose regimen of Travelan in a controlled human infection

model (CHIM) clinical study using the ETEC strain H10407. This dose regime is potentially more amenable for use in military

populations. The US Naval Medical Research Center (NMRC), Silver Spring, MD, USA was also awarded over AU$1.4M (USD $1M) in a

separate grant to provide immunological support for the Immuron clinical program. The company plans to submit an Investigational New

Drug (IND) application with the US Food and Drug Administration (FDA). The clinical program will enroll up to 60 health volunteers

who will be randomly assigned to receive either a once-daily dose of 1200 mg of Travelan or placebo.

The program is to be based on historic

clinical trials with Travelan and ETEC. These showed the product delivered between 84 per cent and more than 90 per cent protective

efficacy against moderate to severe diarrhoea.