Immuron Limited Appendix 4E 30 June 2020 Immuron Limited Appendix 4E Year ended 30 June 2020 Name of entity: Immuron Limited ABN: 80 063 114 045 Year ended: 30 June 2020 Previous period: 30 June 2019 Results for announce

Year ended 30 June 2020

Results for announcement to the market

No dividends have been paid or declared

by the company for the current financial year. No dividends were paid for the previous financial year.

Explanation of results

Please refer to the review of operations

and activities on pages 4 to 7 for explanation of the results.

Additional information supporting the Appendix

4E disclosure requirements can be found in the review of operations and activities, directors' report and the financial statements

for the year ended 30 June 2020.

Net tangible assets per security

Changes in controlled entities

There have been no changes in controlled

entities during the year ended 30 June 2020.

Other information required by Listing Rule 4.3A

The financial statements have been audited by the group's independent

auditor without any modified opinion, disclaimer or emphasis of matter.

Audited financial report - 30

Review of operations and activities

Immuron Limited has reported a

loss for the financial year ended 30 June 2020 of AUD $2,927,206 (30 June 2019: AUD $4,656,421). The group's net assets decreased

to AUD $5,643,913 compared with AUD $7,351,136 at 30 June 2019, including cash reserves of AUD $3,250,468 (30 June 2019: AUD $5,119,887).

American depository shares (ADS) capital raise completed

In July 2020, the company successfully

completed a US$20 million register direct offering of American Depository Shares (ADS). Immuron issued 1,006,668 ADSs, equivalent

to 40,266,720 fully paid ordinary shares at a purchase price of US$18.75 per ADS (equivalent to US$0.469 per share) for gross proceeds

of ~US$20 million. Each ADS represents forty (40) of the company's ordinary shares. The proceeds will go towards the pre-clinical

and clinical development of our therapeutic drug candidates, as well as for working capital. H.C. Wainwright and Co. acted as the

exclusive placement agent for the offering.

Immuron's IMM-124E used

to manufacture Travelan and Protectyn demonstrates antiviral activity against the COVID-19 virus in laboratory studies

Part of the proceeds of the July

2020 capital raise will be used to further develop the antiviral activity reported against the severe acute respiratory syndrome

coronavirus-2 (SARS-CoV-2), the virus that causes COVID-19. The company has been engaging with local, national, and international

potential research collaborators to advance this work and assist in the further characterization of the neutralization activity

of SARS-CoV-2 observed with our commercial hyper-immune colostrum. In July 2020 we announced the findings of 360 biolabs, a Melbourne

based Contract Research Organization using the SARS-CoV-2 hCoV-19/Australia/VIC01/2020 virus obtained from Melbourne's Peter

Doherty Institute for Infection and Immunity. The in-vitro assessment of the neutralization of SARS-CoV-2 was performed on four

production lots of product used to manufacture Travelan and Protectyn . The In-vitro susceptibility of the virus to IMM-124E

was determined using the quantitative assay which measures virus replication in the presence of increasing concentrations of the

product compared to replication in the absence of the product. The effective concentration of IMM-124E was reported as the concentration

of the product at which virus replication is inhibited by 50 percent (EC50) or 90 percent (EC90).

All four production lots produced

mean EC50 values of 40.5 to 91.9 ug/mL and inhibited viral replication at concentrations which there was no observed

cell toxicity. The concentration of IMM-124E at which virus replication was inhibited by 90 percent (EC90) produced

mean EC90 values ranging from 48.7 to 155.4 ug/mL for all four lots tested again at concentrations at which there was

no observed cell toxicity. A commercially available high protein milk powder product was used as a placebo in the studies and

produced EC50 values greater than the observed cellular cytotoxicity concentration of >4800 ug/mL. The control milk

powder inhibited viral replication at doses >25,000 ug/mL and more importantly did not inhibit viral replication at doses which

it was cytotoxic to cells. Another major finding made during the study was that cell viability in the presence of IMM-124E was

greatly enhanced when compared to placebo. IMM-124E improved cell viability by 180 to 260% relative to controls. These results

indicate that IMM-124E at concentrations which inhibited SARS-CoV-2 replication improved cell viability.

US Department of Defence relationships remain strong

For all the disruption caused by the COVID-19

pandemic, our partnerships with components of the US Department of Defence remain strong, close, and strategically vital. We will

continue the clinical development of a new oral therapeutic for traveller's diarrhoea in conjunction with the US Naval Medical

Research Centre. The initiative is in line with the more pressing demands the COVID-19 crisis has thrust upon international therapeutic

research. Strong progress has been made since the easing of COVID-19 restrictions in NSW. We have now completed the vaccination

campaign and will begin to harvest the colostrum in September this year. We are currently on track to manufacture the drug substance

and drug product by the end of this year as planned. The Naval Medical Research Center (NMRC) has received written guidance from

the U.S. Food and Drug administration (FDA) in relation to the clinical development pathway of the new drug which the company is

developing to treat moderate to severe campylobacteriosis and Enterotoxigenic Escherichia coli (ETEC) infections. The Type B meeting

with the FDA discussed the Chemistry, Manufacturing and Controls including the proposed release testing specifications of the product

as well as the planned clinical studies evaluating the safety and efficacy of the product. Work on the Investigational New Drug

application has been initiated.

COVID-19 pandemic impacts travel in all Travelan

The COVID-19 pandemic caused massive international

travel restrictions in mid to late March 2020, affecting every Travelan market which had a flow-on effect to Q4

FY20 Travelan sales due to the product's positioning as a Travellers' Diarrhoea preventative. Gross worldwide

sales of Travelan increased by 4% in the 2020 fiscal year to AU $2.7M. This decline in global sales followed on from a strong

period of ~60% growth in the first 3 quarters of 2020. In April we re-focussed our marketing to promote Travelan

and its sister product, Protectyn , for their gut and digestive health benefits. When travel stops and lockdown

requirements see people isolated at home, dietary habits change, with an increasing prevalence of home food preparation and deliveries

of take-away meals. With these adjustments comes the increased risk of variable personal and commercial food hygiene standards.

FDA registration for clinical development of IMM-124E/Travelan

to prevent travelers' diarrhea suspended

In late March, this year the Immuron board

of directors provided an update to the market regarding the current and future impact of COVID-19 on the company and implemented

swift measures to protect the company's long-term viability. Key among the strategies was a major cost-cutting drive to preserve

cash reserves, and the temporary suspension of dilutive research. Though not taken lightly, we also made the decision to conserve

cash reserves by suspending capital-hungry clinical trial work on our promising assets IMM-124 and IMM-529 until more certain times

return. A series of other cost cutting, and savings steps were also initiated to shore up our medium to long-term cash position.

During this time, the Board also accepted the resignation of Chief Executive Officer, Dr Gary S. Jacob in March, acknowledging

the contribution he had made to the company during his tenure. Dr Jerry Kanellos was appointed Chief Executive Officer and in doing

so, day-to-day control of strategy and operations returned to Australia.

The COVID-19 pandemic resulted in international

travel restrictions and brought to an abrupt halt the travel plans of millions throughout the world. Many countries went into total

lockdown with people unable to leave their homes except for very limited purposes. The pandemic has also caused significant disruptions

to global clinical development with many planned studies being delayed, paused or closed. We have also suspend all work associated

with the IND filing and postpone the planned phase III clinical program for IMM-124E to prevent Travelers' Diarrhea which

was on track to submit an IND application to the FDA in June 2020 and to begin recruitment in July 2020 to coincide with the Northern

hemisphere summer holiday travel period. The International Air Transport Association has reported that the recovery in traffic