INCANNEX HEALTHCARE LIMITED ABN 93 096 635 246 (and controlled entities) HALF-YEAR INFORMATION FOR THE SIX MONTHS ENDED 31 DECEMEBR 2022 PROVIDED TO THE ASX UNDER LISTING RULE 4.2A.3 Appendix 4D Half Year Report for the

INCANNEX HEALTHCARE LIMITED

(and controlled entities)

HALF-YEAR INFORMATION

MONTHS ENDED 31 DECEMEBR 2022

PROVIDED TO THE ASX UNDER LISTING RULE 4.2A.3

Half Year Report for the six months to 31 December 2022

INCANNEX HEALTHCARE LIMITED

2. Results for announcement to the market

3. Details of entities over which control

has been gained or lost during the period: APIRx LLC & APIRx BV

4. Dividends: No dividends have been declared of paid during the period

5. Details of dividend or distribution reinvestment plans in operation are described below: Nil

6. Details of associates and joint venture entities: Nil

7. The financial information provided in this Appendix 4D is based on the half-year financial report which accompanies this report.

8. The financial report has been independently reviewed and is not subject to any qualified independent review statement.

(and consolidated entities)

Interim Financial Report

for the half-year ended 31 December

Incannex Healthcare Limited

Interim Financial Report 31 December 2022

Mr Joel Latham - Managing Director

Mr Troy Valentine - Non-executive Chairman

Widdows - Non-executive Director

Dr George Anastassov - Non-executive Director

Robert B. Clark - Non-executive Director

Level 39, South Tower Rialto

Melbourne Victoria 3000

Level 6, 10 Eagle St

Brisbane 4000, Queensland

AUTOMIC REGISTRY SERVICES

Level 5, 126 Phillip Street, SYDNEY, NSW, AUSTRALIA, 2000

Level 35, 525 Collins Street, Melbourne VIC 3000

SECURITIES EXCHANGE LISTING

Australian Securities Exchange

Level 4, North Tower Rialto, 525 Collins Street, Melbourne

Financial Report 31 December 2022

Your directors submit the interim financial report of the

consolidated entity, comprising Incannex Healthcare Limited ("the Company" or "IHL") and its controlled

entities (collectively "the Group") for them half-year ended 31 December 2022. To comply with the provisions of the

Corporations Act 2001, the directors report as follows:

The names of directors who held office

during or since the end of the interim period and until the date of this report are noted below. All directors were in office for the

entire period, except for Mr Robert B Clark who joined the Company's board 17 August 2022.

PRINCIPAL ACTIVITIES

The Group continued research and development ("R&D")

of its novel medicinal cannabinoid drug candidates and psychedelic-assisted psychotherapies.

REVIEW OF OPERATIONS

The consolidated loss for the half-year after tax was A$8,529,015

(2021: loss of A$5,244,874). During this period, the Group worked towards implementing separate strategies for its two business segments.

Medicinal Cannabinoid

The Company continued to advance its novel drug development

programs using combination cannabinoid compounds (IHL-42X, IHL-675A and IHL-216A) to treat unmet medical conditions. Three proprietary

drug formulations are being applied to five indications: (i) obstructive sleep apnoea; (ii) traumatic brain injury (concussion); (iii)

rheumatoid arthritis; (iv) lung inflammation; and (v) inflammatory bowel disease.

During the half-year ended 31 December 2022, the Company

finalised the acquisition of another medicinal cannabinoid company to acquire a portfolio of twenty-two (22) additional clinical and pre-

clinical R&D projects. These projects are underpinned by 19 granted patents and 23 pending patents.

R&D activities have commenced on the newly acquired portfolio

with manufacturing of cGMP CannQuit products for addiction disorders and Renecann products for skin disorders.

Psychedelic-assisted Psychotherapies

The Company advanced its R&D program for the application of

psilocybin combined with psychotherapy to treat generalised anxiety disorder. During the December 2022 half year, the Company continued

its phase 2 clinical trial at Monash University. IHL has achieved its interim milestone of 29 patients completing primary endpoint assessments

and independent analysis of the interim study data has commenced.

Other psychedelic therapy clinical programs are being investigated

by the Company. One initiative includes a R&D program that combines virtual reality exposure response therapy in conjunction with

a psychedelic medicine.

The Group raised A$13,000,000 in new

capital (before costs) during the period through an institutional placement - significantly enhancing its working capital position

- refer to note 9 for further detail.

Other than the above items, and in the period between the

end of the half-year and the date of this report there has not arisen any other item, transaction or event of a material or unusual nature

likely, in the opinion of the directors of the Company, to significantly affect the operations of the Group, the results of those operations,

or the state of affairs of the Group, in future financial years.

Incannex Healthcare Limited

Interim Financial Report 31 December

AUDITOR'S INDEPENDENCE DECLARATION

Section 307C of the Corporations Act 2001 requires our auditors,

PKF Brisbane Audit, to provide the directors of the Company with an Independence Declaration in relation to the review of the interim

financial report. This Independence Declaration is set out on the next page and forms part of this Directors' Report for the half-year

ended 31 December 2022.

This report is signed in accordance with a resolution of

the Board of Directors made pursuant to s306(3) of the Corporations Act 2001.

Non-executive Chairman

AUDITOR'S INDEPENDENCE DECLARATION

UNDER SECTION 307C OF THE CORPORATIONS ACT 2001

I declare that, to the best of my knowledge

and belief, during the half-year ended 31 December 2022, there have been:

This declaration is in respect of Incannex Healthcare Limited

and the entities it controlled during the half year.

PKF Brisbane Audit ABN 33 873 151 348

Level 6, 10 Eagle Street, Brisbane, QLD 4000 | GPO Box 1568,

Brisbane, QLD 4001 | T: +61 7 3839 9733

Brisbane | Rockhampton www .pkf.com.au

Liability limited by a scheme approved under Professional

Standards Legislation.

PKF Brisbane Pty Ltd. is a member firm of the PKF International Limited