1

IMMEDICALLIMITEDACN009436908

PROSPECTUS

Foranon-renounceableprorataofferofupto498,237,396Sharesatanissuepriceof$0.001eachonthebasisofthree(3)Sharesforeveryeight(8)SharesheldattheRecordDate,togetherwithonefreeAttachingOptionforevery

Sharesubscribedfor.

THISOFFERCLOSESAT5.00PMAEDTON5MAY2017

VALIDACCEPTANCESMUSTBERECEIVEDBEFORETHATTIME.PleasereadtheinstructionsinthisProspectusandontheaccompanyingEntitlementandAcceptance

FormregardingtheacceptanceofyourEntitlement.

THISISANIMPORTANTDOCUMENTANDREQUIRESYOURIMMEDIATEATTENTION.ITSHOULDBEREADINITSENTIRETY.

IFYOUAREINDOUBTABOUTWHATTODO,YOUSHOULDCONSULTYOURPROFESSIONALADVISER

WITHOUTDELAY.

THESECURITIESOFFEREDBYTHISPROSPECTUSAREOFASPECULATIVENATURE.

THECOMPANY’SSECURITIESHAVEBEENSUSPENDEDFROMTRADINGONASXSINCE29DECEMBER2015.THECOMPANYWILLREMAINSUSPENDEDFROMTRADINGUNTILTHECOMPANYHAS

SATISFIEDASXTHATITHASRE-COMPLIEDWITHCHAPTERS1AND2OFTHELISTINGRULESANDCOMPLIANCEWITHANYFURTHERCONDITIONSASXIMPOSESONTHECOMPANY'SREINSTATEMENTTOTHEOFFICIALLISTOFASX.THECOMPANYNOTESTHEASXPOLICY,WHICHPROVIDESTHATIFACOMPANYISSUSPENDEDFORAPERIODOFMORETHANTWOYEARSTHENTHECOMPANYWILLBE

DELISTEDFROMASX.

FORFURTHERINFORMATION,SEETHEKEYRISKSTABLEONPAGE4ANDTHERISKFACTORSSECTIONINSECTION3OFTHISPROSPECTUS

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CORPORATEDIRECTORY CONTENTS

Directors

MrNigelBlaze(NonExec.Chairman)MrRichardWadley(NonExec.Director)MrPaulBurton(NonExec.Director)CompanySecretary

MrRichardWadleyRegisteredOffice

Level40,140WilliamStreet,MelbourneVIC3000,AustraliaTelephone: (03)96078280StockExchangeListing

AustralianSecuritiesExchangeASXCodeforShares:IMIShareRegistry*

SecurityTransferAustraliaPtyLtdSuite913,ExchangeTower530LittleCollinsStreetMelbourneVIC3000AustraliaTelephone: 1300992916International: +61396282200Facsimile: +61(0)893152233LeadManagerandUnderwriter

PatersonsSecuritiesLimitedLevel23,ExchangeTower2TheEsplanadePerthWA6000SolicitorstotheCompany

GTPLegal68AberdeenStreet,NorthbridgeWA6865,Australia

Section Description PageNo

ImportantNotices

3

ProposedTimetable

4

1

DetailsoftheOffer

6

2

ActionrequiredbyShareholders

16

3

RiskFactors

18

4

EffectoftheOffer

22

5

AdditionalInformation

25

6

Authorisation

38

7

GlossaryofTerms

39

*ThisentityhasnotbeeninvolvedinthepreparationofthisProspectusandhasnotconsentedtobeingnamedinthisProspectus.Itsnameisincludedforinformationpurposesonly.

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IMPORTANTNOTICESThis Prospectus is dated 5 April 2017 and was lodged with ASIC on that date. ASIC and ASX take noresponsibilityforthecontentsofthisProspectus.

NoSecuritieswillbe issuedonthebasisof thisProspectusany later than13monthsafter thedateof thisProspectus,beingtheexpirydateofthisProspectus.

AcopyofthisProspectusisavailableforinspectionattheregisteredofficeoftheCompanyatLevel40,140WilliamStreet,MelbourneVIC3000,Australia,duringnormalbusinesshours. TheCompanywillprovideacopyofthisProspectustoanypersononrequest.TheCompanywillalsoprovidecopiesofotherdocumentsonrequest(seeSection5.6).

The Securities offered by this Prospectus should be considered speculative. Please refer to Section 3 fordetailsrelatingtoinvestmentrisks.TheCompany'ssecuritiesarecurrentlysuspendedfromtradingonASX.Assuch,thereisnomarketfortheSecuritiesandtheSecuritiesofferedpursuanttothisProspectusarehighlyilliquid.

Acceptances for Securities by Eligible Shareholders can only be made on an original Entitlement andAcceptance Form sent with this Prospectus. The Entitlement and Acceptance Form sets out an EligibleShareholders’entitlementtoparticipateintheOffer.

Applications for Shortfall Securities must also be made on the Entitlement and Acceptance Form or theShortfallOfferApplicationForm.TheissueofShortfallSecuritiestoShareholdersisintheabsolutediscretionoftheDirectors(inconsultationwiththeUnderwriter).MoreinformationontheShortfallOfferiscontainedinSection1.10.

NopersonisauthorisedtogiveanyinformationortomakeanyrepresentationinconnectionwiththeOfferand Shortfall Offer which is not contained in this Prospectus. Any information or representation not socontainedmaynotbereliedonashavingbeenauthorisedbytheCompanyinconnectionwiththeOfferandtheShortfallOffer.

NoactionhasbeentakentopermittheofferofSecuritiesunderthisProspectusinanyjurisdictionotherthanAustraliaandNewZealand.

ThedistributionofthisProspectus in jurisdictionsoutsideAustraliamayberestrictedby lawandthereforepersons into whose possession this document comes should seek advice on and observe any suchrestrictions. Any failure to comply with these restrictionsmay constitute a violation of those laws. ThisProspectusdoesnotconstituteanofferofSecuritiesinanyjurisdictionwhere,ortoanypersontowhom,itwouldbeunlawfultoissuethisProspectus.

TheCompany'ssecuritieshavebeensuspendedfromtradingsince29December2015andremainsuspendedasatthedateofthisProspectus.AlthoughtheCompany'ssecuritiesarecurrentlysuspendedfromASX,theCompanycontinuestobesubjecttothecontinuousdisclosureregimeprovidedforundertheCorporationsAct. ThisProspectus is a transaction specificprospectus for anofferof continuouslyquoted securities (asdefinedintheCorporationsAct)andhasbeenpreparedinaccordancewithsection713oftheCorporationsAct. It does not contain the same level of disclosure as an initial public offering prospectus. In makingrepresentationsinthisProspectusregardhasbeenhadtothefactthattheCompanyisadisclosingentityforthe purposes of the Corporations Act and certain matters may reasonably be expected to be known byinvestorsandprofessionaladviserswhompotentialinvestorsmayconsult.

At the timeofmaking thisOffer theCompanyhasentered into theBabylonOptionAgreement toacquireBabylon.If,attheendoftheduediligenceperiod,theBabylonOptionisexercised,theCompanywillissue50,000,000 Shares and 25,000,000 Attaching Options (on a post-Consolidation basis) to Babylon asconsideration for the Babylon Acquisition (assuming $1,000,000 in equity is raised by Babylon prior toexercise of theBabylonOption) (see Section1.3 for further details). Thiswill result in dilutionof existingShareholdersatthetimeofcompletionoftheBabylonAcquisitionifitproceeds.Inaddition,iftheBabylonOption is exercised, the Company proposes issue 40,000,000 PerformanceRights (on a post-Consolidationbasis) to new key management joining the Company as part of the Babylon Acquisition. If the variousrevenue,profitabilityandsharepricemilestonesofthePerformanceRightsaremet,additionalShareswillbeissuedinsatisfactionofthePerformanceRightswhichwillresultinfurtherdilutiontoexistingShareholders.

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FollowingcompletionoftheOffer, iftheBabylonOptionisexercised,theCompanyalsointendstoconductthe Consolidation (on a 1:20 basis) and to undertake the Capital Raising in conjunctionwith the BabylonAcquisition.Assuming$3.8millionisraisedundertheCapitalRaisingandthatamountisfullyunderwritten,thiswillresultintheissueof190,000,000Sharesand190,000,000AttachingOptions(onapost-Consolidationbasis). ExistingShareholderswillbe furtherdilutedby theCapitalRaising if theydonotparticipate in theCapitalRaisingorifnewinvestorsparticipateintheCapitalRaising.

KEYRISKSShareholders and prospective investors should be aware that subscribing for Securities under the Offerinvolves anumberof risks anduncertainties. The risk factors setout in Section3 andother general risksapplicable to all investments in listed securities, may affect the value of the Securities in the future.Accordingly, an investment in the Company should be considered highly speculative. The table belowsummarisesonlysomeoftheriskswhichapplytoaninvestmentintheCompanyandinvestorsshouldrefertoSection3oramoredetailedsummaryoftherisks.

Topic Summary

SuspensionandliquidityofSecurities

The Company’s Securities have been suspended from trading on ASX since 29 December2015.TheCompanywillremainsuspendedfromtradinguntiltheCompanyhassatisfiedASXthat ithasre-compliedwithChapters1and2oftheListingRulesandcompliancewithanyfurtherconditionsASX imposesontheCompany'sreinstatementtotheOfficialListofASX.The Company notes the ASX policy, which provides that if a company is suspended for aperiodofmorethantwoyearsthenthecompanywillbedelistedfromASX.

The Company’s Securities are likely to be remain highly illiquid so long as the Companyremainssuspended,andthe liquidityof theCompany’sSecurities if theCompanybecomesdelistedfromASXislikelytobeverylimited.

BabylonAcquisition

The Babylon Acquisition is highly conditional, and there is no guarantee that the BabylonAcquisitionwillproceed.NodecisionhasbeenmadetoexercisetheBabylonOptionatthisstage.

TheBabylonOptionhasa6monthterm,andissubjecttofurtherduediligencebyIMIontheBabylonbusiness. Inparticular, IMIwill be closely reviewing theoperationalperformanceand growth of the Babylon business over the Babylon Option period to ensure it is anappropriatebusiness for acquisitionand listingprior tomakinganelection toexercise theBabylon Option. The Company has not yet consulted with ASX regarding whether theBabylonbusinessisanappropriatebusinessforlisting.

As set out in Section 1.3, the completion of the Babylon Acquisition is conditional on anumberof conditionsbeing satisfiedbyboth theCompanyandBabylon. TherecanbenoguaranteethattheBabylonAcquisitionwillbecompletedorwillbesuccessful.

IntheeventthatBabylonAcquisitionisnotcompleted,theCompanywillneedtoinvestigateother new investment opportunities (see Section 3.1(c)) which is likely to require theCompanyraiseadditionalfunds(seeSection3.1(f)).

Furthermore, if theBabylonAcquisition iscompleted, the risksassociatedwithoperatinganewbusinessorprojectwillalsoapply.Anysuchnewbusinessorprojectwillalsobesubjecttotherisksassociatedwiththeindustryinwhichtheyoperate.

Babylon is essentially a start-up company with limited operating history and to date hasgeneratedverylimitedrevenues,andassuchcarriesthenormalrisksofastart-upbusiness.ThereisalsoariskthatBabylonwillnotbeabletoraisesufficientcapitalpriortoexerciseoftheBabylonOption to implement itsbusinessplan. Given the limitedoperatinghistoryofBabylon,noassurance canbegiven thatBabylonwill achieve commercial viability throughthe implementationof its business plan. Accordingly, theCompany is not in a position togiveanyguidancearoundlikelyrevenueorprofitability.

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PROPOSEDTIMETABLE

LodgementofProspectuswithASICandprovisionofcopiestoASX Wednesday5April2017

Appendix3BgiventoASX Wednesday5April2017

Noticesenttosecurityholders Friday7April2017

ExistingSharesquotedonan"ex"basis Monday10April2017

RecordDate Tuesday11April2017

Prospectus and Entitlement and Acceptance Form sent to EligibleShareholders

Thursday13April2017

LastDaytoextendofferclosingdate Thursday2May2017

ClosingDate* Friday5May2017

Securitiesquotedonadeferredbasis** Monday8May2017

ASXnotifiedofundersubscriptions Wednesday10May2017

AnticipateddatefortheissueoftheSecurities*** Friday12May2017

*SubjecttotheListingRules,theDirectorsreservetherighttoextendtheClosingDatefortheOfferattheirdiscretion. AnyextensionoftheClosingDatewillhaveaconsequentialeffectontheanticipateddateforissueoftheSecurities.**TheCompany’sSecuritieshavebeensuspendedfromtradingonASXsince29December2015.TheCompany will remain suspended from trading until the Company has satisfied ASX that it has re-compliedwith Chapters 1 and 2 of the Listing Rules and compliancewith any further conditionsASXimposesontheCompany'sreinstatementtotheOfficialListofASX.TheCompanynotestheASXpolicy,whichprovidesthatifacompanyissuspendedforaperiodofmorethantwoyearsthenthecompanywillbedelistedfromASX.***Indicativedateonly.

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1. DetailsoftheOffer1.1 TheOffer

The Company is making a non-renounceable, pro rata offer of Shares at an issue price of$0.001eachtoEligibleShareholdersonthebasisofthree(3)Sharesforeveryeight(8)Sharesheldat5.00pm(AEDT)ontheRecordDate,togetherwithonefreeAttachingOptionforeachSharesubscribedfor(Offer).

Amaximumof 498,237,396 Shares and 498,237,396Optionswill be issued pursuant to thisProspectus.

WherethedeterminationoftheentitlementofEligibleShareholdersresultsinafractionofaShare,suchfractionwillberoundeddowntothenearestwholeShare.

TheissuepriceundertheOfferof$0.001perShareisequaltothelastmarketsalepriceoftheCompany's Shares immediately preceding suspension of the quotation of the Company'sSharesontheASX.

The Prospectus is also for the offer of the Shortfall Securities. Shareholders are entitled toparticipate in theofferof the Shortfall Securitiesby completing the relevant sectionsof theEntitlementandAcceptanceForm.RefertoSection1.10forfurtherinformationanddetailsoftheShortfallOffer.

RefertoSection5.1forasummaryoftherightsattachingtotheShares,andtoSection5.2forasummaryoftherightsattachingtotheAttachingOptions.

1.2 PurposeoftheOffer

CompletionoftheissueofSecuritiesofferedbythisProspectuswillresultinanincreaseinthecash on hand of up to approximately $500,000 (before payment of Offer costs). As at28February2017theCompanyhadapproximately$240,000incashandreceivables.

ThefundsraisedundertheOfferareproposedtoprimarilybeexpendedfor thepaymentofliabilities and existing creditors of the Company, and otherwise for general working capitalpurposes.Abreakdownoftheuseoffundsisasfollows:

Description A$

Availablecash(asat28February2017) 240,000

FundsraisedundertheOffer(beforepaymentofthecostsoftheOffer) 500,000

Totalcashasat28February2017andfundsraisedundertheOffer 740,000

Paymentofliabilitiesandexistingcreditors* 494,000

WorkingCapitalandAdministration 166,000

CostsofOffer 80,000

Totaluseoffunds 740,000

* Includes up to $330,000owing by theCompanyunder converting loanswhich are repayable by 31May2017and$146,000tobepaidtotheDirectorsforoutstandingDirectorsfees.

Actual expenditure may differ significantly from the above estimates due to a number offactors including the Company's cash flow position, going concern risk, future capitalrequirements, regulatory requirements, market and general economic factors and otherfactors(includingtheriskfactorsoutlinedinSection3).

Unallocated working capital may be utilised by the Company to pay for cost overruns inbudgetedexpenditures(ifany)andintheadministrationoftheCompany.

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1.3 BabylonAcquisition

AsannouncedbytheCompanyontheASXon4April2017, theCompanyhasentered intoabinding agreement which provides the Company with a 6 month option (Babylon OptionAgreement) to acquire all of the issued capital of Babylon Operations Pty Ltd (Babylon)(BabylonAcquisition).

The Babylon Option has a 6 month term, and is subject to further due diligence by theCompanyon theBabylonbusiness. Inparticular, theCompanywill be closely reviewing theoperationalperformanceandgrowthoftheBabylonbusinessovertheBabylonOptionperiodtoensureitisanappropriatebusinessforacquisitionandlistingpriortomakinganelectiontoexercisetheBabylonOption.TheCompanyhasnotyetconsultedwithASXregardingwhethertheBabylonbusinessisanappropriatebusinessforlisting.

ThekeytermsoftheBabylonOptionAgreementareasfollows:

(a) theCompanyhasanexclusive6monthoptiontoacquirealloftheissuedcapitalofBabylon(BabylonOption);

(b) theCompanymayexercise theBabylonOptionatanytimeuptoand includingthedate6monthsfromthedateofgrantoftheBabylonOption;

(c) during the Babylon Option period, the founder of Babylon must procure that thebusinessoftheCompanyisconductedinaccordancewithanagreedbusinessplaninallmaterialrespects;

(d) theproposedconsiderationfortheBabylonAcquisitionistobesatisfiedbytheissueofSharesandOptions.TheCompanywillissueSharestoavalueequaltothevalueof capital raised by Babylon up to the date of completion, issued on a post-Consolidationbasisatadeemed issuepriceequal to theOfferprice, togetherwithoneAttachingOption forevery twoShares issued (withanexercisepriceof$0.002($0.04onapost-Consolidationbasis)andexpirydateof31March2019–thesametermsastheexistinglistedIMIOAOptions.Babylonisseekingtoraiseapproximately$1,000,000 in equity capital. Assuming $1,000,000 in equity is raised by Babylonprior to exercise of theBabylonOption, the considerationpayable for theBabylonAcquisition is the issue of 50,000,000 Shares at a deemed issue price of $0.02 perShare(onapost-Consolidationbasis)and25,000,000AttachingOptions(reflectingapurchasepriceof$1,000,000);and

(e) completionof the saleofBabylon to theCompany is subject toandconditionalonthefollowingkeyconditionsprecedentbeingsatisfied:

(i) theCompanyobtainingallnecessaryShareholderapprovalsrequiredbytheCorporations Act, the Listing Rules and any other applicable laws orregulationsinrelationtotheBabylonAcquisition,including(ifrequired):

(A) approval of the issue of the consideration securities to theshareholdersofBabylon;

(B) approval of a chance to the nature and scale of the Company'sactivities;

(C) approval of the Consolidation (refer to Section 1.6 for furtherdetails);

(D) approvaloftheissueof40,000,000PerformanceRightstocertainpersonswhowill be appointed to keymanagement roles in theCompany(seebelowforfurtherdetails);

(ii) theCompanyachievingfirmcommitmentsforatleast$2,000,000undertheCapitalRaising(refertoSection1.6forfurtherdetails);

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(iii) (if applicable) the Company receiving confirmation from the ASX that itsSecurities will be-requoted on the Official List on terms and conditionsacceptabletotheparties(refertoSection1.5forfurtherdetails);and

(iv) the Company and the Buyer obtaining any required third party orregulatoryconsents.

If the Company exercises the Babylon Option and proceeds with Babylon Acquisition, theCompanyalsoproposestoissue40,000,000PerformanceRightstotheseniormanagementofBabylonwhowill be appointed to keymanagementpositionswith theCompanywith effectfrom completionof theBabylonAcquisition. TheproposedPerformanceRightswill convertintoSharesonaoneforonebasisontheachievementofthefollowingrevenue,profitabilityandSharepricemilestones:

(a) deliveryofrevenuesof$4,600,000inthefirstfullfinancialyearand$9,200,000inthesecondfullfinancialyear(being80%ofbudgetedrevenueover2years)(2tranchesof7,000,000PerformanceRights);

(b) delivery of EBITDA of breakeven in the first full financial year 1 and $2.6m in thesecondfullfinancialyear(being80%ofbudgetedprofitover2years)(2tranchesof7,000,000PerformanceRights);and

(c) theexerciseof80%oftheIMIOAOptionsdeliveringcirca$8,500,000ofnewcapital,which will imply the new business strategy has been successful(12,000,000PerformanceRights).

Further details in relation to the Performance Rights to be issued to new keymanagementjoiningtheCompanyaspartoftheBabylonAcquisitionaresetoutinSection4.1.

1.4 Babylonbackground

Babylonwasestablished in2017byMrMichaelShelby,anexperienced internationaloilandgasexecutivewhomostrecentlygrewtheoilandgasservicebusinessofResourceEquipmentLtd(REL)frominceptiontoA$12mrevenuep/awhilstexceedingprofittargetsupuntilRELwasacquiredbyPumpServices,LLCbywayofcashonmarkettakeoverofferin2015.

Babylon's business plan is to become a speciality equipment and service provider to theexpandingresourcesmaintenancesectorwithafocusontwonicheareas:

(a) SpecialisedEquipmentRental–Owningandrentingspecialisedpumpingequipmentand providing operators and technicians for the oil and gas and mining sectors.Target applications for the rental fleet include process and pipeline maintenance,wellheadandwellservicework,decommissioningservicesandminedewateringandwatermanagement.

(b) Diesel Services – Repair and maintenance of client equipment with a specificemphasisonrebuildingandprovidingmaintenanceforlargedieselenginessimilartotheBabylonrentalfleet.Theenginerebuildserviceisfocussedonenginesof1000hpor greater. Points of differentiation include a focus on smaller underservicedequipmentowners, flexiblepartsand laboursupply, in-house testingcapabilityandanexperiencedandrespectedteam.

If the Babylon Acquisition completes, it is expected that Mr Michael Shelby, Mr PatrickMainguardandMrMichaelKenyonwillbeappointedtotheBoardof theCompany,andtheexisting Directors of the Company will resign from the Board. It is also intended that MrKenyonwillbeappointedasCompanySecretaryoftheCompany.BriefbiosofMessrsShelby,MainguardandKenyonaresetoutbelow:

MichaelShelby–ManagingDirector

• SeniorExecutiveMBAtocomplimenttechnicaldegreeinChemicalEngineering.

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• Executiveleaderwithalmost20yearsinternationaloilandgasexperience

– Most recently grew oil and gas service business of REL from inception toA$12mrevenuep/awhilstexceedingprofittargets

– Recruited key personnel and launched overseas branches to complimentAustralianbusinessactivities

– 10yearsinAustralialeadingmultifunctionteamsacrossminingandoilandgasduringmostrecentmarketcycles

PatrickMaingard–ExecutiveDirector

• 30yearsofconsultingandmanagementexperience

• StrongSMEbackgroundwithDirectorandManagingDirectorportfolios

• MScManagement–OxfordUniversity

• Director/Ownerplasticsmanufacturingbusinessfor14yearsbeforenegotiatingsaletoaEuropeanmultinational

MichaelKenyon–Non-ExecutiveDirectorandCompanySecretary

• CharteredAccountantandstrongtier1accountingfirmexperiencebeforetakingonCFO/CompanySecretarialrolesinindustry

• Significantexposure tomanufacturing,engineeringandcontracting sectors throughrolesatForgeGroup/TLEngineering/CentralSystems

• Two years as CFO/Company Secretary of Resource Equipment Ltd (“REL”) up untiltakeover

ItisproposedthatIMIwillseekshareholderapprovalfortheappointmentofthedirectorsofBabylontotheIMIBoardoncompletionofBabylonAcquisition.

1.5 Re-compliancewithChapters1and2oftheListingRules

IftheCompanyexercisestheBabylonOption,subjecttocompletionoftheBabylonAcquisitionandtheCapitalRaising,theCompany intendstoapplyforthereinstatementoftradingof itssecuritiesontheASX.TheproposedBabylonAcquisitionwillconstituteasignificantchangeinnatureandscaleoftheCompany’sactivitiesofthenaturecontemplatedbyChapter11oftheASXListingRules. Asaresultofchangingthenatureof itsactivities totheresourcessector,variousaspectsoftheBabylonAcquisitionwillneedtobeapprovedbyShareholdersandtheCompany will need to re-comply with the requirements of Chapters 1 and 2 of the ListingRules.

AtthistimeASXhasnotconsideredthesuitabilityofBabylonasanentityforlistingonASX.Aspart of its due diligence on Babylon before making a decision on whether to exercise theBabylonOption, the Companywill consultwith ASX onwhether the Babylon business is anappropriatebusinessforlisting.

Subject to further due diligence on Babylon, the Company intends to convene a generalmeeting of Shareholders to approve all enabling resolutions, including in relation to theBabylon Acquisition, the Capital Raising, the Consolidation (if not implemented earlier), theappointment of Babylon’s directors to the IMI Board on completion of the acquisition onBabylon,andachangeofcompanynametoBabylonPumpandPowerLimited.

WhileeveryendeavourwillbemadetocomplywiththerequirementssetdownbytheListingRulesandASX,therecanbenoguaranteethattheCompanywillbereinstatedtotradingontheASX. Further detailswill be provided in theNotice ofMeetingwhichwill be sent to allShareholders,andintheCapitalRaisingprospectus.TheCompany’ssecuritieswillcontinuetobesuspendedfromtradinguntiltheCompanysatisfiestherequirementsofChapters1and2

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oftheASXListingRules.Asnotedabove,ASXpolicyprovidesthatifacompanyissuspendedforaperiodofmorethantwoyearsthenthecompanywillbedelistedfromASX.

1.6 CapitalRaisingandConsolidation

AspartoftheBabylonAcquisitiontheCompanyproposesto:

(a) conductaconsolidationona1:20basis(Consolidation);and

(b) raisebetween$3.8millionand$6.0millionaspartofthere-compliancetransaction,togetherwithforonefreeAttachingOptionforeverytwoSharessubscribed(beingtheissueof190,000,000Sharesand95,000,000Optionswhere$3.8millionisraised–allonapostconsolidationbasis)(CapitalRaising).

TheCapitalRaisingisproposedtobeconductedatthesameissuepriceastheSharesofferedpursuanttotheOfferonapost-consolidationbasis.

TheCapitalRaisingisproposedtobefullyorpartiallyunderwrittenanditisproposedtograntoptions to theunderwriteron the same termsas theAttachingOptionson thebasisofoneAttachingOptionforeverytwoSharesunderwritten.ItisproposedthattheUnderwriterwillalsoactasLeadManagerand/orUnderwriter to theCapitalRaisingata laterdate followingcompletionbytheCompanyofduediligenceonBabylon.

As outlined in Section 1.3, the BabylonAcquisition is conditional on the Company raising atleast$2millionundertheCapitalRaising.

TheCompanywillremainsuspendedfromtradinguntiltheCompanyhassatisfiedASXthatishas re-compliedwithChapters1 and2of the ListingRules any compliancewith any furtherconditions ASX imposes on the Company's reinstatement to theOfficial List. The CompanynotestheASXpolicy,whichprovidesthatifacompanyissuspendedforaperiodofmorethantwoyearsthenthecompanywillbedelistedfromtheASX.

1.7 Yourentitlementandacceptance

Your entitlement to participate in the Offer will be determined on the Record Date, being11April2017.TheentitlementofEligibleShareholdersreceivingthisProspectusisshownontheEntitlementandAcceptanceFormsenttoEligibleShareholderswiththisProspectus.

You may accept all or only part of your Entitlement. If your acceptance exceeds yourentitlement, for theexcesswill bedeemed tobeanapplicationShortfall Securities (refer toSection1.10),andwillbesubjecttoavailabilityofShortfallSecurities. IntheeventsufficientShortfallSecuritiesarenotavailable,anysurplusApplicationMonieswillbereturned(withoutinterest).

1.8 OpeningandClosingDates

The Company will accept Entitlement and Acceptance Forms from the Record Date fordeterminingEligibleShareholders’entitlements,being11April2017,until5.00pmAEDTontheClosingDate,being5May2017orsuchotherdateastheDirectorsintheirabsolutediscretionshalldetermine,subjecttotherequirementsoftheListingRules.

1.9 Underwritingandsub-underwriting

The Offer is fully underwritten by the Underwriter on the terms and conditions of theUnderwritingAgreement. Pursuant to theUnderwritingAgreement, theCompanyhasgivenwarranties and covenants to the Underwriter which are customary in an agreement of thisnature.AsummaryoftheUnderwritingAgreementissetoutinSection5.3.

TheUnderwriterhasadvisedthatithasenteredintoabindingsub-underwritingcommitment(asdescribedinSection5.4)withtheSub-UnderwriterinrespectoftheentireOffer.

ShortfallSecuritieswillbeallocatedinprioritytoEligibleShareholderswhoapplyforShortfallSharesundertheShortfallOffer.FollowingtheallocationofShortfallSecuritiestoanyEligible

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Shareholderwhoappliesforanyshortfall,ShortfallSecuritieswillbeallocatedinsatisfactionofobligationspursuant to theUnderwritingAgreement. TheSub-underwriterwill beallocatedtheremainingShortfallSecurities.

1.10 ShortfallOffer

In the event that not all Eligible Shareholders accept their full entitlement pursuant to theOffer, theCompany(inconsultationwiththeUnderwriter) isofferingtheShortfall toEligibleShareholdersonthetermsandconditionsbelow(ShortfallOffer).

TheOfferofanyShortfallSecuritiesisaseparateoffermadepursuanttothisProspectusandwillremainopenuntiltheClosingDateorsuchotherdateastheDirectorsdetermineintheirabsolutediscretionsubjecttotherequirementsoftheListingRules.

EligibleShareholderswhotakeuptheirEntitlementinfullmayapplyforShortfallSecuritiesontheEntitlementandAcceptanceFormenclosedwiththisProspectusorbycompletingaBPAY®payment, in accordance with the instructions referred to in this Prospectus and on theEntitlement and Acceptance Form. Shortfall Securities will be offered at an issue price of$0.001 per Share (which is the issue price at which the Offer has been made to EligibleShareholders),togetherwithonefreeAttachingOptionsforeachSharesubscribedfor.

As noted in Section 1.9 above, Shortfall Securities will be allocated in priority to EligibleShareholders who apply for Shortfall Securities under the Shortfall Offer. The Shares andOptions comprising the Shortfall Securities will have the same rights as the Shares and theAttachingOptionsassetoutinSections5.1and5.2.

TheCompanyreservestherighttoissuetoanapplicantforShortfallSecuritiesalessernumberofShortfallSecuritiesthanthenumberappliedfor.IfthenumberofShortfallSecuritiesissuedis less than the number applied for, surplus Application Monies will be refunded in full.InterestwillnotbepaidonanyApplicationMoniesrefunded.

IfShareholderswishtoapplyforShortfallSecurities,theyshouldcompletetherelevantsectionof theEntitlementandAcceptanceForm. Refer toSection2.4 for instructionsas tohow toapplyforShortfallSecurities.

1.11 Norightstrading

TherightstoSecuritiesundertheOfferarenon-renounceable. Accordingly, therewillbenotradingofrightsonASXandyoumaynotdisposeofyourrightstosubscribeforSecuritiestoanyotherparty.IfyoudonottakeupyourEntitlementbytheClosingDate,theOffertoyouwilllapse.

1.12 EntitlementandAcceptanceForm

AcceptanceofacompletedEntitlementandAcceptanceFormorShortfallApplicationFormbytheCompanycreatesa legallybindingcontractbetween theApplicantand theCompany forthe number of Securities accepted. Neither the Entitlement and Acceptance Form nor theShortfallApplicationFormneedstobesignedtobeabindingacceptanceofSecurities.

If the Entitlement and Acceptance Form or Shortfall Application Form is not completedcorrectly itmay still be treated as valid. TheDirectors’ decision as towhether to treat theacceptanceofanEntitlementandAcceptanceFormorShortfallApplicationFormasvalidandhow to construe, amend or complete the Entitlement and Acceptance Form or ShortfallApplicationFormisfinal.

1.13 Nominimumsubscription

ThereisnominimumsubscriptionfortheOffer.

1.14 Issue

All Securities offered by this Prospectus are expected to be issued, and security holderstatements sent, onorbefore thedate specified in the timetable. It is the responsibilityof

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ApplicantstodeterminetheirallocationpriortotradingintheSecurities.ApplicantswhosellSharesbeforetheyreceivetheirholdingstatementswilldosoattheirownrisk.

TheCompany’sSecuritieshavebeensuspendedfromtradingonASXsince29December2015.TheCompanywillremainsuspendedfromtradinguntiltheCompanyhassatisfiedASXthatithas re-compliedwithChapters1and2of the ListingRulesandcompliancewithany furtherconditions ASX imposes on the Company's reinstatement to the Official List of ASX. TheCompanynotestheASXpolicy,whichprovidesthatifacompanyissuspendedforaperiodofmorethantwoyearsthenthecompanywillbedelistedfromASX.

1.15 ApplicationMoniesheldontrust

All Application Monies received for the Securities will be held in trust in a bank accountmaintainedsolelyforthepurposeofdepositingApplicationMoniesreceivedpursuanttothisProspectus until the Securities are issued. All ApplicationMonieswill be returned (withoutinterest)iftheSecuritiesarenotissued.

1.16 CHESS

The Company participates in the Clearing House Electronic Subregister System, known asCHESS.ASTC,awhollyownedsubsidiaryofASX,operatesCHESSinaccordancewiththeListingRulesandSecuritiesClearingHouseBusinessRules.

Under CHESS, Applicants will not receive a certificate but will receive a statement of theirholdingofSecurities.

Ifyouarebrokersponsored,ASTCwillsendyouaCHESSstatement.

The CHESS statement will set out the number of Securities issued under this Prospectus,providedetailsofyourholder identificationnumber,theparticipant identificationnumberofthesponsorandthetermsandconditionsapplicabletotheSecurities.

If you are registered on the Issuer Sponsored subregister, your statement will be sent byComputershareInvestorServicesandwillcontainthenumberofSecuritiesissuedtoyouunderthisProspectusandyoursecurityholderreferencenumber.

ACHESSstatementorIssuerSponsoredstatementwillroutinelybesenttoShareholdersattheend of any calendar month during which the balance of their Security holding changes.Shareholdersmayrequestastatementatanyothertime,however,achargemaybemadeforadditionalstatements.

1.17 OverseasShareholders

The Offer is not being extended to any Shareholders whose registered address is outsideAustralia orNewZealand. TheCompany is of the view that it is unreasonable tomake theOffertoShareholdersoutsideAustraliaorNewZealand,havingregardto:

(a) thenumberofthoseShareholders;

(b) thenumberandvalueofSecuritiestobeofferedtothosepersons;and

(c) thecostofcomplyingwithoverseaslegalrequirements.

TheProspectusdoesnotconstituteanofferinanyplaceinwhich,ortoanypersontowhom,itwouldnot be lawful tomake such anoffer other than for Shareholders inAustralia orNewZealand. TheCompany isnotrequiredtomakeoffersundertheProspectustoShareholdersotherthaninAustraliaorNewZealand.WheretheProspectushasbeensenttoShareholdersdomiciled outside Australia or New Zealand and where the country's securities code orlegislation prohibits or restricts in any way the making of the Offer contemplated by theProspectus,theProspectusisprovidedforinformationpurposesonly.

ShareholdersresidentinAustraliaorNewZealandholdingSharesonbehalfofpersonswhoareresident overseas are responsible for ensuring that taking up Entitlements under the Offer

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doesnotbreachregulationsintherelevantoverseasjurisdiction.ReturnofadulycompletedEntitlementandAcceptanceFormwillbetakenbytheCompanytoconstitutearepresentationthattherehasbeennobreachofthoseregulations.

The Offer is being made in New Zealand in reliance on the New Zealand Securities Act(Overseas Companies) Exemption Notice 2013. This document is not a prospectus orinvestment statementunderNewZealand lawandhas not been registeredor filedwith, orapproved by, any New Zealand regulatory authority under or in accordance with the NewZealandSecuritiesAct1978oranyotherrelevantlawinNewZealand.Thisdocumentmaynotcontainalltheinformationthataninvestmentstatement,oraprospectusunderNewZealandlawisrequiredtocontain.

Notwithstandingtheabove,theCompanymay(initsabsolutediscretion)extendtheOffertocertain institutional or sophisticated shareholders who have registered addresses outsideAustraliaandNewZealand(excepttheUnitedStates)inaccordancewithapplicablelaw.

1.18 Riskfactors

AninvestmentinSecuritiesshouldberegardedasspeculative.Inadditiontothegeneralrisksapplicable to all investments in listed securities, there are specific risks associated with aninvestmentintheCompanywhichareinSection3.

1.19 Taxationimplications

TheDirectorsdonotconsideritappropriatetogiveShareholdersadviceregardingthetaxationconsequencesofsubscribingforSecuritiesunderthisProspectus.

TheCompany, itsadvisersand itsofficersdonotacceptanyresponsibilityor liability foranysuch taxation consequences to Shareholders. As a result, Shareholders should consult theirprofessionaltaxadviserinconnectionwithsubscribingforSecuritiesunderthisProspectus.

1.20 Majoractivitiesandfinancialinformation

Asummaryof themajoractivitiesand financial information relating to theCompany for thefinancialyearended30June2016isintheAnnualFinancialReportwhichwaslodgedwiththeASXon3November2016.

AsummaryofactivitiesrelatingtotheCompanyforthehalfyearended31December2016isintheHalfYearStatutoryAccounts,lodgedwiththeASXon5April2017.

The Company's continuous disclosure notices (i.e. ASX announcements) since 3November2016arelistedinSection5.6.

CopiesofthesedocumentsareavailablefreeofchargefromtheCompany.Directorsstronglyrecommend that Shareholders review these and all other announcements prior to decidingwhetherornottoparticipateintheOffer.

1.21 Privacy

The Company collects information about each Applicant provided on an Entitlement andAcceptance Form for the purposes of processing the Acceptance and, if the Acceptance issuccessful,toadministertheApplicant’ssecurityholdingintheCompany.

BysubmittinganEntitlementandAcceptanceForm,eachApplicantagreesthattheCompanymayuse the informationprovidedbyanApplicanton theEntitlementandAcceptanceFormfor the purposes set out in this privacy disclosure statement andmay disclose it for thosepurposes to the share registry, theCompany’s relatedbodies corporate, agents, contractorsand thirdparty serviceproviders, includingmailinghouses andprofessional advisers, and toASXandregulatoryauthorities.

IfyoudonotprovidetheinformationrequiredontheEntitlementandAcceptanceForm,theCompanymaynotbeabletoacceptorprocessyourAcceptance.

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An Applicant has an entitlement to gain access to the information that the Company holdsaboutthatpersonsubjecttocertainexemptionsunderlaw.Afeemaybechargedforaccess.AccessrequestsmustbemadeinwritingtotheCompany’sregisteredoffice.

1.22 EffectonControl

ThepotentialeffecttheOfferwillhaveoneachShareholder’spercentageinterestinthetotalissuedcapitaloftheCompanyisasfollows:

(a) if all Eligible Shareholders take up their Entitlement, each Eligible Shareholder’spercentageinthetotalissuedSharesoftheCompanywillremainthesameandwillnotbediluted;and

(b) ifsomebutnotallEligibleShareholderstakeuptheirentitlement,andtheShortfallistakenupundertheShortfallOfferandtheUnderwritingAgreement,thepercentageinterestinthetotalissuedSharesofeachEligibleShareholderwhodoesnottakeuptheir Entitlement will be diluted and the percentage interest of the total issuedSharesofeachEligibleShareholderwhodoes takeup theirEntitlementwill remainthesame.

The Underwriter has confirmed that the Sub-underwriter has committed to take the totalunderwrittenamount.

As at the date of this Prospectus, the Sub-underwriter does not hold any Shares. The Sub-underwriter's relevant interest in Shares and voting power in the Company followingcompletion of the Offer will vary depending upon the take-up under the Offer. If noShareholders takeup theirentitlementunder theProspectusand theSub-Underwriter takesupitsfullsub-underwritingcommitment(beingalloftheSecuritiespursuanttotheOffer),theSub-underwriter’s voting power in the Company will be 27.27% as a result of the Offer(assumingnoOptionsareexercisedpriortocompletionoftheOffer).

AsaresultoftheOffer,nootherShareholderwillobtainarelevantinterestinover20%oftheSharesonissue.

1.23 PotentialDilution

Inaddition,ShareholdersshouldnotethatiftheydonotparticipateintheOffertheirholdingsarelikelytobedilutedbyapproximately27.27%(ascomparedtotheirholdingsandnumberofSharesonissueasatthedateofthisProspectus).

1.24 SuspensionfromASXandReinstatementtoQuotation

The Company's securities have been suspended from trading since 29December 2015 andremainsuspendedasatthedateofthisProspectus.

AstheCompany'ssecuritiesarecurrentlysuspendedfromtradingonASX,theSecuritiestobeissuedunderthisProspectuswillbesuspendedfromthetimeof issue. Assetout inSection1.5, the Company intends to satisfy the requirement of ASX, including by undertaking theCapitalRaising,andapplyforthereinstatementoftradingofitssecuritiesonASX.WhileeveryendeavourwillbemadetocomplywiththerequirementssetdownbytheListingRules,therecanbenoguaranteethattheCompanywillbereinstatedtotradingontheASX.IntheeventtheCompanyisunabletocomplywiththerequirementsofASX,theCompany'ssecuritieswillremainsuspendedfromtradingontheASXandtherewillbenomarketfortheSecurities.

Although the Company's securities are currently suspended the Company continues to be adisclosingentityforthepurposesoftheCorporationsAct.

DuetothesuspensionthehighestandlowestmarketsalepricesoftheSharesonASXduringthe three months immediately preceding the date of lodgement of this Prospectus is notavailableastherehavebeennosales.ThelastrecordedclosingsalepriceoftheSharesonASXpriortotheCompany’ssecuritiesbeingsuspendedfromtradingonASXandlodgementofthis

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prospectuswithASICwas$0.001. This isnotareliable indicatorastothepotentialvalueofSharesafterimplementationoftheOfferorreinstatementtotradingontheASX.

1.25 Forward-lookingstatements

ThisProspectusmaycontainforward-lookingstatementswhichareidentifiedbywordssuchas‘may’, ‘should’, ‘will’, ‘expect’, ‘anticipate’, ‘believes’, ‘estimate’, ‘intend’, ‘scheduled’ or‘continue’orother similarwords. Such statementsand informationare subject to risksanduncertaintiesandanumberofassumptions,whichmaycausetheactual resultsoreventstodiffer materially from the expectations described in the forward looking statements orinformation.

WhiletheCompanyconsiderstheexpectationsreflectedinanyforwardlookingstatementsorinformation in this Prospectus are reasonable, no assurance can be given that suchexpectationswillprovetobecorrect. Therisk factorsoutlined inSection3,aswellasothermattersnotyetknowntotheCompanyornotcurrentlyconsideredmaterialtotheCompany,maycauseactualeventstobemateriallydifferentfromthoseexpressed,impliedorprojectedin any forward looking statements or information. Any forward looking statement orinformationcontainedinthisProspectusisqualifiedbythiscautionarystatement.

1.26 EnquiriesconcerningProspectus

Enquiries concerning the Entitlement and Acceptance Form can be obtained by contactingSecurityTransferAustraliaPtyLtdbytelephoneon1300992916.

Enquiries relating to this Prospectus should be directed to the Company Secretary bytelephoneon(03)96078280.

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2. ActionrequiredbyShareholders2.1 AcceptanceofSecuritiesunderthisProspectus

ShouldyouwishtoacceptallofyourEntitlementtoSecurities,thenapplicationsforSecuritiesunder this Prospectus must be made on the Entitlement and Acceptance Form whichaccompanies this Prospectus or by completing a BPAY® payment, in accordance with theinstructions referred to in this Prospectus and on the Entitlement and Acceptance Form.Pleasereadtheinstructionscarefully.

Please complete the Entitlement andAcceptance Formby filling in thedetails in the spacesprovided and attach a cheque for the ApplicationMonies indicated on the Entitlement andAcceptanceForm.

CompletedEntitlementandAcceptanceFormsmustbeaccompaniedbyachequeinAustraliandollars,crossed“NotNegotiable”andmadepayableto“IMMedicalLimited”andlodgedandreceivedatanytimeaftertheissueofthisProspectusandnolaterthan5.00pm(AEDT)ontheClosingDateattheCompany’sshareregistry(bypost)at:

ByPost SecurityTransferAustraliaPtyLtd

POBox52,CollinsStreetWest,Victoria8007,Australia

If you wish to pay via BPAY® you must follow the instructions in the Entitlement andAcceptanceForm.YouwillbedeemedtohaveacceptedyourEntitlementuponreceiptoftheBPAY®paymentbytheCompany.YouwillbedeemedtohaveappliedforShortfallundertheShortfall Offer upon receipt of a BPAY® payment by the Company of more than yourEntitlement. Eligible Shareholders who elect to pay via BPAY® do not need to return theircompleted Entitlement and Acceptance Form for either the Offer or Shortfall Offer. If youelecttopayviaBPAY®thenyourpaymentmustbemadebefore4.00pm(AEDT)ontheClosingDate.Pleasereadtheinstructionscarefully.

ItisyourresponsibilitytoensurethatyourBPAY®paymentisreceivedbytheshareregistrynolater than 4.00pm (AEDT) on the Closing Date. You should be aware that your financialinstitutionmay implementearliercutoff timeswithregards toelectronicpaymentsandyoushouldthereforetakethisintoconsiderationwhenmakingpayment.

TheCompanywillnotberesponsibleforanypostalordeliverydelaysordelayinthereceiptoftheBPAY®payment.

2.2 IfyouwishtotakeuppartofyourEntitlementonly

Should you wish to only take up part of your Entitlement, then applications for Securitiesunder this Prospectus must be made on the Entitlement and Acceptance Form whichaccompaniesthisProspectusorbycompletingaBPAY®payment inrespectof theportionofyourEntitlementyouwish to takeup, inaccordancewith the instructions referred to in thisProspectus and on the Entitlement and Acceptance Form. Please read the instructionscarefully.

Please complete the Entitlement andAcceptance Formby filling in thedetails in the spacesprovided, including thenumberofSecuritiesyouwish toacceptand theApplicationMonies(calculatedat$0.001perShareaccepted),andattachachequefortheappropriateApplicationMonies.

CompletedEntitlementandAcceptanceFormsmustbeaccompaniedbyachequeinAustraliandollars,crossed“NotNegotiable”andmadepayableto“IMMedicalLimited”andlodgedandreceivedatanytimeaftertheissueofthisProspectusandnolaterthan5.00pm(AEDT)ontheClosingDateattheCompany’sshareregistry(bypost)attheaddresslistedinSection2.1.

If you wish to pay via BPAY® you must follow the instructions in the Entitlement andAcceptanceForm.YouwillbedeemedtohaveacceptedyourEntitlementuponreceiptofthe

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BPAY® payment by the Company. Eligible Shareholderswho elect to pay via BPAY® do notneed to return their completed Entitlement and Acceptance Form. If you elect to pay viaBPAY®thenyourpaymentmustbemadebefore4.00pm(AEDT)ontheClosingDate. Pleasereadtheinstructionscarefully.

ItisyourresponsibilitytoensurethatyourBPAY®paymentisreceivedbytheshareregistrynolater than 4.00pm (AEDT) on the Closing Date. You should be aware that your financialinstitutionmay implementearliercutoff timeswithregards toelectronicpaymentsandyoushouldthereforetakethisintoconsiderationwhenmakingpayment.

TheCompanywillnotberesponsibleforanypostalordeliverydelaysordelayinthereceiptoftheBPAY®payment.

2.3 Entitlementsnottakenup

IfyoudonotwishtoacceptanyofyourEntitlement,youarenotobligedtodoanything.ThenumberofSecuritiesyouholdandtherightsattachingtothoseSecuritieswillnotbeaffectedshouldyouchoosenottoacceptanyofyourEntitlement.

2.4 Shortfall

If you wish to apply for Securities in excess of your Entitlement by applying for ShortfallSecuritiesyoumaydosobycompleting the relevantsectionsof theEntitlementAcceptanceFormorby completingaBPAY®payment, in accordancewith the instructions referred to inthis Prospectus and on the Entitlement and Acceptance Form. Please read the instructionscarefully. Any Securities applied for in excess of your Entitlement will be made under theShortfall Offer and will be issued in priority to the Sub-underwriter but at the completediscretionoftheDirectors.Pleasereadtheinstructionscarefully.

CompletedEntitlementandAcceptanceFormsmustbeaccompaniedbyachequeinAustraliandollars, crossed "NotNegotiable" andmadepayable to “IMMedical Limited” and lodged atany time after the issue of this Prospectus and no later than 5.00pm (AEDT) on the ClosingDateattheCompany’sshareregistry(bypost)attheaddresslistedinSection2.1.

If you wish to pay via BPAY® you must follow the instructions in the Entitlement andAcceptanceForm.YouwillbedeemedtohaveappliedforShortfallundertheShortfallOfferupon receipt of a BPAY®payment by the Company ofmore than your Entitlement. EligibleShareholderswhoelecttopayviaBPAY®donotneedtoreturntheircompletedEntitlementandAcceptanceFormforeithertheOfferorShortfallOffer.IfyouelecttopayviaBPAY®thenyour payment must be made before 4.00pm (AEDT) on the Closing Date. Please read theinstructionscarefully.

ItisyourresponsibilitytoensurethatyourBPAY®paymentisreceivedbytheshareregistrynolater than 4.00pm (AEDT) on the Closing Date. You should be aware that your financialinstitutionmay implementearliercutoff timeswithregards toelectronicpaymentsandyoushouldthereforetakethisintoconsiderationwhenmakingpayment.

TheCompanywillnotberesponsibleforanypostalordeliverydelaysordelayinthereceiptoftheBPAY®payment.

2.5 Enquiriesconcerningyourentitlement

IfyouhaveanyqueriesconcerningyourEntitlement,pleasecontactSecurityTransferAustraliaPtyLtdviatelephoneon1300992916.

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3. RiskFactorsActivities in theCompanyand its controlledentities, as inanybusiness, are subject to risks,whichmay impact on the Company’s future performance. The Company and its controlledentitieshaveimplementedappropriatestrategies,actions,systemsandsafeguardsforknownrisks,however,someareoutsideitscontrol.

TheDirectorsconsiderthatthefollowingsummary,whichisnotexhaustive,representssomeofthemajorriskfactorswhichShareholdersneedtobeawareofinevaluatingtheCompany’sbusiness and risks of increasing your investment in the Company. Shareholders shouldcarefullyconsiderthefollowingfactors inadditiontotheother informationpresentedinthisProspectus.

Theprincipalrisksinclude,butarenotlimitedto,thefollowing:

3.1 SpecificRisksAssociatedwiththeCompany

(a) SuspensionandliquidityofSecurities

TheCompany’ssecuritieshavebeensuspendedfromtradingonASXsince29December2015.TheCompanywillremainsuspendedfromtradinguntiltheCompanyhassatisfiedASXthatithas re-compliedwithChapters1and2of the ListingRulesandcompliancewithany furtherconditions ASX imposes on the Company's reinstatement to the Official List of ASX. TheCompanynotestheASXpolicy,whichprovidesthatifacompanyissuspendedforaperiodofmorethantwoyearsthenthecompanywillbedelistedfromASX.

The Company’s Securities are likely to be remain highly illiquid so long as the Companyremains suspended, and the liquidity of the Company’s Securities if the Company becomesdelistedfromASXislikelytobeverylimited.

(b) BabylonAcquisition

The Babylon Acquisition is highly conditional, and there is no guarantee that the BabylonAcquisitionwillproceed. Nodecisionhasbeenmade toexercise theBabylonOptionat thisstage.

TheBabylonOptionhasa6monthterm,andissubjecttofurtherduediligencebyIMIontheBabylonbusiness.Inparticular,IMIwillbecloselyreviewingtheoperationalperformanceandgrowthoftheBabylonbusinessovertheBabylonOptionperiodtoensureitisanappropriatebusinessforacquisitionandlistingpriortomakinganelectiontoexercisetheBabylonOption.TheCompanyhasnot yet consultedwithASX regardingwhether theBabylonbusiness is anappropriatebusinessforlisting.

AssetoutinSection1.3,thecompletionoftheBabylonAcquisitionisconditionalonanumberofconditionsbeingsatisfiedbyboththeCompanyandBabylon. TherecanbenoguaranteethattheBabylonAcquisitionwillbecompletedorwillbesuccessful.

IntheeventthatBabylonAcquisitionisnotcompleted,theCompanywillneedtoinvestigateothernewinvestmentopportunities(seeSection3.1(c))whichislikelytorequiretheCompanyraiseadditionalfunds(seeSection3.1(f)).

Furthermore, if the Babylon Acquisition is completed, the risks associated with operating anewbusinessorprojectwillalsoapply.Anysuchnewbusinessorprojectwillalsobesubjecttotherisksassociatedwiththeindustryinwhichtheyoperate.

Babylon isessentiallya start-upcompanywith limitedoperatinghistoryand todatehasnotgeneratedanyrevenues,andassuchcarriesthenormalrisksofastart-upbusiness.Thereisalso a risk that Babylon will not be able to raise sufficient capital prior to exercise of theBabylonOptiontoimplementitsbusinessplan.GiventhelimitedoperatinghistoryofBabylon,no assurance can be given that Babylon will achieve commercial viability through the

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implementationofitsbusinessplan.Accordingly,theCompanyisnotinapositiontogiveanyguidancearoundlikelyrevenueorprofitability.

(c) OtherNewBusinessOpportunities

In theevent that theCompany isunable tocomplete theBabylonAcquisition, theCompanywillneedtopursuenewbusinessopportunities.Shouldasuitablenewbusinessopportunitybeidentified,itwillthenneedtobeassessedforitstechnical,legalandcommercialsuitability.

Therecanbenoguaranteethatanyproposedacquisitionofanewbusinessorprojectwillbecompleted or will be successful. The acquisition of new business opportunities (whethercompletedornot)mayalsorequirepaymentofmonies(asadepositorexclusivityfee)afteronlylimitedduediligenceandpriortothecompletionofcomprehensiveduediligence.

If any proposed acquisition is not completed, monies already advanced may not berecoverable. Furthermore, notwithstanding that an acquisition may proceed upon thecompletionofduediligence,therisksassociatedwithoperatinganewbusinessorprojectwillalsoapply. Anysuchnewbusinessorprojectwillalsobesubjecttotherisksassociatedwiththeindustryinwhichtheyoperate.

(d) GoingConcernRisk

TheCompany'sAnnualFinancialReport lodgedwith theASXon3November2016containa'goingconcern'note.Forthefinancialyearended30June2016,theCompanyincurredanetloss,incurrednegativecashflowsfromoperationsandhadanexcessofcurrentliabilitiesovercurrentassetsat30June2016.

Based on the number of inherent uncertainties relating to the Company's future plans,including:

(i) theCompany'ssecuritiesbeingsuspendedfromtradingonASX;

(ii) Company'sabilitytoraiseequityinthecurrentmarket, includingadditionalfundingwhich may be needed for the continued assessment of suitable investmentopportunitiesandASXre-compliance;and

(iii) cashoutflowsrequiredforthemaintenanceofacorporateadministrationfunction,

thereismaterialuncertaintywhichmaycastsignificantdoubtabouttheCompany'sabilitytocontinueas a going concernand therefore theCompanymaybeunable to realise its assetsanddischargeitsliabilitiesinthenormalcourseofbusiness.

Notwithstandingthe'goingconcern'noteintheCompany's2016AnnualFinancialReport,theDirector'sbelievethattherearereasonablegroundstobelievethattheCompanywillbeabletocontinueasagoingconcern. However, in theevent that theOffer,ASXre-complianceorthe Babylon Acquisition is not completed successfully or is delayed, there is significantuncertainty as to whether the Company can meet its commitments to its creditors andcontinueasagoingconcern,whichislikelytohaveamaterialadverseeffectontheCompany'sactivities.

(e) NegativeCashOperatingPosition

AsatthedateofthisProspectustheCompanyisoperatingonanegativecashoperatingbasis,thatis,itsoperatingexpensesexceeditsrevenues.TheCompanymaybeunabletocompletetheBaylonAcquisition(refertoSection3.1(b))oridentifynewbusinessopportunities(refertoSection3.1(c))orcompletetheCapitalRaisingandcomplywiththerequirementsofASX(refertoSection3.1(a))whilststilloperatingthecashflownegativeoperatingbusiness.

As such it is possible that the Company's cash flow position will remain negative and itsfinancialpositionmaythusworsen.AfailurebytheCompanytosuccessfullymitigatetheriskof this occurring may cause the Company’s financial position to deteriorate and affect theCompany'sabilitytooperateasagoingconcern.

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(f) FutureCapitalRequirements

TheCompanymayhaveaneedtoraisefundsinthefuture(whetherbywayofdebtorequity).TheabilityoftheCompanytomeetthisfuturerequirement,shoulditarise,willbedependentontheCompany’scontinuedaccesstocreditmarkets,fundingsourcesandfinancingfacilities.

Any additional equity financingmay be dilutive to the Company’s existing Shareholders andanydebtfinancing, ifavailable,may involverestrictivecovenants,which limittheCompany’soperationsandbusinessstrategy.TheCompany’sfailuretoraisecapitalif,andwhen,neededcould delay or suspend the Company’s business strategy and could have amaterial adverseeffectontheCompany’sactivitiesanditssolvency.

(g) TradingPriceofSecuritiesandLiquidity

TheCompany'ssecuritieshavebeensuspendedsince29December2015.FollowingtheliftingofthesuspensioniftheCompanyisabletore-complywiththerequirementsofASX,itisnotpossibletopredictwhatthevalueoftheCompany'sSecuritieswillbe.Accordingly,followingthecompletionoftheOfferbeingimplementedtheDirectorsdonotmakeanyrepresentationastothevalueoftheCompanyortheSecurities.

3.2 GeneralRisks

(a) GeneralEconomicConditions

Theoperating and financial performanceof theCompanymaybe influencedby a varietyofgeneral economic and business conditions, including levels of consumer spending, inflation,interest rates, access to debt and capital markets, international economic conditions,significant acts of terrorism, hostilities or war or natural disasters, and government fiscal,monetaryand regulatorypolicies. Aprolongeddeterioration ingeneraleconomiccondition,includingadecrease incommoditydemand,mayhaveanadverse impacton theCompany’sbusiness or financial condition. No guarantee can be made that the Company’s marketperformancewillnotbeadverselyaffectedbyanysuchmarketfluctuationsorfactor.

(b) GlobalCreditandInvestmentMarkets

Inrecentyearsglobalcredit,commodityandinvestmentmarketshaverecentlyexperiencedahigh degree of uncertainty and volatility. The factorswhich have led to this situation havebeen outside the control of the Company and may continue for some time resulting incontinuedvolatilityanduncertainty inworldstockmarkets(includingASX). Thismay impactthe price at which the Securities trade regardless of operating performance and affect theCompany'sabilitytoraiseadditionalequityand/ordebttoachieveitsobjectives,ifrequired.

(c) Securityholders'MarginLendingArrangements

Securityholders of the Company may, from time to time, enter into margin lendingarrangements for the purchase of Securities in the Company on terms and conditions notknowntotheCompany.

TheCompanyisunabletopredicttheriskoffinancialfailureordefaultbyasecurityholderwhohasenteredintosuchanarrangementor insolvencyorothermanagerialfailurebyanypartywhomayhaveprovidedsuchanarrangementtothesecurityholder.SuchaneventmayleadtoparcelsofSecuritiesbeingmadeavailableforsalewhichmayimpactnegativelyonthepriceoftheSecurities

(d) TaxationandGovernmentRegulations

Changes in taxation and government legislation in a range of areas (for example, theCorporationsAct,accountingstandards,andtaxationlaw)canhaveasignificant influenceontheoutlookforcompaniesandthereturnstoinvestors.

The recoupment of taxation losses accrued by the Company from any future revenues issubject to the satisfaction of tests outlined in taxation legislation or regulations in the

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jurisdictions inwhich the Company operates. There is no guarantee that the CompanywillsatisfyalloftheserequirementsatthetimeitseekstorecoupitstaxlosseswhichmayimpactonthefinancialperformanceandcashflowsoftheCompany.

(e) SecuritiesInvestment

Applicantsshouldbeawarethattherearerisksassociatedwithanysecuritiesinvestment.ThepricesatwhichSecuritiestrademaybeaboveorbelowtheissueoracquisitionprice,andmayfluctuateinresponsetoanumberoffactors.

Furthermore, the stockmarket,hasexperiencedextremepriceandvolume fluctuations thathave often been unrelated or disproportionate to the operating performance of suchcompanies.ThesefactorsmaymateriallyaffectthemarketpriceoftheSecurities,regardlessoftheCompany’soperationalperformance.

(f) ShareMarketConditions

Share market conditions may affect the value of Securities regardless of the Company’soperatingperformance.Sharemarketconditionsareaffectedbymanyfactorssuchas:

(i) generaleconomicoutlook;

(ii) interestratesandinflationrates;

(iii) changesininvestorsentimenttowardparticularmarketsectors;

(iv) thedemandfor,andsupplyof,capital;and

(v) terrorismorotherhostilities.

Themarketpriceof theSecuritiesmay fall aswell as riseandmaybe subject to variedandunpredictableinfluencesonthemarketforequitiesingeneral.NeithertheCompanynortheDirectorswarrantthefutureperformanceoftheCompany,oranyreturnonaninvestmentintheCompany.

3.3 Investmentspeculative

The above list of risk factors ought not to be taken as exhaustive of the risks faced by theCompany or by investors in the Company. The above factors, and others not specificallyreferred to above, may in the future materially affect the financial performance of theCompanyandthevalueoftheSecuritiesofferedunderthisProspectus.

Potential investorsshouldconsider that the investment in theCompany ishighlyspeculativeandshouldconsulttheirprofessionaladvisersbeforedecidingwhethertoapplyforSecuritiespursuanttothisProspectus.

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4. EffectoftheOffer4.1 CapitalStructureoncompletionoftheOffer

AssumingallSecuritiesofferedunderthisProspectusareissuedandnoOptionsareexercisedpriortotheRecordDate,theeffectoftheOfferonthecapitalstructureoftheCompanyissetoutbelow.

NumberofShares NumberofOptions(1)

BalanceatthedateofthisProspectus 1,328,633,057 495,064,755

TobeissuedundertheOffer(includingAttachingOptionstobeissuedtotheUnderwriter)

498,237,396 498,237,396

BalanceoncompletionoftheOffer 1,826,870,453 993,302,151

(1) EachOptionhasanexercisepriceof$0.002andexpireson31March2019.

4.2 CapitalStructureonCompletionoftheBabylonAcquisitionandtheCapitalRaising

Assetout inSections1.3and1.6,followingcompletionoftheOffertheCompanyintendstocompletetheBabylonAcquisitionandundertaketheCapitalRaising. AssumingtheOfferhasbeencompletedandthemaximumamountundertheOfferisraised,theeffectoftheBabylonAcquisitionandtheCapitalRaisingonthecapitalstructureoftheCompanyissetoutbelow.

NumberofShares NumberofOptions(1)

BalanceaftertheOffer 1,826,870,453 993,302,151

Consolidation(1:20basis) 91,343,523 49,665,108

BabylonAcquisition(2) 50,000,000 25,000,000

CapitalRaising(3) 190,000,000 95,000,000

UnderwriterOptions(3) 95,000,000

Total 331,343,523 264,665,108

PerformanceRights(4) 40,000,000

Total(includingPerformanceRights) 371,343,523 264,665,108

(1) EachAttachingOptionhasanexercisepriceof$0.002andexpireson31March2019.

(2) AssumesBabylonhasraised$1minequitycapitalpriortocompletionoftheBabylonAcquisition.

(3) Assumes$3.8misraisedundertheCapitalRaising,andthatamountisunderwritten(refertoSection1.6).

(4) Refer to Section1.3 for details of the terms of the Performance Rights to be issued to the seniormanagementofBabylon,whowillbeappointedtokeymanagementpositionswiththeCompanyfollowingcompletionoftheBabylonAcquisition.

4.3 ProFormaStatementofFinancialPosition

BasisofPreparation

Thebelowpro-formastatementoffinancialpositionhasbeenpreparedinaccordancewiththeASICGuidetoDisclosingPro-FormaFinancialInformation.

Theconsolidatedstatementoffinancialpositionasat31December2016isbasedontheauditreviewed Financial Statements for the half year ended 31 December 2016 and have beenprepared on a going concern basis, which contemplates the continuity of normal business

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activity and the realisation of assets and settlement of liabilities in the normal course ofbusiness.

Thestatementsof financialpositionasat31December2016havebeenpreparedtoprovideShareholders with information on the assets and liabilities of the Company and pro-formaassets and liabilities of the Company. The historical and pro-forma financial information ispresentedinanabbreviatedform,insofarasitdoesnotincludeallofthedisclosuresrequiredbyAustralianAccountingStandardsapplicabletoannualfinancialstatements.

The pro forma statement of financial position is based on the audit reviewed statement offinancialpositionasat31December2016andhasthenbeenadjustedtoreflectthefollowingmaterial transactions, assuming Shareholder approval is obtained for the proposedtransaction.

Consolidated$000’S

Notes

Half-YearlyFinancialReport

(reviewed)

Pre-OfferAdjustments

Totalpre-Offer

Pro-formaAdjustments

Pro-formaPostoffer

Nots Assets - CurrentAssets

Cashandcashequivalents

76200 276 (112) 164

GSTrefundable

16 22- 16 16Sundrydebtors 200 (200) - 292 - 292 (112) 180TotalAssets 292 292

Liabilities

ConvertingLoan 330 330 (330) -TradeCreditors 375 - - 375 (200) 175TotalCurrentLiabilities

705

- - 705 (530) 175

Non-CurrentLiabilities

TotalNon-CurrentLiabilities

- -756 -756

NetAssets (413) - (413) 418 5

Equity SharesIssued 25,973

25,973 498 26,471

CostofIssue (1,059) (1,059) (80) (1,139)In-specieDistribution (2,306) - (2,306) (2,306)Accumulatedlosses (23,021) - (23,021) (23,021)TotalEquity (413) - (413) 418 5

ProFormaAdjustments

Theproformainformationcontainsthefollowingpro-formaadjustments:

(a) Theissueof498,237,396Sharesat$0.001toraise$498,237pursuanttotheEquityCapitalRaising.

(b) Thepaymentofestimatedtransactioncostsof$80,000.

(c) Thesettlementof$330,000fortheconvertingloansduetoexpireon31May2017.

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(d) Thesettlementof$200,000creditorsandaccountspayablewhichincludes$146,000to paid to the Directors for outstanding Directors' fees (refer to Section 5.9(c) forfurtherdetails).

(e) AsnodecisionhasbeenmadetoproceedwiththeBabylonAcquisitionortheCapitalRaising at this stage, the Company has determined that it is not appropriate toincludeproformaadjustmentsforthosetransactionsinthisproformastatementoffinancialpositions.

Thepreliminary financial informationhasbeenpreparedbasedon the informationcurrentlyavailable.

TheCompanycurrentlyearnsnorevenueandhasbeenoperatingataloss.TheCompanydoesnotexpecttobeinapositiontoearnrevenue,otherthaninterestincome,followingtheOffer.Accordingly,itisexpectedthattheoperatinglosseswillcontinuefortheconsolidatedgroupintheneartermpostcompletionoftheOffer.

4.4 MarketpriceofShares

TheCompany'sSecuritieshavebeensuspendedfromquotationontheASXsince29December2015.ThelastmarketsalepriceoftheCompany'sSharesontheASXimmediatelyprecedingsuspensionofthequotationoftheCompany'sSharesontheASXwas$0.001on22December2015.

TheissuepriceundertheOfferof$0.001perShareisequaltothelastmarketsalepriceoftheCompany'sSharesimmediatelyprecedingsuspension.

4.5 Dividendpolicy

The Directors are not able to say when and if dividends will be paid in the future, as thepaymentofanydividendswilldependon the futureprofitability, financialpositionandcashrequirementsoftheCompany.

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5. Additionalinformation

5.1 RightsattachingtoShares

AsummaryoftherightsattachingtoSharesintheCompanyissetoutbelow.ThissummaryisqualifiedbythefulltermsoftheConstitution(afullcopyoftheConstitutionisavailablefromtheCompanyonrequestfreeofcharge)anddoesnotpurporttobeexhaustiveortoconstituteadefinitivestatementoftherightsandliabilitiesofShareholders. Theserightsandliabilitiescan involve complex questions of law arising from an interaction of the Constitution withstatutoryandcommonlawrequirements.ForaShareholdertoobtainadefinitiveassessmentof the rights and liabilities which attach to Shares in any specific circumstances, theShareholdershouldseeklegaladvice.

TheSharestobeissuedunderthisProspectuswillrankequallywiththeexistingShares.

(a) Generalmeetingandnotices

Each member is entitled to receive notice of, and to attend and vote at, generalmeetingsoftheCompanyandtoreceiveallnotices,accountsandotherdocumentsrequiredtobesenttomembersundertheConstitution,theCorporationsActortheListingRules.

(b) Votingrights

Subjecttoanyrightsorrestrictionsforthetimebeingattachedtoanyclassorclassesof shares, atageneralmeetingof theCompanyeveryholderof fullypaidordinarysharespresentinpersonorbyanattorney;representativeorproxyhasonevoteonashowofhands(unlessamemberhasappointed2proxies)andonevotepershareonapoll.

Apersonwhoholdsasharewhichisnotfullypaidisentitled,onapoll,toafractionof a vote equal to the proportionwhich the amount paid bears to the total issuepriceoftheshare.

Where thereare2ormore jointholdersof a shareandmore thanoneof them ispresentatameetingand tendersa vote in respectof the share, theCompanywillcountonlythevotecastbythememberwhosenameappearsfirstintheCompany'sregisterofmembers.

(c) IssuesoffurtherShares

TheDirectorsmay,onbehalfoftheCompany,issue,grantoptionsoverorotherwisedisposeofunissued shares toanypersonon the terms,with the rights, andat thetimesthattheDirectorsdecide.However,theDirectorsmustactinaccordancewiththerestrictionsimposedbytheConstitution,ListingRules,theCorporationsActandany rights for the time being attached to the shares in any special class of thoseshares.

(d) VariationofRights

UnlessotherwiseprovidedbytheConstitutionorbythetermsof issueofaclassofshares,therightsattachedtothesharesinanyclassmaybevariedorcancelledonlywiththewrittenconsentoftheholdersofatleastthree-quartersoftheissuedsharesof the affected class, or by special resolution passed at a separatemeeting of theholdersoftheissuedsharesoftheaffectedclass.

(e) TransferofShares

SubjecttotheConstitution,theCorporationsActandListingRules,Sharesarefreelytransferable.

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TheSharesmaybetransferredbyapropertransfereffectedinaccordancewiththeASXSettlementOperatingRules,byanyothermethodoftransferringordealingwithSharesintroducedbyASXandasotherwisepermittedbytheCorporationsActorbyawritten instrumentof transfer inanyusual formor inanyother formapprovedbyeithertheDirectorsorASXthatispermittedbytheCorporationsAct.

The Directors may decline to register a transfer of Shares (other than a propertransferinaccordancewiththeASTCBusinessRules)wherepermittedtodosoundertheListingRules. If theDirectorsdeclinetoregisteratransfer, theCompanymust,within5businessdaysafterthetransferisdeliveredtotheCompany,givethepartylodgingthetransferwrittennoticeoftherefusalandthereasonfortherefusal.TheDirectorsmustdeclinetoregisteratransferofShareswhenrequiredbylaw,bytheListingRulesorbytheASXSettlementOperatingRules.

(f) PartlypaidShares

TheDirectorsmay,subjecttocompliancewiththeConstitution,theCorporationsActandListingRules,issuepartlypaidsharesuponwhichthereareoutstandingamountspayable.Theseshareswillhavelimitedrightstovoteandtoreceivedividends.

(g) Dividends

The Directors may from time to time determine dividends to be distributed tomembersaccordingtotheirrightsandinterests. TheDirectorsmayfixthetimefordistributionandthemethodsofdistribution.Subjecttothetermsofissueofshares,theCompanymaypayadividendononeclassofsharestotheexclusionofanotherclass.

Eachsharecarriestherighttoparticipateinthedividendinthesameproportionthatthe amount for the time being paid on the share (excluding any amount paid inadvanceofcalls)bearstothetotalissuepriceoftheshare.

(h) Windingup

Subject to the rightsofholdersof shareswith special rights in awinding-up, if theCompanyiswoundup,memberswillbeentitledtoparticipateinanysurplusassetsoftheCompanyinproportiontothepercentageofthecapitalpaid-uporcreditedaspaidupontheshareswhenthewindingupbegins.

(i) DividendreinvestmentandShareplans

Subject to the requirements in the Corporations Act and the Listing Rules, theDirectorsmay implement andmaintain dividend reinvestment plans (underwhichanymembermayelectthatdividendspayablebytheCompanybereinvestedbywayof subscription for fully paid shares in the Company) and any other share plans(underwhichanymembermayelecttoforegoanydividendsthatmaybepayableonall or someof the shares held by thatmember and to receive instead someotherentitlement,includingtheissueoffullypaidshares).

(j) Directors

TheConstitutionstatesthattheminimumnumberofDirectorsis3andthenumberofDirectorsshallnotexceed9.

(k) PowersoftheBoard

Except as otherwise required by the Corporations Act, any other law, the ListingRulesor theConstitution, theDirectorshave thepower tomanage thebusinessoftheCompanyandmayexerciseeveryright,powerorcapacityoftheCompany.

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(l) Sharebuybacks

SubjecttotheprovisionsoftheCorporationsActandtheListingRules,theCompanymaybuybacksharesinitselfonthetermsandattimesdeterminedbyDirectors.

(m) Capitalisationofprofits

TheCompanymaycapitaliseprofits.SubjecttotheConstitutionandthetermsoftheissue of shares,members are entitled to participate in a capital distribution in thesameproportionsinwhichtheyareentitledtoparticipateindividends.

(n) Capitalreduction

SubjecttotheCorporationsActandListingRules,theCompanymayreduceitssharecapitalinanywayincluding,butnotlimitedto,distributingtoShareholderssecuritiesofanyotherbodycorporateandforShareholderstobeboundbytheconstitutionofthatbodycorporate.

(o) PreferenceShares

SubjecttotheCorporationsActandListingRules,theCompanymayissuepreferenceshares, including preference shares that are liable to be redeemed. The rightsattaching to preference shares are those set out in the Constitution unless otherrightshavebeenapprovedbyspecialresolutionoftheCompany’smembers.

5.2 RightsattachingtoAttachingOptions

The Attaching Options are on the same terms as the existing IMIOA Options on issue, andentitletheholdertosubscribeforSharesonthefollowingtermsandconditions:

(a) Entitlement

EachAttachingOption(Option)entitlestheholdertosubscribeforoneShareuponexerciseoftheOption.

(b) ExercisePriceandExpiryDate

TheOptionshaveanexercisepriceof $0.002 (being$0.04onapost-Consolidationbasis)(ExercisePrice)andanexpirydateof31March2019(ExpiryDate).

(c) ExercisePeriod

TheOptionsareexercisableatanytimeonorpriortotheExpiryDate.

(d) NoticeofExercise

The Options may be exercised by notice in writing to the Company (Notice ofExercise) and payment of the Exercise Price for each Option being exercised. AnyNotice of Exercise of an Option received by the Companywill be deemed to be anoticeoftheexerciseofthatOptionasatthedateofreceipt.

(e) Sharesissuedonexercise

SharesissuedonexerciseoftheOptionswillrankequallywiththethensharesoftheCompany.

(f) QuotationofSharesonexercise

ApplicationwillbemadebytheCompanytoASXforquotationoftheSharesissuedupontheexerciseoftheOptions.

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(g) TimingofissueofShares

AfteranOption isvalidlyexercised,theCompanymust,within,15BusinessDaysofthenoticeofexerciseandreceiptofclearedfundsequaltothesumpayableontheexerciseoftheOption:

(i) issuetheShare;and

(ii) doallsuchacts,mattersandthingstoobtainthegrantofofficialquotationoftheShareonASXnolaterthan5BusinessDaysafterissuingtheShares.

(h) Participationinnewissues

TherearenoparticipationrightsorentitlementsinherentintheOptionsandholderswill not be entitled to participate in new issues of capital offered to ShareholdersduringthecurrencyoftheOptions.

(i) AdjustmentforbonusissuesofShares

If the Company makes a bonus issue of Shares or other securities to existingShareholders(otherthananissueinlieuorinsatisfactionofdividendsorbywayofdividendreinvestment):

(i) thenumberof Shareswhichmustbe issuedon theexerciseof anOptionwill be increasedby thenumberof Shareswhich theOptionholderwouldhave received if the Optionholder had exercised the Option before therecorddateforthebonusissue;and

(ii) nochangewillbemadetotheExercisePrice.

(j) Adjustmentforentitlementissue

If the Companymakes an issue of Shares pro rata to existing Shareholders (otherthan an issue in lieu or in satisfaction of dividends or by way of dividendreinvestment) the Exercise Price of an Option will be reduced according to thefollowingformula:

Newexerciseprice= O-E[P-(S+D)] N+1

O= theoldExercisePriceoftheOption.

E= thenumberofunderlyingSharesintowhichoneOptionisexercisable.

P= averagemarket price per Share weighted by reference to volume of theunderlyingSharesduringthe5tradingdaysendingonthedaybeforetheexrightsdateorexentitlementsdate.

S= thesubscriptionpriceofaShareundertheprorataissue.

D= thedividendduebutnotyetpaidontheexistingunderlyingShares(exceptthosetobeissuedundertheprorataissue).

N= the number of Shares with rights or entitlements that must be held toreceivearighttooneShare.

(k) Adjustmentsforreorganisation

IfthereisanyreconstructionoftheissuedsharecapitaloftheCompany,therightsoftheOptionholdersmaybevariedtocomplywiththeListingRuleswhichapplytothereconstructionatthetimeofthereconstruction.

(l) QuotationofOptions

TheOptionswillbelistedOptions.

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(m) Optionstransferable

TheOptionsarefreelytransferable.

(n) LodgementInstructions

Chequesshallbe inAustraliancurrencymadepayabletotheCompanyandcrossed"Not Negotiable". The application for shares on exercise of the Options with theappropriateremittanceshouldbelodgedattheCompany'sshareregistry.

5.3 UnderwritingAgreement

The Company has entered into an underwriting agreement dated 4 April 2017 with theUnderwriter (Underwriting Agreement) pursuant to which the Company has engaged theUnderwritertofullyunderwritetheOffer.

PursuanttotheUnderwritingAgreement,theCompanyhasagreedtopaytheUnderwriteranunderwriting fee of 6.5% of the total amount raised under the Offer. The Underwriter isentitledtobereimbursedcostsof,andincidentalto,theOffer,providedthattheUnderwritermustobtaintheCompany’sconsenttospecificindividualitemsgreaterthan$2,000.

The obligation of the Underwriter to underwrite the Offer is subject to certain events oftermination. The Underwriter may terminate its obligations under the UnderwritingAgreementif:

(a) Indicesfall: anyoftheAllOrdinariesIndexaspublishedbyASXisatanytimeafterthedateoftheUnderwritingAgreement10%ormorebelowitsrespectivelevelasatthe close of business on the Business Day prior to the date of the UnderwritingAgreement;

(b) Prospectus:theProspectusortheOfferiswithdrawnbytheCompany;

(c) CopiesofProspectus:theCompanyfailstoprovidetheUnderwriterwithanelectroniccopyoftheProspectuswithin2daysoflodgementofthisProspectusandsuchfailureisnotremediedwithin2days;

(d) Supplementaryprospectus:

(i) the Underwriter, having elected not to exercise its right to terminate itsobligationsundertheUnderwritingAgreementasaresultofanoccurrenceasdescribed insub-paragraph(n)(vi)below, formstheviewonreasonablegroundsthatasupplementaryorreplacementprospectusshouldbelodgedwith ASIC for any of the reasons referred to in section 719 of theCorporations Act and the Company fails to lodge a supplementary orreplacementprospectusinsuchformandcontentandwithinsuchtimeastheUnderwritermayreasonablyrequire;or

(ii) theCompany lodges a supplementaryor replacementprospectuswithoutthe prior written agreement of the Underwriter otherwise than aspermittedbytheUnderwritingAgreement;

(e) Non-compliance with disclosure requirements: it transpires that the Prospectusdoes not contain all the information required by section 713 (or sections 710, 711and716asapplicable)oftheCorporationsAct;

(f) MisleadingProspectus:ittranspiresthatthereisastatementintheProspectusthatismisleadingordeceptiveorlikelytomisleadordeceiveinamaterialrespect,orthatthereisanomissionfromtheProspectus(havingregardtotheprovisionsofsection713 (or sections710, 711and716as applicable)of theCorporationsAct)or if anystatementintheProspectusbecomesmisleadingordeceptiveorlikelytomisleadordeceive in a material respect or if the issue of the Prospectus is or becomesmisleadingordeceptiveorlikelytomisleadordeceiveinamaterialrespect;

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(g) Restriction on allotment: the Company is prevented from allotting the Securitiesunder the Offer within the time required by the Underwriting Agreement, theCorporations Act, the Listing Rules, any statute, regulation or order of a court ofcompetent jurisdiction by ASIC, ASX or any court of competent jurisdiction or anygovernmentalorsemi-governmentalagencyorauthority;

(h) WithdrawalofconsenttoProspectus:anyperson(otherthantheUnderwriter)whohaspreviouslyconsentedtotheinclusionofits,hisorhernameintheProspectusortobenamedintheProspectus,withdrawsthatconsent;

(i) ASICapplication:anapplicationismadebyASICforanorderundersection1324Borany other provision of the Corporations Act in relation to the Prospectus, theShortfall Notice Deadline Date has arrived, and that application has not beendismissedorwithdrawn;

(j) ASIChearing: ASICgivesnoticeofits intentiontoholdahearingundersection739or any other provision of the Corporations Act in relation to the Prospectus todetermine if it shouldmake a stop order in relation to the Prospectus or theASICmakesaninterimorfinalstoporderinrelationtotheProspectusundersection739oranyotherprovisionoftheCorporationsAct;

(k) Takeovers Panel: the Takeovers Panel makes a declaration that circumstances inrelationtotheaffairsoftheCompanyareunacceptablecircumstancesunderPt6.10of the Corporations Act, or an application for such a declaration is made to theTakeoversPanel;

(l) Authorisation: any authorisation which is material to anything referred to in theProspectusisrepealed,revokedorterminatedorexpires,orismodifiedoramendedinamannerunacceptabletotheUnderwriter;

(m) Indictable offence: a director or senior manager of the Company or any of itssubsidiariesischargedwithanindictableoffence;

(n) otherterminationevents:anyofthefollowingeventsoccurwhich,inthereasonableopinionoftheUnderwriterreachedingoodfaith,has,or is likelytohaveortwoormoreterminationeventstogetherhaveorare likelytohave: (a)amaterialadverseeffecton theoutcomeof theOfferoron the subsequentmarket for theSecuritiesunder the Offer (including, without limitation, matters likely to have a materialadverse effect on a decision of an investor to invest in those Securities), (b) amaterial adverse effect on the assets, condition, trading or financial position,performance, profits and losses, results, prospects, business or operations of theCompany and its subsidiaries either individually or taken as a whole, (c) theUnderwriter's obligations under the Underwriting Agreement becoming materiallymoreonerousthanthosewhichexistedatthedateoftheUnderwritingAgreement,or (d) amaterial adverse effect on the tax position of either the Company and itssubsidiaries either individually or taken as a whole, or an Australian residentShareholder:

(i) Default: default or breach by the Company under the UnderwritingAgreementofanyterms,condition,covenantorundertaking;

(ii) Incorrect or untrue representation: any representation, warranty orundertaking given by the Company in the Underwriting Agreement is orbecomesuntrueorincorrect;

(iii) ContraventionofconstitutionorAct: acontraventionbytheCompanyoranyofitssubsidiariesofanyprovisionofitsconstitution,theCorporationsAct, the Listing Rules or any other applicable legislation or any policy orrequirementofASICorASX;

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(iv) Adverse change: an event occurs which gives rise to amaterial adverseeffect(see(a)to(d) inparagraph(n)above)oranyadversechangeoranydevelopment includingaprospectiveadversechangeafterthedateoftheUnderwritingAgreementintheassets, liabilities,financialposition,tradingresults, profits, forecasts, losses, prospects, business or operations of theCompany or any of its subsidiaries including, without limitation, if anyforecast in the Prospectus becomes incapable of being met or in theUnderwriter'sreasonableopinion,unlikelytobemetintheprojectedtime;

(v) Error inDueDiligenceResults: it transpires thatanyof theduediligenceresults or anypart of the verificationmaterial prepared in relation to theOfferwasfalse,misleadingordeceptiveorthattherewasanomissionfromthem;

(vi) Significantchange: a"newcircumstance"as referredto insection719(1)of theCorporationsActarises that ismateriallyadverse fromthepointofviewofaninvestor;

(vii) Public statements: without the prior approval of the Underwriter (suchapprovalnot tobeunreasonablywithheld)apublic statement ismadebythe Company in relation to the Offer, the issue of the Securities offeredundertheOfferortheProspectusunlesssuchstatementisrequiredbylawoftheListingRules;

(viii) Misleading information: any information supplied at any time by theCompanyoranypersonon itsbehalf totheUnderwriter inrespectofanyaspectoftheOfferortheissueoftheSecuritiesofferedundertheOfferorthe affairs of the Company or any of its subsidiaries is or becomesmisleadingordeceptiveorlikelytomisleadordeceive;

(ix) Change in Act or policy: there is introduced, or there is a publicannouncementofaproposaltointroduce,intotheParliamentofAustraliaoranyofitsStatesorTerritoriesanyActorprospectiveActorbudgetortheReserveBankofAustraliaoranyCommonwealthorStateauthorityadoptsor announces a proposal to adopt any new, or any major change in,existing, monetary, taxation, exchange or fiscal policy that has not beenpublicly disclosed or proposed as at the date of the UnderwritingAgreement;

(x) PrescribedOccurrence: aPrescribedOccurrenceoccurs(seebelow)otherthanasdisclosedinthisProspectus;

(xi) Suspension of debt payments: the Company suspends payment of itsdebtsgenerally;

(xii) EventofInsolvency:aneventofinsolvency(asdefinedintheUnderwritingAgreement)occursinrespectoftheCompanyoranyofitssubsidiaries;

(xiii) JudgmentagainsttheCompanyoranyofitssubsidiaries:ajudgmentinanamount exceeding $25,000 is obtained against theCompanyor anyof itssubsidiariesandisnotsetasideorsatisfiedwithin7days;

(xiv) Litigation: litigation, arbitration, administrative or industrial proceedingsare after the date of the Underwriting Agreement commenced orthreatenedagainst theCompanyoranyof its subsidiaries,other thananyclaimsforeshadowedintheProspectus;

(xv) Board and senior management composition: there is a change in thecomposition of the Board or a change in the senior management of the

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Company before Completion without the prior written consent of theUnderwriter;

(xvi) Change in shareholdings: there is a material change in the major orcontrolling shareholdings of the Company or any of its subsidiaries or atakeoverofferorschemeofarrangementpursuanttoChapter5or6oftheCorporationsActispubliclyannouncedinrelationtotheCompanyoranyofitssubsidiaries;

(xvii) Timetable: there is a delay in any specified date in the Offer timetablewhichisgreaterthan3BusinessDaysandthedelayhasnotbeencausedbytheUnderwriteroragreedtoinwritingbytheUnderwriter;

(xviii) ForceMajeure: anyactofGod,war,revolution,oranyotherunlawfulactagainst public order or authority, an industrial dispute, a governmentalrestraint,oranyothereventwhichisnotwithinthecontroloftheCompanyor the Underwriter affecting the Company's business or any obligationundertheUnderwritingAgreementlastinginexcessof7daysoccurs;

(xix) Certainresolutionspassed: theCompanyoranyof itssubsidiariespassesortakesanystepstopassaresolutionundersection254N,section257Aorsection 260B of the Corporations Act or a resolution to amend itsconstitutionwithoutthepriorwrittenconsentoftheUnderwriter;

(xx) CapitalStructure: theCompanyoranyof its subsidiariesalters itscapitalstructureinanymannernotcontemplatedbytheProspectus;

(xxi) Investigation):anyperson isappointedunderany legislation in respectofcompanies to investigate the affairs of a the Company or any of itssubsidiaries;

(xxii) MarketConditions:asuspensionormateriallimitationintradinggenerallyonASXoccursoranymaterial adverse changeordisruptionoccurs in theexisting financial markets, political or economic conditions of Australia,Japan, the United Kingdom, the United States of America, the EuropeanUnionorotherinternationalfinancialmarkets;or

(xxiii) Hostilities: there is an outbreak of hostilities or amaterial escalation ofhostilities (whether or not war has been declared) after the date of theUnderwritingAgreement involvingoneormoreofAustralia,NewZealand,Japan, the United Kingdom, the United States of America, the People’sRepublic of China, Israel or any member of the European Union, or aterrorist act is perpetrated on any of those countries or any diplomatic,military, commercial or political establishment of any of those countriesanywhereintheworld.

Forthepurposesofsub-paragraph(n)(x)above,PrescribedOccurrencemeans:

(a) theCompanyoranyofitssubsidiariesconvertingalloranyofitssharesintoalargerorsmallernumberofshares;

(b) the Company or any of its subsidiaries resolving to reduce its share capital in anyway;

(c) theCompanyoranyofitssubsidiaries:

(i) enteringintoabuybackagreementor;

(ii) resolvingtoapprovethetermsofabuybackagreementundersection257Cor257DoftheCorporationsAct;

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(d) theCompanyoranyof its subsidiariesmakingan issueof,orgrantinganoptiontosubscribe for,anyof itsshares,oragreeingtomakesuchan issueorgrantsuchanoption,otherthananissueoragreementtoissueinaccordancewiththeOfferorthetermsoftheUnderwritingAgreement;

(e) theCompanyoranyofitssubsidiariesissuing,oragreeingtoissue,convertiblenotes;

(f) the Company or any of its subsidiaries disposing, or agreeing to dispose, of thewhole,orasubstantialpart,ofitsbusinessorproperty;

(g) theCompanyoranyofitssubsidiariescharging,agreeingtocharge,thewhole,orasubstantialpart,ofitsbusinessorproperty;

(h) theCompanyoranyofitssubsidiariesresolvingthatitbewoundup;

(i) theappointmentofaliquidatororprovisionalliquidatortotheCompanyoranyofitssubsidiaries;

(j) themakingofanorderbyacourt for thewindingupof theCompanyoranyof itssubsidiaries;

(k) an administrator of the Companyor any of its subsidiaries, being appointed undersection436A,436Bor436CoftheCorporationsAct;

(l) theCompanyoranyofitssubsidiariesexecutingadeedofcompanyarrangement;or

(m) theappointmentofareceiver,orareceiverandmanager,inrelationtothewhole,orasubstantialpart,ofthepropertyoftheCompanyoranyofitssubsidiaries.

The Underwriting Agreement also contains a number of undertakings, indemnities,representations and warranties from the Company to the Underwriter that are consideredstandardforanagreementofthistype.

5.4 Sub-underwritingAgreement

The Underwriter has entered into a sub-underwriting agreement with the Sub-underwriterpursuanttowhichtheSub-underwriterhasagreedtosubscribefortheentireOffer.AllfeestobepaidtotheSub-underwriterwillbepaidbytheUnderwriter.

Following the allocation of Shortfall Securities to any Eligible Shareholder who applies forshortfall,ifashortfallstillexists,theremainingShortfallSecuritieswillbeallocatedtotheSub-underwriter.

5.5 Companyisadisclosingentity

The Company is a disclosing entity under the Corporations Act. It is subject to regularreportinganddisclosureobligationsunderboththeCorporationsActandtheListingRulesofASX.

Copiesofdocuments lodgedwithASIC inrelationtotheCompanymaybeobtainedfrom,orinspectedat,anASICoffice(seeSection5.6below).

5.6 Copiesofdocuments

Copiesofdocuments lodgedbytheCompany inconnectionwith its reportinganddisclosureobligations may be obtained from, or inspected at, an office of ASIC. The Company willprovidefreeofchargetoanypersonwhorequestsitduringtheperiodoftheissue,acopyof:

(a) the Annual Financial Report of the Company for the financial year ended 30 June2016, being the last financial year for which an annual financial report has beenlodgedwithASICinrelationtotheCompanybeforetheissueofthisProspectus;

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(b) thehalf-yearfinancialreportforthehalf-yearended31December2016lodgedbytheCompanywiththeASXon5April2017;and

(c) thefollowingcontinuousdisclosurenoticesgivenbytheCompanytonotifytheASXof information relating to the Company during the period from the date oflodgementoftheAnnualFinancialReportreferredtoinparagraph(a)andbeforethedateofissueofthisProspectusareasfollows:

DateLodged SubjectofAnnouncement

05/04/2017 InvestorPresentation

05/04/2017 HalfYearlyReportandAccounts

04/04/2017 Non-RenounceableIssue

31/03/2017 Appendix3Y

28/02/2017 CostsReimbursementRoxResourcesLimited

27/01/2017 Appendix4C-quarterly

14/12/2016 CostsReimbursement–RoxResources

30/11/2016 ResultsofMeeting

30/11/2016 Chairman'sAddresstoShareholders

The following documents are available for inspection throughout the applicationperiodofthisProspectusduringnormalbusinesshoursattheregisteredofficeoftheCompanyatLevel40,140WilliamStreet,MelbourneVIC3000,Australia:

(i) thisProspectus;

(ii) Constitution;and

(iii) theconsentsreferredto inSection5.12andtheconsentsprovidedbytheDirectorstotheissueofthisProspectus.

5.7 Informationexcludedfromcontinuousdisclosurenotices

Other thanasdisclosed in thisProspectus, there isno informationwhichhasbeenexcludedfromacontinuousdisclosurenoticeinaccordancewiththeListingRules,andwhichisrequiredtobesetoutinthisProspectus.

5.8 DeterminationbyASIC

ASIC has not made a determination which would prevent the Company from relying onsection713oftheCorporationsActinissuingtheSecuritiesunderthisProspectus.

5.9 Directors'interests

(a) Interests

Exceptasdisclosed in thisProspectus,noDirector,andno firm inwhichaDirectorhasaninterest:

(i) hasanyinterest,norhashadanyinterestinthelasttwoyearspriortothedateofthisProspectus,intheformationorpromotionoftheCompany,theOfferorpropertyacquiredorproposedtobeacquiredbytheCompanyinconnectionwithitsformationorpromotionortheOffer;or

(ii) hasbeenpaidorgiven,orwillbepaidorgiven,anyamountorbenefit toinducehimorhertobecome,ortoqualifyas,aDirector,orotherwisefor

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services rendered by him or her in connection with the formation orpromotionoftheCompanyortheOffer.

(b) Directors’Holdings

SetoutinthetablebelowaredetailsoftheDirectors'relevantinterestsintheSharesandOptionsoftheCompanyandtheirEntitlementsatthedateofthisProspectus:

Director No.ofSharesHeld(1)

No.ofOptionsHeld

EntitlementtoSubscribeforShares(2)

NigelBlaze 1,650,000 618,750(3)

RichardWadley - - -

PaulBurton - - -

(1) HelddirectlyorindirectlybytheDirectororarelatedpartyoftheDirector.

(2) EntitlementtosubscribeforSharesthatwillbehelddirectlyorindirectly.

(3) MrBlazehasadvisedthatheintendstotakeupallofhisEntitlementundertheOffer.

(c) RemunerationofDirectors

Inaccordancewith theConstitution, theShareholdershaveapprovedanaggregateamountofupto$250,000perannumtobepaidasnon-executiveDirectors'fees.

TheamountofaggregateremunerationapprovedbyShareholdersandthemannerinwhich is it apportioned amongst Directors is reviewed annually. Each Directorreceives a fee for being a Director of the Company and is entitled to be paid anadditionalfeeforeachBoardCommitteeonwhichtheDirectorsits.Theentitlementto the additional fees for serving on a committee recognizes the additional timecommitmentrequiredbyDirectorsindischargingtheirresponsibilitiestotheBoard.

Thetablebelowsetsouttheremunerationprovidedto(orowingto)theDirectors,ortheir nominee companies, for the current financial year to date and the precedingtwofinancialyearspriortothisProspectus:

Directors YearSalary&Fees$*

Super-annuation

$

ShareBased

Payments$

Total$

NigelBlaze 2016/2017 12,500 - - 12,500

2015/2016 25,000 - - 25,000

2014/2015 33,956 - - 33,956RichardWadley

2016/2017 22,983 - - 22,983

2015/2016 47,400 - - 47,400

2014/2015 74,200 - - 74,200PaulBurton 2016/2017 22,800 - - 22,800

2015/2016 34,900 - - 34,900

2014/2015 29,312 - - 29,312

* TheDirectors are currently owed$255,000 in aggregate in outstandingDirectorsFees.TheCompanyhasagreedwiththeDirectorsthat$146,000ofthisamountwillbepaidproratafromthefundsraisedundertheOfferandthebalanceof$109,000plusanysubsequentDirectors'feeswillbepaidoncompletionoftheCapitalRaising.

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5.10 InterestsofNamedPersons

Except as disclosed in this Prospectus, no expert, promoter or other person named in thisProspectusasperformingafunctioninaprofessional,advisoryorothercapacity:

(a) hasanyinterestnorhashadanyinterestinthelasttwoyearspriortothedateofthisProspectus in the formation or promotion of the Company, the Offer or propertyacquired or proposed to be acquired by the Company in connection with itsformationorpromotionortheOffer;or

(b) hasbeenpaidorgivenorwillbepaidorgivenanyamountorbenefitinconnectionwiththeformationorpromotionoftheCompanyortheOffer.

GTPLegalwillbepaidfeesofapproximately$20,000(plusGST)inrelationtothepreparationofthisProspectusandrelatedmattersregardingthecapitalraising.Inthepasttwoyears,GTPLegalhasreceivedapproximately$235,672(excludingGST)fortheprovisionof legalservicestotheCompany.

TheUnderwriterwillbepaidgrossfeesofapproximately$32,500(excludingGST)inrelationtoitsservicesasUnderwritertotheOffer. Inthepasttwoyears,theUnderwriterhasreceivedapproximately$317,815(excludingGST)forunderwritingservicesprovidedtotheCompanyinrelationtocapitalraisingscompletedbytheCompany.

5.11 Expensesofissue

Theestimatedexpensesoftheissueareasfollows:

Expenses $

ASIClodgementfee 2,350

ASXquotationfee 9,810

LeadManager&Underwriterfees 32,500

Legalexpenses 20,000

Printing,mailingandotherexpenses 10,000

Shareregistryexpenses 5,340

Total 80,000

5.12 Consents

ThefollowingconsentshavebeengiveninaccordancewiththeCorporationsActandhavenotbeenwithdrawnasatthedateoflodgementofthisProspectuswithASIC:

GTP Legal has given, and has not withdrawn, their written consent to being named in thisProspectusassolicitorstotheCompany.GTPLegalhasnotauthorisedorcausedtheissueofthis Prospectus or the making of the Offer under this Prospectus. GTP Legal makes norepresentationregarding,andtotheextentpermittedby lawexcludesanyresponsibilityfor,anystatementsinoromissionsfromanypartofthisProspectus.

Patersons Securities Limited has given, and has notwithdrawn, itswritten consent to beingnamedinthisProspectusastheUnderwritertotheOffer.PatersonsSecuritiesLimitedhasnotauthorised or caused the issue of this Prospectus or the making of the Offer under thisProspectus. Patersons Securities Limited makes no representation regarding, and to theextentpermittedby lawexcludesanyresponsibilityfor,anystatements inoromissionsfromanypartofthisProspectus.

SecurityTransferAustraliaPtyLtdhasgivenand,asatthedatehereof,hasnotwithdrawn,itswrittenconsenttobenamedasshareregistry in the formandcontext inwhich it isnamed.SecurityTransferAustraliaPty Ltdhashadno involvement in thepreparationofanypartofthisProspectusotherthanbeingnamedasshareregistraroftheCompany.SecurityTransfer

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AustraliaPtyLtdhasnotauthorisedorcausedtheissueof,andexpresslydisclaimsandtakesnoresponsibilityfor,anypartofthisProspectus.

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6. AuthorisationThisProspectusisauthorisedbyeachoftheDirectorsoftheCompany.

ThisProspectusissignedforandonbehalfofCompanyby:

RichardWadleyDirectorDated:5April2017

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7. GlossaryofTermsThese definitions are provided to assist persons in understanding some of the expressionsusedinthisProspectus.

Acceptancemeansavalidapplication for Securitiesmadepursuant to thisProspectusonanEntitlementandAcceptanceForm.

AEDTmeansAustralianEasternDaylightTime.

Annual Financial Report means the financial report lodged by the Company with ASIC inrespect to the financial year ended 30 June 2016 and includes the corporate directory,Shareholderinformation,Directors’declaration,financialstatementsandthenotesthereto,oftheCompanyand its controlledentities for theperiodended30 June2016, togetherwithaDirectors’reportinrelationtothatfinancialyearandtheauditor’sreport.

Applicantmeans a person who submits an Entitlement and Acceptance Form or ShortfallApplicationForm.

ApplicationMoniesmeansapplicationmoniesforSecuritiesreceivedbytheCompany.

ASICmeansAustralianSecuritiesandInvestmentsCommission.

ASTCmeansASXSettlementPtyLtdACN008504532.

ASXmeansASXLimitedACN008624691.

Attaching Optionmeans a listed Optionwith an exercise price of $0.002 ($0.04 on a post-Consolidationbasis)andexpirydateof31March2019–thesametermsastheexistinglistedIMIOAOptions.

BabylonmeansBabylonOperationsPtyLtdACN617350731.

BabylonAcquisitionhasthemeaninginSection1.3.

BabylonOptionhasthemeaninginSection1.3.

BabylonOptionAgreementhasthemeaninginSection1.3.

BoardmeanstheDirectorsmeetingasaboard.

BusinessDaymeansMondaytoFriday inclusive,other thanaday thatASXdeclares isnotabusinessday.

CapitalRaisinghasthemeaninginSection1.6.

CHESSmeansASXClearingHouseElectronicSubregisterSystem.

ClosingDatemeansthedateidentifiedassuchintheproposedtimetableorsuchlaterdateastheDirectorsmaydetermine.

CompanymeansIMMedicalLimitedACN009436908.

ConsolidationhasthemeaninginSection1.6.

ConstitutionmeanstheconstitutionoftheCompanyasatthedateofthisProspectus.

CorporationsActmeanstheCorporationsAct2001(Cth).

DirectorsmeanthedirectorsoftheCompanyasatthedateofthisProspectus.

Eligible Shareholdermeans a person registered as theholderof Shareson theRecordDatewhoseregisteredaddressisinAustraliaorNewZealand.

Entitlement means an Eligible Shareholder’s entitlement to Securities under the Offer asdeterminedontheRecordDate.

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Entitlement and Acceptance Form or Form means the entitlement and acceptance formattached to this Prospectus that sets out the entitlement of Shareholders to subscribe forSecuritiespursuanttotheOffer.

Issuer Sponsored means securities issued by an issuer that are held in uncertificated formwithouttheholderenteringintoasponsorshipagreementwithabrokerorwithouttheholderbeingadmittedasaninstitutionalparticipantinCHESS.

ListingRulesmeanstheListingRulesoftheASX.

OfferhasthemeaninginSection1.1.

OfficialListmeanstheofficiallistofASX.

OfficialQuotationmeansquotationofSecuritiesontheOfficialList.

OptionmeansanoptiontoacquireaShare.

Prospectusmeansthisprospectusdated5April2017.

RecordDatemeansthedatespecifiedassuchintheproposedtimetable.

SectionmeansasectionofthisProspectus.

SecuritymeansaShareoranOption.

ShareholdermeansaholderofShares.

SharemeansafullypaidordinaryshareinthecapitaloftheCompany.

Shortfall Application Form means the personalised application form enclosed with thisProspectustosubscribeforShortfallSecurities.

ShortfallNoticeDeadlineDatemeans thedate specified in theUnderwritingAgreement bywhich the Company must give each Underwriter written notice of the Shortfall Securities,being the Business Day after the Closing Date (or such other date as determined by theUnderwriter).

ShortfallOffermeansasdefinedinSection1.10.

ShortfallSecuritiesmeansthatnumberoftheSecuritiesthathavenotvalidlybeenappliedforundertheOfferbytheClosingDate.

Sub-underwritermeansChesapeakeCapitalLimited(ACN106213772).

UnderwritermeansPatersonsSecuritiesLimited(ACN008896311).

UnderwritingAgreementmeansasdefinedinSection5.3.

$meansAustraliandollars.

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