##### Table of Contents





UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549





FORM 20-F





(Mark One)

| ̈ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------------

OR



|x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ------------------------------------------------------------------------------------

For the fiscal year ended June 30, 2016

OR



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------

For the transition period from
 to

OR



| ̈ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | -------------------------------------------------------------------------------------------

Date of event requiring this shell company report

Commission file number 001-35428





Prima BioMed
Ltd

(Exact name of Registrant as specified in its charter and translation of Registrants name into English)





Australia

(Jurisdiction
of incorporation or organization)

Level 12, 95 Pitt Street, Sydney 2000, New South Wales, Australia

(Address of principal executive offices)

Marc Voigt, Chief Executive Officer

Level 12, 95 Pitt Street, Sydney, 2000 New South Wales, Australia

Phone +61 (0)2 8315 7003 Fax:+61 (0)2 8569 1880



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##### Table of Contents

Securities registered or to be registered pursuant to Section 12(b) of the Act.



|                                                                 |  |                                                 
|---------------------------------------------------------------- |  | ------------------------------------------------
|Title of each class                                              |  | Name of each exchange on which
registered       
|Ordinary Shares                                                  |  | NASDAQ Global Market (for listing purposes only)
|American Depositary Shares, each representing 30 Ordinary Shares |  | NASDAQ Global Market                            





Securities registered or to be registered pursuant to Section 12(g) of the Act. None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act. None

Indicate the number of outstanding shares of each of the issuers classes of capital or common stock as of the close of the period covered by the Annual
Report.

The number of ordinary shares outstanding as of June 30, 2016 was 2,061,633,944.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.     ̈  Yes    x  No

If this
report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934.     ̈  Yes    x  No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    x  Yes     ̈  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required
to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     ̈  Yes     ̈  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of
accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act. (Check one):



|                           |  |                      |  |                         
|-------------------------- |  | -------------------- |  | ------------------------
|Large accelerated filer   ̈ |  | Accelerated filer   ̈ |  | Non-accelerated filer  x

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this
filing:



|             |  |                                                                                                          |  |         
|------------ |  | -------------------------------------------------------------------------------------------------------- |  | --------
|U.S. GAAP   ̈ |  | International Financial Reporting Standards as issued
by the International Accounting Standards Board  x |  | Other   ̈

If Other has been checked in response to the previous question, indicate by check mark which financial statement
item the registrant has elected to follow.     ̈  Item 17     ̈  Item 18

If this is an Annual Report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act).     ̈  Yes    x  No









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TABLE OF CONTENTS



|             |  |                                                            |   |      |    | 
|------------ |  | ---------------------------------------------------------- | - | ---- | -- | 
|             |  |                                                            |   | PAGE |   
|             | 
|INTRODUCTION |  |                                                            | 1 |     
|             | 
|PART I       |  |                                                            | 1 |     
|             |  |                                                           
|Item 1       |  | Identity of Directors, Senior Management and
Advisers      |   |      | 1  | 
|             |  |                                                           
|Item 2       |  | Offer Statistics and Expected Timetable                    |   |      | 1  | 
|             |  |                                                           
|Item 3       |  | Key Information                                            |   |      | 1  | 
|             |  | A. Selected Financial Data                                 |   |      | 1  | 
|             |  | B. Capitalization and Indebtedness                         |   |      | 3  | 
|             |  | C. Reasons for the Offer and Use of Proceeds               |   |      | 3  | 
|             |  | D. Risk Factors                                            |   |      | 3  | 
|             |  |                                                           
|Item 4.      |  | Information on the Company                                 |   |      | 20 | 
|             |  | A. History and Development of the Company                  |   |      | 20 | 
|             |  | B. Business Overview                                       |   |      | 24 | 
|             |  | C. Organizational Structure                                |   |      | 33 | 
|             |  | D. Property, Plants and Equipment                          |   |      | 33 | 
|             |  |                                                           
|Item 4A.     |  | Unresolved Staff Comments                                  |   |      | 33 | 
|             |  |                                                           
|Item 5.      |  | Operating and Financial Review and Prospects               |   |      | 34 | 
|             |  | A. Operating Results                                       |   |      | 34 | 
|             |  | B. Liquidity and Capital Resources                         |   |      | 38 | 
|             |  | C. Research and Development, Patents and Licenses          |   |      | 40 | 
|             |  | D. Trend Information                                       |   |      | 40 | 
|             |  | E. Off-Balance Sheet Arrangements                          |   |      | 40 | 
|             |  | F. Tabular Disclosure of Contractual Obligations           |   |      | 41 | 
|             |  | G. Safe Harbor                                             |   |      | 41 | 
|             |  |                                                           
|Item 6.      |  | Directors, Senior Management and Employees                 |   |      | 42 | 
|             |  | A. Directors and Senior Management                         |   |      | 42 | 
|             |  | B. Compensation                                            |   |      | 43 | 
|             |  | C. Board Practices                                         |   |      | 49 | 
|             |  | D. Employees                                               |   |      | 52 | 
|             |  | E. Share Ownership                                         |   |      | 53 | 
|             |  |                                                           
|Item 7.      |  | Major Shareholders and Related Party Transactions          |   |      | 53 | 
|             |  | A. Major Shareholders                                      |   |      | 53 | 
|             |  | B. Related Party Transactions                              |   |      | 54 | 
|             |  | C. Interests of Experts and Counsel                        |   |      | 54 | 
|             |  |                                                           
|Item 8.      |  | Financial Information                                      |   |      | 54 | 
|             |  | A. Consolidated Statements and Other Financial
Information |   |      | 54 | 
|             |  | B. Significant Changes                                     |   |      | 54 | 
|             |  |                                                           
|Item 9.      |  | The Offer and Listing                                      |   |      | 55 | 
|             |  | A. Offer and Listing Details                               |   |      | 55 | 
|             |  | B. Plan of Distribution                                    |   |      | 55 | 
|             |  | C. Markets                                                 |   |      | 55 | 
|             |  | D. Selling Shareholders                                    |   |      | 55 | 
|             |  | E. Dilution                                                |   |      | 55 | 
|             |  | F. Expenses of the Issue                                   |   |      | 56 | 
|             |  |                                                           
|Item 10.     |  | Additional Information                                     |   |      | 56 | 
|             |  | A. Share Capital                                           |   |      | 56 | 
|             |  | B. Memorandum and Articles of Association                  |   |      | 56 | 



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|          |  |                                                                              |  |      |    | 
|--------- |  | ---------------------------------------------------------------------------- |  | ---- | -- | 
|          |  |                                                                              |  | PAGE |   
|          |  | C. Material Contracts                                                        |  |      | 57 | 
|          |  | D. Exchange Controls                                                         |  |      | 57 | 
|          |  | E. Taxation                                                                  |  |      | 58 | 
|          |  | F. Dividends and Paying Agents                                               |  |      | 63 | 
|          |  | G. Statement by Experts                                                      |  |      | 63 | 
|          |  | H. Documents on Display                                                      |  |      | 63 | 
|          |  | I. Subsidiary Information                                                    |  |      | 64 | 
|          |  |                                                                             
|Item 11.  |  | Quantitative and Qualitative Disclosures About Market Risk                   |  |      | 64 | 
|          |  |                                                                             
|Item 12.  |  | Description of Securities Other than Equity Securities                       |  |      | 64 | 
|          |  | A. Debt Securities                                                           |  |      | 64 | 
|          |  | B. Warrants and Rights                                                       |  |      | 64 | 
|          |  | C. Other Securities                                                          |  |      | 65 | 
|          |  | D. American Depositary Shares                                                |  |      | 65 | 
|          |  |                                                                             
|PART II   |  |                                                                              |  |      |    | 
|          |  |                                                                             
|Item 13.  |  | Defaults, Dividend Arrearages and Delinquencies                              |  |      | 66 | 
|          |  |                                                                             
|Item 14.  |  | Material Modifications to the Rights of Security Holders and Use of Proceeds |  |      | 66 | 
|          |  |                                                                             
|Item 15.  |  | Controls and Procedures                                                      |  |      | 66 | 
|          |  |                                                                             
|Item 15T. |  | Controls and Procedures                                                      |  |      | 66 | 
|          |  |                                                                             
|Item 16.  |  | Reserved                                                                     |  |      | 66 | 
|          |  |                                                                             
|Item 16A. |  | Audit Committee Financial Expert                                             |  |      | 66 | 
|          |  |                                                                             
|Item 16B. |  | Code of Ethics                                                               |  |      | 67 | 
|          |  |                                                                             
|Item 16C. |  | Principal Accountant Fees and Services                                       |  |      | 67 | 
|          |  |                                                                             
|Item 16D. |  | Exemptions from the Listing Standards for Audit Committees                   |  |      | 67 | 
|          |  |                                                                             
|Item 16E. |  | Purchases of Equity Securities by the Issuer and Affiliated Purchasers       |  |      | 68 | 
|          |  |                                                                             
|Item 16F. |  | Change in Registrants Certifying Accountant                                 |  |      | 68 | 
|          |  |                                                                             
|Item 16G. |  | Corporate Governance                                                         |  |      | 68 | 
|          |  |                                                                             
|Item 16H. |  | Mine Safety Disclosure                                                       |  |      | 68 | 
|          |  |                                                                             
|PART III  |  |                                                                              |  |      |    | 
|          |  |                                                                             
|Item 17.  |  | Financial Statements                                                         |  |      | 68 | 
|          |  |                                                                             
|Item 18.  |  | Financial Statements                                                         |  |      | 68 | 
|          |  |                                                                             
|Item 19.  |  | Exhibits                                                                     |  |      |    | 



ii



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INTRODUCTION

Prima BioMed Ltd was incorporated under the laws of the Commonwealth of Australia on May 21, 1987. The principal listing of our ordinary
shares and listed options to purchase our ordinary shares is the Australian Securities Exchange, or ASX. We filed a registration statement on Form 20-F with the U.S. Securities Exchange Commission that was declared effective on April 12, 2012
and our American Depositary Shares, or ADSs, were listed on the NASDAQ Global Market, or NASDAQ, under the symbol PBMD on April 16, 2012. The Bank of New York Mellon acts as our depositary, and registers and delivers our ADSs, each
of which represents 30 of our ordinary shares. As used in this Annual Report on Form 20-F, the terms we, us, our, Prima BioMed, Prima and the Company mean Prima BioMed Ltd and
its subsidiaries, unless otherwise indicated.

FINANCIAL AND OTHER INFORMATION

Our consolidated financial statements appearing in this Annual Report on Form 20-F are prepared in Australian dollars and in accordance with
the International Financial Reporting Standards, or IFRS, as issued by the International Accounting Standards Board, or IASB. Our consolidated financial statements appearing in this Annual Report on Form 20-F comply with both the IFRS and Australian
Accounting Standards. In this Annual Report, all references to U.S. dollars or US$ are to the currency of the United States, all references to euro,  or EUR are to the currency of
certain states of the European Union, and all references to Australian dollars or $ or A$ are to the currency of Australia.

Statements made in this Annual Report on Form 20-F concerning the contents of any contract, agreement or other document are summaries of such
contracts, agreements or documents and are not complete descriptions of all of their terms. If we filed any of these documents as an exhibit to this Annual Report or to any registration statement that we previously filed, you may read the document
itself for a complete description of its terms.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Except for the historical information contained in this Annual Report on Form 20-F, the statements contained in this Annual Report on Form
20-F are forward-looking statements which reflect our current view with respect to future events and financial results. We urge you to consider that statements which use the terms anticipate, believe, do not
believe, expect, plan, intend, estimate, and similar expressions are intended to identify forward-looking statements. We remind investors that forward-looking statements are merely predictions
and therefore inherently subject to uncertainties and other factors and involve known and unknown risks that could cause the actual results, performance, levels of activity, our achievements or industry results, to be materially different from any
future results, performance, levels of activity, or our achievements expressed or implied by such forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date
hereof. Except as required by applicable law, including the securities laws of the United States, we undertake no obligation to publicly release any update or revision to any forward-looking statements to reflect new information, future events or
circumstances, or otherwise after the date hereof. Please see the Risk Factors section that appears in Item 3. Key Information  D. Risk Factors.

PART I



|ITEM 1. | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
|------- | -----------------------------------------------------

Not applicable.



|ITEM 2. | OFFER STATISTICS AND EXPECTED TIMETABLE
|------- | ---------------------------------------

Not applicable.



|ITEM 3. | KEY INFORMATION
|------- | ---------------

A. Selected Financial Data

Our consolidated financial statements appearing in this Annual Report on Form 20-F comply with both the International Financial Reporting
Standards, or IFRS, as issued by the International Accounting Standards Board, and Australian Accounting Standards, as issued by the Australian Accounting Standards Board (AASB).

The following selected consolidated financial data as of June 30, 2016 and 2015 and for the fiscal years ended June 30, 2016, 2015
and 2014 have been derived from our audited consolidated financial statements and notes thereto included elsewhere in this Annual Report on Form 20-F. The selected consolidated financial data as of June 30, 2014, 2013, and 2012 and for the
fiscal years ended June 30, 2013 and 2012 have been derived from our audited consolidated financial statements and notes thereto which are not included in this Annual Report on Form 20-F. This data should be read together with, and is qualified
in its entirety by reference to, Item 5. Operating and Financial Review and Prospects as well as our consolidated financial statements and notes thereto appearing in Item 18. Financial Statements of this Annual Report on Form
20-F.

The selected financial data are presented in Australian dollars (A$) (except as otherwise noted).



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Consolidated Statement of Operations Data:



|                                                                           |  |                               |               |   |      |  |               |      |  |  |               |   |  |      |               |   |  |  |               |  
|-------------------------------------------------------------------------- |  | ----------------------------- | ------------- | - | ---- |  | ------------- | ---- |  |  | ------------- | - |  | ---- | ------------- | - |  |  | ------------- | -
|                                                                           |  | Year Ended June 30,           |              
|                                                                           |  | 2016                          |               |   | 2015 |  |               | 2014 |  |  | 2013          |   |  | 2012 |              
|                                                                           |  | (in A$, except share amounts) |              
|License revenue                                                            |  |                               | 175,052       |   |      |  |              |      |  |  |              |   |  |      |              |   |  |  |              |  
|Other income                                                               |  |                               | 1,853,869     |   |      |  | 2,092,867     |      |  |  | 3,140,066     |   |  |      | 4,005,394     |   |  |  | 4,202,567     |  
|Depreciation & amortization                                                |  |                               | (1,993,093    | ) |      |  | (1,341,202    | )    |  |  | (446,360      | ) |  |      | (254,024      | ) |  |  | (377,299      | )
|Research & development and intellectual property                           |  |                               | (7,059,528    | ) |      |  | (8,952,447    | )    |  |  | (11,930,857   | ) |  |      | (14,005,259   | ) |  |  | (15,118,816   | )
|Corporate administrative expenses                                          |  |                               | (6,982,629    | ) |      |  | (5,723,106    | )    |  |  | (4,092,623    | ) |  |      | (4,851,195    | ) |  |  | (5,977,619    | )
|Loss on foreign exchange                                                   |  |                               | (563,890      | ) |      |  |              |      |  |  |              |   |  |      |              |   |  |  | (1,181,049    | )
|Finance costs                                                              |  |                               | (8,199        | ) |      |  | (18,364,804   | )    |  |  |              |   |  |      |              |   |  |  |              |  
|Impairment of assets                                                       |  |                               |              |   |      |  |              |      |  |  |              |   |  |      |              |   |  |  |              |  
|Share Based Payment to strategic investor                                  |  |                               | (47,468,071   | ) |      |  |              |      |  |  |              |   |  |      |              |   |  |  |              |  
|Changes in fair value of derivative financial instruments                  |  |                               |              |   |      |  |              |      |  |  |              |   |  |      | (33,714       | ) |  |  | (1,488,744    | )
|Net loss on financial liabilities at fair value through profit or loss     |  |                               |              |   |      |  |              |      |  |  |              |   |  |      |              |   |  |  |              |  
|Changes in fair value of comparability milestone                           |  |                               | (542,075      | ) |      |  |              |      |  |  |              |   |  |      |              |   |  |  |              |  
|Net change in fair value of convertible note liability                     |  |                               | (607,637      | ) |      |  |              |      |  |  |              |   |  |      |              |   |  |  |              |  
|Loss on disposal of assets                                                 |  |                               |              |   |      |  | (5,160        | )    |  |  |              |   |  |      |              |   |  |  |              |  
|Loss before income tax expense                                             |  |                               | (63,196,201   | ) |      |  | (32,293,852   | )    |  |  | (13,329,774   | ) |  |      | (15,138,798   | ) |  |  | (15,138,798   | )
|Income tax expense                                                         |  |                               | 1,181,017     |   |      |  | 142,156       |      |  |  | (13,607       | ) |  |      | (86,873       | ) |  |  |              |  
|                                                                           |  |                               |               |   |      |  |               |      |  |  |               |   |  |      |               |   |  |  |               |  
|Net loss                                                                   |  |                               | (62,015,184   | ) |      |  | (32,151,696   | )    |  |  | (13,343,381   | ) |  |      | (15,225,671   | ) |  |  | (19,940,960   | )
|                                                                           |  |                               |               |   |      |  |               |      |  |  |               |   |  |      |               |   |  |  |               |  
|Loss per share  basic and diluted (in A$ cents)                           |  |                               | (2.77         | ) |      |  | (2.02         | )    |  |  | (0.93         | ) |  |      | (1.42         | ) |  |  | (1.92         | )
|                                                                           |  |                               |               |   |      |  |               |      |  |  |               |   |  |      |               |   |  |  |               |  
|Weighted average number of ordinary shares outstanding  basic and diluted |  |                               | 2,236,250,813 |   |      |  | 1,591,116,220 |      |  |  | 1,439,768,245 |   |  |      | 1,075,381,168 |   |  |  | 1,037,618,752 |  
|                                                                           |  |                               |               |   |      |  |               |      |  |  |               |   |  |      |               |   |  |  |               |  

Consolidated Balance Sheet Data:



|                           |  |                |             |  |      |  |             |      |  |  |             |  |  |      |             |  |  |  |             | 
|-------------------------- |  | -------------- | ----------- |  | ---- |  | ----------- | ---- |  |  | ----------- |  |  | ---- | ----------- |  |  |  | ----------- | 
|                           |  | As of June 30, |            
|                           |  | 2016           |             |  | 2015 |  |             | 2014 |  |  | 2013        |  |  | 2012 |            
|                           |  | (in A$)        |            
|Cash and cash equivalents  |  |                | 20,879,548  |  |      |  | 6,759,615   |      |  |  | 14,200,042  |  |  |      | 22,023,143  |  |  |  | 16,991,716  | 
|Working capital            |  |                | 20,198,827  |  |      |  | 3,643,408   |      |  |  | 21,912,972  |  |  |      | 28,248,167  |  |  |  | 36,458,512  | 
|Total assets               |  |                | 42,554,067  |  |      |  | 30,983,445  |      |  |  | 25,377,955  |  |  |      | 32,814,298  |  |  |  | 41,612,671  | 
|Long-term debt             |  |                | 5,027,168   |  |      |  |            |      |  |  |            |  |  |      |            |  |  |  |            | 
|Total shareholders equity |  |                | 35,317,513  |  |      |  | 24,689,743  |      |  |  | 22,592,320  |  |  |      | 29,248,418  |  |  |  | 37,157,871  | 
|Contributed equity         |  |                | 194,530,932 |  |      |  | 179,878,436 |      |  |  | 149,014,372 |  |  |      | 142,326,977 |  |  |  | 136,712,525 | 

Exchange Rate Information:

The following tables set forth, for the periods and dates indicated, certain information regarding the rates of exchange of A$1.00 into US$
based on the historical daily exchange rates of the Australian dollar by the Reserve Bank of Australia (RBA).

Exchange rate as of September 30,
2016: A$1.00 is US$0.7630.



|                    |  |               |        |  |              |  |        |      |  |  |        |  |  |  |        | 
|------------------- |  | ------------- | ------ |  | ------------ |  | ------ | ---- |  |  | ------ |  |  |  | ------ | 
|Year Ended June 30, |  | At Period End |        |  | Average Rate |  |        | High |  |  | Low    | 
|                    |  | US$           |        |  | US$          |  |        | US$  |  |  | US$    | 
|2012                |  |               | 1.0191 |  |              |  | 1.0319 |      |  |  | 1.1055 |  |  |  | 0.9500 | 
|2013                |  |               | 0.9275 |  |              |  | 1.0271 |      |  |  | 1.0593 |  |  |  | 0.9202 | 
|2014                |  |               | 0.9420 |  |              |  | 0.9187 |      |  |  | 0.9672 |  |  |  | 0.8716 | 
|2015                |  |               | 0.7680 |  |              |  | 0.8382 |      |  |  | 0.9458 |  |  |  | 0.7114 | 
|2016                |  |               | 0.7426 |  |              |  | 0.7283 |      |  |  | 0.7812 |  |  |  | 0.6867 | 



2



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##### Table of Contents

|               |  |      |        |  |     |  |        | 
|-------------- |  | ---- | ------ |  | --- |  | ------ | 
|Month          |  | High |        |  | Low | 
|               |  | US$  |        |  | US$ | 
|April 2016     |  |      | 0.7812 |  |     |  | 0.7535 | 
|May 2016       |  |      | 0.7607 |  |     |  | 0.7160 | 
|June 2016      |  |      | 0.7533 |  |     |  | 0.7239 | 
|July 2016      |  |      | 0.7626 |  |     |  | 0.7436 | 
|August 2016    |  |      | 0.7711 |  |     |  | 0.7514 | 
|September 2016 |  |      | 0.7698 |  |     |  | 0.7469 | 

B. Capitalization and Indebtedness

Not applicable.

C.
Reasons for the Offer and Use of Proceeds

Not applicable.

D. Risk Factors

The
following risks relate specifically to our business and should be considered carefully. Our business, financial condition and results of operations could be harmed by any of the following risks. As a result, the trading price of our ordinary shares
and our American Depositary Shares, or ADSs, could decline and the holders could lose part or all of their investment.

Risks
Related to Our Business

We have a history of operating losses and may not achieve or maintain profitability in the future.

We are at an early stage in the development of pharmaceutical products and their success is therefore uncertain. We focus on the development of
immunotherapeutic products for the treatment of cancer. We, and our partners, have three products under development-IMP321, IMP701 and IMP731, all of which are directed to lymphocyte activation gene 3, or LAG-3, a gene linked to the regulation of T
cells in immune responses. In prior years, our business was focused on the development of CVac, an autologous dendritic cell cancer vaccine. However, in February 2015, we suspended the development of CVac during its Phase II clinical
trials in favor of focusing on biologicals like IMP321, which offer greater commercial potential based on cost of goods alone. While the decision to consolidate the CVac clinical trial program and to cease the patient recruitment has led to a
significant decrease of costs, the clinical trial program of IMP321 will generate new expenses, especially as two clinical trials have been started (AIPAC and TACTI-mel). There can also be no guarantee that IMP321 will successfully be partnered or
that any of our product candidates or know how, whether partnered or not, will ever generate future revenues. At this point, none of our products generate significant revenue.

For the years ended June 30, 2015 and 2016, we had a net loss of approximately $32.2 million and $62.0 million, respectively. The
significant increase in net loss for the year ended June 30, 2016 was primarily attributable to a share based payment to a strategic investor of $47.5 million incurred in the issue of a convertible note and warrants to Ridgeback Capital
Investments. In addition, since the year ended June 30, 2014, our total other income has continued to decrease. For the year ended June 30, 2014, total other income was approximately $3.1 million. For the year ended June 30, 2015,
total other income was approximately $2.1 million, with such decrease being primarily attributable to fluctuations in foreign exchange rates. For the year ended June 30, 2016, total other income was approximately $2.0 million, with such
decrease being primarily attributable to a decrease in grant income.

We will continue to incur losses from operations and expect the
costs of drug development to increase in the future as more patients are recruited to the planned trials. In particular, we will continue to incur significant losses in carrying out clinical trials of IMP321 necessary for regulatory approval and
ongoing research in terms of immunotherapy product candidates. Because of the numerous risks and uncertainties associated with the development, manufacturing, sales and marketing of therapeutic products, we may experience larger than expected future
losses and may never become profitable.



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There is a substantial risk that we, or our development partners, may not be able to complete the
development of our current product candidates or develop other pharmaceutical products. It is possible that none of them will be successfully commercialized, which would prevent us from ever achieving profitability.

We have no medicinal products approved for commercial sale and no source of material revenue.

Currently, we have no products approved for commercial sale and to date have not generated material revenue from product sales. We are largely
dependent on the success of our product candidates, especially the LAG-3 related ones.

The LAG 3 product candidates were acquired by us
through the acquisition of the French privately owned and venture capital backed company Immutep SA, a biopharmaceutical company in the rapidly growing field of Immuno-Oncology in December 2014. This acquisition significantly expanded Primas
clinical development product portfolio to other categories of immunotherapies. It has also provided Prima with partnerships with several of the worlds largest pharmaceutical companies.

We have three LAG-3 product candidates. The most advanced of the three is IMP321. IMP321 is a recombinant protein typically used in
conjunction with chemotherapy to amplify a patients immune response. The development and manufacturing of IMP321 is being conducted in conjunction with Eddingpharm.

Another LAG-3 product candidate is IMP701, an antagonist antibody that acts to stimulate T cell proliferation in cancer patients. IMP701 has
been licensed to CoStim (Novartis), which is solely responsible for its development and manufacturing.

Our third LAG-3 product candidate
is IMP731, a depleting antibody that removes T cells involved in autoimmunity. IMP731 has been licensed to GlaxoSmithKline, or GSK, which is solely responsible for its development and manufacturing.

In addition to these products Immutep also has a dedicated R&D laboratory outside Paris with other research candidates in development.
Immutep also currently generates modest revenues from sales of LAG-3 research reagents.

There can be no assurance that our ability to
develop any product candidate, will be successful or our ability to obtain the necessary regulatory approvals with respect to any of the foregoing will be successful.

We anticipate that as the costs related to the clinical trials for IMP321 will increase, we will require additional funds to achieve our
long-term goals of commercialization and further development of IMP321 and other product candidates. In addition, we will require funds to pursue regulatory applications, defend intellectual property rights, increase contracted manufacturing
capacity, potentially develop marketing and sales capability and fund operating expenses. We intend to seek such additional funding through public or private financings and/or through licensing of our assets or other arrangements with corporate
partners. However, such financing, licensing opportunities or other arrangements may not be available from any sources on acceptable terms, or at all. Any shortfall in funding could result in us having to curtail or cease our operations including
research and development activities, thereby harming our business, financial condition and results of operations.

Our ability to generate
product revenue depends on a number of factors, including our ability to:



| |  |  | successfully complete clinical development of, and receive regulatory approval for, our product candidates;
| | - |  | -----------------------------------------------------------------------------------------------------------

| |  |  | set an acceptable price for our products, if approved, and obtain adequate coverage and reimbursement from third-party payors;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------

| |  |  | obtain commercial quantities of our products, if approved, at acceptable cost levels; and
| | - |  | -----------------------------------------------------------------------------------------

| |  |  | successfully market and sell our products, if approved.
| | - |  | -------------------------------------------------------

In addition, because of the numerous
risks and uncertainties associated with product candidate development, we are unable to predict the timing or amount of increased expenses, or when, or if, we will be able to achieve or maintain profitability. Our expenses could increase beyond
current expectations if the applicable regulatory authorities require further studies in addition to those currently anticipated and even if our product candidates are approved for commercial sale, we anticipate incurring significant costs
associated with the commercial launch of such products and there can be no guarantee that we will ever generate significant revenues.



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We will require additional financing and may be unable to raise sufficient capital, which could have a
material impact on our research and development programs or commercialization of our products or product candidates.

We have
historically devoted most of our financial resources to research and development, including pre-clinical and clinical development activities. To date, we have financed a significant amount of our operations through public and private financings. The
amount of our future net losses will depend, in part, on the rate of our future expenditures and our ability to obtain funding through equity or debt financings or strategic collaborations. The amount of such future net losses, as well as the
possibility of future profitability, will also depend on our success in developing and commercializing products that generate significant revenue. Our failure to become and remain profitable would depress the value of our ordinary shares or ADSs and
could impair our ability to raise capital, expand our business, maintain our research and development efforts, diversify our product offerings or even continue our operations.

We anticipate that our expenses will increase substantially for the foreseeable future if, and as, we:



| |  |  | continue our research and preclinical and clinical development of our product candidates;
| | - |  | -----------------------------------------------------------------------------------------



| |  |  | expand the scope of our current proposed clinical studies for our product candidates;
| | - |  | -------------------------------------------------------------------------------------



| |  |  | initiate additional preclinical, clinical or other studies for our product candidates;
| | - |  | --------------------------------------------------------------------------------------



| |  |  | change or add additional manufacturers or suppliers;
| | - |  | ----------------------------------------------------



| |  |  | seek regulatory and marketing approvals for our product candidates that successfully complete clinical studies;
| | - |  | ---------------------------------------------------------------------------------------------------------------



| |  |  | seek to identify and validate additional product candidates;
| | - |  | ------------------------------------------------------------



| |  |  | acquire or in-license other product candidates and technologies;
| | - |  | ----------------------------------------------------------------



| |  |  | maintain, protect and expand our intellectual property portfolio;
| | - |  | -----------------------------------------------------------------



| |  |  | attract and retain skilled personnel;
| | - |  | -------------------------------------



| |  |  | create additional infrastructure to support our operations as a publicly quoted company and our product development and planned future commercialization efforts;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | add an internal sales force; and
| | - |  | --------------------------------



| |  |  | experience any delays or encounter issues with any of the above.
| | - |  | ----------------------------------------------------------------

Until our products become
commercially available, we will need to obtain additional funding in connection with the further development of our products and product candidates. Our ability to obtain additional financing will be subject to a number of factors, including market
conditions, our operating performance and investor sentiment. As such, additional financing may not be available to us when needed, on acceptable terms, or at all. If we are unable to raise capital when needed or on attractive terms, we could be
forced to delay, reduce or eliminate our research and development programs or any future commercialization efforts or obtain funds by entering agreements on unattractive terms. Our resource allocation decisions and the elimination of development
programs may result in the failure to capitalize on profitable market opportunities. Furthermore, any additional equity fundraising in the capital markets may be dilutive for stockholders and any debt-based funding may bind us to restrictive
covenants and curb our operating activities and ability to pay potential future dividends even when profitable. We cannot guarantee that future financing will be available in sufficient amounts or on acceptable terms, if at all. If we are unable to
raise additional capital in sufficient amounts or on acceptable terms, we will be prevented from pursuing research and development efforts. This could harm our business, operating results and financial condition and cause the price of our common
stock to fall.

If we are unable to secure sufficient capital to fund our operations, we may be required to delay, limit, reduce or
terminate our product development or future commercialization efforts or grant rights to third parties to develop and market products or product candidates that we would otherwise prefer to develop and market ourselves. For example, additional
strategic collaborations could require us to share commercial rights to our product candidates with third parties in ways that we do not intend currently or on terms that may not be favorable to us. Moreover, we may also have to relinquish valuable
rights to our technologies, future revenue streams, research programs or product candidates or grant licenses on terms that may not be favorable to us.

We are exposed to significant risks related to our ongoing research and development efforts and might not be in a position to successfully develop any
product candidate. Any failure to implement our business strategy could negatively impact our business, financial condition and results of operations.

The development and commercialization of IMP321, IMP701 and IMP731, or any other product candidate we may develop, is subject to many risks,
including:



| |  |  | additional clinical trials may be required beyond what we currently expect;
| | - |  | ---------------------------------------------------------------------------



| |  |  | regulatory authorities may disagree with our interpretation of data from our preclinical studies and clinical studies or may require that we conduct additional studies;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | regulatory authorities may disagree with our proposed design of future clinical trials;
| | - |  | ---------------------------------------------------------------------------------------



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| |  |  | regulatory authorities may not accept data generated at our clinical study sites;
| | - |  | ---------------------------------------------------------------------------------



| |  |  | we may be unable to obtain and maintain regulatory approval of our product candidate in any jurisdiction;
| | - |  | ---------------------------------------------------------------------------------------------------------



| |  |  | the prevalence and severity of any side effects of any product candidate could delay or prevent commercialization, limit the indications for any approved product candidate, require the establishment of a risk evaluation
and mitigation strategy, or REMS, or cause an approved product candidate to be taken off the market;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | regulatory authorities may identify deficiencies in our manufacturing processes or facilities or those of our third-party manufacturers;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------



| |  |  | regulatory authorities may change their approval policies or adopt new regulations;
| | - |  | -----------------------------------------------------------------------------------



| |  |  | the third-party manufacturers we expect to depend on to supply or manufacture our product candidates may not produce adequate supply;
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------



| |  |  | we, or our third-party manufacturers, may not be able to source or produce cGMP materials for the production of our product candidates;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------



| |  |  | we may not be able to manufacture our product candidates at a cost or in quantities necessary to make commercially successful products;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------



| |  |  | we may not be able to obtain adequate supply of our product candidates for our clinical trials;
| | - |  | -----------------------------------------------------------------------------------------------



| |  |  | we may experience delays in the commencement of, enrollment of patients in and timing of our clinical trials;
| | - |  | -------------------------------------------------------------------------------------------------------------



| |  |  | we may not be able to demonstrate that our product candidates are safe and effective as a treatment for its indications to the satisfaction of regulatory authorities, and we may not be able to achieve and maintain
compliance with all regulatory requirements applicable to our product candidates;
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | we may not be able to maintain a continued acceptable safety profile of our products following approval;
| | - |  | --------------------------------------------------------------------------------------------------------



| |  |  | we may be unable to establish or maintain collaborations, licensing or other arrangements;
| | - |  | ------------------------------------------------------------------------------------------



| |  |  | the market may not accept our product candidates;
| | - |  | -------------------------------------------------



| |  |  | we may be unable to establish and maintain an effective sales and marketing infrastructure, either through the creation of a commercial infrastructure or through strategic collaborations, and the effectiveness of our
own or any future strategic collaborators marketing, sales and distribution strategy and operations will affect our profitability;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | we may experience competition from existing products or new products that may emerge;
| | - |  | -------------------------------------------------------------------------------------



| |  |  | we and our licensors may be unable to successfully obtain, maintain, defend and enforce intellectual property rights important to protect our product candidates; and
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | we may not be able to obtain and maintain coverage and adequate reimbursement from third-party payors.
| | - |  | ------------------------------------------------------------------------------------------------------

If any of these risks materializes, we could experience significant delays or an inability to successfully commercialize IMP321, IMP701 and
IMP731, or any other product candidate we may develop, which would have a material adverse effect on our business, financial condition and results of operations.

We may not make acquisitions in the future, or if we do, we may not be successful in integrating the acquired company, either of which could have a
materially adverse effect on our business.

We completed our acquisition of Immutep, in December 2014 for consideration of up to
US$28m in cash and stock. We have almost fully completed the integration of Immuteps business into our own. We have not yet achieved, and may never achieve, the full benefit of the clinical development expectations, product portfolio
enhancements or revenue generations we expected at the time of the acquisition. In addition, even if we achieve the expected benefits, we may be unable to achieve them within the anticipated time frame. Also, there may be unexpected problems in the
business unrelated to the Immutep acquisition that have a negative effect on our business. If we fail to implement our business strategy, we may be unable to achieve expected results and our business, financial condition and results of operations
may be materially and adversely affected.



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Specific risks associated with the remaining integration include the following:



| |  |  | the potential loss of licensors, licensees, other business partners or independent contractors;
| | - |  | -----------------------------------------------------------------------------------------------



| |  |  | failure to effectively continue the clinical trials;
| | - |  | ----------------------------------------------------



| |  |  | failure to effectively consolidate functional areas, which may be impeded by inconsistencies in, or conflicts between, standards, controls, procedures, policies, business cultures and compensation structures;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | potential future impairment charges, write-offs, write-downs or restructuring charges that could adversely affect our results of operations;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | significant deficiencies or material weaknesses in internal controls over financial reporting;
| | - |  | ----------------------------------------------------------------------------------------------



| |  |  | exposure to unknown liabilities or other obligations of Immutep, which may include matters relating to employment, labor and employee benefits, litigation, accident claims and environmental issues, and which may affect
our ability to comply with applicable laws;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the coordination of resources across broad geographical areas; and
| | - |  | ------------------------------------------------------------------



| |  |  | the challenges of moving toward a single brand and market identity.
| | - |  | -------------------------------------------------------------------

Immutep is our only
significant acquisition in the recent history of Prima. Identifying strategic acquisitions is part of our business plan and may become an increasingly important part of our growth. There is, however, no assurance that we will be successful in
identifying, negotiating, or consummating any future acquisitions. If we fail to make any future acquisitions, our growth rate could be materially and adversely affected. Any additional acquisitions we undertake could involve the dilutive issuance
of equity securities, incurring indebtedness and/or incurring large one-time expenses. In addition, acquisitions involve numerous risks, including difficulties in assimilating the acquired companys operations, the diversion of our
managements attention from other business concerns, risks of entering into markets in which we have had no or only limited direct experience, and the potential loss of customers, key employees and drivers of the acquired company, all of which
could have a materially adverse effect on our business and operating results. If we make acquisitions in the future, we cannot guarantee that we will be able to successfully integrate the acquired companies or assets into our business, which would
have a materially adverse effect on our business, financial condition, and results of operations.

Ongoing and future clinical trials of product
candidates may not show sufficient safety or efficacy to obtain requisite regulatory approvals for commercial sale.

Phase I and Phase
II clinical trials are not primarily designed to test the efficacy of a product candidate but rather to test safety and to understand the product candidates side effects at various doses and schedules. Furthermore, success in preclinical and
early clinical trials does not ensure that later large-scale trials will be successful nor does it predict final results. Acceptable results in early trials may not be repeated in later trials. Further, Phase III clinical trials may not show
sufficient safety or efficacy to obtain regulatory approval for marketing. In addition, clinical results are frequently susceptible to varying interpretations that may delay, limit or prevent regulatory approvals. Negative or inconclusive results or
adverse medical events during a clinical trial could require that the clinical trial be redone or terminated. The length of time necessary to complete clinical trials and to submit an application for marketing approval by applicable regulatory
authorities may also vary significantly based on the type, complexity and novelty of the product candidate involved, as well as other factors. If we suffer any significant delays, setbacks or negative results in, or termination of, our clinical
trials, it may be unable to continue the development of our products or product candidates or generate revenue and our business may be severely harmed.

If we do not obtain the necessary regulatory approvals we will be unable to commercialize our products.

The clinical development, manufacturing, sales and marketing of our products are subject to extensive regulation by regulatory authorities in
the United States, the United Kingdom, the European Union, Australia and elsewhere. Despite the substantial time and expense invested in preparation and submission of a Biologic License Application or equivalents in other jurisdictions, regulatory
approval is never guaranteed. The number, size and design of preclinical studies and clinical trials that will be required will vary depending on the product, the disease or condition for which the product is intended to be used and the regulations
and guidance documents applicable to any particular product. The FDA or other regulators can delay, limit or deny approval of a product for many reasons, including, but not limited to, the fact that regulators may not approve our or a third-party
manufacturers processes or facilities or that new laws may be enacted or regulators may change their approval policies or adopt new regulations requiring new or different evidence of safety and efficacy for the intended use of a product.

IMP321 is undergoing clinical trials; however, successful results in the trials and in the subsequent application for marketing approval are
not guaranteed. Without additional clinical trials any other product in the current portfolio cannot obtain a regulatory approval. If we are unable to obtain regulatory approvals, we will not be able to generate revenue from this product. Even if we
receive regulatory approval for any product candidate, our profitability will depend on our ability to generate revenues from the sale of those product candidates or the licensing of our technology.



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Even if our product candidates receive regulatory approval, it may still face development and regulatory
difficulties that may delay or impair future sales of product candidates.

Even if we or our licensing partners receive regulatory
approval to sell IMP321 or any other product candidate, the relevant regulatory authorities may, nevertheless, impose significant restrictions on the indicated uses, manufacturing, labelling, packaging, adverse event reporting, storage, advertising,
promotion and record keeping or impose ongoing requirements for post-approval studies. In addition, regulatory agencies subject a marketed product, its manufacturer and the manufacturers facilities to continual review and periodic inspections.
Previously unknown problems with the product candidate, including adverse events of unanticipated severity or frequency, may result in restrictions on the marketing of the product, and could include withdrawal of the product from the market. In
addition, new statutory requirements may be enacted or additional regulations may be enacted that could prevent or delay regulatory approval of our products.

We have limited manufacturing experience with our product candidates.

We have no manufacturing capabilities and are dependent on third parties for cost effective manufacture and manufacturing process development
of the companys product candidates. Problems with third party manufacturers or the manufacturing process, or the scaling up of manufacturing activities as such may delay clinical trials and commercialization of our product candidates. To
minimize the chance of these kinds of disruption, we enter into advance purchase agreements for reagents wherever possible.

Biological
product candidates like IMP731, IMP701 or IMP321 usually have more complicated manufacturing procedures than chemically produced therapies. The change of manufacturing partners, manufacturing process changes or changes of other nature could impact
the product quality and affect the comparability of different product batches. A lack of comparability could significantly impact the development timelines and could even lead to a situation where regulatory bodies require additional or new
pre-clinical or clinical development.

The clinical development of autologous dendritic cell cancer vaccines such as CVac is complex and
more expensive to produce than most other biologicals such as IMP321. Biologicals like IMP321 offer greater commercial potential based on cost of goods alone. Such lower cost and greater commercial potential were main contributing factors in our
decision to focus our clinical trial resources internally on developing IMP 321 whilst seeking a partner to develop CVac. With consolidation of the CVac program and the spin off transaction with Sydys Corporation, a US based special purpose vehicle,
the manufacturing uncertainties surrounding CVac have now transferred to Sydys. Compared to our other partners Novartis and GlaxoSmithKline who are well funded and established within the industry, the transaction with Sydys bears significantly more
risk given that Sydys first needs to establish itself and secure significant funds to develop CVac, and there is no guarantee that Sydys will be successful in that respect. The successful approval of CVac by regulatory authorities and the
manufacturing of CVac will be beyond the control of Prima.

To the extent we rely significantly on contractors, we will be exposed to risks related to
the business and operational conditions of our contractors.

We are a small company, with few internal staff and limited facilities.
We are and will be required to rely on a variety of contractors to manufacture and transport our products, to perform clinical testing and to prepare regulatory dossiers. Adverse events that affect one or more of our contractors could adversely
affect us, such as:



| |  |  | a contractor is unable to retain key staff that have been working on our product candidates;
| | - |  | --------------------------------------------------------------------------------------------



| |  |  | a contractor is unable to sustain operations due to financial or other business issues;
| | - |  | ---------------------------------------------------------------------------------------



| |  |  | a contractor loses their permits or licenses that may be required to manufacture our products or product candidates; or
| | - |  | -----------------------------------------------------------------------------------------------------------------------



| |  |  | errors, negligence or misconduct that occur within a contractor may adversely affect our business.
| | - |  | --------------------------------------------------------------------------------------------------

We
depend on, and will continue to depend on, collaboration and strategic alliances with third partners. To the extent we are able to enter into collaborative arrangements or strategic alliances, we will be exposed to risks related to those
collaborations and alliances.

An important element of our strategy for developing, manufacturing and commercializing our product
candidates is entering into partnerships and strategic alliances with other pharmaceutical companies or other industry participants. For example, we currently have collaborative arrangements with Eddingpharm for the development of IMP321 for China
and Taiwan. Any revenues from sales of CVac will be dependent on the success of the collaboration partner. In principle the same applies to IMP731 and IMP701 or any other partnered product candidate.



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Any partnerships or alliance we have or may have in the future may be terminated for reasons
beyond our control or we may not be able to negotiate future alliances on acceptable terms, if at all. These arrangements may result in us receiving less revenue than if it sold its products directly, may place the development, sales and marketing
of its products outside of its control, may require it to relinquish important rights or may otherwise be on unfavorable terms. Collaborative arrangements or strategic alliances will also subject us to a number of risks, including the risk that:



| |  |  | we may not be able to control the amount and timing of resources that our strategic partner/collaborators may devote to the product candidates;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | strategic partner/collaborators may experience financial difficulties;
| | - |  | ----------------------------------------------------------------------



| |  |  | the failure to successfully collaborate with third parties may delay, prevent or otherwise impair the development or commercialization of our product candidates or revenue expectations;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | products being developed by partners/collaborators may never reach commercial stage resulting in reduced or even no milestone or royalty payments;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | business combinations or significant changes in a collaborators business strategy may also adversely affect a collaborators willingness or ability to complete their obligations under any arrangement;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | a collaborator could independently move forward with a competing product developed either independently or in collaboration with others, including our competitors; and
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | collaborative arrangements are often terminated or allowed to expire, which would delay the development and may increase the cost of developing product candidates.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

Our research and development efforts will be jeopardized if we are unable to retain key personnel and cultivate key academic and scientific collaborations.

Our success depends largely on the continued services of our senior management and key scientific personnel and on the efforts and
abilities of our senior management to execute our business plan. During the fiscal year ended June 30, 2016, we experienced a significant change in our senior management team with Dr. Sharron Gargosky, our former Chief Technical Officer
and past CVac program manager, ceasing to be employed by us effective 30 November 2015. However, we consider the impact of her departure to be minimal with the divestment of CVac to Sydys Corporation. Our research and development activities of
IMP321 will be overseen by Dr. Frédéric Triebel, the inventor of the technology.

Changes in our senior management may
be disruptive to our business and may adversely affect our operations. For example, when we have changes in senior management positions, we may elect to adopt different business strategies or plans. Any new strategies or plans, if adopted, may not
be successful and if any new strategies or plans do not produce the desired results, our business may suffer.

Moreover, competition among
biotechnology and pharmaceutical companies for qualified employees is intense and as such we may not be able to attract and retain personnel critical to our success. Our success depends on our continued ability to attract, retain and motivate highly
qualified management, clinical and scientific personnel, manufacturing personnel, sales and marketing personnel and on our ability to develop and maintain important relationships with clinicians, scientists and leading academic and health
institutions. If we fail to identify, attract, retain and motivate these highly skilled personnel, we may be unable to continue our product development and commercialization activities.

In addition, biotechnology and pharmaceutical industries are subject to rapid and significant technological change. Our product candidates may
be or become uncompetitive. To remain competitive, we must employ and retain suitably qualified staff that are continuously educated to keep pace with changing technology, but may not be in a position to do so.



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Future potential sales of our products may suffer if they are not accepted in the marketplace by physicians,
patients and the medical community.

There is a risk that IMP321 may not gain market acceptance among physicians, patients and the
medical community, even if they are approved by the regulatory authorities. The degree of market acceptance of any of our approved products will depend on a variety of factors, including:



| |  |  | timing of market introduction, number and clinical profile of competitive products;
| | - |  | -----------------------------------------------------------------------------------



| |  |  | our ability to provide acceptable evidence of safety and efficacy and our ability to secure the support of key clinicians and physicians for our products;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | cost-effectiveness compared to existing and new treatments;
| | - |  | -----------------------------------------------------------



| |  |  | availability of coverage, reimbursement and adequate payment from health maintenance organizations and other third-party payers;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------



| |  |  | prevalence and severity of adverse side effects; and
| | - |  | ----------------------------------------------------



| |  |  | other advantages over other treatment methods.
| | - |  | ----------------------------------------------

Physicians, patients, payers or the medical
community may be unwilling to accept, use or recommend our products which would adversely affect our potential revenues and future profitability.

If
healthcare insurers and other organizations do not pay for our products or impose limits on reimbursement, our future business may suffer.

Our product candidate may be rejected by the market due to many factors, including cost. The continuing efforts of governments, insurance
companies and other payers of healthcare costs to contain or reduce healthcare costs may affect our future revenues and profitability. In Australia and certain foreign markets the pricing of pharmaceutical products is already subject to government
control. We expect initiatives for similar government control to continue in the United States and elsewhere. The adoption of any such legislative or regulatory proposals could harm our business and prospects.

Successful commercialization of our product candidate will depend in part on the extent to which reimbursement for the cost of our products
and related treatment will be available from government health administration authorities, private health insurers and other organizations. Our product candidate may not be considered cost-effective and reimbursement may not be available to
consumers or may not be sufficient to allow our products to be marketed on a competitive basis. Third-party payers are increasingly challenging the price of medical products and treatment. If third party coverage is not available for our products
the market acceptance of these products will be reduced. Cost-control initiatives could decrease the price we might establish for products, which could result in product revenues lower than anticipated. If the price for our product candidate
decreases or if governmental and other third-party payers do not provide adequate coverage and reimbursement levels our potential revenue and prospects for profitability will suffer.

We may be exposed to product liability claims which could harm our business.

The testing, marketing and sale of therapeutic products entails an inherent risk of product liability. We may face product liability exposure
related to the testing of our product candidates in human clinical trials. If any of our products are approved for sale, we may face exposure to claims by an even greater number of persons than were involved in the clinical trials once marketing,
distribution and sales of our products begin. Regardless of merit or eventual outcome, liability claims may result in:



| |  |  | decreased demand for our products and product candidates;
| | - |  | ---------------------------------------------------------



| |  |  | injury to our reputation;
| | - |  | -------------------------



| |  |  | withdrawal of clinical trial participants;
| | - |  | ------------------------------------------



| |  |  | costs of related litigation;
| | - |  | ----------------------------



| |  |  | substantial monetary awards to patients and others;
| | - |  | ---------------------------------------------------



| |  |  | loss of revenues; and
| | - |  | ---------------------



| |  |  | the inability to commercialize products and product candidates.
| | - |  | ---------------------------------------------------------------



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We rely on a number of third party researchers and contractors to produce, collect, and analyze
data regarding the safety and efficacy of our product candidates. We have quality control and quality assurance in place to mitigate these risks, as well as professional liability and clinical trial insurance to cover financial damages in the event
that human testing is done incorrectly or the data is analyzed incorrectly. If a claim is made against us in conjunction with these research testing activities, the market price of our ordinary shares or ADSs may be negatively affected. We could
also face additional liability beyond insurance limits if testing mistakes were to endanger any human subjects.

We are currently taking advantage of
certain exemptions from having to comply with the Sarbanes-Oxley Act due to our status as an emerging growth company.

We
are an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Accordingly, this allows us to postpone the date by which we must comply with some of the laws and regulations that are
otherwise applicable to public companies and to reduce the amount of information we provide in our reports filed with the SEC, which could undermine investor confidence in our company and adversely affect the market price of our ordinary shares or
ADSs.

For so long as we remain an emerging growth company, we may take advantage of certain exemptions from various
requirements that are applicable to public companies that are not emerging growth companies, including, but not limited to, the provisions of Section 404(b) of the Sarbanes-Oxley Act requiring that our independent registered public
accounting firm provide an attestation report on the effectiveness of our internal control over financial reporting. As a result, our independent registered public accounting firm will not be required to provide an attestation report on the
effectiveness of our internal control over financial reporting for so long as we qualify as an emerging growth company, which may increase the risk that weaknesses or deficiencies in our internal control over financial reporting go
undetected. Similarly, so long as we qualify as an emerging growth company, we may elect not to provide investors with certain information, including certain financial information and certain information regarding compensation of our
executive officers, that we would otherwise have been required to provide in filings we make with the SEC, which may make it more difficult for investors and securities analysts to evaluate our company.

We may take advantage of these exemptions until we are no longer an emerging growth company. We would cease to be an
emerging growth company upon the earliest of: (i) the last day of our fiscal year following the fifth anniversary of the date of the first sale of our common equity securities pursuant to an effective registration statement under
the U.S. Securities Act of 1933, as amended; (ii) the last day of the first fiscal year in which our annual gross revenues are $1 billion or more; (iii) the date on which we have, during the previous three-year period, issued more than $1
billion in non-convertible debt securities; or (iv) as of the end of any fiscal year in which the market value of our ordinary shares or ADSs held by non-affiliates exceeded $700 million as of the end of the second quarter of that fiscal year.

We cannot predict if investors will find our ordinary shares or ADSs less attractive because we may rely on these exemptions. If some
investors find our ordinary shares or ADSs less attractive as a result, there may be a less active trading market for such shares, and our stock price may be more volatile and may decline.

Risks Related to Intellectual Property

Our success depends on our ability to protect our intellectual property and our proprietary technology.

Our success is to a certain degree also dependent on our ability to obtain and maintain patent protection or where applicable, to
receive/maintain orphan drug designation/status and resulting marketing exclusivity for our product candidates.

We may be materially
adversely affected by our failure or inability to protect our intellectual property rights. Without the granting of these rights, the ability to pursue damages for infringement would be limited. Similarly, any know-how that is proprietary or
particular to our technologies may be subject to risk of disclosure by employees or consultants despite having confidentiality agreements in place.

Any future success will depend in part on whether we can obtain and maintain patents to protect our own products and technologies; obtain
licenses to the patented technologies of third parties; and operate without infringing on the proprietary rights of third parties. Biotechnology patent matters can involve complex legal and scientific questions, and it is impossible to predict the
outcome of biotechnology and pharmaceutical patent claims. Any of our future patent applications may not be approved, or we may not develop additional products or processes that are patentable. Some countries in which we may sell our product
candidate or license our intellectual property may fail to protect our intellectual property rights to the same extent as the protection that may be afforded in the United States or Australia. Some legal principles remain unresolved and there has
not been a consistent policy regarding the breadth or interpretation of claims allowed in patents in the United States, the United Kingdom, the European Union, Australia or elsewhere. In addition, the specific content of patents and patent
applications that are necessary to support and interpret patent claims is highly uncertain due to the complex nature of the relevant legal, scientific and factual issues. Changes in either patent laws or in interpretations of patent laws in the
United States, the United Kingdom, the European Union or elsewhere may diminish the value of our intellectual property or narrow the scope of our patent protection. Even if we are able to obtain patents, they may not issue in a form that will
provide us with any meaningful protection, prevent competitors from competing with us or otherwise provide us with any competitive advantage. Our competitors may be able to circumvent our patents by developing similar or alternative technologies or
products in a non-infringing manner.



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Moreover, any of our pending applications may be subject to a third-party preissuance submission
of prior art to the U.S. Patent and Trademark Office, or USPTO, the European Patent Office, or EPO, the Australian Patent and Trademark Office and/or any patents issuing thereon may become involved in opposition, derivation, reexamination, inter
partes review, post grant review, interference proceedings or other patent office proceedings or litigation, in the United States or elsewhere, challenging our patent rights. An adverse determination in any such submission, proceeding or litigation
could reduce the scope of, or invalidate, our patent rights, and allow third parties to commercialize our technology or products and compete directly with us, without payment to us. In addition, if the breadth or strength of protection provided by
our patents and patent applications is threatened, it could dissuade companies from collaborating with us to exploit our intellectual property or develop or commercialize current or future product candidate.

The issuance of a patent is not conclusive as to the inventorship, scope, validity or enforceability, and our patents may be challenged in the
courts or patent offices in the U.S., the EU, Australia and elsewhere. Such challenges may result in loss of ownership or in patent claims being narrowed, invalidated or held unenforceable, in whole or in part, which could limit the duration of the
patent protection of our technology and products. As a result, our patent portfolio may not provide us with sufficient rights to exclude others from commercializing products similar or identical to ours.

In addition, other companies may attempt to circumvent any regulatory data protection or market exclusivity that we obtain under applicable
legislation, which may require us to allocate significant resources to preventing such circumvention. Such developments could enable other companies to circumvent our intellectual property rights and use our clinical trial data to obtain marketing
authorizations in the EU, Australia and in other jurisdictions. Such developments may also require us to allocate significant resources to prevent other companies from circumventing or violating our intellectual property rights.

Our attempts to prevent third parties from circumventing our intellectual property and other rights may ultimately be unsuccessful. We may
also fail to take the required actions or pay the necessary fees to maintain our patents.

Intellectual property rights of third parties could
adversely affect our ability to commercialize our products, such that we could be required to litigate with or obtain licenses from third parties in order to develop or market our products. Such litigation or licenses could be costly or not
available on commercially reasonable terms.

Our commercial success may somewhat depend upon our future ability and the ability of our
potential collaborators to develop, manufacture, market and sell our product candidates without infringing valid intellectual property rights of third parties.

If a third-party intellectual property right exists that requires the pursuit of litigation or administrative proceedings to nullify or
invalidate the third-party intellectual property right concerned, or enter into a license agreement with the intellectual property right holder, which may not be available on commercially reasonable terms, if at all.

Third-party intellectual property right holders, including our competitors, may bring infringement claims against us. We may not be able to
successfully settle or otherwise resolve such infringement claims. If we are unable to successfully settle future claims or otherwise resolve such claims on terms acceptable to us, we may be required to engage in or continue costly, unpredictable
and time-consuming litigation and may be prevented from, or experience substantial delays in, marketing our product candidate.

If we fail
to settle or otherwise resolve any such dispute, in addition to being forced to pay damages, we or our potential collaborators may be prohibited from commercializing any product candidates we may develop that are held to be infringing, for the
duration of the patent term. We might, if possible, also be forced to redesign our formulations so that we no longer infringe such third-party intellectual property rights. Any of these events, even if we were ultimately to prevail, could require us
to divert substantial financial and management resources that we would otherwise be able to devote to our business.

To mitigate this
risk, we have a patent strategy and monopoly around many of the technical areas we operate in with little room for others to achieve freedom to operate. From time to time we engage the advice of patent counsel to conduct checks on the freedom to
operate position of our business with respect to claims protecting our product development candidates and our clinical and manufacturing strategies.



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We may become involved in lawsuits to protect and defend our patents or other intellectual property, which
could be expensive, time consuming and unsuccessful.

Competitors may infringe our patents or other intellectual property and we may
inadvertently infringe the patent or intellectual property of others. To counter infringement or unauthorized use, we may be required to file claims, and any related litigation and/or prosecution of such claims can be expensive and time consuming.
Any claims we assert against perceived infringers could provoke these parties to assert counterclaims against us alleging that we infringe their intellectual property. In addition, in a patent infringement proceeding, a court may decide that a
patent of ours is invalid in whole or in part, unenforceable, or construe the patents claims narrowly allowing the other party to commercialize competing products on the grounds that our patents do not cover such products.

Even if resolved in our favor, litigation or other legal proceedings relating to intellectual property claims may cause us to incur
significant expenses and could distract our technical and management personnel from their normal responsibilities. Such litigation or proceedings could substantially increase our operating losses and reduce our resources available for development
activities. We may not have sufficient financial or other resources to adequately conduct such litigation or proceedings. Some of our competitors may be able to sustain the costs of such litigation or proceedings more effectively than we can because
of their substantially greater financial resources. The effects of patent litigation or other proceedings could therefore have a material adverse effect on our ability to compete in the marketplace.

Confidentiality and invention assignment agreements with our employees, advisors and consultants may not adequately prevent disclosure of trade secrets and
protect other proprietary information.

We consider proprietary trade secrets and/or confidential know-how and unpatented know-how to
be important to our business. We may rely on trade secrets and/or confidential know-how to protect our technology, especially where patent protection is believed by us to be of limited value. However, trade secrets and/or confidential know-how can
be difficult to maintain as confidential.

To protect this type of information against disclosure or appropriation by competitors, our
policy is to require our employees, advisors and consultants to enter into confidentiality and invention assignment agreements with us. However, current or former employees, advisors and consultants may unintentionally or willfully disclose our
confidential information to competitors, and confidentiality and invention assignment agreements may not provide an adequate remedy in the event of unauthorized disclosure of confidential information. Enforcing a claim that a third-party obtained
illegally and is using trade secrets and/or confidential know-how is expensive, time consuming and unpredictable. The enforceability of confidentiality and invention assignment agreements may vary from jurisdiction to jurisdiction.

Failure to obtain or maintain trade secrets and/or confidential know-how trade protection could adversely affect our competitive position.
Moreover, our competitors may independently develop substantially equivalent proprietary information and may even apply for patent protection in respect of the same. If successful in obtaining such patent protection, our competitors could limit our
use of our trade secrets and/or confidential know-how.

Intellectual property rights do not address all potential threats to our competitive advantage.

The degree of future protection afforded by our intellectual property rights is uncertain because intellectual property rights have
limitations, and may not adequately protect our business, or permit us to maintain our competitive advantage. The following examples are illustrative:



| |  |  | Others may be able to make products that are similar to IMP321 but that are not covered by our intellectual property rights.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------



| |  |  | Others may independently develop similar or alternative technologies or otherwise circumvent any of our technologies without infringing our intellectual property rights.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | We or any of our collaboration partners might not have been the first to conceive and reduce to practice the inventions covered by the patents or patent applications that we own, license or will own or license.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | We or any of our collaboration partners might not have been the first to file patent applications covering certain of the patents or patent applications that we or they own or have obtained a license, or will own or
will have obtained a license.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | It is possible that any pending patent applications that we have filed, or will file, will not lead to issued patents.
| | - |  | ----------------------------------------------------------------------------------------------------------------------



| |  |  | Issued patents that we own may not provide us with any competitive advantage, or may be held invalid or unenforceable, as a result of legal challenges by our competitors.
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| |  |  | Our competitors might conduct research and development activities in countries where we do not have patent rights, or in countries where research and development safe harbor laws exist, and then use the information
learned from such activities to develop competitive products for sale in our major commercial markets.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Ownership of our patents or patent applications may be challenged by third parties.
| | - |  | -----------------------------------------------------------------------------------



| |  |  | The patents of third parties or pending or future applications of third parties, if issued, may have an adverse effect on our business.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------

Changes in patent laws or patent jurisprudence could diminish the value of patents in general, thereby impairing our ability to protect our products or
product candidate.

As is the case with other biopharmaceutical companies, our success is heavily dependent on intellectual property,
particularly patents. Obtaining and exploiting patents in the biopharmaceutical industry involve both technological and legal complexity. Therefore, obtaining and exploiting biopharmaceutical patents is costly, time-consuming and inherently
uncertain. The U.S. Supreme Court has ruled on several patent cases in recent years, either narrowing the scope of patent protection available in certain circumstances or weakening the rights of patent owners in certain situations. Such examples
include:



| |  |  | Nautilus, Inc. v. Biosig Instruments, Inc. (2014), where the Court imposed a stricter requirement for clarity of claim language than previously applied by the Federal Circuit, thereby making it easier to invalidate
patents for insufficiently apprising the public of the scope of the invention.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Limelight Networks, Inc. v. Akamai Technologies, Inc. (2014), where the Court articulated a standard for inducement of infringement that makes it more difficult to establish liability for inducing infringement of a
multi-step method claim that is performed by multiple parties.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Association for Molecular Pathology v. Myriad Genetics, Inc. (2013), where the Court held that isolated naturally-occurring DNA is patent ineligible subject matter.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | KSR v. Teleflex (2007), where the Court decided unanimously that the Federal Circuit Court had been wrong in taking a narrow view of when an invention is obvious and thus cannot be patented.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | EBay Inc. v. MercExchange, LLC (2006), where the Court heightened the standard for an injunction after a finding of patent infringement.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Merck KGgA v. Integra Lifesciences (2004), where the Court adopted an expansive interpretation of the activities associated with regulatory approval exempt from patent infringement.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In addition, the America Invents Act, or AIA, has been recently enacted in the United States, resulting in significant changes to the U.S.
patent system. In addition to increasing uncertainty with regard to our ability to obtain patents in the future, the combination of the U.S. Supreme Court decisions and AIA has created uncertainty with respect to the value of patents, once obtained.
A few highlights of changes to U.S. patent law under the AIA are:



| |  |  | Under the AIA, a patent is awarded to the first-inventor-to-file rather than the first to invent.
| | - |  | ---------------------------------------------------------------------------------------------------



| |  |  | There is a new definition of prior art which removes geographic and language boundaries found in the pre-AIA law. At the same time, certain categories of secret prior art have been eliminated.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The AIA introduced new procedures for challenging the validity of issued patents: post-grant review and inter partes review.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------



| |  |  | Patent owners under the AIA may now request supplemental examination of a patent to consider, reconsider, or correct information believed to be relevant to the patent.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The AIA allows third parties to submit any patent, published application, or publication relevant to examination of a pending patent application with a concise explanation for inclusion during prosecution of the patent
application.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The first-inventor-to-file system and the new definitions of prior art apply to U.S. patent
applications with claims having an effective filing date on or after March 16, 2013. Until at least 2034, patent practice will involve both pre-AIA and AIA laws.



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Depending on decisions by the U.S. Congress, the federal courts, and the USPTO, the laws and
regulations governing patents could change in unpredictable ways that could weaken our ability to obtain new patents or to exploit our existing patents and patents that we might obtain in the future. Similarly, the complexity and uncertainty of
European patent laws has also increased in recent years. In addition, the European patent system is relatively stringent in the type of amendments that are allowed during prosecution. Changes in patent law or patent jurisprudence could limit our
ability to obtain new patents in the future that may be important for our business.

We may face difficulties with protecting our intellectual property
in certain jurisdictions, which may diminish the value of our intellectual property rights in those jurisdictions.

The laws of some
jurisdictions do not protect intellectual property rights to the same extent as the laws in the U.S. and the EU, and many companies have encountered significant difficulties in protecting and defending such rights in such jurisdictions. If we or our
collaboration partners encounter difficulties in protecting, or are otherwise precluded from effectively protecting, the intellectual property rights important for our business in such jurisdictions, the value of these rights may be diminished and
we may face additional competition from others in those jurisdictions.

Some countries in Europe and China have compulsory licensing laws
under which a patent owner may be compelled to grant licenses to third parties. In addition, many countries limit the enforceability of patents against government agencies or government contractors. In these countries, the patent owner may have
limited remedies, which could materially diminish the value of such patent. If we or any of our licensors is forced to grant a license to third parties with respect to any patents relevant to our business, our competitive position or commercial
advantage may be impaired and our business and results of operations may be adversely affected.

Risks Relating to Our Securities

Our stock price is volatile and could decline significantly.

The market price of our ordinary shares historically has been, and we expect will continue to be, subject to significant fluctuations over
short periods of time. These fluctuations may be due to factors specific to us, to changes in analysts recommendations and earnings estimates, to arbitrage between our Australian listed shares and our ADSs, to changes in exchange rates, or to
factors affecting the biopharmaceutical industry or the securities markets in general. Market fluctuations, as well as general political and economic conditions, such as a recession, interest rate or currency fluctuations, could adversely affect the
market price of our securities.

For example, during the last two fiscal years, the market price for our ordinary shares on the Australian
Securities Exchange has ranged from as low as A$0.02 to a high of A$0.19. We may experience a material decline in the market price of our shares, regardless of our operating performance. Therefore, a holder of our ordinary shares or ADSs may not be
able to sell those ordinary shares or ADSs at or above the price paid by such holder for such shares or ADSs. Price declines in our ordinary shares or ADSs could result from a variety of factors, including many outside our control. These factors
include:



| |  |  | the results of pre-clinical testing and clinical trials by us and our competitors;
| | - |  | ----------------------------------------------------------------------------------



| |  |  | unforeseen safety issues or adverse side effects resulting from the clinical trials or the commercial use of our product candidate;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------



| |  |  | regulatory actions in respect of any of our products or the products of any of our competitors;
| | - |  | -----------------------------------------------------------------------------------------------



| |  |  | announcements of the introduction of new products by us or our competitors;
| | - |  | ---------------------------------------------------------------------------



| |  |  | market conditions, including market conditions in the pharmaceutical and biotechnology sectors;
| | - |  | -----------------------------------------------------------------------------------------------



| |  |  | increases in our costs or decreases in our revenues due to unfavorable movements in foreign currency exchange rates;
| | - |  | --------------------------------------------------------------------------------------------------------------------



| |  |  | developments or litigation concerning patents, licenses and other intellectual property rights;
| | - |  | -----------------------------------------------------------------------------------------------



| |  |  | litigation or public concern about the safety of our potential products;
| | - |  | ------------------------------------------------------------------------



| |  |  | changes in recommendations or earnings estimates by securities analysts;
| | - |  | ------------------------------------------------------------------------



| |  |  | actual and anticipated fluctuations in our quarterly operating results;
| | - |  | -----------------------------------------------------------------------



| |  |  | deviations in our operating results from the estimates of securities analysts;
| | - |  | ------------------------------------------------------------------------------



| |  |  | rumors relating to us or our competitors;
| | - |  | -----------------------------------------



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| |  |  | additions or departures of key personnel;
| | - |  | -----------------------------------------



| |  |  | changes in third-party reimbursement policies; and
| | - |  | --------------------------------------------------



| |  |  | developments concerning current or future strategic alliances or acquisitions.
| | - |  | ------------------------------------------------------------------------------

Our ordinary shares may be
considered a penny stock under SEC regulations which could adversely affect the willingness of investors to hold our ADSs.

The SEC has adopted regulations which generally define penny stock to be an equity security that has a market price of less than
$5.00 per share, subject to specific exemptions. During the fiscal year ended June 30, 2016, our ordinary shares traded on the ASX from a low of A$0.04 to a high of A$0.09 per share. During the fiscal year ended June 30, 2015, our ordinary
shares traded on the ASX from low of A$0.02 to a high of A$0.19 per share. Penny stock rules impose additional sales practice requirements on broker-dealers who sell to persons other than established customers and accredited investors.
The term accredited investor refers generally to institutions with assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouse in each
of the prior two years.

The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from
the rules, to deliver a standardized risk disclosure document in a form prepared by the SEC, which provides (a) contains a description of the nature and level of risk in the market for penny stocks in both public offerings and secondary
trading; (b) contains a description of the brokers or dealers duties to the customer and of the rights and remedies available to the customer with respect to a violation of such duties or other requirements of the securities laws;
(c) contains a brief, clear, narrative description of a dealer market, including bid and ask prices for penny stocks and the significance of the spread between the bid and ask price; (d) contains a toll-free telephone number for inquiries
on disciplinary actions; (e) defines significant terms in the disclosure document or in the conduct of trading in penny stocks; and (f) contains such other information and is in such form, including language, type size and format, as the
SEC shall require by rule or regulation.

The broker-dealer also must provide, prior to effecting any transaction in a penny stock, the
customer with (a) bid and offer quotations for the penny stock; (b) the compensation of the broker-dealer and its salesperson in the transaction; (c) the number of shares to which such bid and ask prices apply, or other comparable
information relating to the depth and liquidity of the market for such stock; and (d) a monthly account statement showing the market value of each penny stock held in the customers account.

In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from those rules, the
broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchasers written acknowledgment of the receipt of a risk disclosure statement, a written agreement as to
transactions involving penny stocks, and a signed and dated copy of a written suitability statement.

These disclosure requirements may
have the effect of reducing the trading activity for our common stock. Therefore, stockholders may have difficulty selling our securities.

In addition, the low trading price of our ordinary shares may adversely affect the willingness of investors to hold our ADSs.

We may be a passive foreign investment company (PFIC) which would subject our U.S. investors to adverse tax rules.

Holders of our ADSs who are U.S. residents face income tax risks. There is a substantial risk that we are currently a passive foreign
investment company, or PFIC, which could result in a reduction in the after-tax return to a U.S. Holder of our ADRs and reduce the value of our ADSs. For U.S. federal income tax purposes, we will be classified as a PFIC for any taxable
year in which (i) 75% or more of our gross income is passive income, or (ii) at least 50% of the average value of all of our assets for the taxable year produce or are held for the production of passive income. For this purpose, cash is
considered to be an asset that produces passive income.

The determination of whether we are a PFIC is made on an annual basis and depends
on the composition of our income and the value of our assets. Therefore, it is possible that we could be a PFIC in the current year as well as in future years. If we are classified as a PFIC in any year that a U.S. Holder owns ADSs, the U.S. Holder
will generally continue to be treated as holding ADSs of a PFIC in all subsequent years, notwithstanding that we are not classified as a PFIC in a subsequent year. Dividends received by the U.S. Holder and gains realized from the sale of our ADSs
would be taxed as ordinary income and subject to an interest charge. We urge U.S. investors to consult their own tax advisors about the application of the PFIC rules and certain elections that may help to minimize adverse U.S. federal income tax
consequences in their particular circumstances.



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We have never paid a dividend and we do not intend to pay dividends in the foreseeable future which means that
holders of shares and ADSs may not receive any return on their investment from dividends.

To date, we have not declared or paid any
cash dividends on our ordinary shares and currently intend to retain any future earnings for funding growth. We do not anticipate paying any dividends in the foreseeable future. Dividends may only be paid out of our profits. Payment of cash
dividends, if any, in the future will be at the discretion of our board of directors. Our holders of shares and ADSs may not receive any return on their investment from dividends. The success of your investment will likely depend entirely upon any
future appreciation of the market price of our ordinary shares, which is uncertain and unpredictable. There is no guarantee that our ordinary shares will appreciate in value or even maintain the price at which you purchased your ordinary shares.

Currency fluctuations may adversely affect the price of the ADSs relative to the price of our ordinary shares.

The price of our ordinary shares is quoted in Australian dollars and the price of our ADSs will be quoted in U.S. dollars. Movements in the
Australian dollar/U.S. dollar exchange rate may adversely affect the U.S. dollar price of our ADSs and the U.S. dollar equivalent of the price of our ordinary shares. In the last two years, the Australian dollar has as a general trend depreciated
against the U.S. dollar. Any continuation of this trend may positively affect the U.S. dollar price of our ADSs and the U.S. dollar equivalent of the price of our ordinary shares, even if the price of our ordinary shares in Australian dollars
increases or remains unchanged. However, this trend may not continue and may be reversed. If the Australian dollar weakens against the U.S. dollar, the U.S. dollar price of the ADSs could decline, even if the price of our ordinary shares in
Australian dollars increases or remains unchanged.

The requirements of being a public company may strain our resources and divert managements
attention and if we are unable to maintain effective internal control over financial reporting in the future, the accuracy and timeliness of our financial reporting may be adversely affected.

As a publicly-traded company, we are subject to the reporting requirements of the U.S. Securities Exchange Act of 1934, as amended (the
Exchange Act), the Sarbanes-Oxley Act, the Dodd-Frank Act, the listing requirements of the NASDAQ Global Market and other applicable securities rules and regulations. Compliance with these rules and regulations will increase our legal and financial
compliance costs, make some activities more difficult, time-consuming or costly and increase demand on our systems and resources. The Exchange Act requires, among other things, that we file certain reports with respect to our business and results of
operations. The Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure controls and procedures and internal control over financial reporting. In order to maintain and, if required, improve our disclosure controls and
procedures and internal control over financial reporting to meet this standard, significant resources and management oversight are required. As a result, managements attention may be diverted from other business concerns, which could adversely
affect our business and results of operations.

The Sarbanes-Oxley Act requires, among other things, that we assess the effectiveness of
our internal control over financial reporting annually and disclosure controls and procedures quarterly. In particular, beginning with fiscal year ended on June 30, 2013, we have performed system and process evaluation and testing of our
internal control over financial reporting to allow our management to report on the effectiveness of our internal control over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act. We have in prior fiscal years identified
material weaknesses that have been remediated. If we identify material weaknesses in future periods or we are not able to comply with the requirements of Section 404 in a timely manner, our reported financial results could be restated, we could
be subject to investigations or sanctions by regulatory authorities, which would require additional financial and management resources, and the market price of our stock could decline.

Our ordinary shares are listed and traded on the ASX and NASDAQ and on Over The Counter markets within Germany. Price levels for our ordinary
shares could fluctuate significantly on either market, independent of our share price on the other market. Investors could seek to sell or buy our shares to take advantage of any price differences between the three markets through a practice
referred to as arbitrage. Any arbitrage activity could create unexpected volatility in our share prices on either exchange and the volumes of shares available for trading on either exchange. In addition, holders of shares in either jurisdiction will
not be immediately able to transfer such shares for trading on the other markets without effecting necessary procedures with our transfer agent. This could result in time delays and additional cost for our shareholders. Further, if we are unable to
continue to meet the regulatory requirements for listing on the ASX and NASDAQ, we may lose our listing on any of these exchanges, which could impair the liquidity of our shares.



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Risks Relating to Our Location in Australia

Currency fluctuations may expose us to increased costs and revenue decreases.

Our business is affected by fluctuations in foreign exchange rates. Currency fluctuations could, therefore, cause our costs to increase and
revenues to decline. Our expenses will be denominated in Australian dollars, U.S. dollars and European euro. Last year, the Australian dollar has, as a general trend, depreciated against the U.S. dollar and European euro, whereas two years ago, the
Australian dollar had appreciated against the U.S. dollar and European Euro. We conduct clinical trials in many different countries and we have manufacturing of our product candidate undertaken outside of Australia, which exposes us to potential
cost increases resulting from fluctuations in exchange rates. In fiscal 2016, we made foreign exchange losses as a result of currency fluctuations of A$0.6 million. In fiscal 2015, we made foreign exchange gains as a result of currency fluctuations
of A$0.5 million. In fiscal 2014 our foreign exchange gain was A$0.4 million.

Australian takeovers laws may discourage takeover offers being made for
us or may discourage the acquisition of large numbers of our shares.

We are incorporated in Australia and are subject to the
takeovers laws of Australia. Amongst other things, we are subject to the Corporations Act 2001 (Commonwealth of Australia). Subject to a range of exceptions, the Corporations Act prohibits the acquisition of a direct or indirect interest in our
issued voting shares (including through the acquisition of ADSs) if the acquisition of that interest will lead to a persons or someone elses voting power in us increasing from 20% or below to more than 20%, or increasing from a starting
point that is above 20% and below 90%. Exceptions to the general prohibition include circumstances where the person makes a formal takeover bid for us, if the person obtains shareholder approval for the acquisition or if the person acquires less
than 3% of the voting power of us in any rolling six month period. Australian takeovers laws may discourage takeover offers being made for us or may discourage the acquisition of large numbers of our shares.

Rights as a holder of ordinary shares are governed by Australian law and our Constitution and differ from the rights of shareholders under U.S. law.
Holders of our ordinary shares or ADSs may have difficulty in effecting service of process in the United States or enforcing judgments obtained in the United States.

We are a public company incorporated under the laws of Australia. Therefore, the rights of holders of our ordinary shares are governed by
Australian law and our Constitution. These rights differ from the typical rights of shareholders in U.S. corporations. The rights of holders of ADSs are affected by Australian law and our Constitution but are governed by U.S. law. Circumstances that
under U.S. law may entitle a shareholder in a U.S. company to claim damages may also give rise to a cause of action under Australian law entitling a shareholder in an Australian company to claim damages. However, this will not always be the case.
Holders of our ordinary shares or ADSs may have difficulties enforcing, in actions brought in courts in jurisdictions located outside the U.S., liabilities under U.S. securities laws. In particular, if such a holder sought to bring proceedings in
Australia based on U.S. securities laws, the Australian court might consider:



| |  |  | that it did not have jurisdiction; and/or
| | - |  | -----------------------------------------



| |  |  | that it was not an appropriate forum for such proceedings; and/or
| | - |  | -----------------------------------------------------------------



| |  |  | that, applying Australian conflict of laws rule, U.S. law (including U.S. securities laws) did not apply to the relationship between holders of our ordinary shares or ADSs and us or our directors and officers; and/or
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | that the U.S. securities laws were of a public or penal nature and should not be enforced by the Australian court.
| | - |  | ------------------------------------------------------------------------------------------------------------------

Holders of our ordinary shares and ADSs may also have difficulties enforcing in courts outside the U.S. judgments obtained in the U.S. courts
against any of our directors and executive officers or us, including actions under the civil liability provisions of the U.S. securities laws.

As a foreign private issuer whose shares are listed on the NASDAQ Global Market, we may follow certain home country corporate governance
practices instead of certain NASDAQ requirements.

As a foreign private issuer whose shares are listed on the NASDAQ Global Market, we
are permitted to follow certain home country corporate governance practices instead of certain requirements of The NASDAQ Marketplace Rules. As an Australian company listed on the NASDAQ Global Market, we may follow home country practice with regard
to, among other things, the composition of the board of directors, director nomination process, compensation of officers and quorum at shareholders meetings. In addition, we may follow Australian law instead of the NASDAQ Marketplace Rules
that require that we obtain shareholder approval for certain dilutive events, such as for the establishment or amendment of certain equity based compensation plans, an issuance that will result in a change of control of the company, certain
transactions other than a public offering involving issuances of a 20% or more interest in the company and certain acquisitions of the stock or assets of another company. As a foreign private issuer that has



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elected to follow a home country practice instead of NASDAQ requirements, we have submitted to NASDAQ a written statement from our independent counsel certifying that our practices are not
prohibited by Australian laws. In addition, a foreign private issuer must disclose in Annual Reports filed with the U.S. Securities and Exchange Commission each such requirement that it does not follow and describe the home country practice followed
by the issuer instead of any such requirement. Accordingly, our shareholders may not be afforded the same protection as provided under NASDAQs corporate governance rules. Please see Item 6. Directors, Senior Management and
EmployeesC. Board Practices for further information.

Risks Related to an Investment in Our ADSs

Our ADS holders are not shareholders and do not have shareholder rights.

The Bank of New York Mellon, as depositary, registers and delivers our American Depositary Shares, or ADSs. Our ADS holders will notbe
treated as shareholders and do not have the rights of shareholders. The depositary will be the holder of the shares underlying our ADSs. Holders of our ADSs will have ADS holder rights. A deposit agreement among us, the depositary and our ADS
holders, and the beneficial owners of ADSs, sets out ADS holder rights as well as the rights and obligations of the depositary. New York law governs the deposit agreement and the ADSs. For a description of ADS holder rights, see Item 12.
Description of Securities Other than Equity SecuritiesD. American Depositary Shares. Our shareholders have shareholder rights. Australian law and our constitution govern shareholder rights. For a description of our shareholders
rights, see Item 10. Additional InformationB. Memorandum and Articles of Association. Our ADS holders do not have the same voting rights as our shareholders. Shareholders are entitled to our notices of general meetings and to
attend and vote at our general meetings of shareholders. At a general meeting, every shareholder present (in person or by proxy, attorney or representative) and entitled to vote has one vote on a show of hands. Every shareholder present (in person
or by proxy, attorney or representative) and entitled to vote has one vote per fully paid ordinary share on a poll. This is subject to any other rights or restrictions which may be attached to any shares. ADS holders may exercise voting rights with
respect to the underlying ordinary shares only in accordance with the provisions of the deposit agreement. Under the deposit agreement, ADS holders vote by giving voting instructions to the depositary. Upon receipt of instructions, the depositary
will try to vote in accordance with those instructions. Otherwise, ADS holders will not be able to vote unless they withdraw the ordinary shares underlying their ADSs. ADS holders may not learn of ordinary shareholders meetings in time to
instruct the depositary or withdraw underlying ordinary shares. If we ask for our ADS holders instructions, the depositary will notify our ADS holders of the upcoming vote and arrange to deliver our voting materials and form of notice to them.
The depositary will try, as far as practical, subject to Australian law and the provisions of the depositary agreement, to vote the shares as our ADS holders instruct. The depositary will not vote or attempt to exercise the right to vote other than
in accordance with the instructions of the ADS holders. We cannot assure our ADS holders that they will receive the voting materials in time to ensure that they can instruct the depositary to vote their shares. This means that there is a risk that
our ADS holders may not be able to exercise voting rights and there may be nothing they can do if their shares are not voted as they requested.

Our
ADS holders do not have the same rights to receive dividends or other distributions as our shareholders.

Subject to any special
rights or restrictions attached to a share, the directors may determine that a dividend will be payable on a share and fix the amount, the time for payment and the method for payment (although we have never declared or paid any cash dividends on our
ordinary stock and we do not anticipate paying any cash dividends in the foreseeable future). Dividends may be paid on shares of one class but not another and at different rates for different classes. Dividends and other distributions payable to our
shareholders with respect to our ordinary shares generally will be payable directly to them. Any dividends or distributions payable with respect to ordinary shares will be paid to the depositary, which has agreed to pay to our ADS holders the cash
dividends or other distributions it or the custodian receives on shares or other deposited securities, after deducting its fees and expenses. Our ADS holders will receive these distributions in proportion to the number of shares their ADSs
represent. In addition, there may be certain circumstances in which the depositary may not pay to our ADS holders amounts distributed by us as a dividend or distribution.

There are circumstances where it may be unlawful or impractical to make distributions to the holders of our ADSs.

The deposit agreement with the depositary generally requires the depositary to convert foreign currency it receives in respect of deposited
securities into U.S. dollars and distribute the U.S. dollars to ADS holders, provided the depositary can do so on a reasonable basis. If it does not convert foreign currency, the depositary may distribute the foreign currency only to those ADS
holders to whom it is possible to do so. If a distribution is payable by us in Australian dollars, the depositary will hold the foreign currency it cannot convert for the account of the ADS holders who have not been paid. It will not invest the
foreign currency and it will not be liable for any interest. If the exchange rates fluctuate during a time when the depositary cannot convert the foreign currency, our ADS holders may lose some of the value of the distribution. The depositary is not
responsible if it decides that it is unlawful or impractical to make a distribution available to any ADS holders. This means that our ADS holders may not receive the distributions we make on our shares or any value for them if it is illegal or
impractical for us to make them available.



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Nasdaq may delist our ADSs from trading on the exchange which could limit investors ability to make
transactions in our ADSs and subject us to additional trading restrictions.

We may in the future fail to comply with the Nasdaq
Global Market regulations and listing requirements as to minimum stockholders equity, minimum market value, minimum total assets and revenue, minimum bid price, minimum public float and other requirements (the Nasdaq Listing
Requirements), and as a result Nasdaq may initiate procedures to delist our ordinary shares from the Nasdaq Global Market.

In the past fiscal year, our ADSs have been trading in a range from $0.72 to $1.80 per share, and the longest period below $1.00 was for 38
business days from January 14, 2016 through March 9, 2016, inclusive. Under Nasdaqs Marketplace Rule 5450(a)(1) (the Rule), any company whose shares have a closing bid price less than $1.00 for 30 consecutive
business days may be subject to a delisting proceeding by Nasdaq for failure to meet the Minimum Bid Price Rule. On March 4, 2016, we announced that we received a deficiency letter from NASDAQ that we were not in compliance with NASDAQ Listing
Rule 5450(a)(1) for failing to have a bid price for our ADS of at least US$1.00 per share for the prior thirty trading days. On June 7, 2016, we announced that we received a letter from NASDAQ advising that as the bid price for our ADS had
risen above US$1.00 for the required period of time, we had regained compliance with NASDAQ Listing Rule 5450(a)(1) and the matter was closed.

However, on August 10, 2016 we announced that we received another deficiency letter from NASDAQ advising that we were again not in
compliance with Minimum Bid Price Rule. We have a period of 180-calendar days, or until February 6, 2017, to regain compliance with the Minimum Bid Price Rule. Within any time during the 180-day period the minimum closing bid price per share of
the ADSs closes at or above US$1.00 for a minimum of ten consecutive business days, NASDAQ will provide written notification to the Company that it complies with the Minimum Bid Price Rule and the matter will be closed. Primas management is
looking into various options available to the Company in order to regain compliance and maintain its continued listing on The NASDAQ Global Market.

If we fail to meet the continued listing criteria under the Rule or any of the Nasdaq Listing Requirements, our ordinary shares may be
delisted from trading on the Nasdaq Global Market.

Delisting from the Nasdaq Global Market could have an adverse effect on our business
and on the trading of our ADSs. If a delisting of our ADSs were to occur, such shares may trade in the over-the-counter market such as on the OTC Bulletin Board or on the pink sheets. The over-the-counter market is generally considered
to be a less efficient market, and this could diminish investors interest in our ADSs as well as significantly impact the price and liquidity of our ADSs. Any such delisting may also severely complicate trading of our ADSs by our shareholders,
or prevent them from re-selling their ADSs at/or above the price they paid. Furthermore, our relatively low trading volume on the Nasdaq Global Market may make it difficult for shareholders to trade ADSs or initiate any other
transactions. Delisting may also make it more difficult for us to issue additional securities or secure additional financing.



|ITEM 4. | INFORMATION ON THE COMPANY
|------- | --------------------------

A. History and Development of the Company

Our legal and commercial name is Prima BioMed Ltd. We were incorporated under the laws of the Commonwealth of Australia on
May 21, 1987.

Our registered office is located at Level 12, 95 Pitt Street, Sydney 2000 New South Wales, Australia and our telephone
number is +61 (0)2 8315 7003. Our address on the Internet is www.primabiomed.com.au. The information on, or accessible through, our website is not part of this Annual Report on Form 20-F. We have included our website address in this Annual
Report on Form 20-F solely as an inactive textual reference.

Fiscal 2015

On 8 July 2014 Prima BioMed was granted US Patent 8,771,701 from the US patent office, covering the companys CVac cancer
immunotherapy. This patent was given a term extension of almost 4 years providing for patent protection in the US for this patent until at least August 2022.



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On 9 July 2014, it was announced that Mr. Marc Voigt would replace Mr. Matthew
Lehman as the CEO of Prima BioMed. Mr. Voigt has been with Prima BioMed since 2012 as the Chief Financial Officer and Chief Business Officer and an employee of the companys German subsidiary since 2011, where he serves as a Managing
Director. The shift in focus of the operations of the company to Germany due to the SAB grant support made it more practicable for Mr. Voigt to take over as CEO. In addition, Mr Voigt has over the past three years as the head of our European
Operations, forged strong relationships within the European medical industry. During his role as CBO and CFO he has gained an excellent knowledge of both the operational and financial aspects of the business and he has a strong investment and
transactional background within the biotechnology sector. Based in Germany, he is ideally placed to assume the responsibilities as CEO.

On 2 October 2014 Prima announced the acquisition of Immutep SA, a French biotechnology company based in Paris, for US$28m in cash and
stock. Immutep brings a number of programs to Prima based on the LAG-3 immune control mechanism. Prima announced that the deal would be funded via an investment agreement with Bergen Global Opportunity Fund LP. The acquisition of Immutep was
completed on 17 December 2014.

On 2 October 2014 Prima announced the securing of a US$37.4m investment agreement with Bergen
Global Opportunity Fund LP. Under the agreement, Bergen made an initial upfront investment of US$2.5m by way of a 36-month interest-free unsecured convertible security and had the ability to invest up to US$700k per month in Primas equity over
the following 24 months after their initial investment, with the option to increase each of the monthly tranches to an amount not exceeding US$1.5m by mutual consent of Bergen and the Company.

On 6 November 2014 Prima reported that the median for Overall Survival (OS) in the second remission patients in the CVac CAN-003 study
had not been reached after 36 months, which compared favorably with a median OS for standard-of-care patients of 25.5 months. This analysis, for which the p value was 0.07, provided further evidence that CVac represented a good solution for
second-line patients.

On 15 December 2014 Prima announced that it had received regulatory approvals to commence a single-arm pilot
trial of CVac in post-resection pancreatic cancer that would recruit up to 40 patients.

On 29 December 2014 Prima received a
Notice of Bid Price Deficiency from Nasdaq, advising the company that the company had until 22 June 2015 to increase the Bid Price to over US$1.00 per ADR for a minimum of ten consecutive business days, or the ADRs would be removed
from trading on the Nasdaq Global Market. Nasdaq advised on 3 June 2015 that compliance with the Minimum Bid Price Rule had been regained.

On 20 January 2015 Prima announced that it had received A$777,000 in a cash rebate from the Australian Federal Governments R&D
tax incentive program.

On 27 January 2015 Prima announced that it has received a milestone payment from GlaxoSmithKline (GSK)
related to the first dosing in a clinical trial of GSK2831781, a monoclonal antibody for autoimmune disease.

On 27 February 2015
Prima advised that it had ceased recruitment into their outstanding CVac studies and was prioritizing development of the IMP321 compound that it had acquired with Immutep.

On 11 May 2015 Prima announced a collaboration with NEC Corporation and Yamaguchi University in Japan in which IMP321 would be used to
adjuvant a peptide vaccine that had been developed by Yamaguchi University for the treatment of hepatocellular carcinoma.

On 15 May
2015 Prima announced that Ridgeback Capital Investments LP, or Ridgeback, a US-based specialist healthcare investor, would be investing A$15m in Prima BioMed via a share placement at 1.73 cents (to raise A$1.25m) to be followed, after shareholder
approval, by a Convertible Note with a fixed conversion price of 2 cents (to raise A$13.75m). The Convertible Note was subject to shareholder approval, which was obtained on 31 July 2015. The Convertible Note has a ten-year term, accrues
interest at 3% per annum (which is payable at maturity) and is convertible at Ridgebacks election. As part of this investment, Ridgeback also received two warrants: (i) a warrant to purchase 8,475,995 ordinary shares at 2.5 cents per
share, exercisable at any time, which expires on 4 August 2025 and (ii) a warrant to purchase 371,445,231 ordinary shares at 2.37 cents per share, exercisable at any time, which expires on 4 August 2020. The share price of each
warrant is subject to standard adjustments in accordance with the ASX Listing Rules. On 27 May 2015, Ridgebacks investment was increased by another 28,000,000 shares as a result of the conversion of the convertible note held by Bergen
Global Opportunity Fund, LP, which precipitated a change in the terms of Ridgebacks subscription agreement with Prima.



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On 19 May 2015 Prima announced final Overall Survival numbers from CVacs CAN-003
study. In this analysis the median survival number for CVac second remission patients had still not been reached at 42 months, and the p value remained 0.07 when compared to 25.5 months for Standard-of-Care.

On 25 May 2015 Prima announced that it was collaborating with Database Integrations Inc on commercializing the iCAN software platform
that powers CVac.

On 29 May 2015 Prima announced that it had filed for patent protection over the use of IMP321 with checkpoint
inhibitors.

On 11 June 2015 Prima announced that it received a 226,055 rebate from the French government under Frances
Crédit dImpôt Recherche (research tax credit) scheme.

Fiscal 2016

On 29 June 2015 Prima BioMed announced a Notice of Meeting for the Extraordinary General Meeting to be held in Sydney on 31 July
2015. The EGM resolutions were in regards to the acquisition of Immutep SA, and, US-based Ridgeback Capital Investments.

On 7 July
2015 Prima BioMed received positive scientific advice from the European Medicines Agency regarding the clinical trial design for the development program of IMP321 in metastatic breast cancer.

On 7 July 2015 Prima BioMed announced a Share Purchase Plan to allow eligible shareholders to subscribe for up to A$15,000 worth of new
shares, at an issue price of 5 cents per share to raise up to A$5m. On 24 July 2015 Prima announced a successful capital raising of A$10M via the SPP.

On 31 July 2015 Prima BioMed announced the results of the 2015 Extraordinary General Meeting. All 5 Resolutions were passed.

On 4 August 2015 Prima BioMed announced the formal termination of its US$37.4m investment agreement with Bergen Global Opportunity Fund,
LP. The New York institutional investor managed by Bergen Asset Management was terminated by mutual consent. The facility was established in October 2014 in order to assist with the funding of the acquisition of Immutep SA (completed December 2014),
as well as assisting Prima through to its capital raising in May  July 2015. Upon the conclusion of the investment agreement, Bergen exercised their options, and convertible note.

On 14 August 2015 Prima BioMed announced the commencement of a milestone payment program for IMP701 from its collaboration and licensing
agreement with Novartis relating to its Phase I IMP701 LAG-3 antibody.

On 9 October 2015 Prima BioMed received a 306,000
(A$475,000) in grant funding from the European Union and the German Free State of Saxony. The grant, administered by the Saxony Development Bank, was in relation to the past development work on the CVac therapy.

On 13 October 2015 Prima BioMed raised A$1.55M via a placement of shares at A$0.05 per share to Nyenburgh Investment Partners (NYIP). The
proceeds were used to fund Primas IMP321 clinical trial program.

On 27 October 2015 Prima BioMed received approval from
Belgiums Federal Agency for Medicines and Health Products for the commencement of the AIPAC study (Phase IIb clinical study of IMP321).

On 30 October 2015 Prima BioMed announced it raised A$2.0M via an equity placement at $0.05 per ordinary share to a leading Australian
institutional investor. The proceeds were used to fund Primas IMP321 clinical trial program.

On 18 November 2015 Prima BioMed
unveiled a new study of IMP321 in Australia. The Phase I Combination Study of IMP321 + Checkpoint Inhibitor, called TACTI-mel (Two ACTive Immunotherapeutics in melanoma), is a potentially revolutionary study in
immuno-oncology by combining APC activator with an approved checkpoint inhibitor in patients with metastatic melanoma. The Human Research Ethics Committee at the Greenslopes Private Hospital in Queensland cleared the study protocol, with the first
patient expected to enter study in the first-half of 2016.



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On 26 November 2015 Prima BioMed received a $420K cash rebate from the Australian federal
governments R&D tax incentive program.

On 11 December 2015, in connection with a previously announced collaboration with
NEC Corporation and Yamaguchi University in which Primas IMP321 would be used to adjuvant a peptide vaccine that had been developed by Yamaguchi University for the treatment of hepatocellular carcinoma, Prima BioMed announced that favourable
safety data from studies conducted by NEC Corporation and Yamaguchi University has resulted in a decision to progress the vaccine into clinical research progress with a New Material Transfer Agreement. Under such new Material Transfer Agreement,
Yamaguchi University will work towards clinical research in cancer patients, which will be initiated in Japan in the first quarter of 2016.

On 2 December 2015 Prima BioMed initiated a Phase IIb study in metastatic breast cancer (AIPAC). The first clinical site was initiated in
Belgium, with the Institutional Review Board approval obtained at four clinical sites in Belgium and three sites in the Netherlands. The University Hospital Saint-Luc in Brussels was the first AIPAC trial site.

On 27 January 2016 Prima BioMed announced the initiation of the first clinical trial site for TACTI-mel, a Phase I clinical study in
melanoma using its lead compound IMP321, to be conducted in Australia. The study will evaluate safety as the primary endpoint and anti-tumour activity and the immune response to the combination as secondary endpoints.

On 28 January 2016 Prima BioMed announced the granting of a patent relating to Primas IMP731 antibody (originally developed by
Immutep): Patent number US 9,244,059 entitled Cytotoxic anti-LAG-3 monoclonal antibody and its use in the treatment or prevention of organ transplant rejection and autoimmune disease by the United States Patent and Trademark Office.

On 2 March 2015 Prima BioMed and WuXi Biologics announced that through their strategic supply partnership, Primas first-in-class
immuno-oncology product candidate IMP321 (LAG-3 Ig fusion protein),manufactured at WuXis state-of-the-art cGMP facility in China, has been dosed in a Phase IIb clinical trial in Belgium. The IMP321 clinical samples were the first biological
manufactured in China to receive regulatory approval for administration in clinical trials in Europe.

On 4 March 2016 Prima BioMed
received a NASDAQ Notice of Bid Price Deficiency for the period from January 13, 2016 through February 26, 2016. Prima was given till 29 August 2016 to increase the bid price to over US$1.00 per ADR for a minimum of ten consecutive
business days, or the ADRs would be removed from trading on the Nasdaq Global Market. Nasdaq advised on 7 June 2016 that compliance with the Minimum Bid Price Rule had been regained.

On 15 March 2016 Prima BioMed published IMP321 Safety and Immune Monitoring Data in the March 15 edition of the Clinical Cancer
Research journal. The investigator-led clinical trial in melanoma using IMP321 as an adjuvant to a therapeutic vaccine was the result of a long-standing academic collaboration between Dr. Frédéric Triebel, Primas Chief
Scientific Officer and Chief Medical Officer and scientists at the Ludwig Centre for Cancer Research at the University of Lausanne, Switzerland.

On 2 May 2016 Prima BioMed announced the granting of patent number 5908210 entitled Use of Recombinant LAG-3 or the Derivatives
thereof for Eliciting Monocyte Immune Response by the Japanese Patent Office. This patent supports the use of IMP321 as it is being used in the AIPAC trial in metastatic breast cancer.

On 12 May 2016 Prima BioMed entered into a sale and exclusive licensing agreement with Sydys Corporation to advance CVacs
immuno-oncology program and oversee its future development. The transaction was considered the best entrepreneurial solution to position CVac for clinical success and to continue the programs development without further resource
commitment from Prima. The transaction also provides the potential for considerable future milestone and royalty payments over time.

On
22 June 2016 Prima BioMed announced initial safety data from the first cohort of patients in its Phase IIb AIPAC chemo-immunotherapy clinical study of Primas lead compound, IMP321. The first six patients received 6 mg doses of IMP321 in
combination with paclitaxel, which proved to be safe and well tolerated with no drug related serious adverse events. The data also demonstrated activation of blood monocytes/dendritic cells and CD8 T cells.



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B. Business Overview

Background

Prima BioMed is striving to
become a leader in the development of immunotherapeutic products for cancer. Our key product is IMP321, which is a recombinant protein in clinical trials for the treatment of cancer. Our former lead product candidate in development was CVac,
an autologous dendritic cell based product in clinical trials for late stage epithelial ovarian cancer patients in complete remission. Prima has out-licensed the development and commercialisation of CVac to Sydys Corporation. See Item 4.
Information on the CompanyB. Business OverviewCVac Clinical Development for the Treatment of Ovarian Cancer Patients in Remission below for more information.

Operations Summary

Prima BioMed has
administrative offices in Sydney, Australia and in Germany. With the acquisition of Immutep in December 2014 we also have a small office and laboratory located in Paris for the conduct of research and development relating to the LAG-3 program, under
which we have three product candidates: IMP321, IMP701 and IMP731.

As of June 30, 2016, we employed 22 people. Our internal staff
manages finances, business development, intellectual property, investor relations, manufacturing, and clinical development. We make extensive use of outside contractors and consultants to help manage manufacturing and clinical trials.

IMP321 Clinical Development

Prima
BioMeds lead program is the development of IMP321, a recombinant protein that may be used in conjunction with chemotherapy to amplify a patients immune response. The product candidate was acquired through Prima Biomeds acquisition
of Immutep in December 2014. IMP321 may also be administered in combination with other agents and at different doses to achieve different effects on the immune system. These alternative applications of IMP321 are the subject of various clinical
programs.

Background IP supporting the development of LAG-3 products has been licensed from Merck Serono in 2002. Development milestones
and royalties are payable on earnings of LAG-3 products. Further details are provided under intellectual property section.

Prima BioMed
is developing IMP321 jointly with Eddingpharm under a licensing agreement dated May 2013 between Immutep and Eddingpharm. Eddingpharm has the exclusive development right of the IMP321 product in China, Macau and Taiwan, while the development right
in other countries is retained by Immutep. Eddingpharm has paid for the manufacture of IMP321 GMP grade material needed for the conduct of current clinical trials of IMP321. Future costs of manufacturing of IMP321 will be Primas
responsibility. Immutep will offer technical assistance to Eddingpharm to facilitate its application to register IMP321 in China, Macau and Taiwan. Eddingpharm is also required to make further milestone payments to Immutep if IMP321 achieves
specific development milestones as well as undisclosed royalties on sales. Eddingpharms co-development of IMP321 is supported by a sublicense from Immutep to the background Serono licensed IP.

In Fiscal 2016, Prima Biomed started two new clinical trials for IMP321. The first one was Active Immunotherapy PAClitaxel (AIPAC), a Phase
IIb study on IMP321s effectiveness in treating metastatic breast cancer. Meetings have taken place with the European Medicines Agency (EMA) in regard to protocol design of the AIPAC study and the EMA have shown their support of the design,
although a scientific advice is not legally binding. The primary purpose of the AIPAC trial, which will have a study group of up to 211 patients, is to determine the clinical benefit of IMP321 in terms of Progression-Free Survival as the primary
clinical endpoint in this patient population. The second of the two clinical trials was Two ACTive Immunotherapeutics in melanoma (TACTI-mel), a Phase I study on IMP321s effectiveness in enhancing immune responses to PD-1 inhibitors in
melanoma patients. The primary purpose of the TACTI-mel trial, which will have a study group of up to 24 patients, is to determine safety and dosage levels for combining the two products in future trials.

IMP731 Clinical Development

A second key
product candidate of Prima Biomed is IMP731, a depleting antibody that removes T cells involved in autoimmunity. The product candidate was acquired through Prima Biomeds acquisition of Immutep in December 2014. Immutep obtained the exclusive
intellectual property rights of IMP731 from the Institut national de la santé et de la recherche médicale (INSERM Transfert) under a commercial co-ownership and exploitation agreement dated July 2010. In return, Immutep has the
obligation to make customary milestone payments when the product achieves market authorization, plus additional minor royalty payments on sales.

The development of IMP731 has been licensed to Glaxo Smith Kline (GSK) under a license and research collaboration agreement dated December
2010 between Immutep and GSK. Under the sublicense, GSK has the exclusive development right of IMP731and will fund all the development costs and make milestone and royalty payments in the aggregate amount of up to £64 million to Immutep.



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Like Eddingpharms development of IMP321, GSKs development of IMP731 is supported by a
sublicense from Immutep that gives GSK the right to develop the product using background licensed IP from Serono.

In January 2015, Prima
collected a milestone payment by GSK for the development of GSK2831781 for a first time in human clinical trial. More information about this clinical trial can be found at www.clinicaltrials.gov by searching for NCT02195349.

IMP701 Clinical Development

The third
key product candidate of Prima Biomed is IMP701, an antagonist (blocking) antibody targeting the LAG-3 molecule with potential application in the treatment of cancer. It is designed to block the negative signal that cancerous cells may give to
cytotoxic T cells, which may stop T cells from responding to the cancer. The product candidate was acquired through Prima Biomeds acquisition of Immutep in December 2014.

The development of IMP701 has been licensed to CoStim Pharmaceuticals under an exclusive license and collaboration agreement dated September
2012 between Immutep and CoStim. Under the license, CoStim has the exclusive development right of IMP701, in consideration for the obligation to fund all the development costs and to make milestone and royalty payments to Immutep.

In February 2014, CoStim became a wholly owned subsidiary of Novartis, but the obligations of the Agreement remained with CoStim. Novartis has
been conducting pre-clinical development of IMP701, and a Phase I clinical trial started in August 2015. The number of patients in that clinical trial was increased during Fiscal 2016. More information about this clinical trial can be found at
www.clinicaltrials.gov by searching for NCT02460224.

Like Eddingpharms development of IMP321 and GSKs development of
IMP731, CoStims development of IMP701 is supported by a sublicense from Immutep that gives Co-Stim the right to develop the product using licensed technology from Serono.

Research Reagents used in the Development of LAG-3 Products

Immutep manufactures, sells and distributes research reagents used by scientists in the research of LAG-3 products. The business generates
around 100,000 per year for Immutep. Some of these reagents are manufactured by Immutep and distributed through third party distributers, while one company holds manufacturing and distribution rights. These third parties include R&D
Systems, Innoxis and Enzo.

The research reagents are manufactured based on background licensed technology from Serono. Immutep therefore
has the obligation to make royalty payments on these sales to Serono under the licensing agreement dated December 2002 between Immutep and Serono.

CVac (Clinical Development for the Treatment of Ovarian Cancer Patients in Remission)

Prior to the acquisition of Immutep, Prima BioMeds lead program was CVac the treatment of epithelial ovarian cancer patients who were in
complete second remission. This disease represents a significant unmet medical need due to the high relapse rates and high morbidity associated with the disease.

After completing a strategic review of the assets after acquiring Immutep last year, Prima BioMed decided to consolidate the CVac clinical
trial program and seek a development partner. In May 2016 Prima entered into a sale and exclusive licensing agreement with Sydys Corporation,Inc., a New York-based company that has been repurposed as a clinical stage biotechnology company in order
to develop the CVac assets. The shares of Sydys are publicly traded in the United States.

Under the terms of the agreement, Sydys
licensed Primas CVac related assets, including manufacturing protocols, clinical data from Phase I and Phase II trials, patents and know-how. Prima will also sell certain assets including some equipment and inventory to Sydys. In return, Prima
received a 9.9% equity stake in Sydys at the time of closing as consideration for the assets being transferred. Given the significant capital requirements for conducting clinical trials, no upfront payment was received. However, should CVac be
successfully commercialized, Prima could receive over A$400 million (US$293 million) in development, regulatory and commercial milestone payments payable for achievement of set commercial sales targets, in addition to low single digit royalties on
sales. As Sydys possessed no significant cash reserves at the time of the transaction and is currently a one product company, there are significant risks associated with this transaction, such as the inability of Sydys to raise sufficient funds in
order to develop and commercialize CVac.

In February 2014, Neopharm and Prima entered into an exclusive supply and manufacturing
agreement whereby Prima granted Neopharm the exclusive right to distribute the CVac product in Israel and Palestine for treatment of cancer. Prima will provide support and data for Neopharm to obtain marketing authorisation of CVac in these
territories. Upon approval, Prima will then manufacture CVac for Neopharm for treatment of patients. Prima and Neopharm will share net profits 50/50. This agreement will be transferred to Sydys as part of the completion of the exclusive licensing
agreements.



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Intellectual Property

Throughout fiscal years 2015 and 2016, Prima owned, licensed or shared a total of 15 patent families. Five patent families are licensed from
Merck Serono and cover the background LAG-3 intellectual property (refer to the following paragraph for further details). One of these Serono families expired throughout the year. Four families are jointly owned with collaborators and one of these
is licensed to GSK. The remaining families are fully owned by Immutep. The portfolio provides strong protection for the use of IMP321 and the licensed assets.

On the 9 December 2002, Ares Trading SA (a fully owned subsidiary of Serono, now Merck Serono) and Immutep SA entered into an exclusive
Licence Agreement for the development of the LAG-3 technology. The license covers use of background patents and know-how necessary for the development of certain LAG-3 products. Confidential milestones and royalties are payable to Serono while the
patent or know-how license is in force. As the license is exclusive it provides a greater level of protection to the development of LAG-3 products. The license is sub-licensable and has been sublicensed in Agreements with GSK, Co-Stim and
Eddingpharm. Improvements to the technology and new developments in intellectual property covered by the license are the property of Immutep.

CVac is protected in the major markets and a number of other countries by one patent family licensed from the Burnet Institute in Melbourne,
Australia pursuant to a novation agreement between the Burnet Institute, Prima BioMed and Cancer Vac Pty Ltd. The patents provide claims for producing dendritic cells treated with mannan fusion protein (M-FP) and reinjecting the treated cells back
into patients. This patent family has been sub-licensed to Sydys. See Item 4. Information on the CompanyB. Business OverviewCVac Clinical Development for the Treatment of Ovarian Cancer Patients in Remission above for more
information.

In addition to patent protection for all of our assets, we rely on unpatented trade secrets, know-how and other confidential
information as well as proprietary technological innovation and expertize that are protected in part by confidentiality and invention assignment agreements with our employees, advisors and consultants.

Patent matters in biotechnology are highly uncertain and involve complex legal and factual questions. The availability and breadth of claims
allowed in biotechnology and pharmaceutical patents cannot be predicted. Statutory differences in patentable subject matter may limit the protection Prima BioMed can obtain on some or all of their licensed inventions or prevent us from obtaining
patent protection either of which could harm our business, financial condition and results of operations. Since patent applications are not published until at least 18 months from their first filing date and the publication of discoveries in the
scientific literature often lags behind actual discoveries, we cannot be certain that we, or any of our licensors, were the first creator of inventions covered by pending patent applications, or that we or our licensors, were the first to file
patent applications for such inventions. Additionally, the grant and enforceability of a patent is dependent on a number of factors that may vary between jurisdictions. These factors may include the novelty of the invention, the requirement that the
invention not be obvious in the light of prior art (including prior use or publication of the invention), the utility of the invention and the extent to which the patent clearly describes the best method of working the invention. In short, this
means that claims granted in various territories may vary and thereby influence commercial outcomes.

While we have applied and will
continue to file for protection as appropriate for our therapeutic products and technologies, we cannot be certain that any future patent applications filed by the company, or licensed to us, will be approved, or that Prima BioMed will develop
additional proprietary products or processes that are patentable or that we will be able to license any other patentable products or processes. Prima BioMed cannot be certain that others will not independently develop similar products or processes,
duplicate any of the products or processes developed or being developed by the company or licensed to us, or design around the patents owned or licensed by us, or that any patents owned or licensed by us will provide us with competitive advantages.

Furthermore, we cannot be certain that patents held by third parties will not prevent the commercialization of products incorporating the
technology developed by us or licensed to us, or that third parties will not challenge or seek to narrow, invalidate or circumvent any of the issued, pending or future patents owned or licensed by us.

Our commercial success will also depend, in part, on our ability to avoid infringement of patents issued to others. If a court determines that
we were infringing any third party patents, we could be required to pay damages, alter our products or processes, obtain licenses or cease certain activities. We cannot be certain that the licenses required under patents held by third parties would
be made available on terms acceptable to us or at all. To the extent that we are unable to obtain such licenses, we could be foreclosed from the development, export, manufacture or commercialization of the product requiring such license or encounter
delays in product introductions while we attempt to design around such patents, and any of these circumstances could have a material adverse effect on our business, financial condition and results of operations. We may have to resort to litigation
to enforce any patents issued or licensed to us or to determine the scope and validity of third party proprietary rights. Such litigation could result in substantial costs and diversion of effort by us. We may have to participate in opposition
proceedings before the Australian Patent and Trademark Office or another foreign patent office, or in interference proceedings declared by the United States Patent and Trademark Office, to determine the priority of invention for patent applications
filed by competitors. Any such litigation interference or opposition proceeding, regardless of outcome, could be expensive and time consuming, and adverse determinations in any such proceedings could prevent us from developing, manufacturing or
commercializing our products and could have a material adverse effect on our business, financial condition and results of operations.



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During the course of fiscal years 2015 and 2016, the Company took action to file a trademark
application for Prima BioMed in Australia. International applications were filed in the United States, Europe, China and Japan, claiming priority from Australia. None of these applications have yet been granted. CVac is a registered trademark in
Australia, the United States, Europe, New Zealand, China, and the UAE. Immutep is a registered trademark in France. The Company owns both of these trademarks in these jurisdictions. The CVac trademark has been licensed to Sydys. See Item 4.
Information on the Company B BackgroundCVac Clinical Development for the Treatment of Ovarian Cancer Patients in Remission for more information.



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Patent Portfolio

The following table presents our portfolio of patents and patent applications, including their status (as at June 30, 2016) and title.



|                               |  |                                                                                                                                          |  |                                                                                                                                                                               |  |                           
|------------------------------ |  | ---------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------
|Patent
Family                  |  | Title                                                                                                                                    |  | Status                                                                                                                                                                        |  | Expires                   
|Family 251 (Serono)            |  | Proteins produced by human lymphocytes, DNA sequences coding these proteins and pharmaceutical and biological uses thereof               |  | Granted x2 USA                                                                                                                                                                |  | June 2015 and Feb 2016    
|Family 299 (Serono)            |  | LAG-3 protein soluble polypeptide fractions, methods of production, therapeutic composition and anti-idiotype antibody                   |  | Granted: Australia, Sth Africa, Norway, Europe, Japan, Republic of Korea, Mexico, Canada, China, Israel, Russian Federation, Singapore, USA x3                                |  | Sept 2016                 
|Family 308 (Serono)            |  | Methods for detecting, isolating and selectively labelling and targeting TH1 lymphocytes by means of LAG-3 protein                       |  | Australia, Europe, Israel, USA                                                                                                                                                |  | July 2016                 
|Family 338 (Serono)            |  | Mutants of LAG-3 proteins, products of the expression of these mutants and use                                                           |  | Granted USA                                                                                                                                                                   |  | Nov 2017                  
|Family 356 (Serono)            |  | Use of MHC Class II ligands as adjuvant for vaccination and of LAG-3 in cancer treatment                                                 |  | Granted Europe x2, Canada x2, Israel, Japan, Republic of Korea, Singapore, Australia, China, Hong Kong, Mexico, USA x 2                                                       |  | Sept 2018                 
|Family 400 (IGRD and Paris XI) |  | Molecules binding to Glu-Pro motifs, therapeutical compositions containing them and their applications                                   |  | Granted Europe                                                                                                                                                                |  | 2021                      
|Family 500 (Immutep)           |  | Vaccine composition comprising a class II MHC ligand couples with an antigen, method for the preparation and the use thereof             |  | Granted Canada, Europe, Japan, USA(pending)                                                                                                                                   |  | 2025                      
|Family 550 (Joint with INSERM) |  | Cytotoxic anti-LAG-3 monoclonal antibody and its use in the treatment or prevention of organ transplant rejection and autoimmune disease |  | Pending Canada, China, Europe, Japan, Granted
USA                                                                                                                             |  | 2028                      
|Family 600 (Immutep)           |  | Compositions containing LAG-3 and cells that secrete GM-CSF and the methods of use                                                       |  | Granted USA                                                                                                                                                                   |  | 2028                      
|Family 650                     |  | Use of recombinant LAG-3 or the derivatives thereof for eliciting monocyte immune response                                               |  | Pending China, Europe (x4), Japan (x1), USA
Granted Australia, Europe and Japan                                                                                               |  | 2028                      
|Family 660                     |  | Combined preparations for the treatment of cancer                                                                                        |  | Pending PCT                                                                                                                                                                   |  | Oct 2028                  
|Family 670                     |  | Combination of IMP321 and a checkpoint inhibitor                                                                                         |  | Pending PCT                                                                                                                                                                   |  | 2034                      
|Family 700 (Novartis)          |  | Antibody molecules to LAG-3 and uses thereof                                                                                             |  | National Phase being pursued globally by Novartis                                                                                                                             |  | 2035                      
|Family 710                     |  | Undisclosed                                                                                                                              |  | Provisional Application                                                                                                                                                       |  | N/A                       
|Family 3                       |  |                                                                                                                                          |  |                                                                                                                                                                               |  |                           
|Ex vivo cell therapy           |  | Method of producing dendritic cells pulsed with MFP (family 1).                                                                          |  | Granted in Australia, Austria, Belgium, Canada, Denmark, France, Germany, Italy, Ireland, Japan (x2), Luxemburg, Spain, Sweden, Switzerland, Netherlands, Canada, USA and UK. |  | 2018
(expires 2022 in USA)



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Competition

We expect to face competition from other pharmaceutical companies and academic institutions that are developing comparable products including
LAG-3 antibodies, checkpoint activators/inhibitors, cell therapies and other cancer treatments. We believe the competitive position of Prima BioMed in the face of such competition will be driven by a number of factors including the safety and
efficacy of IMP321 compared with competitor products, the price value analysis, adoption by patients and physicians, timing of entry into the market in each indication, and the timing of regulatory approvals and influence of regulatory approvals
such as orphan designation. The need to continuously improve and optimize manufacturing costs is also expected to be crucial to remaining competitive.

Current treatments for metastatic breast cancer include chemotherapies/cytotoxics, parp inhibitors, angiogenesis inhibitors and
immunotherapies. The competitive space for checkpoint inhibitors, including LAG-3, is constantly growing. IMP321 is a first in class antigen presenting cell activator with limited direct competition. The Company believes there is significant
potential for combining an immune activator with other treatment modalities including chemotherapies and checkpoint inhibitors to achieve enhanced therapeutic success.

There are a number of companies developing antagonist LAG-3 antibodies that are more advanced than that being developed by Novartis but the
safety and efficacy of these candidates remains to be seen. As far as we are aware, there are currently no other companies developing depleting LAG-3 antibodies other than GSK

Regulatory Authorities

Our ongoing
research and development activities, production, and marketing of our pharmaceutical product is subject to regulation by numerous governmental authorities, including (i) in Australia, principally the Therapeutics Goods Administration, or TGA;
(ii) in the United States, principally the Food and Drug Administration, or FDA; and (iii) in Europe, principally the European Medicines Agency, or EMEA.

United States

Government oversight of
the pharmaceutical industry is usually classified into pre-approval and post-approval categories. Most of the therapeutically significant innovative products marketed today are the subject of New Drug Applications, or NDAs, or Biologics License
Applications, or BLAs. Preapproval activities, based on these detailed applications, are used to assure the product is safe and effective before marketing.

In the United States, The Centre for Biologics Evaluation and Research, or CBER, is the FDA organization responsible for vaccines, blood and
biologics evaluation and approval. The FDA may inspect and audit the development facilities, planned production facilities, clinical trial sites and laboratory facilities. After the product is approved and marketed, the FDA uses different mechanisms
for assuring that firms adhere to the terms and conditions of approval described in the application and that the product is manufactured in a consistent and controlled manner. This is done by periodic unannounced inspections of production and
quality control facilities by FDAs field investigators and analysts.



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Federal Food, Drug and Cosmetic Act and Public Health Service Act

Prescription drug and biologic products are subject to extensive pre- and post-market regulation by the FDA, including regulations that govern
the testing, manufacturing, safety, efficacy, labeling, storage, record keeping, advertising and promotion of such products under the Federal Food, Drug and Cosmetic Act, the Public Health Service Act, and their implementing regulations. The process
of obtaining FDA approval and achieving and maintaining compliance with applicable laws and regulations requires the expenditure of substantial time and financial resources. Failure to comply with applicable FDA or other requirements may result in
refusal to approve pending applications, a clinical hold, warning letters, civil or criminal penalties, recall or seizure of products, partial or total suspension of production or withdrawal of the product from the market. FDA approval is required
before any new drug or biologic, including a new use of a previously approved drug, can be marketed in the United States. All applications for FDA approval must contain, among other things, information relating to safety and efficacy, stability,
manufacturing, processing, packaging, labeling and quality control.

Biologic License Applications (BLAs)

The FDAs BLA approval process generally involves:



| |  |  | completion of preclinical laboratory and animal testing in compliance with the FDAs good laboratory practice, or GLP, regulations;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------



| |  |  | submission to the FDA of an IND for human clinical testing, which must become effective before human clinical trials may begin in the United States;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | performance of adequate and well-controlled human clinical trials to establish the safety, purity and potency of the proposed biologic product for each intended use;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | satisfactory completion of an FDA pre-approval inspection of the facility or facilities at which the product is manufactured to assess compliance with the FDAs cGMP regulations; and
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | submission to and approval by the FDA of a BLA.
| | - |  | -----------------------------------------------

The manufacturing and quality, as well as
preclinical and clinical testing and approval process requires substantial time, effort and financial resources, and we cannot guarantee that approval for our product candidate will be granted on a timely basis, if at all. Preclinical tests include
laboratory evaluation of toxicity and immunogenicity in animals. The results of preclinical tests, together with manufacturing information and analytical data, are submitted as part of an IND application to the FDA. In such a case, the IND sponsor
and the FDA must resolve any outstanding concerns. Further, an independent institutional review board, or IRB, covering each medical center proposing to conduct clinical trials must review and approve the plan for any clinical trial before it
commences at that center and it must monitor the study until completed. The FDA, the IRB or the sponsor may suspend a clinical trial at any time on various grounds, including a finding that the subjects or patients are being exposed to an
unacceptable health risk. Clinical testing also must satisfy extensive Good Clinical Practice, or GCP, regulations, which include requirements that all research subjects provide informed consent and that all clinical studies be conducted under the
supervision of one or more qualified investigators.

For purposes of an NDA submission and approval, human clinical trials are typically
conducted in the following sequential phases, which may overlap:



| |  |  | Phase I: Trials are initially conducted in a limited population to test the product candidate for safety and dose tolerance.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------



| |  |  | Phase II: Trials are generally conducted in a limited patient population to identify possible adverse effects and safety risks, to determine the initial efficacy of the product for specific targeted indications and to
determine dose tolerance and optimal dosage. Multiple Phase II clinical trials may be conducted by the sponsor to obtain information prior to beginning larger and more extensive Phase III clinical trials.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Phase III: These are commonly referred to as pivotal studies. When Phase II evaluations demonstrate that a dose range of the product is effective and has an acceptable safety profile, Phase III clinical trials are
undertaken in large patient populations to further evaluate dosage, to provide substantial evidence of clinical efficacy and to further test for safety in an expanded and diverse patient population at multiple, geographically-dispersed clinical
trial sites. Generally, replicate evidence of safety and effectiveness needs to be demonstrated in two adequate and well-controlled Phase III clinical trials of a product candidate for a specific indication. These studies are intended to establish
the overall risk/benefit ratio of the product and provide adequate basis for product labeling.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| |  |  | Phase IV: In some cases, the FDA may condition approval of a BLA on the sponsors agreement to conduct additional clinical trials to further assess the products safety, purity and potency after BLA approval.
Such post-approval trials are typically referred to as Phase IV clinical trials.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Progress reports detailing the results of
the clinical studies must be submitted at least annually to the FDA and safety reports must be submitted to the FDA and the investigators for serious and unexpected adverse events. Concurrent with clinical studies, sponsors usually complete
additional animal studies and must also develop additional information about the product and finalize a process for manufacturing the product in commercial quantities in accordance with cGMP requirements. The manufacturing process must be capable of
consistently producing quality batches of the product candidate and, among other things, the manufacturer must develop methods for testing the identity, strength, quality and purity of the final product. Moreover, appropriate packaging must be
selected and tested and stability studies must be conducted to demonstrate that the product candidate does not undergo unacceptable deterioration over its shelf life.

The results of product development, preclinical studies and clinical trials, along with the aforementioned manufacturing information, are
submitted to the FDA as part of a BLA. BLAs must also contain extensive manufacturing information. Under the Prescription Drug User Fee Act, or PDUFA, the FDA agrees to specific goals for BLA review time through a two-tiered classification system,
Standard Review and Priority Review. Standard Review is applied to products that offer, at most, only minor improvement over existing marketed therapies. Standard Review BLAs have a goal of being completed within a ten-month timeframe, although a
review can take a significantly longer amount of time. A Priority Review designation is given to products that offer major advances in treatment, or provide a treatment where no adequate therapy exists. A Priority Review means that the time it takes
the FDA to review a BLA is six months. It is likely that our product candidate will be granted a Standard Review. The review process is often significantly extended by FDA requests for additional information or clarification. The FDA may refer the
application to an advisory committee for review, evaluation and recommendation as to whether the application should be approved. The FDA is not bound by the recommendation of an advisory committee, but it generally follows such recommendations.

The FDA may deny approval of a BLA if the applicable regulatory criteria are not satisfied, or it may require additional clinical data or
additional pivotal Phase III clinical trials. Even if such data are submitted, the FDA may ultimately decide that the BLA does not satisfy the criteria for approval. Data from clinical trials are not always conclusive and the FDA may interpret data
differently than we do. Once issued, product approval may be withdrawn by the FDA if ongoing regulatory requirements are not met or if safety problems occur after the product reaches the market. In addition, the FDA may require testing, including
Phase IV clinical trials, Risk Evaluation and Mitigation Strategies, or REMS, and surveillance programs to monitor the effect of approved products that have been commercialized, and the FDA has the power to prevent or limit further marketing of a
product based on the results of these post-marketing programs. Products may be marketed only for the approved indications and in accordance with the provisions of the approved label. Further, if there are any modifications to the drug, including
changes in indications, labeling or manufacturing processes or facilities, approval of a new or supplemental BLA may be required, which may involve conducting additional preclinical studies and clinical trials.

Other U.S. Regulatory Requirements

After
approval, products are subject to extensive continuing regulation by the FDA, which include company obligations to manufacture products in accordance with GMP, maintain and provide to the FDA updated safety and efficacy information, report adverse
experiences with the product, keep certain records and submit periodic reports, obtain FDA approval of certain manufacturing or labeling changes and comply with FDA promotion and advertising requirements and restrictions. Failure to meet these
obligations can result in various adverse consequences, both voluntary and FDA-imposed, including product recalls, withdrawal of approval, restrictions on marketing, and the imposition of civil fines and criminal penalties against the BLA holder. In
addition, later discovery of previously unknown safety or efficacy issues may result in restrictions on the product, manufacturer or BLA holder.

We, and any manufacturers of our products, are required to comply with applicable FDA manufacturing requirements contained in the FDAs
GMP regulations. GMP regulations require, among other things, quality control and quality assurance as well as the corresponding maintenance of records and documentation. The manufacturing facilities for our products must meet GMP requirements. We,
and any third-party manufacturers, are also subject to periodic inspections of facilities by the FDA and other authorities, including procedures and operations used in the testing and manufacture of our products to assess our compliance with
applicable regulations.

With respect to post-market product advertising and promotion, the FDA imposes a number of complex regulations on
entities that advertise and promote pharmaceuticals, which include, among others, standards for direct-to-consumer advertising, promoting products for uses or in patient populations that are not described in the products approved labeling
(known as off-label use), industry-sponsored scientific and educational activities, and promotional activities involving the Internet. Failure to comply with FDA requirements can have negative consequences, including adverse publicity,
enforcement letters from the FDA, mandated corrective advertising or communications with doctors and civil or criminal penalties. Although physicians may prescribe legally available drugs for off-label uses, manufacturers may not market or promote
such off-label uses.



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Changes to some of the conditions established in an approved application, including changes in
indications, labeling, or manufacturing processes or facilities, require submission and FDA approval of a new BLA or BLA supplement before the change can be implemented. A BLA supplement for a new indication typically requires clinical data similar
to that in the original application, and the FDA uses the same procedures and actions in reviewing BLA supplements as it does in reviewing BLAs.

Adverse event reporting and submission of periodic reports is required following FDA approval of a BLA. The FDA also may require
post-marketing testing, known as Phase IV testing, risk mitigation strategies, and surveillance to monitor the effects of an approved product or place conditions on an approval that could restrict the distribution or use of the product.

European Union

In addition to
regulations in the United States, we are subject to a variety of foreign regulations governing clinical trials and commercial sales and distribution of our products. Whether or not we obtain FDA approval for a product, we must obtain approval of a
product by the comparable regulatory authorities of foreign countries before we can commence clinical trials or marketing of the product in those countries. The approval process varies from country to country and the time may be longer or shorter
than that required for FDA approval. The requirements governing the conduct of clinical trials vary greatly from country to country.

Under European Union regulatory systems, we must submit and obtain authorization for a clinical trial application in each member state in
which we intend to conduct a clinical trial. After we have completed our clinical trials, we must obtain marketing authorization before we can market our product. We may submit applications for marketing authorizations either under a centralized or
decentralized procedure. The centralized procedure provides for the grant of a single marketing authorization that is valid for all European Union member states. The decentralized procedure provides for mutual recognition of national approval
decisions. Under this procedure, the holder of a national marketing authorization may submit an application to the remaining member states. Within 90 days of receiving the applications and assessment report, each member state must decide whether to
recognize approval. If a member state objects to the approval, an arbitration process is initiated and the final decision is made by the European Commission on the basis of an opinion of the Committee for Proprietary Medicinal Products for Human
Use, or CHMP. The mutual recognition procedure may be used more than once for subsequent applications to other member states in relation to the same product candidate.

The European Medicines Agency, or EMA, is a decentralized body of the European Union located in London. The EMA is responsible for the
scientific evaluation of medicines developed by pharmaceutical companies for use in the European Union. The EMA is involved in the scientific evaluation of medicines that fall within the scope of the centralized procedure. However, other medicines
that do not fall within this scope are marketed in the European Union either in individual member states, in accordance with their national authorization procedures, or in multiple member states through the decentralized or mutual-recognition
procedures. The EMA only becomes involved in the assessment of such medicines when they have been referred to the EMA due to a disagreement between two or more member states about the authorization or use of the medicine, or due to some other issue
that requires resolution in the interest of protecting public health. Like the FDA there is a harmonization between regulators and the EMA may inspect and audit the development facilities, planned production facilities, clinical trial sites and
laboratory facilities. Additionally, after the product is approved and marketed, the EMA uses different mechanisms for assuring that firms adhere to the terms and conditions of approval described in the application and that the product is
manufactured in a consistent and controlled manner. This is done by periodic unannounced inspections of production and quality control facilities.

Australia

In Australia, the relevant
regulatory body responsible for the pharmaceutical industry is the Therapeutics Goods Administration, or TGA. As with the EMA and FDA there is a harmonization and collaboration between regulatory authorities. The CTN filing in Australia references
the US FDA IND but separately requires a TGA manufacturing authorization to permit manufacture of products in Australia.

Third-Party Payer Coverage
and Reimbursement

Although our product candidate has not been commercialized for any indication, if they are approved for marketing,
commercial success of our product candidate will depend, in part, upon the availability of coverage and reimbursement from third-party payers at the federal, state and private levels.



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Inflation and Seasonality

Management believes inflation has not had a material impact on our operations or financial condition. Management further believes that our
operations are not currently subject to seasonal influences due to our current lack of marketed products. Moreover, cancer, which is the target of our products, is not a seasonal disease. Accordingly, once we have marketed products, management does
not expect that our business will be subject to seasonal influences.

Manufacturing and Raw Materials

Prima BioMed has no manufacturing capabilities and is dependent on third parties for cost effective manufacture and manufacturing process
development of their product candidates. Problems with third party manufacturers or the manufacturing process as such may delay clinical trials and commercialization of Prima BioMeds product candidates.

Biological product candidates like CVac, IMP731, IMP701 or IMP321 usually have more complicated manufacturing procedures than chemically
produced therapies. The change of manufacturing partners, manufacturing process changes or changes of other nature could impact the product quality and affect the comparability of different product batches. A lack of comparability could
significantly impact the development timelines and could even lead to a situation where regulatory bodies require additional or new pre-clinical or clinical development.

C. Organizational Structure

Our research and development activities were initially conducted via four wholly owned Australian subsidiaries but as these activities ceased
in July 2010 we deregistered these subsidiaries. Oncomab Pty Ltd, Panvax Pty Ltd and Arthron Pty Ltd were deregistered on July 31, 2013 and Cancer Vac Pty Ltd was deregistered on 18 July 2014. Below is a list of the current subsidiaries of
Prima BioMed Ltd., including our ownership percentage, its date of formation and its jurisdiction. These subsidiaries were established to allow us to conduct commercial and clinical operations in Europe and the United States and expand our
operations in Australia.



|                               |  |           |  |                               |  |              
|------------------------------ |  | --------- |  | ----------------------------- |  | -------------
|Subsidiary                     |  | Ownership |  | Date of Formation/Acquisition |  | Jurisdiction 
|Prima BioMed USA Inc.          |  | 100%      |  | April 2010 (formed)           |  | United States
|Prima BioMed GmbH              |  | 100%      |  | September 2010 (formed)       |  | Germany      
|Prima BioMed Australia Pty Ltd |  | 100%      |  | November 2011 (formed)        |  | Australia    
|Prima BioMed IP Pty Ltd        |  | 100%      |  | November 2011 (formed)        |  | Australia    
|Immutep S.A.S                  |  | 100%      |  | December 2014 (acquired)      |  | France       

Prima BioMed Middle East FZ LLC is in the process of being dissolved as Prima ceased to conduct clinical
trials within the UAE.

D. Property, Plants and Equipment

We own computer equipment, office furniture and laboratory equipment, which is primarily placed at our own offices and laboratories.



|ITEM 4A. | UNRESOLVED STAFF COMMENTS
|-------- | -------------------------

None.



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|ITEM 5. | OPERATING AND FINANCIAL REVIEW AND PROSPECTS
|------- | --------------------------------------------

A. Operating Results

Foreign Currency Risk

The group
operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US dollar and Euro.

The group seeks to minimize potential adverse effects on the financial performance of the group. The group considers using derivative
financial instruments such as foreign exchange contracts to hedge certain risk exposures or using natural hedging. Derivatives are exclusively used for hedging purposes, i.e. not as trading or other speculative instruments. There were no derivative
financial instruments held by the company as at 30 June 2016, 30 June 2015 and 30 June 2014.

Governmental Policies

Our ongoing research and development activities, production, and marketing of our pharmaceutical product is subject to regulation by numerous
governmental authorities: (i) in Australia, principally the Therapeutics Goods Administration, or TGA; (ii) in the United States, principally the Food and Drug Administration, or FDA; and (iii) in Europe, principally the European
Medicines Agency, or EMA. Also, our ability to commercially exploit our products successfully will depend in part on the extent to which reimbursement for the cost of our products and related treatment will be available from government health
administration authorities, private health coverage insurers and other organizations.

The Australian Government tax incentive scheme
relating to eligible research and development activities is expected to provide us with significant benefits in future years. Such eligible R&D activities include but are not limited to:

a. Core activities, which are experimental activities whose outcome cannot be known or determined in advance, but can only be determined by
applying a systematic progression of work;

b. Core activities conducted for the purpose of generating new knowledge (including new
knowledge in the form of new or improved processes and materials); or

c. Supporting activities that are directly related and designed to
support the above (a) and (b).

For further information regarding governmental economic, fiscal, monetary or political policies or
factors that have materially affected, or could materially affect, our operations or our shareholders investments, see Item 3. Key Information D Risk Factors  Risks Related to Our Business,  Risks Relating to
Our Location in Australia Item 10. Additional Information  D Exchange Controls and E Taxation.

Background

Prima BioMed is a globally
active biotechnology company that is striving to become a leader in the development of immunotherapeutic products for the treatment of cancer. Prima BioMed is dedicated to leveraging its technology and expertise to bring innovative treatment options
to market for patients and to maximize value to shareholders.

Primas main pipeline of products is based on the LAG-3 immune control
mechanism which plays a vital role in the regulation of the T cell immune response. The most clinically advanced product is a T cell immunostimulatory factor (APC activator), IMP321, for cancer chemoimmunotherapy which has completed early Phase II
trials. A number of additional LAG-3 products including antibodies for immune response modulation in autoimmunity and cancer are being developed by large pharmaceutical partners.

In addition, Prima has significantly developed infrastructure for a cell-based therapy manufacturing platform and taken CVac, an
autologous dendritic cell-based product through Phase II clinical trials for ovarian cancer patients in remission. For a description of the milestones that we have achieved since inception and through June 2014, see Item 4. Information on the
CompanyA. History and Development of the Company.

Overview

We are a development stage enterprise at an early stage in the development of our product candidate. We have incurred net losses since
inception and expect to incur substantial and increasing losses for the next several years as we expand our research and development activities and move our product candidate into later stages of development. The process of carrying out the
development of our products to later stages of development may require significant additional research and development expenditures, including pre-clinical testing and clinical trials, as well as for obtaining regulatory approval. To date, we have
funded our operations primarily through the sale of equity securities, proceeds from the exercise of options, grants and interest income. For details of the business overview, see Item 4. Information on the CompanyB. Business
Overview.



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Critical Accounting Policies and Estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future
events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances.

The group makes
estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year are discussed below.

Income taxes

The group has recognized deferred tax assets of $2.42m which related to carried forward tax losses in the Immutep subsidiary acquired in
the prior year. On acquisition, the group has recognized significant amortizing IP intangibles for which there will be no corresponding tax deduction, giving rise to a future taxable temporary difference and required the recognition of a deferred
tax liability as part of the business combination accounting. The entity had previously unrecognized tax losses which management is satisfied will continue to be available to be utilized by the subsidiary after the acquisition. As such, the group
has recognized a deferred tax asset to the extent of the deferred tax liability recognized on acquisition. The group has concluded that the deferred assets will be recoverable using the estimated future taxable income based on the approved business
plans and budgets for the subsidiary.

All other remaining deferred tax assets relating to carried forward tax losses and taxable
temporary differences have not been recognised since the group is currently in a loss making position and unable to generate taxable income to utilise the carried forward tax losses and taxable temporary differences. The utilisation of the tax
losses also depends on the ability of the entity to satisfy certain tests at the time the losses are recouped. The group is subject to income taxes in Australia and jurisdictions where it has foreign operations. Significant judgement is required in
determining the worldwide provision for income taxes. There are certain transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain. The group estimates its tax liabilities
based on the groups understanding of the tax law. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred income tax assets and liabilities
in the period in which such determination is made.

Research and development

The consolidated entity has expensed all internal research and development expenditure incurred during the year as the costs relate to the
initial expenditure for research and development of biopharmaceutical products and the generation of future economic benefits is not considered probable given the current stage of development. It was considered appropriate to expense the research
and development costs as they did not meet the criteria to be capitalized under AASB 138 Intangible Assets (IAS 38).

Going concern

The Group has experienced significant recurring operating losses and negative cash flows from operating activities since its inception. As at
30 June 2016, the Group holds cash and cash equivalents of A$20,879,548, compared with A$6,759,615 as at 30 June 2015. In line with the Companys financial risk management, the directors have carefully assessed the financial and
operating implications of the above matters, including the expected cash outflows of ongoing research and development activities of the Company over the next 12 months. Based on this consideration, the directors are of the view that the Group will
be able to pay its debts as and when they fall due for at least 12 months following the date of these financial statements and that it is appropriate for the financial statements to be prepared on a going concern basis.

Monitoring and addressing the ongoing cash requirements of the Group is a key focus of the directors. This involves consideration of
alternative future capital raising initiatives and an active engagement with potential retail and institutional investors alike.



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Amortization of intellectual property

Costs incurred in acquiring intellectual property are capitalized and amortized on a straight line basis over a period not exceeding the life
of the patents, which averages 15 years. Where a patent has not been formally granted, the company estimates the life of the granted patent in accordance with the provisional application.

Costs include only those costs directly attributable to the acquisition of the intellectual property. An assets carrying amount is
written down immediately to its recoverable amount if the assets carrying amount is greater than its estimated recoverable amount (note 1(h)).

Results of Operations

Comparison of Fiscal Year Ended
June 30, 2016 to Fiscal Year Ended June 30, 2015

Revenue

The license revenue for fiscal year 2016 was A$0.2 and nil for fiscal year 2015. The increase of A$0.2 was attributable to revenue received in relation to an
out-licensing deal of one of the companys Intellectual Property assets.

Other Income

Other income decreased to A$1.9 million for fiscal year 2016 from A$2.1 million for fiscal year 2015, a decrease of A$0.2m, or 11.4%. Other
income consists of interest income, cash tax rebates, grant income, gain on foreign exchange and other miscellaneous income. The interest income for fiscal year 2016 was A$0.3 million and A$0.2 million for fiscal year 2015. The increase in interest
income in fiscal year 2016 is due to an increase in the level of cash held on term deposits and a decrease in interest rates on term deposits. Income from cash tax rebates and grant income from the Saxony Development Bank related to eligible
research and development expenditures consists of A$0.9 million and A$1.2 million for fiscal year 2016 and fiscal year 2015, respectively. The decrease of A$0.3 million was attributable to the reduction in the Research & Development
expenditure in fiscal year 2016 compared to fiscal year 2015. No foreign exchange gain was recognized in 2016 compared to a gain of A$0.5 million for fiscal year 2015, which was driven by the impact of changes in our U.S. and Euro cash holdings
compared to the prior year.

Research & Development and Intellectual Property Expenses

Research and development and intellectual property expenses decreased to A$7.1 million for fiscal year 2016 from A$9.0 million for fiscal year
2015, a decrease of A$1.9 million, or 21%. The decrease in research and development and intellectual property expenses in the fiscal year 2016 was due to the initiation of the two new clinical trials AIPAC and TACTI-mel, compared to the prior year
which related to the cessation of the costly CVac clinical trials.

Corporate Administrative Expenses

Corporate administrative expenses increased to A$7 million for fiscal year 2016 from A$5.7 million for fiscal year 2015, an increase of A$1.3
million, or 22%. The increase in corporate administrative expenses was attributable to an increase in employee share-based payment expenses in fiscal year 2016 of A$1.97 million compared to A$0.7 million in fiscal year 2015.

Depreciation and Amortization Expenses

Depreciation and amortization expenses increased to A$2.0 million for fiscal year 2016 from A$1.3m for fiscal year 2015, an increase of A$0.7m,
or 49%. The increase is attributable to amortization costs incurred on Intellectual Property Assets acquired on the purchase of Immutep covering the full year in fiscal year 2016 compared to the part of fiscal year 2015.

Loss on foreign exchange

Loss on foreign
exchange was $0.6m for fiscal year 2016 compared to nil for fiscal year 2015, which was driven by the impact of changes in exchange rates on our U.S. and Euro cash holdings compared to the prior year.

Share Based Payment to strategic investor

The Share Based Payment to strategic investor expense was A$47.5m for fiscal year 2016 compared to nil in fiscal year 2015. The amount
represents the difference between the fair value of convertible notes and warrants issued to Ridgeback Capital Investments and the cash received. Due to additional benefits being provided by Ridgeback, the difference has been expensed on grant date
in accordance with AASB 2 (IFRS 2) . Refer to note 15 to the consolidated financial statements for further information.



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Finance cost

Finance costs of A$0.01 million were incurred during fiscal year 2016 compared to A$18.3 million in fiscal year 2015. The decrease was
attributable to our procurement of funding from Bergen Global Opportunity Fund, LP for the acquisition of Immutep in fiscal year 2015. This funding was repaid before the end of fiscal year 2015. The interest expense incurred in fiscal year 2016
related to other borrowings which were repaid in August 2015.

Changes in fair value of comparability milestone

Changes in fair value of comparability milestone of A$0.5 million were incurred during fiscal year 2016 compared to nil in fiscal year 2015.
This relates to an amount paid into a retention account on the acquisition of Immutep which was measured through fair value through profit and loss in accordance with AASB 3 (IFRS 3). Refer to note 21 to the consolidated financial statements for
further information.

Net change in fair value of convertible note liability

Net change in fair value of convertible note liability of A$0.6 million were incurred during fiscal year 2016 compared to nil in fiscal year
2015. The increase was attributable to the liability component of the convertible note being measured at fair value as required by AASB 2 (IFRS 2) . Refer to note 15 to the consolidated financial statements for further information.

Net Loss

Net loss increased to A$62.0
million for fiscal year 2016 from A$32.2 million for fiscal year 2015.

Comparison of Fiscal Year Ended June 30, 2015 to Fiscal Year Ended
June 30, 2014

Other Income

Other income increased to A$2.1 million for fiscal year 2015 from A$3.1 million for fiscal year 2014, a decrease of A$1m, or 32%. Other income
consists of interest income, cash tax rebates, grant income, gain on foreign exchange and other miscellaneous income. The interest income for fiscal year 2015 was A$0.2 million and A$0.7 million for fiscal year 2014. The decrease in interest income
in fiscal year 2015 is due to the significant decrease in the level of cash held on term deposits and a decrease in interest rates on term deposits. Income from cash tax rebates and grant income from the Saxony Development Bank related to eligible
research and development expenditures consists of A$1.2 million and A$2.0 million for fiscal year 2015 and fiscal year 2014, respectively. The decrease of A$0.8 million was attributable to a commensurate decrease in Research & Development
expenditure in fiscal year 2015 compared to fiscal year 2014. The foreign exchange gains of A$0.5 million for fiscal year 2015 and A$0.4 million for fiscal year 2014 was driven by the impact of changes in our U.S. and Euro cash holdings.

Research & Development and Intellectual Property Expenses

Research and development and intellectual property expenses decreased to A$9.0 million for fiscal year 2015 from A$12.0 million for fiscal year
2014, a decrease of A$3.0 million, or 25%. The decrease in research and development and intellectual property expenses in the fiscal year 2015 was the result of consolidating our research and development work into Europe from the United States as
well as ceasing further clinical development of CVac assets.

Corporate Administrative Expenses

Corporate administrative expenses increased to A$5.7 million for fiscal year 2015 from A$4.1 million for fiscal year 2014, an increase of A$1.6
million, or 39%. The increase in corporate administrative expenses was attributable to the acquisition of Immutep S.A. in this past fiscal year including due diligence and related transaction costs, investment banking and legal expenses.

Depreciation and Amortization Expenses

Depreciation and amortization expenses were A$1.4 million for fiscal year 2015, compared to A$0.4 million in fiscal year 2014. The increase is
attributable to the amortization of acquired intellectual property assets.



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Changes in Fair Value of Derivative Financial Instruments

Changes in fair value of derivative financial instruments expenses was nil for fiscal year 2015, which was roughly equivalent to fiscal year
2014. There were no foreign hedging contracts entered into as at June 30, 2015 and as at June 30, 2014.

Finance cost

Finance costs of A$18.3 million were incurred during fiscal year 2015 compared to no costs in fiscal year 2014. The increase was attributable
to our procurement of funding from Bergen Global Opportunity Fund, LP for the acquisition of Immutep in fiscal year 2015. This funding was repaid before the end of fiscal year 2015.

Net Loss

Net loss increased to A$32.2
million for fiscal year 2015 from A$13.3 million for fiscal year 2014.

New Accounting Standards and Interpretations Not Adopted

New and amended standards adopted by the group

Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2016 reporting periods and
have not been early adopted by the company. The companys assessment of the impact of these new standards and interpretations is set out below:



| | (i) | AASB 15 (IFRS 15) Revenue from Contracts with CustomersThe AASB has issued a new standard for the recognition of revenue. This will replace AASB 118 (IAS 18) which covers revenue arising from the sale of goods and
the rendering of services and AASB 111 (IAS 11) which covers construction contracts. The new standard is based on the principle that revenue is recognized when control of a good or service transfers to a customer. The standard permits either a full
retrospective or a modified retrospective approach for the adoption. It applies to annual reporting periods commencing on or after 1 January 2018. Management has performed a preliminary assessment of the impact of the new standard and has not
identified any instances where the new standard requirements will have a material impact on the financial statements of the Company.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii) | AASB 9 (IFRS 9) Financial InstrumentsAASB 9 (IFRS 9) addresses the classification, measurement and derecognition of financial assets and financial liabilities, introduces new rules for hedge accounting and a new
impairment model for financial assets. It applies to annual reporting periods commencing on or after 1 January 2018. Management has performed a preliminary assessment of the impact of the new standard and has not identified any instances where
the new standard requirements will have a material impact on the financial statements of the Company.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iii) | AASB 16 (IFRS 16) LeasesThe AASB 16 (IFRS 16) has issued a new standard for the accounting of leases. The new standard will predominantly affect lessees, with almost all leases brought onto the balance sheet. It
applies to annual reporting periods commencing on or after 1 January 2019. Management has performed a preliminary assessment of the impact of the new standard and has not identified any instances where the new standard requirements will have a
material impact on the financial statements of the Company.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

There are no other standards and interpretations that are not
yet effective and that are expected to have a material impact on the Group in the current or future reporting periods and on foreseeable future transactions.

B. Liquidity and Capital Resources

Since our inception, our operations have mainly been financed through the issuance of equity securities. Additional funding has come through
convertible loans, operating grants and interest earned from cash on term deposit.

Equity Issuances

The following table summarizes our issuances of ordinary shares for cash, excluding share-based payments, executive and employee compensation
in the last five fiscal years.



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|                                                                                                                   |  |            |      |  |                         |  |             |              |  |  |            | 
|------------------------------------------------------------------------------------------------------------------ |  | ---------- | ---- |  | ----------------------- |  | ----------- | ------------ |  |  | ---------- | 
|                                                                                                                   |  | FiscalYear |      |  | Number ofShares/Options |  |             | Net Proceeds | 
|                                                                                                                   |  |            |      |  |                         |  |             | (in A$)      | 
|Ordinary Shares  private placement, share purchase plan, repayment of convertible loans and
exercise of options   |  |            | 2010 |  |                         |  | 278,662,654 |              |  |  | 21,430,975 | 
|Ordinary Shares  private placement, share purchase plan, repayment of convertible loans and
exercise of options   |  |            | 2011 |  |                         |  | 280,428,034 |              |  |  | 55,067,573 | 
|Ordinary Shares  exercise of options and share issuance                                                           |  |            | 2012 |  |                         |  | 85,047,759  |              |  |  | 1,820,455  | 
|Ordinary Shares  share purchase plan                                                                              |  |            | 2013 |  |                         |  | 77,083,450  |              |  |  | 6,166,676  | 
|Listed Options  option entitlement offer                                                                          |  |            | 2013 |  |                         |  | 77,378,699  |              |  |  | 1,547,574  | 
|Ordinary Shares  share purchase plan                                                                              |  |            | 2014 |  |                         |  | 85,562,503  |              |  |  | 6,845,001  | 
|Ordinary Shares  private placement, repayment of convertible loans and exercise of
performance rights and options |  |            | 2015 |  |                         |  | 522,785,260 |              |  |  | 31,028,380 | 
|Ordinary Shares  private placement, share purchase plan and exercise of performance rights
and options            |  |            | 2016 |  |                         |  | 310,136,343 |              |  |  | 14,935,642 | 

Capital Requirements

As of June 30, 2016, we had year-end cash and cash equivalents of A$20.9 million. We anticipate that our current cash and cash equivalents
will be sufficient to fund our operations for more than 12 months from the date of this filing. However, our forecast of the period of time through which our financial resources will be adequate to support our operations is a forward-looking
statement that involves risks and uncertainties, and actual results could vary materially. If we are unable to raise additional capital when required or on acceptable terms, we may have to significantly delay, scale back or discontinue one or more
of our clinical trials or our operations.

We anticipate that we will require substantial additional funds in order to achieve our
long-term goals and complete the research and development of our current principal pharmaceutical product candidates. We do not expect to generate significant revenue until we obtain regulatory approval to market and sell our product candidate and
sales of our product candidate have commenced. We therefore expect to continue to incur substantial losses in the near future. Our future capital requirements are difficult to forecast and will depend on many factors, including:



| |  |  | the cost of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights;
| | - |  | ------------------------------------------------------------------------------------------------------------------



| |  |  | the scope, results and timing of preclinical studies and clinical trials;
| | - |  | -------------------------------------------------------------------------



| |  |  | the costs and timing of regulatory approvals; and
| | - |  | -------------------------------------------------



| |  |  | the costs of establishing sales, marketing and distribution capabilities
| | - |  | ------------------------------------------------------------------------

Cash Flows

The following table summarizes our cash flows for the periods presented:



|                                                     |  |                            |             |   |      |  |             |      |  |  |             |  
|---------------------------------------------------- |  | -------------------------- | ----------- | - | ---- |  | ----------- | ---- |  |  | ----------- | -
|                                                     |  | Fiscal Year Ended June 30, |            
|                                                     |  | 2016                       |             |   | 2015 |  |             | 2014 | 
|                                                     |  | A$                         |             |   | A$   |  |             | A$   | 
|Net cash used in operating activities                |  |                            | (11,309,691 | ) |      |  | (7,786,982  | )    |  |  | (14,227,161 | )
|Net cash provided by (used in) investing activities  |  |                            | 102,575     |   |      |  | (11,961,411 | )    |  |  | (1,103,675  | )
|Net cash provided by financing activities            |  |                            | 25,720,284  |   |      |  | 11,268,429  |      |  |  | 6,687,395   |  
|Net increase (decrease) in cash and cash equivalents |  |                            | 14,513,168  |   |      |  | (8,479,964  | )    |  |  | (8,643,441  | )
|Effect of exchange rate on cash and cash equivalents |  |                            | (393,235    | ) |      |  | 1,039,537   |      |  |  | 820,340     |  
|Cash and cash equivalents at beginning of period     |  |                            | 6,759,615   |   |      |  | 14,200,042  |      |  |  | 22,023,143  |  
|Cash and cash equivalents at end of period           |  |                            | 20,879,548  |   |      |  | 6,759,615   |      |  |  | 14,200,042  |  



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Operating Activities

Net cash used in operating activities was A$11.3 million, A$7.8 million, and A$14.2 million during fiscal years 2016, 2015 and 2014,
respectively. Payments to suppliers and employees account for almost all of the amounts above for R&D and administrative purposes. Net cash used in operating activities reduced during fiscal year 2015 due to the ceasing the CVac program and has
increased in fiscal year 2016 as the AIPAC and TACTI-mel clinical trials were initiated. During fiscal years 2016, 2015 and 2014, our payments to suppliers and employees were offset by interest income received of A$0.3 million, A$0.2 million, and
A$0.7 million, respectively, and grant income received of A$0.9 million, A$1.2 million, and A$2.0 million, respectively.

Investing Activities

Net cash provided by investing activities was A$0.1 million during fiscal year 2016, while net cash used in investing activities was A$12.0
million, and A$1.1 million during fiscal years 2015 and 2014, respectively. The cash inflow in fiscal year 2016 was a result of the sale of plant and equipment. The net cash outflow for fiscal year 2015 increased as a result of the acquisition of
Immutep S.A.S.

Financing Activities

Net cash provided by financing activities was A$27.5 million, A$11.3 million, and A$6.7 million for fiscal years 2016, 2015 and 2014. Net cash
provided by financing activities during (i) fiscal 2016 was primarily attributable to the issue of shares attributable to a share purchase plan (A$10 million) and attributable to private placements to institutional investor s (A$3.8 million)
and the issue of convertible notes (A$13.7 million), (ii) fiscal 2015 was primarily attributable to the issue of shares (A$4.0 million), the issue of convertible notes (A$2.9 million) the exercise of warrants (A$2.6 million) and conversion of
convertible notes (A$1.1 million), and (iii) fiscal 2014 was primarily attributable to a share purchase plan (A$6.7 million).

At
June 30, 2016 we had A$20.9 million in cash and cash equivalents compared with 2015, where we had A$6.8 million in cash and cash equivalents. At June 30, 2014, we had A$14.2 million in cash and cash equivalents plus A$9.0 million on a term
deposit.

C. Research and Development, Patents and Licenses

For a description of our research and development programs and activities, see Item 4. Information on the CompanyB. Business
OverviewBackground. For a description of the amount spent during each of the last three fiscal years on company-sponsored research and development activities, as well as the four components of research and development expenses, see
Item 5. Operating and Financial Review and ProspectsA. Operating ResultsResults of Operations.

D. Trend Information

We are a development stage company and it is not possible for us to predict with any degree of accuracy the outcome of our research or
commercialization efforts.

Our research and development expenditure is our primary expenditure. Increases or decreases in research and
development expenditure are attributable to the level of clinical trial activity and the amount of expenditure on those trials. The main clinical trials are the AIPAC 211 patient Phase IIb study in hormone receptor-positive metastatic breast
carcinoma patients receiving IMP321 as an adjuctive to a standard chemotherapy treatment regimen of paclitaxel. In addition the pilot Phase 1 TACTI-mel study for patients with unresectable or metastatic melanoma will be dosed with IMP321 in
combination with an approved checkpoint inhibitor.

It is expected that as we activate new clinics and recruit more patients for our
current clinical trials, that our R&D expenses will increase over the coming year.

E. Off-Balance Sheet
Arrangements

During fiscal years 2013, 2014, 2015 and 2016, we did not have any relationships with unconsolidated entities or
financial partnerships, such as entities often referred to as structured finance or special purpose entities, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited
purposes.



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##### Table of Contents

F. Tabular Disclosure of Contractual Obligations

As of June 30, 2016 our contractual obligations were as set forth below:



|                                                |  |                        |           |  |                  |  |            |                            |  |  |            | 
|----------------------------------------------- |  | ---------------------- | --------- |  | ---------------- |  | ---------- | -------------------------- |  |  | ---------- | 
|                                                |  | Payments Due by Period |          
|Contractual maturities of financial liabilities |  | Less than6 months      |           |  | More than5 years |  |            | Totalcontractualcash flows | 
|                                                |  | $                      |           |  | $                |  |            | $                          | 
|Non-Derivatives                                 |  |                        |           |  |                  |  |            |                            |  |  |            | 
|Trade and other payables                        |  |                        | 1,422,798 |  |                  |  |           |                            |  |  | 1,422,798  | 
|Convertible note liability (refer note 15)      |  |                        |          |  |                  |  | 17,876,076 |                            |  |  | 17,876,076 | 
|                                                |  |                        |           |  |                  |  |            |                            |  |  |            | 
|                                                |  |                        | 1,422,798 |  |                  |  | 17,876,076 |                            |  |  | 19,298,874 | 
|                                                |  |                        |           |  |                  |  |            |                            |  |  |            | 

We have agreements with clinical sites and contract research organizations. We make payments to these sites
and organizations based upon the number of patients enrolled and the period of follow-up in the trial.

G. Safe Harbor

Special note regarding forward-looking statements

This Annual Report contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended,
and section 21E of the U.S. Securities Exchange Act of 1934, as amended, including assumptions, anticipations, expectations and forecasts concerning the Groups future business plans, products, services, financial results, performance, future
events and information relevant to our business, industries and operating environments. When used in this document, the words anticipate, believe, estimate, assume, could,
should, expect and similar expressions, as they relate to the Group or its management are intended to identify forward-looking environments. Such statements reflect the current views of management with respect to future
events and are subject to certain risks, uncertainties and assumptions. The forward-looking statements contained herein represent a good-faith assessment of our future performance for which we believe there is a reasonable basis. Many factors could
cause the actual results, performance or achievements of the Group to be materially different from any future results, performance or achievements that may be expresses or implied by such forward-looking statements, including, among others, adverse
changes or uncertainties in economic conditions that affect the markets we serve and the risks as described in Item 3D. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual
results may vary materially from those described herein as anticipated, believed, estimated or expected.

These forward-looking statements
represent our view only as of the date they are made and we disclaim any obligation to update forward-looking statements contained herein, except as may be otherwise required by law.



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##### Table of Contents

|ITEM 6. | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
|------- | ------------------------------------------

A. Directors and Senior
Management

The following table sets forth our directors and senior management, their age and the positions they held as of
September 1, 2016.



|                         |  |     |    |  |          |                                                                                                
|------------------------ |  | --- | -- |  | -------- | -----------------------------------------------------------------------------------------------
|Name                     |  | Age |    |  | Position
|Lucy Turnbull AO(1)      |  |     | 58 |  |          | Non-Executive Chairman                                                                         
|Albert Wong (2)          |  |     | 57 |  |          | Non-Executive Deputy Chairman                                                                  
|Pete Meyers (3)          |  |     | 46 |  |          | Non-Executive Director                                                                         
|Russell Howard, Ph.D.(4) |  |     | 66 |  |          | Non-Executive Director                                                                         
|Marc Voigt               |  |     | 43 |  |          | Executive Director, Chief Executive Officer, Chief Financial Officer and Chief Business
Officer
|Frédéric Triebel         |  |     | 61 |  |          | Chief Scientific Officer & Chief Medical Officer                                               
|Deanne Miller            |  |     | 39 |  |          | General Counsel & Company Secretary                                                            



|(1) | Chair of the Remuneration Committee and member of the Audit & Risk Committee.
|--- | -----------------------------------------------------------------------------

|(2) | Member of the Remuneration Committee and Audit & Risk Committee.
|--- | ----------------------------------------------------------------

|(3) | Chair of the Audit & Risk Committee.
|--- | ------------------------------------

|(4) | Member of the Remuneration Committee
|--- | ------------------------------------

Ms. Lucy Turnbull AO. Ms. Turnbull has
served as Chairman of our Board of Directors since October 2010. She is an urbanist, businesswoman and philanthropist with longstanding interest in cities and their planning and technological and social innovation. She chaired ASX listed WebCentral
Ltd from 2004-06 when it was acquired by ASX listed Melbourne IT Limited. She was a director of Melbourne IT from 2006-2010 and was a director of Sealink Travel Group Ltd in 2015. She is Chief Commissioner of the Greater Sydney Commission and chairs
the Committee for Sydney. She was previously Deputy Chair of the COAG Reform Councils Cities Expert Panel advising on its Metropolitan Strategic Planning Report. She was the first female Lord Mayor of the City of Sydney from 2003-4 and before
that was Deputy Mayor from 1999-2003. She was a board member of the Cancer Institute of NSW and the Australian Technology Park, Redfern. In 2012 she was awarded an Honorary Doctorate of Business by the University of NSW for her contribution to
business, philanthropy and local government. In 2011 she became an Officer of the Order of Australia for distinguished service to the community, local government and business.

Mr. Albert Wong. Mr. Wong has served as a Director of Prima BioMed since April 2010 and is the Deputy Chairman. Originally
from Hong Kong, Mr Wong has been involved in the investment banking and stockbroking industry for some 35 years. He has and continues to serve on various boards including Founding Chairman of Kyckr Limited and is an adviser to Chinas Nanshan
Group and is an alternate director representing their interests on the Virgin Australia board. Alberts philanthropic activities include serving on the boards of UNSW Foundation, The Childrens Medical Research Institute and President and
Honorary Life Governor of the Physics Foundation at the University of Sydney.

Mr. Pete Meyers. Mr. Meyers has served as
a Director of Prima BioMed since February 2014. He is currently the Chief Financial Officer of Motif Bio plc. Previously, Mr. Meyers was the Chief Financial Officer of TetraLogic Pharmaceuticals Corporation. Prior to these roles,
Mr. Meyers was an accomplished health care investment banker, holding a positions of increasing responsibility at Dillon, Read & Co., Credit Suisse First Boston LLC and, most recently, as Co-Head of Global Health Care Investment
Banking at Deutsche Bank Securities Inc. In New York. Mr. Meyers earned a Bachelor of Science degree in finance from Boston College and a Master of Business Administration degree from Columbia Business School. Mr Meyers is currently also the
Chairman and President of the Thomas M Brennan Memorial Foundation, Inc.

Dr. Russell Howard, Ph.D. Dr. Russell Howard
has served as a Director of Prima BioMed since May 2013. He is an Australian scientist, executive manager and entrepreneur. He was a pioneer in molecular parasitology and commercialization of DNA Shuffling. He is an inventor of 9 patents
and has over 150 scientific publications. After his PhD in biochemistry from the University of Melbourne, he held positions at several research laboratories, including the National Institutes of Health in the USA where he gained tenure. In industry,
Dr. Howard worked at Schering-Ploughs DNAX Research Institute in Palo Alto, CA; was the President and Scientific Director of Affymax, Inc. and co-founder and CEO of Maxygen, Inc. after its spin-out from GlaxoWellcome. As Maxygens
CEO, Dr. Howard led its IPO on NASDAQ and a secondary offering, raising US$ 260 million. Maxygen developed and partnered dozens of technology applications and products. After leaving Maxygen in 2008, he started the Cleantech company Oakbio,
Inc. and remains involved in several innovative companies in the USA and Australia. He is currently Executive Chairman of NeuClone Pty Ltd and Head of Commercial Strategy for Genomics at Genome.One, both in Sydney.



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Mr. Marc Voigt. Mr. Voigt has served as our Chief Financial Officer and Chief
Business Officer since 2012 and was appointed as CEO and Executive Director in July 2014. He has extensive experience in the corporate and biotechnology sectors. He joined Prima BioMeds management team in 2011 as the General Manager of our
European operations at Prima BioMed GmbH, where he currently serves as the Managing Director. He has previously worked as an investment manager for Allianz Insurance biotech venture fund, and as a personal assistant to a member of the Executive
Board of Allianz Insurance. Mr. Voigt has also worked for German investment bank, net.IPO.AG, in the area of business development and German securities offerings. In the biotech sector, he has held the positions of CFO/CBO at Revotar
Biopharmaceuticals AG and Medical Enzymes AG. He has a Masters Degree in Business Administration from the Freie Universität of Berlin, and is a member of the pharma licensing club Germany and a member of the judging panel of Germanys
largest business plan competition.

Dr. Frédéric Triebel, MD Ph.D., Dr Triebel is our Chief Scientific Officer
and Chief Medical Officer and has been with Prima BioMed since December 2014, following the completion of the acquisition of Immutep. Dr Triebel was the scientific founder of Immutep S.A. (2001) and served as the Scientific and Medical Director
at Immutep from 2004. Before starting Immutep, he was Professor in Immunology at Paris University. While working at Institut Gustave Roussy (IGR), a large cancer center in Paris, he discovered the LAG-3 gene in 1990 and continued working on this
research program since then, identifying the functions and medical usefulness of this molecule. He headed a research group at IGR while also being involved in the biological follow-up of cancer patients treated in Phase I/II immunotherapy trials. He
was Director of an INSERM Unit from 1991 to 1996. First trained as a clinical hematologist, Prof. Triebel holds a Ph.D. in immunology (Paris University) and successfully developed several research programs in immunogenetics and immunotherapy,
leading to 144 publications and 16 patents.

Ms. Deanne Miller.Ms. Miller joined Prima BioMed as General Counsel and
Company Secretary in October 2012. She has broad commercial experience having held legal, investment banking, regulatory compliance and tax advisory positions, including, Legal Counsel at RBC Investor Services, Associate Director at Westpac Group,
Legal & Compliance Manager at Macquarie Group, Regulatory Compliance Analyst at the Australian Securities and Investment Commission, and Tax Advisor at KPMG. She joined Prima as General Counsel and Company Secretary in October 2012. She has
a Combined Bachelor of Laws (Honours) and Bachelor of Commerce, Accounting and Finance (double major) from the University of Sydney. She is admitted as a solicitor in NSW and member of the Law Society of NSW.

B. Compensation

Remuneration Principles

Remuneration of
all executive and non-executive directors and officers is determined by the Remuneration Committee.

We are committed to remunerating
senior executives and executive directors in a manner that is market-competitive and consistent with Best Practice including the interests of shareholders. Remuneration packages are based on fixed and variable components, determined by
the executives position, experience and performance, and may be satisfied via cash or equity.

Non-executive directors are
remunerated out of the aggregate amount approved by shareholders and at a level that is consistent with industry standards. Non-executive directors do not receive performance based bonuses and prior shareholder approval is required to participate in
any issue of equity. No retirement benefits are payable other than statutory superannuation, if applicable.

Our remuneration policy is
not directly based on our financial performance, rather on industry practice, given we operate in the biotechnology sector and our primary focus is research activities with a long term objective of developing and commercializing the research and
development results.

We envisage our performance in terms of earnings will remain negative while we continue in the research and
development phase.

The purpose of a performance bonus is to reward individual performance in line with our objectives. Consequently,
performance based remuneration is paid to an individual where the individuals performance clearly contributes to a successful outcome. This is regularly measured in respect of performance against key performance indicators.

We use a variety of key performance indicators to determine achievement, depending on the role of the executive being assessed. These include:



| |  |  | Successful contract negotiations.
| | - |  | ---------------------------------



43



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| |  |  | Achievement of research project milestones within scheduled time and/or budget.
| | - |  | -------------------------------------------------------------------------------



| |  |  | Our share price reaching a targeted level on the ASX over a period of time.
| | - |  | ---------------------------------------------------------------------------

Executive Compensation

The following table sets forth all of the compensation awarded to, earned by or paid to each individual who served as directors and
executive officers in fiscal 2016.



|                               |  |                      |           |  |                        |  |         |                   |  |  |                   |  |  |                     |        |  |                        |  |       |                     |  |  |                  |  |  |    |           |   |  |  |   |  |  |  |           | 
|------------------------------ |  | -------------------- | --------- |  | ---------------------- |  | ------- | ----------------- |  |  | ----------------- |  |  | ------------------- | ------ |  | ---------------------- |  | ----- | ------------------- |  |  | ---------------- |  |  | -- | --------- | - |  |  | - |  |  |  | --------- | 
|June 30, 2016                  |  | Short-term Benefits  |           |  | PostEmploymentBenefits |  |         | Long-termBenefits |  |  |                   |  |  | Share-basedPayments |        |  | Total                  | 
|                               |  | Cashsalaryand feesA$ |           |  | CashbonusA$            |  |         | NonMonetaryA$     |  |  | Super-annuationA$ |  |  | LongserviceleaveA$  |        |  | Termi-nationbenefitsA$ |  |       | PerformancerightsA$ |  |  | Equity-settledA$ |  |  | A$ |          
|Non-Executive Directors        |  |                      |           |  |                        |  |         |                   |  |  |                   |  |  |                     |        |  |                        |  |       |                     |  |  |                  |  |  |    |           |   |  |  |   |  |  |  |           | 
|Ms. L. Turnbull, AO            |  |                      | 137,520   |  |                        |  |        |                   |  |  |                  |  |  |                     | 13,064 |  |                        |  |      |                     |  |  |                 |  |  |    |          |   |  |  |  |  |  |  | 150,584   | 
|Mr. A .Wong                    |  |                      | 84,040    |  |                        |  |        |                   |  |  |                  |  |  |                     | 7,984  |  |                        |  |      |                     |  |  |                 |  |  |    |          |   |  |  |  |  |  |  | 92,024    | 
|Dr. R. Howard                  |  |                      | 90,000    |  |                        |  |        |                   |  |  |                  |  |  |                     |       |  |                        |  |      |                     |  |  |                 |  |  |    |          |   |  |  |  |  |  |  | 90,000    | 
|Mr. P. Meyers1                 |  |                      |          |  |                        |  |        |                   |  |  | 95,547            |  |  |                     |       |  |                        |  |      |                     |  |  |                 |  |  |    |          |   |  |  |  |  |  |  | 95,547    | 
|Mr. M. Voigt                   |  |                      | 347,520   |  |                        |  | 90,616  |                   |  |  |                  |  |  |                     |       |  |                        |  |      |                     |  |  |                 |  |  |    | 925,347   | 2 |  |  |  |  |  |  | 1,363,483 | 
|Other Key Management Personnel |  |                      |           |  |                        |  |         |                   |  |  |                   |  |  |                     |        |  |                        |  |       |                     |  |  |                  |  |  |    |           |   |  |  |   |  |  |  |           | 
|Dr. F. Triebel                 |  |                      | 229,387   |  |                        |  |        |                   |  |  |                  |  |  |                     |       |  |                        |  |      |                     |  |  |                 |  |  |    | 382,964   | 2 |  |  |  |  |  |  | 612,351   | 
|Ms. D. Miller                  |  |                      | 175,510   |  |                        |  | 50,000  |                   |  |  |                  |  |  |                     | 21,423 |  |                        |  | 5,817 |                     |  |  |                 |  |  |    | 516,332   | 2 |  |  |  |  |  |  | 769,082   | 
|                               |  |                      |           |  |                        |  |         |                   |  |  |                   |  |  |                     |        |  |                        |  |       |                     |  |  |                  |  |  |    |           |   |  |  |   |  |  |  |           | 
|                               |  |                      | 1,063,977 |  |                        |  | 140,616 |                   |  |  | 95,547            |  |  |                     | 42,471 |  |                        |  | 5,817 |                     |  |  |                 |  |  |    | 1,824,643 |   |  |  |  |  |  |  | 3,173,071 | 
|                               |  |                      |           |  |                        |  |         |                   |  |  |                   |  |  |                     |        |  |                        |  |       |                     |  |  |                  |  |  |    |           |   |  |  |   |  |  |  |           | 



|1 | Mr. Pete Meyers was issued 7,720,588 performance rights in lieu of cash for his services as a non-executive director, in accordance with shareholder approval
received at the AGM on 14 November 2014. The first tranche of his performance rights vested to him i.e. 1,715,686 converted to ordinary shares immediately after the shareholder approval was received. (Being for service from date of appointment
to 30 September 2014). The second tranche of 2,573,529 performance rights vested on 1 October 2015. (Being for service from 1 October 2014 to 30 September 2015); The third tranche of 2,573,529 performance rights is due to vest on
1 October 2016. (Being for service from 1 October 2015 to 30 September 2016); The final 857,844 vest on 1 October 2017. (Being for service from 1 October 2016 to 31 January 2017).
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|2 | Performance rights were granted under the EIP. Long term incentive performance rights vest in three tranches as follows:
|- | ------------------------------------------------------------------------------------------------------------------------



| |  |  | 1/3 vested to Mr Voigt and Ms Miller on 5 August, 2015 and to Dr Triebel on 31 January, 2016.
| | - |  | ---------------------------------------------------------------------------------------------



| |  |  | 1/3 vested on 5 August, 2016
| | - |  | ----------------------------



| |  |  | 1/3 to vest on 5 August, 2017
| | - |  | -----------------------------

| | Vesting is contingent upon the employee being continuously employed in good standing through the vesting period. The performance rights are subject to accelerated vesting according to agreed terms in each persons
employment contract.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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Service Agreements

The following members of key personnel have service agreements as follows:



|                                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|------------------------------------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Mr. Marc Voigt                       |  | Chief Executive Officer, Chief Business Officer and Chief Financial Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|                                     | 
|Agreement commenced:                 |  | July 9, 2014                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                     | 
|Details                              |  | The initial term is for a period of 3 years. Each party is to provide at least 6 months notice of its intention to extend the term
of the contract.  Prima BioMed may make payments in lieu of the period of notice, or
for any unexpired part of that notice period.  The agreement can be terminated with 3
months notice. The termination terms are payment of base salary in lieu of notice period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                     | 
|Base salary including superannuation |  | 215,000 subject to an increase of 35,000 contingent upon certain performance milestones set forth in the amendment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|                                     | 
|Dr. Frédéric Triebel                 |  | Chief Scientific Officer & Chief Medical Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                                     | 
|Agreement commenced:                 |  | October 01, 2014                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                                     | 
|Details                              |  | Each of the parties may terminate the employment contract and the present Amendment, subject to compliance with the law and the CBA and
notably to a 3-month notice period as set forth in the CBA.  The party which fails to
comply with the notice period provisions shall be liable to pay the other an indemnity equal to the salary for the remainder of the notice period. 
Dr Triebel is subject to a non-competition clause which shall apply for 12 months, starting on the last effective day of work, and covers the territory of
European Union. A non-competition indemnity of 33% of the average monthly gross basic remuneration paid to Dr Triebel within 12 months preceding the notification of the termination will be paid on a monthly basis to the Employee during the entirety
of the non-competition period, unless the Company releases Dr Triebel from such non-competition clause, in which case the payment period will be 3 months.
|                                     | 
|Base salary including superannuation |  | 170,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                     | 
|Ms. Deanne Miller                    |  | General Counsel & Company Secretary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|                                     | 
|Agreement commenced:                 |  | October 13, 2012                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                                     | 
|Details                              |  | The agreement can be terminated with 3 months notice. 
The termination terms are payment of base salary in lieu of notice period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                     | 
|Base salary including superannuation |  | A$219,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

Global Employee Share Option Plan

Any person considered to be a full time employee by our Board of Directors is eligible to participate in our Global Employee Share Option Plan,
or GESOP, each an Eligible Employee. Under the GESOP, the Board of Directors may issue options to subscribe for our ordinary shares, or GESOP Options, on such terms as it determines.

The maximum number of options available to be issued under the GESOP is 20,000,000. Subject to certain exceptions, the total number of
ordinary shares issued as a result of exercise of GESOP Options must not exceed 5% of our issued share capital. The vesting date of a GESOP Option must not be a date less than 12 months following the issue date, or such other period as may be
determined by the Board of Directors in its discretion. Any vesting conditions determined by the Board of Directors must be satisfied before the options vest and become exercisable. Options are generally granted for no consideration. When
exercisable, each option issued under the GESOP entitles the holder to subscribe for one fully paid ordinary share in us. GESOP Options will expire three years after their issue date. Each ordinary share issued on exercise of an option will rank
equally with all other ordinary shares then on issue.



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The exercise price of each GESOP Option must be not less than 150% of the price equal to the
volume weighted average price of Shares traded on ASX during the 7 trading days immediately prior to the date of grant of the option.

GESOP Options will immediately lapse on the first to occur of:



| |  |  | the last day of the relevant exercise period;
| | - |  | ---------------------------------------------



| |  |  | a determination by the Board of Directors that the option should lapse because the option holder:
| | - |  | -------------------------------------------------------------------------------------------------



| |  |  | has been dismissed or removed from office for a reason which entitled us to dismiss the option holder without notice;
| | - |  | ---------------------------------------------------------------------------------------------------------------------



| |  |  | has committed an act of fraud, dishonesty or gross misconduct in relation to our affairs;
| | - |  | -----------------------------------------------------------------------------------------



| |  |  | has done an act with brings us into disrepute; or
| | - |  | -------------------------------------------------



| |  |  | has ceased to be employed by us prior to the option being exercisable, other than because of the termination or cessation of the option holders employment with us as a result of total and permanent disablement,
death or retirement after 55 years of age.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

GESOP Options will not confer a right to notices of general meetings (except as
may be required by law) or a right to attend, speak or vote at general meeting. A holder of GESOP options may only participate in new issues of securities in respect of GESOP options which have been exercised and ordinary shares issued prior to the
record date for the entitlements to the new issue.

In the event that, prior to the vesting of any GESOP Options, there is a
reorganization (including a consolidation, subdivision, reduction or return) of our issued capital, then the number of GESOP Options and shares to which each Eligible Employee is entitled on exercise will be reorganized in the manner permitted by
the ASX Listing Rules.

If a person acquires a relevant interest in more than 50% of our issued capital or the Board of Directors
determines that a person who previously had not been in a position to do so, is in the position, either alone or with associates, to remove more than 50% of the Board of Directors, before the vesting date of a GESOP Option, the GESOP Option becomes
exercisable irrespective of the vesting date and vesting conditions attaching to the GESOP Option.

Each GESOP Option is personal to the
Eligible Employee and is not transferable, transmissible or assignable, except with the prior written consent of the Board of Directors.

The Board will be able to amend the GESOP rules subject to the requirements of the ASX Listing Rules. The GESOP is administered by the Board
of Directors.



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##### Table of Contents

Set out below are summaries of options granted under the GESOP up to June 30, 2016.



|                  |  |                   |  |                                                                                                                                                                                        |  |                            |           |  |                       |  |   |                          |  |  |                       |  |  |                           |            |   |  |  |   | 
|----------------- |  | ----------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------- | --------- |  | --------------------- |  | - | ------------------------ |  |  | --------------------- |  |  | ------------------------- | ---------- | - |  |  | - | 
|Grant Date        |  | Expiry Date       |  | Exercise Price                                                                                                                                                                         |  | BalanceatStart ofthePeriod |           |  | IssuedDuringthePeriod |  |   | ExercisedDuringthePeriod |  |  | LapsedDuringthePeriod |  |  | Balance atEnd ofthePeriod |           
|August 26, 2011   |  | December 6, 2014  |  | lower of A$0.10 or the price equal to the volume weighted average price of Shares traded on ASX during the 30 trading days immediately prior to the date of grant of the ESOP Options. |  |                            |          |  |                       |  |  |                          |  |  |                      |  |  |                           |           |   |  |  |  | 
|November 3, 2011  |  | November 3, 2014  |  | the price equal to the volume weighted average price of Shares traded on ASX during the 7 trading days immediately prior to the date of grant of the GESOP Options.                    |  |                            |          |  |                       |  |  |                          |  |  |                      |  |  |                           |           |   |  |  |  | 
|January 3, 2012   |  | January 3, 2015   |  | the price equal to the volume weighted average price of Shares traded on ASX during the 7 trading days immediately prior to the date of grant of the GESOP Options.                    |  |                            |          |  |                       |  |  |                          |  |  |                      |  |  |                           |           |   |  |  |  | 
|August 1, 2012    |  | August 1, 2015    |  | the price equal to the volume weighted average price of Shares traded on ASX during the 7 trading days immediately prior to the date of grant of the GESOP Options.                    |  |                            | 1,600,000 |  |                       |  |  |                          |  |  |                      |  |  |                           | (1,600,000 | ) |  |  |  | 
|November 16, 2012 |  | August 1, 2015    |  | the price equal to the volume weighted average price of Shares traded on ASX during the 7 trading days immediately prior to the date of grant of the GESOP Options.                    |  |                            | 1,200,000 |  |                       |  |  |                          |  |  |                      |  |  |                           | (1,200,000 | ) |  |  |  | 
|February 20, 2013 |  | February 20, 2015 |  | the price equal to the volume weighted average price of Shares traded on ASX during the 7 trading days immediately prior to the date of grant of the GESOP Options.                    |  |                            | 200,000   |  |                       |  |  |                          |  |  |                      |  |  |                           | (200,000   | ) |  |  |  | 

Executive Incentive Plan

A new Executive Incentive Plan, or EIP, was approved by shareholders at the Annual General Meeting in November 2012.The key terms of the EIP
are as follows:

Operation

The Board is responsible for administering the EIP in accordance with the EIP Rules. A grant of performance rights and/or
options under the EIP will be subject to both the EIP Rules and the terms and conditions of the specific grant.

Eligibility

The EIP is open to employees (including Directors employed in an executive capacity) of the Company who are invited by the
Board to participate in the EIP. The EIP is not open to non-executive directors of the Company. All non-executive directors are ineligible to participate in any current employee incentive scheme of the Company. The Board may invite employees to
apply for performance rights and/or options under the EIP in its absolute discretion.

Grant

No payment is required on the grant of a performance right and no exercise price is payable upon the performance right vesting.
No payment is required on the grant of an option. The exercise price of an option will be determined by the Board in its discretion and specified in the participants invitation letter.



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Vesting

The vesting of a performance right will be conditional on the satisfaction of any performance conditions attaching to the performance right.
Performance conditions will be determined by the Board in its discretion and specified in the participants invitation letter. Where relevant performance conditions are met, then the performance right will vest and be automatically be exercised
into Shares. The vesting of an option will be conditional on the satisfaction of any performance conditions attaching to the option. Performance conditions will be determined by the Board in its discretion and specified in the participants
invitation letter.

Where a participant ceases to be an employee of the Company because of total and permanent disability, death, or any
other circumstance determined by the Board in its discretion, the Board may determine that any of the performance rights and/or options granted to a participant will vest, whether or not any performance conditions attaching to the performance right
and/or option have been met. Notwithstanding this and subject to the ASX Listing Rules:

(i) the Board may vest some or all of a
participants performance rights and/or options even if a performance condition has not been met, if the Board considers that to do so would be in the interests of the Company; and

(ii) the vesting of a participants performance rights and/or options may be made subject to further conditions as determined by the
Board.

Lapse of Performance Rights and Options

All performance rights and options that have not vested on or before the fifth anniversary of their grant date will automatically lapse.
Performance rights and options will also lapse if the applicable performance conditions attaching to them are not met within a prescribed period determined by the Board in its discretion. If a participant ceases to be an employee of the Company
(other than in the circumstances referred to in paragraph (d) above), the participants performance rights and/or options will lapse automatically on cessation of the participants employment unless the Board determines otherwise
within 60 days of the date of cessation of the participants employment.

Conversion

A participant may at any time request the Board to convert any or all of the participants unvested performance rights to Options, or vice
versa, at a rate of conversion determined by the Board in its absolute discretion. Any converted performance rights or Options will be subject to the same terms and conditions of the original performance rights or options (as applicable) granted to
the participant unless otherwise determined by the Board in its discretion.

Dealing with Performance Rights and Options

Performance rights and Options are not transferable, except on the participants death, to their legal personal representative.

Shares

Each performance right will
entitle a participant to one share upon vesting. Each option will entitle a participant upon vesting to subscribe for one share at the exercise price specified by the Board in the participants invitation letter. Shares issued as a result of
the vesting of a performance right or vesting and exercise of an option will rank equally with the shares currently on issue.

Maximum Number of
Performance Rights and Options

The Board may grant such number of performance rights and/or options under the EIP as the Board
determines so long as no limit specified, imposed or calculated by any relevant policy or guideline of ASIC, including any regulatory guide, class order or condition for relief, is exceeded.

Takeovers

If the event of a takeover bid
(as defined in the Corporations Act), a participants performance rights and options will vest immediately to the extent that the performance conditions attaching to those performance rights and/or options have been satisfied and the remaining
performance rights and/or options will lapse.

Reconstruction of Capital

If the Company makes a bonus issue, then a participant will become entitled to a proportionately greater number of shares on vesting of the
performance rights and/or options held, as if the performance rights and/or options had vested before the bonus issue. If there is any other form of capital reconstruction, the number of performance rights and/or options will be adjusted in
accordance with the ASX Listing Rules. A participant is not entitled to participate in any new issue of securities in the Company other than as described above.



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Amendment of Incentive Plan

Subject to the ASX Listing Rules, the Board may amend the rules of the EIP, but no amendment may materially reduce the rights of participants
generally in respect of the performance rights and/or options granted to them, except an amendment made primarily to enable compliance with the law governing or regulating the EIP, to correct a manifest error or mistake, to take into account changes
in development in taxation law or to enable compliance with the Corporations Act or the ASX Listing Rules.

Number of securities issued under the EIP
since the date of last approval

Set out below are summaries of options granted under the EIP up to June 30, 2016.



|                  |  |               |  |                                                                                                                                                    |  |                            |           |  |                       |  |   |                          |  |  |                       |  |  |                           |   |  |  |  |           | 
|----------------- |  | ------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------- | --------- |  | --------------------- |  | - | ------------------------ |  |  | --------------------- |  |  | ------------------------- | - |  |  |  | --------- | 
|Grant Date        |  | Expiry Date   |  | Exercise Price                                                                                                                                     |  | BalanceatStart ofthePeriod |           |  | IssuedDuringthePeriod |  |   | ExercisedDuringthePeriod |  |  | LapsedDuringthePeriod |  |  | Balance atEnd ofthePeriod |  
|December 23, 2013 |  | June 30, 2018 |  | The Options are exercisable at an exercise price of A$ 0.0774 per Share at any time after vesting and prior to 5pm on June 30, 2018 (Expiry Date). |  |                            | 1,515,752 |  |                       |  |  |                          |  |  |                      |  |  |                           |  |  |  |  | 1,515,752 | 
|January 24, 2014  |  | June 30, 2018 |  | The Options are exercisable at an exercise price of A$ 0.0774 per Share at any time after vesting and prior to 5pm on June 30, 2018 (Expiry Date). |  |                            | 165,116   |  |                       |  |  |                          |  |  |                      |  |  |                           |  |  |  |  | 165,116   | 

Set out below are summaries of STI and LTI performance rights granted under the EIP up to June 30, 2016.



|                   |  |           |       |  |                                   |  |            |                              |  |  |                                |  |  |                             |            |  |                                 |  |            |                                               |  |  |            |  |  |  |   | 
|------------------ |  | --------- | ----- |  | --------------------------------- |  | ---------- | ---------------------------- |  |  | ------------------------------ |  |  | --------------------------- | ---------- |  | ------------------------------- |  | ---------- | --------------------------------------------- |  |  | ---------- |  |  |  | - | 
|2016
Grant date    |  | Fairvalue |       |  | Balance atstart of theyear Number |  |            | Grantedduring theyear Number |  |  | Exercisedduring theyear Number |  |  | Lapsed duringthe yearNumber |            |  | Balance atend of theyear Number |  |            | Vested andexercisable atend of the yearNumber | 
|September 19, 2014 |  |           | 0.042 |  |                                   |  | 7,398,896  |                              |  |  |                               |  |  |                             | 5,390,073  |  |                                 |  | 2,008,823  |                                               |  |  |           |  |  |  |  | 
|September 19, 2014 |  |           | 0.044 |  |                                   |  | 10,845,588 |                              |  |  |                               |  |  |                             |           |  |                                 |  | 5,422,794  |                                               |  |  | 5,422,794  |  |  |  |  | 
|September 19, 2014 |  |           | 0.044 |  |                                   |  | 3,615,196  |                              |  |  |                               |  |  |                             |           |  |                                 |  | 1,807,598  |                                               |  |  | 1,807,598  |  |  |  |  | 
|November 14, 2014  |  |           | 0.037 |  |                                   |  | 4,068,627  |                              |  |  |                               |  |  |                             | 4,068,627  |  |                                 |  |           |                                               |  |  |           |  |  |  |  | 
|November 14, 2014  |  |           | 0.038 |  |                                   |  | 9,191,177  |                              |  |  |                               |  |  |                             |           |  |                                 |  |           |                                               |  |  | 9,191,177  |  |  |  |  | 
|November 14, 2014  |  |           | 0.040 |  |                                   |  | 3,063,725  |                              |  |  |                               |  |  |                             |           |  |                                 |  |           |                                               |  |  | 3,063,725  |  |  |  |  | 
|August 5, 2015     |  |           | 0.047 |  |                                   |  |           |                              |  |  | 945,180                        |  |  |                             | 945,180    |  |                                 |  |           |                                               |  |  |           |  |  |  |  | 
|August 5, 2015     |  |           | 0.050 |  |                                   |  |           |                              |  |  | 2,551,985                      |  |  |                             |           |  |                                 |  | 2,551,985  |                                               |  |  |           |  |  |  |  | 
|August 5, 2015     |  |           | 0.051 |  |                                   |  |           |                              |  |  | 850,662                        |  |  |                             |           |  |                                 |  | 850,662    |                                               |  |  |           |  |  |  |  | 
|August 5, 2015     |  |           | 0.047 |  |                                   |  |           |                              |  |  | 42,000,000                     |  |  |                             | 13,999,999 |  |                                 |  |           |                                               |  |  | 28,000,001 |  |  |  |  | 
|October 1, 2015    |  |           | 0.060 |  |                                   |  |           |                              |  |  | 600,000                        |  |  |                             |           |  |                                 |  |           |                                               |  |  | 600,000    |  |  |  |  | 
|October 1, 2015    |  |           | 0.061 |  |                                   |  |           |                              |  |  | 200,000                        |  |  |                             |           |  |                                 |  |           |                                               |  |  | 200,000    |  |  |  |  | 
|December 29, 2015  |  |           | 0.050 |  |                                   |  |           |                              |  |  | 1,538,462                      |  |  |                             |           |  |                                 |  |           |                                               |  |  | 1,538,462  |  |  |  |  | 
|March 7, 2016      |  |           | 0.041 |  |                                   |  |           |                              |  |  | 1,486,326                      |  |  |                             |           |  |                                 |  |           |                                               |  |  | 1,486,326  |  |  |  |  | 
|                   |  |           |       |  |                                   |  |            |                              |  |  |                                |  |  |                             |            |  |                                 |  |            |                                               |  |  |            |  |  |  |   | 
|Total              |  |           |       |  |                                   |  | 38,183,209 |                              |  |  | 50,172,615                     |  |  |                             | 24,403,879 |  |                                 |  | 12,641,862 |                                               |  |  | 51,310,083 |  |  |  |  | 
|                   |  |           |       |  |                                   |  |            |                              |  |  |                                |  |  |                             |            |  |                                 |  |            |                                               |  |  |            |  |  |  |   | 

C. Board Practices

Introduction

Our Board of Directors is
elected by and accountable to our shareholders. It currently consists of five directors, including four non-executive directors, of which one is the non-executive Chairman of our Board of Directors. The Chairman of our Board of Directors is
responsible for the management of the Board of Directors and its functions.

Election of Directors

Directors are elected at our annual general meeting of shareholders. Under our Constitution, a director, other than a managing director, must
not hold office for more than three years or beyond the third annual general meeting following his appointment (whichever is the longer period) without submitting himself for re-election. Our Board of Directors has the power to appoint any person to
be a director, either to fill a vacancy or as an additional director (provided that the total number of directors does not exceed the maximum allowed by law), and any director so appointed may hold office only until the next annual general meeting
when he or she shall be eligible for election.



49



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Corporate Governance

ASX Corporate Governance Principles

In Australia there are no defined corporate governance structures and practices that must be observed by a company listed on the ASX, except
that entities of a certain size are required to have audit and remuneration committees and in some instances trading policies for key management personnel. Instead, the ASX Corporate Governance Council has published the Corporate Governance
Principles and Recommendations, which contains what are called the Recommendations which articulate eight core principles which are intended to provide a reference point for companies about their corporate governance structures and practices. Under
ASX listing Rule 4.10.3, companies are required to attach a copy (or the URL page on its website) of the Companys corporate governance statement (which has been approved by the Board) and provide a statement in their Annual Report to
shareholders disclosing the extent to which they have followed the Recommendations in the reporting period and where they have not followed all the Recommendations, identify the Recommendations that have not been followed, and the reasons for not
following them and what (if any) alternative governance practices it adopted in lieu of the recommendations during that period . It is not mandatory to follow the Recommendations. We believe we are in material compliance with the Recommendations.
Set forth below are the material provisions of the Recommendations together with the reasons, where applicable, for variations therefrom.



|1. | Lay solid foundations for management and oversight. Companies should establish and disclose the respective roles and responsibilities of board and management and how their performance is monitored and evaluated.
During the year ended June 30, 2016, we varied from the Recommendations in the following area:
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | At present the Board does not have a formal diversity policy as recommended by the ASX Corporate Governance Councils Principles and Recommendations. The Board believes that the Company does not have a workforce
size which is significant enough to require a formal diversity policy. A diversity policy will be formalised as the Company develops and grows. At present the Board ensures that appropriate procedures and measures are introduced and responsibilities
delegated to the Remuneration committee to ensure that the both the Boards and the Companys diversity objectives are met.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|2. | Structure the Board to add value. Companies should have a board of an effective composition, size, and commitment to adequately discharge its responsibilities and duties effectively. During the year ended
June 30, 2016, we varied from the Recommendations in the following area:
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The Board believes that we are not of a size, nor are our financial affairs of such complexity, to justify the establishment of a Nomination Committee of the Board of Directors. All matters which might be properly dealt
with by a Nomination Committee are considered by the full Board of Directors. The Board considers the necessity to establish a Nomination Committee annually.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|3. | Promote ethical and responsible decision-making. Companies should act ethically and responsibly.
|-- | ------------------------------------------------------------------------------------------------



|4. | Safeguard integrity in corporate reporting.Companies should have formal and rigorous processes to independently verify and safeguard the integrity of their corporate reporting.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|5. | Make timely and balanced disclosure.Companies should make timely and balanced disclosure of all matters concerning it that a reasonable person would expect to have a material effect on the price or value of its
securities.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|6. | Respect the rights of shareholders. Companies should respect the rights of shareholders by providing them with appropriate information and facilities to allow them the effective exercise of those rights.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|7. | Recognize and manage risk. Companies should establish a sound system of risk management and periodically review the effectiveness of that internal control.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------



|8. | Remunerate fairly and responsibly. Companies should ensure that the level and composition of remuneration is sufficient and reasonable and that its relationship to performance is clear.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Non-Executive and Independent Directors

Australian law does not require a company to appoint a certain number of independent directors to its board of directors or audit committee.
However, under the Corporate Governance Principles and Recommendations, the ASX recommends, but does not require, that a ASX-listed company have a majority of independent directors on its board of directors and that the audit committee be comprised
of independent directors, within the meaning of the rules of the ASX. Our Board of Directors currently has five directors, of which four are non-executive directors within the meaning of the Corporate Governance Principles and Recommendations, and
our audit committee consists of three such non-executive directors. Accordingly, we currently comply with the Recommendations.



50



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Under NASDAQ Marketplace Rules, in general a majority of our Board of Directors must qualify as
independent directors within the meaning of the NASDAQ Marketplace Rules and our audit committee must have at least three members and be comprised only of independent directors, each of whom satisfies the respective independence
requirements of NASDAQ and the U.S. Securities and Exchange Commission.

The Board of Directors does not have regularly scheduled meetings
at which only independent directors are present. The Board of Directors does meet regularly and independent directors are expected to attend all such meetings. Our practices are consistent with the Recommendations, in that the Recommendations do not
provide that independent directors should meet separately from the Board of Directors.

Our Board of Directors has determined that each of
Lucy Turnbull, Albert Wong, Pete Meyers, and Russell Howard qualifies as an independent director under the requirements of the ASX, NASDAQ Marketplace Rules and U.S. Securities and Exchange Commission.

Committees of the Board of Directors

Audit Committee. NASDAQ Marketplace Rules require us to establish an audit committee comprised of at least three members, each of whom
is financially literate and satisfies the respective independence requirements of the U.S. Securities and Exchange Commission and NASDAQ and one of whom has accounting or related financial management expertise at senior levels within a
company.

Our Audit Committee assists our Board of Directors in overseeing the accounting and financial reporting processes of our company
and audits of our financial statements, including the integrity of our financial statements, compliance with legal and regulatory requirements, our independent public accountants qualifications and independence, the performance of our internal
audit function and independent public accountants, and such other duties as may be directed by our Board of Directors. The Audit Committee is also required to assess risk management.

Our Audit Committee currently consists of three board members, each of whom satisfies the independence requirements of the U.S.
Securities and Exchange Commission, NASDAQ Marketplace Rules and ASX Rules. Our Audit Committee is currently composed of Albert Wong, Lucy Turnbull and Pete Meyers. The audit committee meets at least two times per year.

Remuneration Committee.Our Board of Directors has established a Remuneration Committee, which is comprised solely of independent
directors, within the meaning of NASDAQ Marketplace Rules. The Remuneration Committee is responsible for reviewing the salary, incentives and other benefits of our directors, senior executive officers and employees, and to make recommendations on
such matters for approval by our Board of Directors. The Remuneration Committee is also responsible for overseeing and advising our Board of Directors with regard to the adoption of policies that govern our compensation programs. Lucy Turnbull,
Russell Howard and Albert Wong are the current members of the Remuneration Committee, each of whom qualifies as an independent director within the meaning of NASDAQ Marketplace Rules.

Nominations Committee.Our Board of Directors has not established a Nominations Committee. The Recommendations provide that the
Nominations Committee of a company should have a charter that clearly sets out its roles and responsibilities, composition, structure, membership requirements and the procedures for inviting non-committee members to attend meetings. We have not
established a Nominations Committee as we do not believe the size of our financial affairs justify the establishment of a separate committee at this time.

Corporate Governance Requirements Arising from Our U.S. Listing  the Sarbanes-Oxley Act of 2002, SEC Rules and the Nasdaq Global Market Marketplace
Rules.

Our shares in the form of ADRs are quoted on the Nasdaq Global Market. The Sarbanes-Oxley Act of 2002, as well as related new
rules subsequently implemented by the SEC, require companies which are considered to be foreign private issuers in the U.S., such as us, to comply with various corporate governance practices. In addition, Nasdaq has made certain changes to its
corporate governance requirements for companies that are listed on the Nasdaq Global Market. These changes allow us to follow Australian home country corporate governance practices in lieu of the otherwise applicable Nasdaq corporate
governance standards, as long as we disclose each requirement of Rule 5600 that we do not follow and describe the home country practice we follow in lieu of the relevant Nasdaq corporate governance standards. We intend to take all actions necessary
to maintain compliance with applicable corporate governance requirements of the Sarbanes-Oxley Act of 2002, rules adopted by the SEC and listing standards of Nasdaq. We follow Australian corporate governance practices in lieu of the corporate
governance requirements of the Nasdaq Marketplace Rules in respect of:



| |  |  | Nasdaq requirement under Rule 5620(c) that a quorum consist of holders of 33 1/3% of the outstanding ordinary shares  The ASX Listing Rules do not have an express requirement that each issuer listed on ASX have a
quorum of any particular number of the outstanding ordinary shares, but instead allow a listed issuer to establish its own quorum requirements. Our quorum is currently two persons who are entitled to vote. We believe this quorum requirement is
consistent with the requirements of the ASX and is appropriate and typical of generally accepted business practices in Australia.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| |  |  | The Nasdaq requirements under Rules 5605(b)(1) and (2) relating to director independence, including the requirements that a majority of the board of directors must be comprised of independent directors and that
independent directors must have regularly scheduled meetings at which only independent directors are present  The Nasdaq and ASX definitions of what constitute an independent director are not identical and the requirements relating to the
roles and obligations of independent directors are not identical. The ASX, unlike Nasdaq, permits an issuer to establish its own materiality threshold for determining whether a transaction between a director and an issuer affects the directors
status as independent and it does not require that a majority of the issuers board of directors be independent, as long as the issuer publicly discloses this fact. In addition, the ASX does not require that the independent directors have
regularly scheduled meeting at which only independent directors are present. We believe that our Board composition is consistent with the requirements of the ASX and that it is appropriate and typical of generally accepted business practices in
Australia.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The Nasdaq requirements under Rule 5605(c)(1) and (2) relating to the composition of the audit committee and the audit committee charter  The Nasdaq and ASX audit committee requirements are not identical.
Moreover, differences in the requirements of Nasdaq and ASX also arise because of the differences in the definitions of who constitutes an independent director, as discussed above. We have an audit committee and audit committee charter that are
consistent with the requirements of the ASX Listing Rules and which we believe are appropriate and typical of generally accepted business practices in Australia.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The Nasdaq requirements under Rules 5605(d) that compensation of an issuers officers must be determined, or recommended to the Board for determination, either by a majority of the independent directors, or a
compensation committee comprised solely of independent directors, and that director nominees must either be selected, or recommended for the Boards selection, either by a majority of the independent directors, or a nominations committee
comprised solely of independent directors. The Nasdaq compensation committee requirements are not identical to the ASX remuneration and nomination committee requirements. Issuers listed on the ASX are recommended under applicable listing standards
to establish a remuneration committee consisting of a majority of independent directors and an independent chairperson, or publicly disclose that it has not done so. We have a Remuneration Committee that is consistent with the requirements of the
ASX and which we believe is appropriate and typical of generally accepted business practices in Australia.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Directors Service
Contracts

For details of directors service contracts providing for benefits upon termination of employment, see Item 6.
Directors, Senior Management and EmployeesB. CompensationService Agreements.

Indemnification of Directors and Officers

Our Constitution provides that, we may indemnify a person who is, or has been, an officer of our company, to the full extent permissible by
law, out of our property against any liability incurred by such person as an officer in defending proceedings, whether civil or criminal, and whatever their outcome.

In addition, our Constitution provides that to the extent permitted by law, we may pay, or agree to pay, a premium in respect of a contract
insuring a person who is or has been an officer of our company or one of our subsidiaries against any liability:



| |  |  | incurred by the person in his or her capacity as an officer of our company or a subsidiary of our company, and
| | - |  | --------------------------------------------------------------------------------------------------------------



| |  |  | for costs and expenses incurred by that person in defending proceedings relating to that person acting as an officer of Prima BioMed, whether civil or criminal, and whatever their outcome.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

We maintain a directors and officers liability insurance policy. We have established a policy for the indemnification of our
directors and officers against certain liabilities incurred as a director or officer, including costs and expenses associated in successfully defending legal proceedings.

D. Employees

As of June 30, 2016, we had 22 employees. Of such employees, 13 were employed in research and development, one in intellectual property
management and 8 in general management and administration. Of these 22 employees, 5 were located in Australia, 5 were located in France and 12 were located in Germany. As at the end of fiscal years 2014 and 2015 we had 31 and 21 employees,
respectively. The consolidation of our CVac program and the prioritization of IMP321 led to a change in staff structure, which resulted in a reduction of employees during fiscal year 2015 by approximately 30%.



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Each of our full-time employees has entered into an agreement with a term of employment of
between one to four years or for an unlimited term. We also engage part-time employees. We may only terminate the employment of any of our employees in accordance with the relevant employees contract of employment.

Our standard contract of employment for full time and part-time employees provides that we can terminate the employment of an employee without
notice for serious misconduct or with between one to three months notice without cause (as set out in the relevant employees contract of employment). We can terminate the employment of a casual employee without notice. For a summary of
the key terms of employment of each of our senior management, see Item 6. Directors, Senior Management and EmployeesB. CompensationService Agreements.

E. Share Ownership

For a description of arrangements involving the employees in the capital of the company, including any arrangement that involves the issue or
grant of options or shares or securities of the company, see Item 6. Directors, Senior Management and EmployeesB. CompensationGlobal Employee Share Option Plan, Employee Share Option Plan and
Executive Incentive Plan.

Beneficial Ownership of Senior Management and Directors

Beneficial ownership is determined in accordance with the rules of the U.S. Securities and Exchange Commission, and generally includes voting
or investment power with respect to securities. Ordinary shares relating to options currently exercisable or exercisable within 60 days of the date of the above table are deemed outstanding for computing the percentage of the person holding such
securities but are not deemed outstanding for computing the percentage of any other person. Except as indicated by footnote, and subject to community property laws where applicable, the persons named in the table below have sole voting and
investment power with respect to all shares shown as beneficially owned by them.

The following table sets forth certain information as of
June 30, 2016 regarding the beneficial ownership of our ordinary shares by each of our directors and senior management and by all of our directors and senior management as a group. The shares are beneficially owned, held directly or via an
entity related to the individual. The percentages shown are based on 2,061,630,944 ordinary shares issued and outstanding as of June 30, 2016.



|                                                                              |  |                                             |               |    |                        |  |      |  
|----------------------------------------------------------------------------- |  | ------------------------------------------- | ------------- | -- | ---------------------- |  | ---- | -
|Name                                                                          |  | Number of OrdinaryShares Beneficially Owned |               |    | Percentage ofOwnership | 
|Lucy Turnbull                                                                 |  |                                             | 20,359,576    |    |                        |  | *    |  
|Albert Wong                                                                   |  |                                             | 3,837,500     |    |                        |  | *    |  
|Russell Howard                                                                |  |                                             |              |    |                        |  |     |  
|Pete Meyers                                                                   |  |                                             | 4,289,215     |    |                        |  | *    |  
|Marc Voigt                                                                    |  |                                             | 11,605,293150 | ** |                        |  | *    |  
|Deanne Miller                                                                 |  |                                             | 4,950,980     |    |                        |  | *    |  
|Frédéric Triebel                                                              |  |                                             | 12,644,716    |    |                        |  | *    |  
|All directors and executive officers as a group (7 persons)  Ordinary shares |  |                                             | 57,687,430150 | ** |                        |  | 2.80 | %



|* | Less than 1%.
|- | -------------

|** | Shares held in the form of American Depositary Receipts (ADRs) listed on the NASDAQ Global Market.
|-- | --------------------------------------------------------------------------------------------------



|ITEM 7. | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
|------- | -------------------------------------------------

A. Major Shareholders

One shareholder, Ridgeback Capital Investments LP, or Ridgeback, owned more than 5% or more of our ordinary shares as at June 30,
2016. Ridgeback held 112,343,250 ordinary shares, representing 5.45% of the total issued share capital of the Company as at June 30, 2016. The ordinary shares are registered in the name of its custodian HSBC Custody Nominees (Australia)
Limited, with Ridgeback being the underlying holder and entitled to be registered as the holder. Each share ranks pari passu with existing ordinary shares and entitles the holder to one vote. The voting rights of Ridgeback are no different than the
voting rights of other holders of our ordinary shares. The associates of Ridgeback (Ridgeback Associates) are Ridgeback Capital Management L.P. (which has the power to control the right to vote and the disposal of the securities) and Wayne Holman
(as the controlling party of Ridgeback Capital Management L.P.).



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As of June 30, 2016, there were 11,756 holders of record of our ordinary shares, of which 7
holders, holding approximately 0.051% of our ordinary shares, had registered addresses in the United States. These numbers are not representative of the number of beneficial holders of our shares nor are they representative of where such beneficial
holders reside, as many of these ordinary shares were held of record by brokers or other nominees. The majority of trading by our U.S. investors is done by means of ADSs that are held of record by National Nominees Ltd, which held 31.66% of our
ordinary shares as of such date.

To our knowledge, we are not directly or indirectly controlled by another corporation, by any foreign
government or by any other natural or legal person severally or jointly. There are no agreements known to us, the operation of which may at a subsequent date result in a change in control of Prima BioMed.

See also the description of Ridgebacks investment under the heading Fiscal 2015 in Item 4.A.

B. Related Party Transactions

We operate inter-company loan accounts with our wholly owned subsidiaries. The net amount of such intercompany loans at June 30,
2016 was A$ nil, as all inter-company transactions are eliminated on consolidation.

During fiscal 2016 there were no related party
transactions

Ridgeback is a major shareholder of the Company. In connection with the Ridgeback investment described in Item 4.A
under the heading Fiscal 2015, Ridgeback received a convertible note. The convertible note was subject to shareholder approval, with such approval being obtained on 31 July 2016. See Item 4.  Information on the
CompanyA. History and Development of the Company Fiscal 2015 and Note 15 to the consolidated financial statements.

During fiscal 2014 there were no related party transactions.

C. Interests of Experts and Counsel

Not applicable.



|ITEM 8. | FINANCIAL INFORMATION
|------- | ---------------------

A. Consolidated Statements and Other Financial
Information

Our audited consolidated financial statements for the fiscal years ending June 30, 2014, 2015 and 2016 are included
in Item 18 of this Annual Report on Form 20-F, which is found immediately following the text of this Annual Report on For 20-F The audit report of PricewaterhouseCoopers as of June 30, 2016 and 2015, and for each of the three years in the
period ended June 30, 2016, is included therein immediately preceding the financial statements.

Export Sales

The Company had no export sales in its latest financial year ended June 30, 2016 and for financial years ended June 30, 2015 and
June 30, 2014 and, as a result, the percentage of export sales for the Company for each of the three years was zero.

Legal Proceedings

We are not involved in any legal or arbitration proceedings, including those relating to bankruptcy, receivership or similar proceedings and
those involving any third party, which may have, or have had in the recent past, significant effects on our financial position or profitability. The company is not involved in any governmental proceedings pending or known by us to be contemplated.

Dividend Distribution Policy

We
have never paid cash dividends to our shareholders. We intend to retain future earnings for use in our business and do not anticipate paying cash dividends on our ordinary shares in the foreseeable future. Any future dividend policy will be
determined by the Board of Directors and will be based upon various factors, including our results of operations, financial condition, current and anticipated cash needs, future prospects, contractual restrictions and other factors as the Board of
Directors may deem relevant. There is no assurance that dividends will ever be paid. See Special Note Regarding Forward Looking Statements.



Recent Developments

There have been no
recent developments since June 30, 2016.

B. Significant Changes

There have been no significant changes since the date of the annual financial statements included herein.



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##### Table of Contents

|ITEM 9. | THE OFFER AND LISTING
|------- | ---------------------

A. Offer and Listing Details

Australian Securities Exchange

Our
ordinary shares have traded on the ASX since our initial public offering on July 9, 2001. The following table sets forth, for the periods indicated, the high and low market quotations for our ordinary shares as quoted on the ASX.



|                                 |  |                         |      |  |               |  |      |      |  |  |      |  |  |  |      | 
|-------------------------------- |  | ----------------------- | ---- |  | ------------- |  | ---- | ---- |  |  | ---- |  |  |  | ---- | 
|                                 |  | Per Ordinary Share (A$) |      |  | Per ADS (US$) | 
|                                 |  | High                    |      |  | Low           |  |      | High |  |  | Low  | 
|                                 |  | A$                      |      |  | A$            |  |      | US$  |  |  | US$  | 
|Fiscal Year Ended June 30,       |  |                         |      |  |               |  |      |      |  |  |      |  |  |  |      | 
|2012                             |  |                         | 0.32 |  |               |  | 0.09 |      |  |  | 7.65 |  |  |  | 2.21 | 
|2013                             |  |                         | 0.20 |  |               |  | 0.06 |      |  |  | 6.96 |  |  |  | 1.70 | 
|2014                             |  |                         | 0.11 |  |               |  | 0.03 |      |  |  | 3.43 |  |  |  | 0.82 | 
|2015                             |  |                         | 0.19 |  |               |  | 0.02 |      |  |  | 6.48 |  |  |  | 0.42 | 
|2016                             |  |                         | 0.09 |  |               |  | 0.04 |      |  |  | 1.80 |  |  |  | 0.72 | 
|Fiscal Year Ended June 30, 2015: |  |                         |      |  |               |  |      |      |  |  |      |  |  |  |      | 
|First Quarter                    |  |                         | 0.05 |  |               |  | 0.04 |      |  |  | 1.29 |  |  |  | 0.9  | 
|Second Quarter                   |  |                         | 0.05 |  |               |  | 0.03 |      |  |  | 1.08 |  |  |  | 0.74 | 
|Third Quarter                    |  |                         | 0.04 |  |               |  | 0.03 |      |  |  | 1.03 |  |  |  | 0.62 | 
|Fourth Quarter                   |  |                         | 0.19 |  |               |  | 0.02 |      |  |  | 6.48 |  |  |  | 0.42 | 
|Fiscal Year Ended June 30, 2016: |  |                         |      |  |               |  |      |      |  |  |      |  |  |  |      | 
|First Quarter                    |  |                         | 0.09 |  |               |  | 0.05 |      |  |  | 1.80 |  |  |  | 0.93 | 
|Second Quarter                   |  |                         | 0.06 |  |               |  | 0.05 |      |  |  | 1.54 |  |  |  | 1.01 | 
|Third Quarter                    |  |                         | 0.06 |  |               |  | 0.04 |      |  |  | 1.20 |  |  |  | 0.72 | 
|Fourth Quarter                   |  |                         | 0.05 |  |               |  | 0.04 |      |  |  | 1.24 |  |  |  | 0.90 | 
|Month Ended:                     |  |                         |      |  |               |  |      |      |  |  |      |  |  |  |      | 
|April 2016                       |  |                         | 0.05 |  |               |  | 0.04 |      |  |  | 1.24 |  |  |  | 0.90 | 
|May 2016                         |  |                         | 0.05 |  |               |  | 0.04 |      |  |  | 1.18 |  |  |  | 0.94 | 
|June 2016                        |  |                         | 0.05 |  |               |  | 0.04 |      |  |  | 1.18 |  |  |  | 0.92 | 
|July 2016                        |  |                         | 0.04 |  |               |  | 0.04 |      |  |  | 0.99 |  |  |  | 0.88 | 
|August 2016                      |  |                         | 0.04 |  |               |  | 0.04 |      |  |  | 0.94 |  |  |  | 0.80 | 
|September 2016                   |  |                         | 0.04 |  |               |  | 0.04 |      |  |  | 0.97 |  |  |  | 0.85 | 

For a description of the rights of our ADSs, see Item 12. Description of Securities Other Than Equity
SecuritiesD. American Depositary Shares.

B. Plan of Distribution

Not applicable.

C. Markets

Our ordinary shares are listed and traded on the Australian Securities Exchange Ltd., or ASX, on the NASDAQ Global Market where our ordinary
shares in the form of ADSs are traded on the NASDAQ Global Market.

D. Selling Shareholders

Not applicable.

E. Dilution

Not applicable.



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F. Expenses of the Issue

Not applicable.



|ITEM 10. | ADDITIONAL INFORMATION
|-------- | ----------------------

A. Share Capital

Not applicable.

B. Memorandum and Articles of Association

General

Our constituent document is a
Constitution. The Constitution is subject to the terms of the Listing Rules of ASX Limited and the Corporations Act 2001. The Constitution may be amended or repealed and replaced by special resolution of shareholders, which is a resolution of which
notice has been given and that has been passed by at least 75% of the votes cast by shareholders entitled to vote on the resolution.

Purposes and
Objects

As a public company we have all the rights, powers and privileges of a natural person. Our Constitution does not provide for
or prescribe any specific objects or purposes.

The Powers of the Directors

Under the provision of our Constitution our directors may exercise all the powers of our company in relation to:

Management of Company

The business is
managed by the directors who may exercise all the powers of our company that are not by the Corporations Act or by this constitution required to be exercised by shareholders in general meeting subject nevertheless to any provision of this
constitution and to the provisions of the Corporations Act.

Members Approval to Significant Changes

The directors must not make a significant change (either directly or indirectly) to the nature and scale of our activities except after having
disclosed full details to ASX in accordance with the requirements of the Listing Rules of the ASX and the directors must not sell or otherwise dispose of the main undertaking of our company without the approval of shareholders in general meeting in
accordance with the requirements of the Listing Rules.

Rights Attached to Our Ordinary Shares

The concept of authorized share capital no longer exists in Australia and as a result, our authorized share capital is unlimited. All our
outstanding ordinary shares are validly issued, fully paid and non-assessable. The rights attached to our ordinary shares are as follows:

Dividend Rights. The directors may declare that a dividend be paid to the members according to the shareholders pro rata
shareholdings and the directors may fix the amount, the time for payment and the method of payment. No dividend is payable except in accordance with the Corporations Act as amended from time to time and no dividend carries interest as against the
Company.

Voting Rights. Holders of ordinary shares have one vote for each ordinary share held on all matters submitted to a vote
of shareholders. Such voting rights may be affected by the grant of any special voting rights to the holders of a class of shares with preferential rights that may be authorized in the future.

The quorum required for an ordinary meeting of shareholders consists of at least two shareholders present in person, or by proxy, attorney or
representative appointed pursuant to our Constitution. A meeting adjourned for lack of a quorum generally is adjourned to the same day in the following week at the same time and place. At the reconvened meeting, the required quorum consists of any
two members present in person, or by proxy, attorney or representative appointed pursuant to our Constitution. The meeting is dissolved if a quorum is not present within 15 minutes from the time appointed for the meeting.



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An ordinary resolution, such as a resolution for the declaration of dividends, requires approval
by the holders of a majority of the voting rights represented at the meeting, in person, by proxy, or by written ballot and voting thereon. Under our Constitution, a special resolution, such as amending our Constitution, approving any change in
capitalization, winding-up, authorization of a class of shares with special rights, or other changes as specified in our Constitution, requires approval of a special majority, representing the holders of no less than 75% of the voting rights
represented at the meeting in person, by proxy or by written ballet, and voting thereon.

Rights in Our Profits. Our shareholders
have the right to share in our profits distributed as a dividend and any other permitted distribution.

Rights in the Event of
Liquidation. In the event of our liquidation, after satisfaction of liabilities to creditors, our assets will be distributed to the holders of ordinary shares in proportion to the capital at the commencement of the liquidation paid up or which
ought to have been paid up on the shares held by them respectively. This right may be affected by the grant of preferential dividend or distribution rights to the holders of a class of shares with preferential rights, such as the right in winding up
to payment in cash of the amount then paid up on the share, and any arrears of dividend in respect of that share, in priority to any other class of shares.

Changing Rights Attached to Shares

According to our Constitution, the rights attached to any class of shares, unless otherwise provided by the terms of the class, may be varied
with either the written consent of the holders of not less than 75% of the issued shares of that class or the sanction of a special resolution passed at a separate general meeting of the shares of that class.

Annual and Extraordinary Meetings

Our
directors must convene an annual meeting of shareholders at least once every calendar year, within five months of our last fiscal year-end balance sheet data. Notice of at least 28 days prior to the date of the meeting is required. A general meeting
may be convened by any director, or one or more shareholders holding in the aggregate at least 5% of our issued capital. A general meeting must be called not more than 21 days after the request is made. The meeting must be held not later than two
months after the request is given.

Limitations on the Rights to Own Securities in Our Company

Subject to certain limitations on the percentage of shares a person may hold in our company, neither our Constitution nor the laws of the
Commonwealth of Australia restrict in any way the ownership or voting of shares in our company.

Changes in Our Capital

Pursuant to the Listing Rules, our directors may in their discretion issue securities to persons who are not related parties of our company,
without the approval of shareholders, if such issue, when aggregate with securities issued by our company during the previous 12 month period would be an amount that would not exceed 15% of our issued capital at the commencement of the 12 month
period. Other allotments of securities require approval by an ordinary resolution of shareholders.

C. Material Contracts

Except as otherwise disclosed in this annual report (including the exhibits hereto), we are currently not, and have not been in the
two years preceding publication of this annual report, party to any material contract, other than contracts entered into in the ordinary course of business.

D. Exchange Controls

Australia has largely abolished exchange controls on investment transactions. The Australian dollar is freely convertible into U.S. dollars. In
addition, there are currently no specific rules or limitations regarding the export from Australia of profits, dividends, capital or similar funds belonging to foreign investors, except that certain payments to non-residents must be reported to the
Australian Cash Transaction Reports Agency, which monitors such transaction, and amounts on account of potential Australian tax liabilities may be required to be withheld unless a relevant taxation treaty can be shown to apply.

The Foreign Acquisitions and Takeovers Act 1975

Under Australian law, in certain circumstances foreign persons are prohibited from acquiring more than a limited percentage of the shares in an
Australian company without approval from the Australian Treasurer. These limitations are set forth in the Australian Foreign Acquisitions and Takeovers Act, or the Takeovers Act.



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Under the Takeovers Act, as currently in effect, any foreign person, together with associates, or
parties acting in concert, is prohibited from acquiring 15% or more of the shares in any company having total assets of A$252 million or more (or A$1,094 million or more in case of U.S. investors). Associates is a broadly defined term
under the Takeovers Act 1975 and includes:



| |  |  | spouses, lineal ancestors and descendants, and siblings;
| | - |  | --------------------------------------------------------



| |  |  | partners, officers of companies, the company, employers and employees, and corporations;
| | - |  | ----------------------------------------------------------------------------------------



| |  |  | their shareholders related through substantial shareholdings or voting power;
| | - |  | -----------------------------------------------------------------------------



| |  |  | corporations whose directors are controlled by the person, or who control a person; and
| | - |  | ---------------------------------------------------------------------------------------



| |  |  | associations between trustees and substantial beneficiaries of trust estates.
| | - |  | -----------------------------------------------------------------------------

In addition, a
foreign person may not acquire shares in a company having total assets of A$252 million or more (or A$1,094 million or more in case of U.S. investors) if, as a result of that acquisition, the total holdings of all foreign persons and their
associates will exceed 40% in aggregate without the approval of the Australian Treasurer. If the necessary approvals are not obtained, the Treasurer may make an order requiring the acquirer to dispose of the shares it has acquired within a specified
period of time. The same rule applies if the total holdings of all foreign persons and their associates already exceeds 40% and a foreign person (or its associate) acquires any further shares, including in the course of trading in the secondary
market of the ADSs. At present, we do not have total assets of A$231 million or more. At this time, our total assets do not exceed any of the above thresholds and therefore no approval would be required from the Australian Treasurer. Nonetheless,
should our total assets exceed the threshold in the future, we would will be mindful of the number of ADS that can be made available, and monitor the 40% aggregate shareholding threshold for foreign persons (together with the associates) to ensure
that it will not be exceeded subject to the Australian Treasurers approval.

Each foreign person seeking to acquire holdings in
excess of the above caps (including their associates, as the case may be) would need to complete an application form setting out the proposal and relevant particulars of the acquisition/shareholding. The Australian Treasurer then has 30 days to
consider the application and make a decision. However, the Australian Treasurer may extend the period by up to a further 90 days by publishing an interim order. The Australian Treasurer has issued a guideline titled Australias Foreign
Investment Policy which provides an outline of the policy. As for the risk associated with seeking approval, the policy provides that the Treasurer will reject an application if it is contrary to the national interest.

If the level of foreign ownership exceeds 40% at any time, we would be considered a foreign person under the Takeovers Act. In such event, we
would be required to obtain the approval of the Australian Treasurer for our company, together with our associates, to acquire (i) more than 15% of an Australian company or business with assets totaling over A$252 million (or A$1,094 if the
investor is a non-government entity from a partner agreement country); or (ii) any direct or indirect ownership in Australian residential real estate and certain non-residential real estate.

The percentage of foreign ownership in our company would also be included determining the foreign ownership of any Australian company or
business in which it may choose to invest. Since we have no current plans for any such acquisition and do not own any property, any such approvals required to be obtained by us as a foreign person under the Takeovers Act will not affect our current
or future ownership or lease of property in Australia.

Our Constitution does not contain any additional limitations on a
non-residents right to hold or vote our securities.

Australian law requires the transfer of shares in our company to be made in
writing. No stamp duty will be payable in Australia on the transfer of ADSs.

E. Taxation

The following is a discussion of Australian and United States tax consequences material to our shareholders. To the extent that the discussion
is based on tax legislation which has not been subject to judicial or administrative interpretation, the views expressed in the discussion might not be accepted by the tax authorities in question or by court. The discussion is not intended, and
should not be construed, as legal or professional tax advice and does not exhaust all possible tax considerations.

Holders of our ADSs
should consult their own tax advisors as to the United States, Australian or other tax consequences of the purchase, ownership and disposition of ADSs, including, in particular, the effect of any foreign, state or local taxes.

E.1. AUSTRALIAN TAX CONSEQUENCES

In this
section we discuss the material Australian tax considerations that apply to non-Australian tax residents with respect to the acquisition, ownership and disposal of the absolute beneficial ownership of ADSs, which are evidenced by ADSs. This
discussion is based upon existing Australian tax law as of the date of this Annual Report, which is subject to change, possibly retrospectively. This discussion does not address all aspects of Australian income tax law which may be important to
particular investors in light of their individual investment circumstances, such as ADSs or shares held by investors subject to special tax rules (for example, financial institutions, insurance companies or tax exempt organizations). In addition,
this summary does not discuss any foreign or state tax considerations, other than stamp duty. Prospective investors are urged to consult their tax advisors regarding the Australian and foreign income and other tax considerations of the purchase,
ownership and disposition of the ADSs or shares.



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Nature of ADSs for Australian Taxation Purposes

Holders of our ADSs are treated as the owners of the underlying ordinary shares for Australian income tax and capital gains tax purposes.
Therefore, dividends paid on the underlying ordinary shares will be treated for Australian tax purposes as if they were paid directly to the owners of ADSs, and the disposal of ADSs will be treated for Australian tax purposes as the disposal of the
underlying ordinary shares. In the following analysis we discuss the application of the Australian income tax and capital gains tax rules to non-Australian resident holders of ADSs.

Taxation of Dividends

Australia operates
a dividend imputation system under which dividends may be declared to be franked to the extent they are paid out of company profits that have been subject to income tax. Fully franked dividends are not subject to dividend withholding
tax. Dividends that are not franked or are partly franked and are paid to non-Australian resident stockholders are subject to dividend withholding tax, but only to the extent the dividends are not franked.

Dividends paid to a non-resident stockholder are subject to withholding tax (a) except to the extent they have been franked and
(b) at 30%, unless the stockholder is a resident of a country with which Australia has a double taxation agreement.

In accordance
with the provisions of the Double Taxation Convention between Australia and the United States, the maximum rate of Australian tax on any unfranked portion of a dividend to which a resident of the United States is beneficially entitled is 15%, where
the U.S. resident holds less than 10% of the voting rights in our company, or 5% where the U.S. resident holds 10% or more of the voting rights in our company. Special rules apply to Regulated Investment Companies and Real Estate Investment Trusts
that hold shares and receive dividends. The Double Taxation Convention between Australia and the United States does not apply to limit the tax rate on dividends where the ADSs are effectively connected to a permanent establishment or a fixed base
carried on by the owner of the ADSs in Australia through which the stockholder carries on business or provides independent personal services, respectively.

Tax on Sales or other Dispositions of SharesCapital Gains Tax

Australian capital gains derived by non-Australian residents in respect of the disposal of capital assets that are not taxable Australian
property will be disregarded. Non-Australian resident stockholders will not be subject to Australian capital gains tax on the capital gain made on a disposal of our shares, unless they, together with associates, hold 10% or more of our issued
capital, tested either at the time of disposal or over any continuous 12 month period in the 24 months prior to disposal, and the value of our shares at the time of disposal is principally attributable to Australian real property assets.

Australian capital gains tax applies to net capital gains at a taxpayers marginal tax rate but for certain stockholders a discount
capital gain may apply if the shares have been held for 12 months or more. For individuals, this discount is 50%. Net capital gains are calculated after reduction for capital losses (including certain prior year capital losses), which may
only be offset against capital gains.

Tax on Sales or other Dispositions of SharesStockholders Holding Shares on Revenue Account

Some non-Australian resident stockholders may hold shares on revenue rather than on capital account, for example, share traders. These
stockholders may have the gains made on the sale or other disposal of the shares included in their assessable income under the ordinary income provisions of the income tax law, if the gains are sourced in Australia.

Non-Australian resident stockholders assessable under these ordinary income provisions in respect of gains made on shares held on revenue
account would be assessed for such gains at the Australian tax rates for non-Australian residents, which start at a marginal rate of 29% for non-Australian resident individuals. Some relief from the Australian income tax may be available to
such non-Australian resident stockholders under the Double Taxation Convention between the United States and Australia, for example, because the stockholder does not have a permanent establishment in Australia.

To the extent an amount would be included in a non-Australian resident stockholders assessable income under both the capital gains tax
provisions and the ordinary income provisions, the capital gain amount would generally be reduced, so that the stockholder would not be subject to double tax on any part of the income gain or capital gain.



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Dual Residency

If a stockholder were a resident of both Australia and the United States under those countries domestic taxation laws, that stockholder
may be subject to tax as an Australian resident. If, however, the stockholder is determined to be a U.S. resident for the purposes of the Double Taxation Convention between the United States and Australia, the Australian tax applicable would be
limited by the Double Taxation Convention. Stockholders should obtain specialist taxation advice in these circumstances.

Stamp Duty

A transfer of shares of a company listed on the Australian Stock Exchange is not subject to Australian stamp duty except in some circumstances
where the listed company holds substantial real property and/or real property interests.

Australian Death Duty

Australia does not have estate or death duties. No capital gains tax liability is realized upon the inheritance of a deceased persons
shares. The disposal of inherited shares by beneficiaries, may, however, give rise to a capital gains tax liability.

Goods and Services Tax

The issue or transfer of shares will not incur Australian goods and services tax and does not require a stockholder to register for Australian
goods and services tax purposes.

Research and Development Tax Incentives

The Australian Government tax incentive scheme, introduced on July 1, 2011, replaces the former R&D Tax Concession scheme for
research and development activities in income years commencing on or after July 1, 2011. Subject to certain exclusions, the new scheme provides benefits for eligible research and development activities (R&D activities). Such eligible
R&D activities include but are not limited to:



| |  |  | Core activities, which are experimental activities whose outcome is not known or cannot be determined in advance, but can only be determined by applying a systematic progression of work;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Core activities must be conducted for the purpose of generating new knowledge (including new knowledge in the form of new or improved processes and materials); or
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Supporting activities that are directly related and designed to support core activities and are usually required in order for the core activities to take place.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

Under the R&D Tax incentive scheme, entities will be entitled to either (i) a 45% refundable tax offset for eligible companies with
an aggregated turnover of less than $20 million per annum; or (ii) a non-refundable 40% tax offset for all other eligible companies. Where our turnover is less than $20 million, we anticipate being entitled to claim a 45% refundable tax offset
for costs relating to eligible R&D activities during the year.

E.2 UNITED STATES FEDERAL INCOME TAX CONSEQUENCES

The following is a summary of material U.S. federal income tax consequences that generally apply to U.S. Holders (as defined below) who hold
ADSs as capital assets. This summary is based on the United States Internal Revenue Code of 1986, as amended, or the Code, Treasury regulations promulgated thereunder, judicial and administrative interpretations thereof, and the bilateral taxation
convention between Australia and the United States, or the Tax Treaty, all as in effect on the date hereof and all of which are subject to change either prospectively or retroactively. If you are a U.S. Holder and subject to special rules, including
broker-dealers, financial institutions, certain insurance companies, investors liable for alternative minimum tax, tax-exempt organizations, regulated investment companies, non-resident aliens of the United States or taxpayers whose functional
currency is not the U.S. dollar, persons who hold the ADSs through partnerships or other pass-through entities, persons who acquired their ADSs through the exercise or cancellation of any employee stock options or otherwise as compensation for their
services, investors that actually or constructively own 10% or more of our voting shares, and investors holding ADSs as part of a straddle or appreciated financial position or as part of a hedging or conversion transaction, you are strongly advised
to consult your personal tax advisor. This summary does not address any state, local and foreign tax considerations or any U.S. federal estate, gift or alternative minimum tax considerations relevant to the purchase, ownership and disposition of our
ADSs.

If a partnership or an entity treated as a partnership for U.S. federal income tax purposes owns ADSs, the U.S. federal income tax
treatment of its partners will generally depend upon the status of the partner and the activities of the partnership. A partnership should consult its tax advisors regarding the U.S. federal income tax consequences applicable to it and its partners
of the purchase, ownership and disposition of ADSs.



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For purposes of this summary, the term U.S. Holder means an individual who is a
citizen or, for U.S. federal income tax purposes, a resident of the United States; a corporation or other entity taxable as a corporation that is created or organized in or under the laws of the United States or any political subdivision thereof; an
estate whose income is subject to U.S. federal income tax regardless of its source; or a trust if (a) a court within the United States is able to exercise primary supervision over administration of the trust, and one or more U.S. persons have
the authority to control all substantial decisions of the trust or (b) it has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person.

Distributions

For U.S. federal income
tax purposes, a U.S. Holder of ADSs will be treated as owning the underlying ordinary shares, or ADSs. Subject to the passive foreign investment company rules discussed below, the gross amount of any distribution received by a U.S. Holder with
respect to the underlying ordinary shares, including the amount of any Australian taxes withheld therefrom, will be included in gross income as a dividend to the extent the distribution is paid out of our current or accumulated earnings and profits
(as determined under U.S. federal income tax principles). Distributions in excess of our earnings and profits will be treated first as a non-taxable return of capital to the extent of a U.S. Holders tax basis in the ADSs and thereafter will be
treated as gain from the sale or exchange of the ADSs. We have not maintained and do not plan to maintain calculations of earnings and profits for U.S. federal income tax purposes. As a result, a U.S. Holder may need to include the entire amount of
any such distribution in income as a dividend.

The U.S. dollar value of any distribution on the ADSs made in Australian dollars generally
should be calculated by reference to the exchange rate between the U.S. dollar and the Australian dollar in effect on the date of receipt of such distribution by the U.S. Holder regardless of whether the Australian dollars so received are in fact
converted into U.S. dollars. A U.S. Holder who receives payment in Australian dollars and converts those Australian dollars into U.S. dollars at an exchange rate other than the rate in effect on such day may have a foreign currency exchange gain or
loss, which would generally be treated as ordinary income or loss from sources within the United States for U.S. foreign tax credit purposes.

Subject to complex limitations and certain holding period requirements, a U.S. Holder may elect to claim a credit for Australian tax withheld
from distributions against its U.S. federal income tax liability. The limitations set out in the Code include computational rules under which foreign tax credits allowable with respect to specific classes of income cannot exceed the U.S. federal
income taxes otherwise payable with respect to each such class of income. Dividends generally will be treated as foreign-source passive category income for U.S. foreign tax credit purposes. A U.S. Holder that does not elect to claim a U.S. foreign
tax credit may instead claim a deduction for Australian tax withheld. Dividends will not however be eligible for the dividends received deduction generally allowed to corporate shareholders with respect to dividends received from U.S.
corporations.

Subject to certain limitations, dividends received by a non-corporate U.S. Holder are subject to tax at a reduced maximum
tax rate of 20 percent. Distributions taxable as dividends generally qualify for the 20 percent rate provided that: (i) the issuer is entitled to benefits under the Tax Treaty or (ii) the shares are readily tradable on an established
securities market in the United States and certain other requirements are met. We believe that we are entitled to benefits under the Tax Treaty and that the ADSs currently are readily tradable on an established securities market in the United
States. However, no assurance can be given that the ADSs will remain readily tradable. However, the reduced rate does not apply to dividends received from PFICs. As noted below, we believe there is a material risk that we are a PFIC.

The U.S. Treasury has expressed concerns that intermediaries in the chain of ownership between the holder of an ADS and the issuer of the
security underlying the ADS may be taking actions (including pre-release transactions that may be undertaken by the depositary as described in Description of American Depositary Shares  Pre-release of ADSs) that are inconsistent
with the claiming of foreign tax credits for U.S. holders of ADSs. Such actions would also be inconsistent with the claiming of the reduced rated of tax, described below, applicable to dividends received by certain non-corporate holders.
Accordingly, the analysis of the creditability of Australian taxes and the availability of the reduced tax rate for dividends received by certain non-corporate holders, each described below, could be affected by actions taken by intermediaries in
the chain of ownership between the holder of an ADS and our Company.

Disposition of ADSs

If you sell or otherwise dispose of ADSs, you will recognize gain or loss for U.S. federal income tax purposes in an amount equal to the
difference between the amount realized on the sale or other disposition and your adjusted tax basis in the ADSs. Subject to the passive foreign investment company rules discussed below, such gain or loss generally will be capital gain or loss and
will be long-term capital gain or loss if you have held the ADSs for more than one year at the time of the sale or other disposition. In general, any gain that you recognize on the sale or other disposition of ADSs will be gain from U.S. sources for
purposes of the foreign tax credit limitation; losses will generally be allocated against U.S. source income. The deduction of capital losses is subject to certain limitations under the Code.



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In the case of a cash basis U.S. Holder who receives Australian dollars in connection with the
sale or other disposition of ADSs, the amount realized will be calculated based on the U.S. dollar value of the Australian dollars received as determined on the settlement date of such exchange. A U.S. Holder who receives payment in Australian
dollars and converts Australian dollars into U.S. dollars at a conversion rate other than the rate in effect on the settlement date may have a foreign currency exchange gain or loss that would be treated as ordinary income or loss from sources
within the United States for U.S. foreign tax credit purposes.

An accrual basis U.S. Holder may elect the same treatment required of cash
basis taxpayers with respect to a sale or disposition of ADSs, provided that the election is applied consistently from year to year. Such election may not be changed without the consent of the Internal Revenue Service, or the IRS. In the event that
an accrual basis U.S. Holder does not elect to be treated as a cash basis taxpayer (pursuant to the Treasury regulations applicable to foreign currency transactions), such U.S. Holder may have a foreign currency gain or loss for U.S. federal income
tax purposes because of differences between the U.S. dollar value of the currency received prevailing on the trade date and the settlement date. Any such currency gain or loss would be treated as ordinary income or loss from sources within the
United States for U.S. foreign tax credit purposes.

Passive Foreign Investment Companies

There is a substantial risk that we are a passive foreign investment company, or PFIC, for U.S. federal income tax purposes. Our treatment as a
PFIC could result in a reduction in the after-tax return to the U.S. Holders of our ADSs and may cause a reduction in the value of such securities.

For U.S. federal income tax purposes, we will be classified as a PFIC for any taxable year in which (i) 75% or more of our gross income
is passive income, or (ii) at least 50% of the average value of all of our assets for the taxable year produce or are held for the production of passive income. For this purpose, cash is considered to be an asset which produces passive income.
Passive income generally includes dividends, interest, royalties, rents, annuities and the excess of gains over losses from the disposition of assets which produce passive income. As a result of our substantial cash position, the decline in the
value of our stock and the current composition of our gross income, we believe that there is a material risk that we are currently a PFIC and that may be a PFIC in the future.

If we are a PFIC in any taxable year during which a U.S. Holder owns ADSs, such U.S. Holder could be liable for additional taxes and interest
charges upon (i) certain distributions by us (generally any distribution paid during a taxable year that is greater than 125 percent of the average annual distributions paid in the three preceding taxable years, or, if shorter, the U.S.
Holders holding period for the ADSs), and (ii) any gain realized on a sale, exchange or other disposition, including a pledge, of the ADSs, whether or not we continue to be a PFIC. In these circumstances, the tax will be determined by
allocating such distributions or gain ratably over the U.S. Holders holding period for the ADSs. The amount allocated to the current taxable year and any year prior to the first taxable year in which we are a PFIC will be taxed as ordinary
income (rather than capital gain) earned in the current taxable year. The amount allocated to other taxable years will be taxed at the highest marginal rates applicable to ordinary income for each such taxable year, and an interest charge, generally
that applicable to underpayments of tax, will also be imposed on the amount of taxes so derived for each such taxable year.

The PFIC
provisions discussed above apply to U.S. persons who directly or indirectly hold stock in a PFIC. Both direct and indirect shareholders of PFICs are subject to the rules described above. Generally, a U.S. person is considered an indirect shareholder
of a PFIC if it is:



| |  |  | A direct or indirect owner of a pass-through entity, including a trust or estate, that is a direct or indirect shareholder of a PFIC;
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------



| |  |  | A shareholder of a PFIC that is a shareholder of another PFIC; or
| | - |  | -----------------------------------------------------------------



| |  |  | A 50%-or-more shareholder of a foreign corporation that is not a PFIC and that directly or indirectly owns stock of a PFIC.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------

An indirect shareholder may be taxed on a distribution paid to the direct owner of the PFIC and on a disposition of the stock indirectly
owned. Indirect shareholders are strongly urged to consult their tax advisors regarding the application of these rules.

If we cease to be
a PFIC in a future year, a U.S. Holder may avoid the continued application of the tax treatment described above by electing to be treated as if it sold its ADSs on the last day of the last taxable year in which we were a PFIC. Any gain would be
recognized and subject to tax under the rules described above. Loss would not be recognized. A U.S. Holders basis in its ADSs would be increased by the amount of gain, if any, recognized on the sale. A U.S. Holder would be required to treat
its holding period for its ADSs as beginning on the day following the last day of the last taxable year in which we were a PFIC.



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If the ADSs are considered marketable stock and if a U.S. Holder elects to
mark-to-market its ADSs, the U.S. Holder would not be subject to tax under the excess distribution regime described above. Instead, the U.S. Holder would generally include in income any excess of the fair market value of the ADSs at the
close of each tax year over the adjusted tax basis of the ADSs. If the fair market value of the ADSs had depreciated below the adjusted basis at the close of the tax year, the U.S. Holder would be entitled to deduct the excess of the adjusted basis
of the ADSs over their fair market value at that time. However, such deductions generally would be limited to the net mark-to-market gains, if any, the U.S. Holder included in income with respect to such ADSs in prior years. Income recognized and
deductions allowed under the mark-to-market provisions, as well as any gain or loss on the disposition of ADSs with respect to which the mark-to-market election is made, is treated as ordinary income or loss (except that loss is treated as capital
loss to the extent the loss exceeds the net mark-to-market gains, if any, that a U.S. Holder included in income with respect to such ordinary shares in prior years). However, gain or loss from the disposition of ADSs (as to which a
mark-to-market election was made) in a year in which we are no longer a PFIC, will be capital gain or loss. Our ADSs should be considered marketable stock if they traded at least 15 days during each calendar quarter of the
relevant calendar year in more than de minimis quantities.

A U.S. Holder of ADSs will not be able to avoid the tax consequences described
above by electing to treat us as a qualified electing fund. In general, a qualified electing fund is, with respect to a U.S. person, a passive foreign investment company if the U.S. person has elected to include its proportionate share of a
companys ordinary earnings and net capital gains in U.S. income on an annual basis. A qualified electing fund election can only be made with respect to us if we provide U.S. Holders with certain information on an annual basis and we do not
intend to prepare the information that U.S. Holders would need to make the qualified electing fund election.

Backup Withholding and Information
Reporting

Payments in respect of ADSs may be subject to information reporting to the U.S. Internal Revenue Service and to U.S. backup
withholding tax at a rate equal to the fourth lowest income tax rate applicable to individuals (which, under current law, is 28%). Backup withholding will not apply, however, if a U.S. Holder (i) is a corporation, (ii) satisfies an
applicable exemption, or (iii) furnishes correct taxpayer identification.

Backup withholding is not an additional tax. Amounts
withheld under the backup withholding rules may be credited against a U.S. Holders U.S. tax liability, and a U.S. Holder may obtain a refund of any excess amounts withheld under the backup withholding rules by filing the appropriate claim for
refund with the IRS.

F. Dividends and Paying Agents

Not applicable.

G. Statement by Experts

Not applicable.

H. Documents on Display

We are subject to the reporting requirements of the U.S. Securities Exchange Act of 1934, as amended, or the Exchange Act, as applicable to
foreign private issuers as defined in Rule 3b-4 under the Exchange Act. As a foreign private issuer, we are exempt from certain provisions of the Exchange Act. Accordingly, our proxy solicitations are not subject to the disclosure and
procedural requirements of regulation 14A under the Exchange Act, transactions in our equity securities by our officers and directors are exempt from reporting and the short-swing profit recovery provisions contained in Section 16
of the Exchange Act. In addition, we are not required under the Exchange Act to file periodic reports and financial statements as frequently or as promptly as U.S. companies whose securities are registered under the Exchange Act. However, we file
with the U.S. Securities and Exchange Commission an Annual Report on Form 20-F containing financial statements that have been examined and reported on, with and opinion expressed by an independent registered public accounting firm, and we submit
reports to the U.S. Securities and Exchange Commission on Form 6-K containing (among other things) press releases and unaudited financial information for the first six months of each fiscal year. We post
our Annual Report on Form 20-F on our website promptly following the filing of our Annual Report with the U.S. Securities and Exchange Commission. The information on our website is not incorporated by reference into this Annual Report.

This document and the exhibits thereto and any other document we file pursuant to the Exchange Act may be inspected without charge and copied
at prescribed rates at the U.S. Securities and Exchange Commission public reference room at 100 F Street, N.E., Room 1580, Washington D.C. 20549. You may obtain information on the operation of the Securities and Exchange Commissions public
reference room in Washington, D.C. by calling the U.S. Securities and Exchange Commission at 1-800-SEC-0330.



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The U.S. Securities and Exchange Commission maintains a website at www.sec.gov that
contains reports, proxy and information statements and other information regarding registrants that make electronic filings with the U.S. Securities and Exchange Commission using its EDGAR (Electronic Data Gathering, Analysis, and Retrieval) system.

The documents concerning our company which are referred to in this document may also be inspected at our office located at Level 12, 95
Pitt Street, Sydney New South Wales 2000, Australia.

I. Subsidiary Information

We currently have the following subsidiaries:



| |  |  | Prima BioMed USA Inc, a 100% owned subsidiary of Prima BioMed Ltd, incorporated in the United States.
| | - |  | -----------------------------------------------------------------------------------------------------



| |  |  | Prima BioMed GmbH, a 100% owned subsidiary of Prima BioMed Ltd, incorporated in Germany.
| | - |  | ----------------------------------------------------------------------------------------



| |  |  | Prima BioMed Australia Pty Ltd, a 100% owned subsidiary of Prima BioMed Ltd, incorporated in Australia.
| | - |  | -------------------------------------------------------------------------------------------------------



| |  |  | Prima BioMed IP Pty Ltd, a 100% owned subsidiary of Prima BioMed Ltd, incorporated in Australia.
| | - |  | ------------------------------------------------------------------------------------------------



| |  |  | Immutep S.A.S., a 100% owned subsidiary of Prima BioMed Ltd, incorporated in France
| | - |  | -----------------------------------------------------------------------------------

These
subsidiaries were established to allow us to conduct commercial and clinical operations in Europe and the United States. In November 2011, we also formed Prima BioMed Middle East FZ LLC, a 100% owned subsidiary of Prima BioMed Ltd, incorporated in
the United Arab Emirates. However, this subsidiary is in the process of being dissolved. See Item 4. Information on the CompanyC. Organizational Structure for more information.



|ITEM 11. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|-------- | ----------------------------------------------------------

Our cash and cash
equivalents consist primarily of cash and money market funds. We invest our excess cash and cash equivalents in interest-bearing accounts and term deposits with banks in Australia. Our primary exposure to market risk is interest income sensitivity,
which is affected by changes in the general level of Australian interest rates. However, because of the short-term nature of the instruments in our portfolio, a sudden change in market interest rates would not be expected to have a material
impact on our financial condition and/or results of operation.

We conduct our activities predominantly in Australia. However, we are
exposed to foreign currency risk via trade and other payables we hold. We are required to make certain payments in U.S. dollars, European Euro and other currencies. See Note 2. Financial Risk Management(a) Market Risk to our
notes to the financial statements for a further discussion of market risk and sensitivity analysis.

Our exposure to foreign currency risk
at the end of the reporting period, expressed in Australian dollar, was as follows:



|                            |  |               |           |   |               |  |           |     |  |  |          |   |  |  |           |  
|--------------------------- |  | ------------- | --------- | - | ------------- |  | --------- | --- |  |  | -------- | - |  |  | --------- | -
|                            |  | June 30, 2016 |           |   | June 30, 2015 | 
|                            |  | USD           |           |   | EUR           |  |           | USD |  |  | EUR      |  
|Cash in bank                |  |               | 1,428,959 |   |               |  | 7,261,477 |     |  |  | 839,185  |   |  |  | 1,813,642 |  
|Trade and other receivables |  |               | 27,205    |   |               |  | 29,539    |     |  |  | 126,958  |   |  |  | 34,592    |  
|Trade and other payables    |  |               | (10,993   | ) |               |  | (256,364  | )   |  |  | (221,097 | ) |  |  | (201,561  | )
|Borrowings                  |  |               |          |   |               |  |          |     |  |  | (822,930 | ) |  |  | (300,000  | )



|ITEM 12. | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
|-------- | ------------------------------------------------------

A. Debt
Securities

Not applicable.

B. Warrants and Rights

Not applicable.



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C. Other Securities

Not applicable.

D. American Depositary Shares

The following are fees and charges that a holder of our ADSs may have to pay to the Bank of New York Mellon, as depositary:



|                                                                                                                                                                                                                                                   |  |                                                                                                                                                                                                                                
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Persons depositing or withdrawing ordinary shares or ADSholders must pay:                                                                                                                                                                          |  | For:                                                                                                                                                                                                                           
|                                                                                                                                                                                                                                                   | 
|US$5.00 (or less) per 100 ADSs (or portion of 100 ADSs)                                                                                                                                                                                            |  |     Issuance of ADSs, including issuances resulting from a distribution of
ordinary shares or rights or other property 
    Cancellation of ADSs for the purpose of withdrawal, including if the deposit agreement
terminates
|                                                                                                                                                                                                                                                   | 
|US$0.05 (or less) per ADS                                                                                                                                                                                                                          |  |     Any cash distribution to ADS holders                                                                                                                                                                                      
|                                                                                                                                                                                                                                                   | 
|A fee equivalent to the fee that would be payable if securities distributed to an ADS holder had
been ordinary shares and the ordinary shares had been deposited for issuance of ADSs, i.e., US$5.00 or less per 100 ADSs (or portion of 100 ADSs) |  |     Distribution of securities distributed to holders of deposited
securities which are distributed by the depositary to ADS holders                                                                                          
|                                                                                                                                                                                                                                                   | 
|US$.05 (or less) per ADSs per calendar year                                                                                                                                                                                                        |  |     Depositary services                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                   | 
|Registration or transfer fees                                                                                                                                                                                                                      |  |     Transfer and registration of ordinary shares on our ordinary share
register to or from the name of the depositary or its agent when an ADS holder deposits or withdraws ordinary shares                                   
|                                                                                                                                                                                                                                                   | 
|Expenses of the depositary                                                                                                                                                                                                                         |  |     Cable, telex and facsimile transmissions (when expressly provided in
the deposit agreement) 
    converting foreign currency to U.S. dollars                                                                             
|                                                                                                                                                                                                                                                   | 
|Taxes and other governmental charges the depositary or the custodian have to pay on any ADS or
ordinary share underlying an ADS, for example, stock transfer taxes, stamp duty or withholding taxes                                                |  |     As necessary                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                   | 
|Any charges incurred by the depositary or its agents for servicing the deposited
securities                                                                                                                                                        |  |     As necessary                                                                                                                                                                                                              

The depositary collects its fees for delivery and surrender of ADSs directly from investors depositing shares
or surrendering ADSs for the purpose of withdrawal or from intermediaries acting for them. The depositary collects fees for making distributions to investors by deducting those fees from the amounts distributed or by selling a portion of
distributable property to pay the fees. The depositary may collect its annual fee for depositary services by deduction from cash distributions or by directly billing investors or by charging the book-entry system accounts of participants acting for
them. The depositary may collect any of its fees by deduction from any cash distribution payable to ADS holders that are obligated to pay those fees. The depositary may generally refuse to provide fee-attracting services until its fees for those
services are paid.

From time to time, the depositary may make payments to us to reimburse and/or share revenue from the fees collected
from ADS holders, or waive fees and expenses for services provided, generally relating to costs and expenses arising out of establishment and maintenance of the ADS program. In performing its duties under the deposit agreement, the depositary may
use brokers, dealers or other service providers that are affiliates of the depositary and that may earn or share fees or commissions.

ADS
holders are responsible for any taxes or other governmental charges payable on its ADSs or on the deposited securities represented by any of its ADSs. The depositary may refuse to register any transfer ADSs or allow an ADS holder to withdraw the
deposited securities represented by its ADSs until such taxes or other charges are paid. It may apply payments owed to an ADS holder or sell deposited securities represented by an ADS holders ADSs to pay any taxes owed and such ADS holder will
remain liable for any deficiency. If the depositary sells deposited securities, it will, if appropriate, reduce the number of ADSs to reflect the sale and pay to the holders of ADSs holder any proceeds, or send to the holders of ADSs any property,
remaining after it has paid the taxes.



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PART II



|ITEM 13. | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
|-------- | -----------------------------------------------

Not applicable.



|ITEM 14. | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
|-------- | ----------------------------------------------------------------------------

Not
applicable.



|ITEM 15. | CONTROLS AND PROCEDURES
|-------- | -----------------------

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our chief executive officer and chief financial officer, has performed an evaluation of the
effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of June 30, 2016, as required by Rule 13a-15(b) under the Exchange Act. Based on that evaluation, our management has concluded
that, as of June 30, 2016, our disclosure controls and procedures were effective.

Managements Annual Report on Internal Control over
Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting,
as such term is defined in Exchange Act Rule 13a-15(f). Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of
our internal control over financial reporting as of June 30, 2016 based on the criteria set forth in Internal ControlIntegrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO 2013).
Based on our evaluation under the criteria set forth in Internal Control  Integrated Framework, our management concluded that our internal control over financial reporting was effective as of June 30, 2016.

This Annual Report does not include an attestation report of the Companys registered public accounting firm as we are an emerging growth
company.

Inherent Limitations on Effectiveness of Controls

In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well
designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is
required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.

Changes in Internal Control Over
Financial Reporting

There has been no change in our internal control over financial reporting (as defined in
Rule 13a-15(f) of the Exchange Act) for the fiscal year ended June 30, 2016 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.



|ITEM 15T. | CONTROLS AND PROCEDURES
|--------- | -----------------------

Not applicable.



|ITEM 16. | RESERVED
|-------- | --------

Not applicable.



|ITEM 16A. | AUDIT COMMITTEE FINANCIAL EXPERT
|--------- | --------------------------------

Pete Meyers is a member of our board of directors and
serves on our audit committee. Our board has determined that Pete Meyers is an audit committee financial expert and satisfies the independence requirements of the U.S. Securities and Exchange Commission, the NASDAQ Marketplace Rules and
ASX Rules.



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|ITEM 16B. | CODE OF ETHICS
|--------- | --------------

We have adopted a code of conduct that applies to our chief executive
officer and all senior financial officers of our company, including the chief financial officer, chief accounting officer or controller, or persons performing similar functions. The code of conduct is publicly available as attachment C to our Board
Charter on our website at www.primabiomed.com.au. Written copies are available upon request. If we make any substantive amendment to the code of conduct or grant any waivers, including any implicit waiver, from a provision of the code of conduct, we
will disclose the nature of such amendment or waiver on our website.



|ITEM 16C. | PRINCIPAL ACCOUNTANT FEES AND SERVICES
|--------- | --------------------------------------

We retained PricewaterhouseCoopers as our
independent registered public accounting firm. Set forth below is a summary of the fees paid to PricewaterhouseCoopers services provided in fiscal years 2016, 2015 and 2014.

PricewaterhouseCoopers



|                    |  |               |         |  |               |  |         | 
|------------------- |  | ------------- | ------- |  | ------------- |  | ------- | 
|                    |  | Fiscal 2016A$ |         |  | Fiscal 2015A$ | 
|Audit fees          |  |               | 441,741 |  |               |  | 286,000 | 
|Audit-related fees* |  |               |        |  |               |  | 66,986  | 
|                    |  |               |         |  |               |  |         | 
|Total               |  |               | 441,741 |  |               |  | 352,986 | 
|                    |  |               |         |  |               |  |         | 



| | * | Related to due diligence services
| | - | ---------------------------------

Pre-Approval Policies and Procedures

Our Audit Committee has adopted policies and procedures for the pre-approval of audit and non-audit services rendered by our independent
registered public accounting firm. Pre-approval of an audit or non-audit service may be given as a general pre-approval, as part of the audit committees approval of the scope of the engagement of our independent registered public accounting
firm, or on an individual basis. Any proposed services exceeding general pre-approved levels also requires specific pre-approval by our audit committee. The policy prohibits retention of the independent registered public accounting firm to perform
the prohibited non-audit functions defined in Section 201 of the Sarbanes-Oxley Act or the rules of the Securities and Exchange Commission, and also requires the audit committee to consider whether proposed services are compatible with the
independence of the registered public accounting firm.



|ITEM 16D. | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
|--------- | ----------------------------------------------------------

Not applicable.



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|ITEM 16E. | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS
|--------- | ----------------------------------------------------------------------

Not applicable



|ITEM 16F. | CHANGE IN REGISTRANTS CERTIFYING ACCOUNTANT
|--------- | --------------------------------------------

Not applicable.



|ITEM 16G. | CORPORATE GOVERNANCE
|--------- | --------------------

Under NASDAQ Stock Market Rule 5615(a)(3), foreign private
issuers, such as our company, are permitted to follow certain home country corporate governance practices instead of certain provisions of the NASDAQ Stock Market Rules. A foreign private issuer that elects to follow a home country practice instead
of any such NASDAQ rules must submit to NASDAQ, in advance, a written statement from an independent counsel in such issuers home country certifying that the issuers practices are not prohibited by the home countrys laws. We
submitted such a written statement to NASDAQ. See Item 6. Directors, Senior Management and EmployeesC. Board PracticesCorporate Governance Requirements Arising from our U.S. Listingthe Sarbanes-Oxley Act of 2002, SEC Rules
and the Nasdaq Global Market Marketplace Rules for a summary of such differences.



|ITEM 16H. | MINE SAFETY DISCLOSURE
|--------- | ----------------------

Not applicable.

PART III



|ITEM 17. | FINANCIAL STATEMENTS
|-------- | --------------------

We have elected to furnish financial statements and related
information specified in Item 18.



|ITEM 18. | FINANCIAL STATEMENTS
|-------- | --------------------



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Prima BioMed Ltd

Index to Consolidated Financial Statements



|                                                                                                 |  |      |     | 
|------------------------------------------------------------------------------------------------ |  | ---- | --- | 
|                                                                                                 |  | Page |    
|Report of Independent Registered Public Accounting Firm                                          |  |      | F-2 | 
|                                                                                                 | 
|Consolidated Balance Sheets as of June 30, 2016 and 2015                                         |  |      | F-3 | 
|                                                                                                 | 
|Consolidated Statements of Comprehensive Loss for the years ended June 
30, 2016, 2015, and 2014 |  |      | F-4 | 
|                                                                                                 | 
|Consolidated Cash Flow Statements for the years ended June 
30, 2016, 2015, and 2014             |  |      | F-5 | 
|                                                                                                 | 
|Consolidated Statements of Changes in Equity for the years ended June 
30, 2016, 2015, and 2014  |  |      | F-6 | 
|                                                                                                 | 
|Notes to the Consolidated Financial Statements                                                   |  |      | F-7 | 



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##### Table of Contents

|     |  |                                                         |  | 
|---- |  | ------------------------------------------------------- |  | 
|LOGO |  | Report of Independent Registered Public Accounting Firm |  | 

To Board of Directors and Shareholders of Prima BioMed Ltd:

In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of comprehensive loss, of cash flows and of changes in
equity present fairly, in all material respects, the financial position of Prima BioMed Ltd and its subsidiaries at June 30, 2016 and 2015, and the results of their operations and their cash flows for each of the three years in the period ended
June 30, 2016 in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

These
financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the standards
of the Public Company Accounting Oversight Board (United States) and International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating
the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers

PricewaterhouseCoopers

Sydney, Australia

October 3, 2016





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##### Table of Contents

PRIMA BIOMED LTD

CONSOLIDATED BALANCE SHEETS

(in Australian dollars, except number of shares)



|                                                      |  |      |    |  |          |  |              |        |  |  |              |  
|----------------------------------------------------- |  | ---- | -- |  | -------- |  | ------------ | ------ |  |  | ------------ | -
|                                                      |  |      |    |  | June 30, | 
|                                                      |  | Note |    |  | 2016A$   |  |              | 2015A$ | 
|ASSETS                                                |  |      |    |  |          |  |              |        |  |  |              |  
|Current Assets                                        |  |      |    |  |          |  |              |        |  |  |              |  
|Cash and cash equivalents                             |  |      | 7  |  |          |  | 20,879,548   |        |  |  | 6,759,615    |  
|Current receivables                                   |  |      | 8  |  |          |  | 168,300      |        |  |  | 315,453      |  
|Other current assets                                  |  |      | 9  |  |          |  | 623,020      |        |  |  | 948,003      |  
|                                                      |  |      |    |  |          |  |              |        |  |  |              |  
|Total Current Assets                                  |  |      |    |  |          |  | 21,670,868   |        |  |  | 8,023,071    |  
|                                                      |  |      |    |  |          |  |              |        |  |  |              |  
|Non-Current Assets                                    |  |      |    |  |          |  |              |        |  |  |              |  
|Plant and equipment                                   |  |      | 10 |  |          |  | 31,500       |        |  |  | 297,957      |  
|Intangibles                                           |  |      | 11 |  |          |  | 20,851,699   |        |  |  | 22,662,417   |  
|                                                      |  |      |    |  |          |  |              |        |  |  |              |  
|Total Non-Current Assets                              |  |      |    |  |          |  | 20,883,199   |        |  |  | 22,960,374   |  
|                                                      |  |      |    |  |          |  |              |        |  |  |              |  
|TOTAL ASSETS                                          |  |      |    |  |          |  | 42,554,067   |        |  |  | 30,983,445   |  
|Current Liabilities                                   |  |      |    |  |          |  |              |        |  |  |              |  
|Trade and other payables                              |  |      | 13 |  |          |  | 1,422,798    |        |  |  | 2,770,049    |  
|Borrowings                                            |  |      | 14 |  |          |  |             |        |  |  | 1,508,473    |  
|Current tax payable                                   |  |      |    |  |          |  | 21,549       |        |  |  | 20,837       |  
|Employee benefits                                     |  |      | 16 |  |          |  | 27,694       |        |  |  | 80,304       |  
|                                                      |  |      |    |  |          |  |              |        |  |  |              |  
|Total Current Liabilities                             |  |      |    |  |          |  | 1,472,041    |        |  |  | 4,379,663    |  
|                                                      |  |      |    |  |          |  |              |        |  |  |              |  
|Non-Current Liabilities                               |  |      |    |  |          |  |              |        |  |  |              |  
|Convertible note liability                            |  |      | 15 |  |          |  | 5,027,168    |        |  |  |             |  
|Employee benefits                                     |  |      | 17 |  |          |  | 43,151       |        |  |  | 35,706       |  
|Deferred tax liability                                |  |      | 12 |  |          |  | 694,194      |        |  |  | 1,878,333    |  
|                                                      |  |      |    |  |          |  |              |        |  |  |              |  
|Total Non-Current Liabilities                         |  |      |    |  |          |  | 5,764,513    |        |  |  | 1,914,039    |  
|                                                      |  |      |    |  |          |  |              |        |  |  |              |  
|TOTAL LIABILITIES                                     |  |      |    |  |          |  | 7,236,554    |        |  |  | 6,293,702    |  
|                                                      |  |      |    |  |          |  |              |        |  |  |              |  
|NET ASSETS                                            |  |      |    |  |          |  | 35,317,513   |        |  |  | 24,689,743   |  
|                                                      |  |      |    |  |          |  |              |        |  |  |              |  
|EQUITY                                                |  |      |    |  |          |  |              |        |  |  |              |  
|Contributed equity                                    |  |      | 18 |  |          |  | 194,530,932  |        |  |  | 179,878,436  |  
|Reserves                                              |  |      | 19 |  |          |  | 63,258,187   |        |  |  | 5,267,729    |  
|Accumulated losses                                    |  |      |    |  |          |  | (222,471,606 | )      |  |  | (160,456,422 | )
|                                                      |  |      |    |  |          |  |              |        |  |  |              |  
|Equity attributable to the owners of Prima BioMed Ltd |  |      |    |  |          |  | 35,317,513   |        |  |  | 24,689,743   |  
|                                                      |  |      |    |  |          |  |              |        |  |  |              |  
|TOTAL EQUITY                                          |  |      |    |  |          |  | 35,317,513   |        |  |  | 24,689,743   |  
|                                                      |  |      |    |  |          |  |              |        |  |  |              |  

The above consolidated balance sheets should be read in conjunction with the accompanying notes



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##### Table of Contents

PRIMA BIOMED LTD

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in Australian dollars, except number of shares)



|                                                              |  |      |    |  |                      |  |             |        |  |  |             |   |  |  |             |  
|------------------------------------------------------------- |  | ---- | -- |  | -------------------- |  | ----------- | ------ |  |  | ----------- | - |  |  | ----------- | -
|                                                              |  |      |    |  | Years ended June 30, | 
|                                                              |  | Note |    |  | 2016A$               |  |             | 2015A$ |  |  | 2014A$      |  
|Revenue                                                       |  |      |    |  |                      |  |             |        |  |  |             |   |  |  |             |  
|License revenue.                                              |  |      |    |  |                      |  | 175,052     |        |  |  |            |   |  |  |            |  
|                                                              |  |      |    | 
|Other income                                                  |  |      |    |  |                      |  |             |        |  |  |             |   |  |  |             |  
|Miscellaneous income                                          |  |      |    |  |                      |  | 702,743     |        |  |  | 168,322     |   |  |  | 15,929      |  
|Grant income                                                  |  |      |    |  |                      |  | 887,083     |        |  |  | 1,167,190   |   |  |  | 2,004,198   |  
|Net gain on foreign exchange                                  |  |      |    |  |                      |  |            |        |  |  | 538,248     |   |  |  | 406,628     |  
|Interest income                                               |  |      |    |  |                      |  | 264,043     |        |  |  | 219,107     |   |  |  | 713,311     |  
|                                                              |  |      |    |  |                      |  |             |        |  |  |             |   |  |  |             |  
|Total revenue and other income                                |  |      |    |  |                      |  | 2,028,921   |        |  |  | 2,092,867   |   |  |  | 3,140,066   |  
|                                                              |  |      |    |  |                      |  |             |        |  |  |             |   |  |  |             |  
|Expenses                                                      |  |      |    |  |                      |  |             |        |  |  |             |   |  |  |             |  
|Research & development and intellectual property              |  |      | 5  |  |                      |  | (7,059,528  | )      |  |  | (8,952,447  | ) |  |  | (11,930,857 | )
|Corporate administrative expenses                             |  |      | 5  |  |                      |  | (6,982,629  | )      |  |  | (5,723,106  | ) |  |  | (4,092,623  | )
|Depreciation and amortization expenses                        |  |      | 5  |  |                      |  | (1,993,093  | )      |  |  | (1,341,202  | ) |  |  | (446,360    | )
|Share Based Payment to strategic investor                     |  |      | 15 |  |                      |  | (47,468,071 | )      |  |  |            |   |  |  |            |  
|Loss on foreign exchange                                      |  |      | 5  |  |                      |  | (563,890    | )      |  |  |            |   |  |  |            |  
|Net finance cost                                              |  |      | 5  |  |                      |  | (8,199      | )      |  |  | (18,364,804 | ) |  |  |            |  
|Changes in fair value of comparability milestone              |  |      | 5  |  |                      |  | (542,075    | )      |  |  |            |   |  |  |            |  
|Loss on disposal of assets                                    |  |      | 5  |  |                      |  |            |        |  |  | (5,160      | ) |  |  |            |  
|Changes in fair value of convertible note liability           |  |      | 15 |  |                      |  | (607,637    | )      |  |  |            |   |  |  |            |  
|                                                              |  |      |    |  |                      |  |             |        |  |  |             |   |  |  |             |  
|Loss before income tax expense                                |  |      |    |  |                      |  | (63,196,201 | )      |  |  | (32,293,852 | ) |  |  | (13,329,774 | )
|Income tax expense                                            |  |      | 6  |  |                      |  | 1,181,017   |        |  |  | 142,156     |   |  |  | (13,607     | )
|                                                              |  |      |    |  |                      |  |             |        |  |  |             |   |  |  |             |  
|Loss after income tax expense for the year                    |  |      |    |  |                      |  | (62,015,184 | )      |  |  | (32,151,696 | ) |  |  | (13,343,381 | )
|Other Comprehensive Loss                                      |  |      |    |  |                      |  |             |        |  |  |             |   |  |  |             |  
|Items that may be reclassified to profit or loss              |  |      |    |  |                      |  |             |        |  |  |             |   |  |  |             |  
|Exchange differences on the translation of foreign operations |  |      |    |  |                      |  | 306,997     |        |  |  | (56,907     | ) |  |  | (57,421     | )
|                                                              |  |      |    |  |                      |  |             |        |  |  |             |   |  |  |             |  
|Other comprehensive loss for the year net of tax              |  |      |    |  |                      |  | 306,997     |        |  |  | (56,907     | ) |  |  | (57,421     | )
|                                                              |  |      |    |  |                      |  |             |        |  |  |             |   |  |  |             |  
|Total comprehensive loss for the year                         |  |      |    |  |                      |  | (61,708,187 | )      |  |  | (32,208,603 | ) |  |  | (13,400,802 | )
|                                                              |  |      |    |  |                      |  |             |        |  |  |             |   |  |  |             |  
|Loss for the year is attributable to:                         |  |      |    |  |                      |  |             |        |  |  |             |   |  |  |             |  
|Owners of Prima BioMed Ltd                                    |  |      |    |  |                      |  | (62,015,184 | )      |  |  | (32,151,696 | ) |  |  | (13,343,381 | )
|                                                              |  |      |    |  |                      |  |             |        |  |  |             |   |  |  |             |  
|                                                              |  |      |    |  |                      |  | (62,015,184 | )      |  |  | (32,151,696 | ) |  |  | (13,343,381 | )
|                                                              |  |      |    |  |                      |  |             |        |  |  |             |   |  |  |             |  
|Total comprehensive loss for the year is attributable to:     |  |      |    |  |                      |  |             |        |  |  |             |   |  |  |             |  
|Owners of Prima BioMed Ltd                                    |  |      |    |  |                      |  | (61,708,187 | )      |  |  | (32,208,603 | ) |  |  | (13,400,802 | )
|                                                              |  |      |    |  |                      |  |             |        |  |  |             |   |  |  |             |  
|                                                              |  |      |    |  |                      |  | (61,708,187 | )      |  |  | (32,208,603 | ) |  |  | (13,400,802 | )
|                                                              |  |      |    |  |                      |  |             |        |  |  |             |   |  |  |             |  
|                                                              |  |      |    | 
|                                                              |  |      |    |  |                      |  | Cents       |        |  |  | Cents       |   |  |  | Cents       |  
|Basic earnings per share                                      |  |      | 30 |  |                      |  | (2.77       | )      |  |  | (2.02       | ) |  |  | (0.93       | )
|Diluted earnings per share                                    |  |      | 30 |  |                      |  | (2.77       | )      |  |  | (2.02       | ) |  |  | (0.93       | )

The above consolidated statements of comprehensive loss should be read in conjunction with the accompanying notes



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##### Table of Contents

PRIMA BIOMED LTD

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in Australian dollars, except number of shares)



|                                                            |  |      |   |  |                      |  |             |        |  |  |             |   |  |  |             |  
|----------------------------------------------------------- |  | ---- | - |  | -------------------- |  | ----------- | ------ |  |  | ----------- | - |  |  | ----------- | -
|                                                            |  |      |   |  | Years Ended June 30, | 
|                                                            |  | Note |   |  | 2016A$               |  |             | 2015A$ |  |  | 2014A$      |  
|Cash flows related to operating activities                  |  |      |   |  |                      |  |             |        |  |  |             |   |  |  |             |  
|Payments to suppliers and employees (inclusive of GST)      |  |      |   |  |                      |  | (13,336,202 | )      |  |  | (15,276,020 | ) |  |  | (16,928,382 | )
|Miscellaneous income                                        |  |      |   |  |                      |  | 702,743     |        |  |  | 168,322     |   |  |  |            |  
|License revenue                                             |  |      |   |  |                      |  | 175,052     |        |  |  |            |   |  |  | 15,929      |  
|License fee received                                        |  |      |   |  |                      |  |            |        |  |  | 5,774,784   |   |  |  |            |  
|Interest received                                           |  |      |   |  |                      |  | 264,043     |        |  |  | 380,650     |   |  |  | 704,778     |  
|Tax paid                                                    |  |      |   |  |                      |  | (2,410      | )      |  |  | (1,908      | ) |  |  | (23,684     | )
|Grant income                                                |  |      |   |  |                      |  | 887,083     |        |  |  | 1,167,190   |   |  |  | 2,004,198   |  
|                                                            |  |      |   |  |                      |  |             |        |  |  |             |   |  |  |             |  
|Net cash flows used in operating activities                 |  |      |   |  |                      |  | (11,309,691 | )      |  |  | (7,786,982  | ) |  |  | (14,227,161 | )
|                                                            |  |      |   |  |                      |  |             |        |  |  |             |   |  |  |             |  
|Cash flows related to investing activities                  |  |      |   |  |                      |  |             |        |  |  |             |   |  |  |             |  
|Payments for held-to-maturity investments                   |  |      |   |  |                      |  |            |        |  |  |            |   |  |  | (9,000,000  | )
|Cash received from held-to-maturity investments             |  |      |   |  |                      |  |            |        |  |  | 9,000,000   |   |  |  | 8,000,000   |  
|Proceeds from disposal of plant and equipment               |  |      |   |  |                      |  | 129,705     |        |  |  |            |   |  |  |            |  
|Payments for plant and equipment                            |  |      |   |  |                      |  | (27,130     | )      |  |  | (48,499     | ) |  |  | (103,675    | )
|Payment for acquisition of subsidiary, net of cash acquired |  |      |   |  |                      |  |            |        |  |  | (20,912,912 | ) |  |  |            |  
|                                                            |  |      |   |  |                      |  |             |        |  |  |             |   |  |  |             |  
|Net cash flows provided by (used in) investing activities   |  |      |   |  |                      |  | 102,575     |        |  |  | (11,961,411 | ) |  |  | (1,103,675  | )
|                                                            |  |      |   |  |                      |  |             |        |  |  |             |   |  |  |             |  
|Cash flows related to financing activities                  |  |      |   |  |                      |  |             |        |  |  |             |   |  |  |             |  
|Proceeds from issue of shares and options*                  |  |      |   |  |                      |  | 13,761,075  |        |  |  | 7,744,648   |   |  |  | 6,845,001   |  
|Proceeds from issue of convertible notes                    |  |      |   |  |                      |  | 13,750,828  |        |  |  |            |   |  |  |            |  
|Proceeds from borrowings                                    |  |      |   |  |                      |  |            |        |  |  | 3,925,405   |   |  |  |            |  
|Repayment of borrowings*                                    |  |      |   |  |                      |  | (1,508,473  | )      |  |  | (237,308    | ) |  |  |            |  
|Share issue transaction costs                               |  |      |   |  |                      |  | (283,146    | )      |  |  | (164,316    | ) |  |  | (157,606    | )
|                                                            |  |      |   |  |                      |  |             |        |  |  |             |   |  |  |             |  
|Net cash flows provided by financing activities             |  |      |   |  |                      |  | 25,720,284  |        |  |  | 11,268,429  |   |  |  | 6,687,395   |  
|                                                            |  |      |   |  |                      |  |             |        |  |  |             |   |  |  |             |  
|Net (decrease) increase in cash and cash equivalents        |  |      |   |  |                      |  | 14,513,168  |        |  |  | (8,479,964  | ) |  |  | (8,643,441  | )
|Effect of exchange rate on cash and cash equivalents        |  |      |   |  |                      |  | (393,235    | )      |  |  | 1,039,537   |   |  |  | 820,340     |  
|Cash and cash equivalents at the beginning of the year      |  |      |   |  |                      |  | 6,759,615   |        |  |  | 14,200,042  |   |  |  | 22,023,143  |  
|                                                            |  |      |   |  |                      |  |             |        |  |  |             |   |  |  |             |  
|Cash and cash equivalents at the end of the year            |  |      | 7 |  |                      |  | 20,879,548  |        |  |  | 6,759,615   |   |  |  | 14,200,042  |  
|                                                            |  |      |   |  |                      |  |             |        |  |  |             |   |  |  |             |  



|* | During the year ended 30 June 2015, convertible notes in the amount of $2,853,883 were converted into equity. No impact has been recorded on the cashflow statement for this conversion.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The above consolidated statements of cash flows should be read in conjunction with the accompanying notes



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##### Table of Contents

PRIMA BIOMED LTD

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(in Australian dollars, except number of shares)



|                                                      |  |                 |             |  |            |  |            |                     |  |  |                 |   |  |  |             |  
|----------------------------------------------------- |  | --------------- | ----------- |  | ---------- |  | ---------- | ------------------- |  |  | --------------- | - |  |  | ----------- | -
|Consolidated                                          |  | Issued EquityA$ |             |  | ReservesA$ |  |            | Retained earningsA$ |  |  | Total equity A$ |  
|Balance at July 1, 2013                               |  |                 | 142,326,977 |  |            |  | 1,882,786  |                     |  |  | (114,961,345    | ) |  |  | 29,248,418  |  
|Other comprehensive loss for the year, net of tax     |  |                 |            |  |            |  | (57,421    | )                   |  |  |                |   |  |  | (57,421     | )
|Loss after income tax expense for the year            |  |                 |            |  |            |  |           |                     |  |  | (13,343,381     | ) |  |  | (13,343,381 | )
|                                                      |  |                 |             |  |            |  |            |                     |  |  |                 |   |  |  |             |  
|Total comprehensive loss for the year                 |  |                 |            |  |            |  | (57,421    | )                   |  |  | (13,343,381     | ) |  |  | (13,400,802 | )
|                                                      |  |                 |             |  |            |  |            |                     |  |  |                 |   |  |  |             |  
|Transactions with owners in their capacity as owners: |  |                 |             |  |            |  |            |                     |  |  |                 |   |  |  |             |  
|Contributions of equity, net of transaction costs     |  |                 | 6,687,395   |  |            |  |           |                     |  |  |                |   |  |  | 6,687,395   |  
|Employee options scheme                               |  |                 |            |  |            |  | 57,309     |                     |  |  |                |   |  |  | 57,309      |  
|                                                      |  |                 |             |  |            |  |            |                     |  |  |                 |   |  |  |             |  
|Balance at June 30, 2014                              |  |                 | 149,014,372 |  |            |  | 1,882,674  |                     |  |  | (128,304,726    | ) |  |  | 22,592,320  |  
|                                                      |  |                 |             |  |            |  |            |                     |  |  |                 |   |  |  |             |  
|                                                      |  |                 |             | 
|Consolidated                                          |  | Issued EquityA$ |             |  | ReservesA$ |  |            | Retained earningsA$ |  |  | Total equity A$ |  
|Balance at July 1, 2014                               |  |                 | 149,014,372 |  |            |  | 1,882,674  |                     |  |  | (128,304,726    | ) |  |  | 22,592,320  |  
|Other comprehensive loss for the year, net of tax     |  |                 |            |  |            |  | (56,907    | )                   |  |  |                |   |  |  | (56,907     | )
|Loss after income tax expense for the year            |  |                 |            |  |            |  |           |                     |  |  | (32,151,696     | ) |  |  | (32,151,696 | )
|                                                      |  |                 |             |  |            |  |            |                     |  |  |                 |   |  |  |             |  
|Total comprehensive loss for the year                 |  |                 |            |  |            |  | (56,907    | )                   |  |  | (32,151,696     | ) |  |  | (32,208,603 | )
|                                                      |  |                 |             |  |            |  |            |                     |  |  |                 |   |  |  |             |  
|Transactions with owners in their capacity as owners: |  |                 |             |  |            |  |            |                     |  |  |                 |   |  |  |             |  
|Contributions of equity, net of transaction costs     |  |                 | 30,800,584  |  |            |  | 2,201,037  |                     |  |  |                |   |  |  | 33,001,621  |  
|Share based payment                                   |  |                 |            |  |            |  | 565,606    |                     |  |  |                |   |  |  | 565,606     |  
|Employee share based payment                          |  |                 |            |  |            |  | 738,799    |                     |  |  |                |   |  |  | 738,799     |  
|Exercise of vested performance rights                 |  |                 | 63,480      |  |            |  | (63,480    | )                   |  |  |                |   |  |  |            |  
|                                                      |  |                 |             |  |            |  |            |                     |  |  |                 |   |  |  |             |  
|Balance at June 30, 2015                              |  |                 | 179,878,436 |  |            |  | 5,267,729  |                     |  |  | (160,456,422    | ) |  |  | 24,689,743  |  
|                                                      |  |                 |             |  |            |  |            |                     |  |  |                 |   |  |  |             |  
|                                                      |  |                 |             | 
|Consolidated                                          |  | Issued EquityA$ |             |  | ReservesA$ |  |            | Retained earningsA$ |  |  | Total equityA$  |  
|Balance at July 1, 2015                               |  |                 | 179,878,436 |  |            |  | 5,267,729  |                     |  |  | (160,456,422    | ) |  |  | 24,689,743  |  
|Other comprehensive gain for the year, net of tax     |  |                 |            |  |            |  | 306,997    |                     |  |  |                |   |  |  | 306,997     |  
|Loss after income tax expense for the year            |  |                 |            |  |            |  |           |                     |  |  | (62,015,184     | ) |  |  | (62,015,184 | )
|                                                      |  |                 |             |  |            |  |            |                     |  |  |                 |   |  |  |             |  
|Total comprehensive loss for the year                 |  |                 |            |  |            |  | 306,997    |                     |  |  | (62,015,184     | ) |  |  | (61,708,187 | )
|                                                      |  |                 |             |  |            |  |            |                     |  |  |                 |   |  |  |             |  
|Transactions with owners in their capacity as owners: |  |                 |             |  |            |  |            |                     |  |  |                 |   |  |  |             |  
|Contributions of equity, net of transaction costs     |  |                 | 13,477,930  |  |            |  |           |                     |  |  |                |   |  |  | 13,477,930  |  
|Issue of convertible notes                            |  |                 |            |  |            |  | 9,331,297  |                     |  |  |                |   |  |  | 9,331,297   |  
|Share based payment                                   |  |                 |            |  |            |  | 82,242     |                     |  |  |                |   |  |  | 82,242      |  
|Share based payment to strategic investor             |  |                 |            |  |            |  | 47,468,071 |                     |  |  |                |   |  |  | 47,468,071  |  
|Employee share based payment                          |  |                 |            |  |            |  | 1,976,417  |                     |  |  |                |   |  |  | 1,974,417   |  
|Exercise of vested performance rights                 |  |                 | 1,174,566   |  |            |  | (1,174,566 | )                   |  |  |                |   |  |  |            |  
|                                                      |  |                 |             |  |            |  |            |                     |  |  |                 |   |  |  |             |  
|Balance at June 30, 2016                              |  |                 | 194,530,932 |  |            |  | 63,258,187 |                     |  |  | (222,471,606    | ) |  |  | 35,317,513  |  
|                                                      |  |                 |             |  |            |  |            |                     |  |  |                 |   |  |  |             |  

The above consolidated statements of changes in equity should be read in conjunction with the accompanying notes



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##### Table of Contents

PRIMA BIOMED LTD

NOTES TO THE FINANCIAL STATEMENTS

(in Australian dollars, unless otherwise noted)

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been
consistently applied to all years presented, unless otherwise stated. The financial statements are for the consolidated entity consisting of the Company and its subsidiaries. The financial statements were authorized for issue, in accordance with a
resolution of directors, on October 3, 2016.

(a) Basis of preparation

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by
the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. Prima BioMed Ltd is a for-profit entity for the purpose of preparing the financial statement.

(i) Compliance with IFRS

The
consolidated financial statements of the Prima BioMed Ltd group also comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

(ii) New and amended standards adopted by the group

None of the new standards and amendments to standards that are mandatory for the first time for the financial year beginning July 1, 2015
affected any of the amounts recognized in the current period or any prior period.

(iii) Historical cost convention

The financial statements have been prepared under the historical cost convention, except for, where applicable, financial assets and
liabilities (including derivative financial instruments) at fair value through profit or loss.

(iv) Critical accounting estimates

The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise
its judgement in the process of applying the consolidated entitys accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are
disclosed in note 3.

(b) Principles of consolidation

Subsidiaries are all entities (included structured entities) over which the group has control. The group controls an entity when the group is
exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which
control is transferred to the group. They are deconsolidated from the date that control ceases.

Intercompany transactions, balances and
unrealized gains on transactions between group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed
where necessary to ensure consistency with the policies adopted by the group.

(c) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief
operating decision maker (CODM), who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors.



F-7



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##### Table of Contents

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)



(d) Foreign currency translation

(i) Functional and presentation currency

Items included in the financial statements of each of the groups entities are measured using the currency of the primary economic
environment in which the entity operates (the functional currency). The consolidated financial statements are presented in Australian dollars, which is the Prima BioMed Ltds functional and presentation currency.

(ii) Transactions and balances

Foreign
currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at
year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in profit or loss, except when they are deferred in equity as qualifying cash flow hedges and qualifying net investment hedges or are
attributable to part of the net investment in a foreign operation.

Foreign exchange gains and losses that relate to borrowings are
presented in the income statement, within finance costs. All other foreign exchange gains and losses are presented separately in the income statement on a net basis.

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair
value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. For example, translation differences on non-monetary assets and liabilities such as equities held at
fair value through profit or loss are recognized in profit or loss as part of the fair value gain or loss and translation differences on non-monetary assets such as equities classified as available-for-sale financial assets are recognized in other
comprehensive income.

(iii) Group companies

The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional
currency different from the presentation currency are translated into the presentation currency as follows:



| |  |  | assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet
| | - |  | ----------------------------------------------------------------------------------------------------------------------------



| |  |  | income and expenses for each income statement and statement of comprehensive loss are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing
on the transaction dates, in which case income and expenses are translated at the dates of the transactions), and
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | all resulting exchange differences are recognized in other comprehensive income.
| | - |  | --------------------------------------------------------------------------------

On
consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of borrowings and other financial instruments designated as hedges of such investments, are recognized in other comprehensive income.
When a foreign operation is sold or any borrowings forming part of the net investment are repaid, the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale.

(e) Revenue recognition

Revenue is
measured at the fair value of the consideration received or receivable.

The group recognizes revenue when the amount of revenue can be
reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the groups activities as described below. The group bases its estimates on historical results, taking into
consideration the type of customer, the type of transaction and the specifics of each arrangement.

(i) License revenue

License revenue is recognized on receipt or where there is reasonable assurance that the license revenue will be received.



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NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)



(e) Revenue recognition (continued)



Other income

(i) Interest income

Interest income is
recognized as interest accrues using the effective interest method. This is a method of calculating the amortized cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the
rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

(ii) Grant income

Grants from the
governments, including Australian Research and Development Rebates and Development Rebates, Frances Crédit dImpôt Recherche, and Saxony Development Bank (Sächsische Aufbaubank) from Germany, are recognized
at their fair value when there is a reasonable assurance that the grant will be received and the Company will comply with all attached conditions. Government grants relating to operating costs are recognized in the Statements of Comprehensive Income
as other income.

(iii) Miscellaneous income



| | a. | Research collaboration income
| | -- | -----------------------------

The group receives income from undertaking research
collaborations with are recognized when the services have been provided.



| | b. | Research material sales
| | -- | -----------------------

The group receives income from the sale of materials supplied to other
researchers in order to conduct further studies on LAG-3 technologies. Income is recognized at the point at which the ownership of material is transferred to third parties.

(f) Income tax

The income tax expense or
benefit for the period is the tax payable on the current periods taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and
to unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the
end of the reporting period in the countries where the Companys subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is
subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill.

Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a
business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting
period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred tax assets are recognized for deductible temporary differences and unused tax losses only if it is probable that future taxable
amounts will be available to utilize those temporary differences and losses. Deferred tax liabilities and assets are not recognized for temporary differences between the carrying amount and tax bases of investments in foreign operations where the
Company is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when
the deferred tax balances relate to the same taxation authority.



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NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)



(f) Income tax (continued)



Current tax assets and tax liabilities are offset where the entity has a legally enforceable
right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Prima
BioMed Ltd and its wholly-owned Australian controlled entities have implemented the tax consolidation legislation. As a consequence, these entities are taxed as a single entity and the deferred tax assets and liabilities of these entities are set
off in the consolidated financial statements.

Current and deferred tax is recognized in profit or loss, except to the extent that it
relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.

(g) Business combinations

The
acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the fair value of
the assets transferred, liabilities incurred to the former owners of the acquired business and the equity interests issued by the group. The consideration transferred also includes the fair value of any asset or liability resulting from a contingent
consideration agreement, and the fair value of any pre-existing equity interest in the subsidiary.

Identifiable assets acquired and
liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. The group recognizes and non-controlling interest in the acquired entity on an
acquisition-by-acquisition basis either at fair value or at the non-controlling interests proportionate share of the acquired entitys net identifiable assets.

Acquisition-related costs are expensed as incurred.

The excess of the consideration transferred and the amount of any non-controlling interests in the acquiree over the fair value of the
Groups share of the net identifiable assets acquired is required as goodwill. If those amounts are less than the fair value of the net identifiable assets of the subsidiary acquired and the measurement of all amounts has been reviewed, the
difference is recognized directly in profit and loss as a bargain purchase.

Where settlement of any part of cash consideration is
deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entitys incremental borrowing rate, being the rate at which a similar borrowing could be obtained from
an independent financier under comparable terms and conditions.

Contingent consideration is classified either as equity or a financial
liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognized in profit or loss.

If the business combination is achieved in stages, the acquisition date carrying value of the acquirers previously held equity interest
in the acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognized in profit and loss.

(h) Impairment of assets

Goodwill and
intangible assets that have a definite useful life are subject to amortization and tested annually for impairment or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment
whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the assets carrying amount exceeds its recoverable amount.

The recoverable amount is the higher of an assets fair value less costs to sell and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other
than goodwill that suffered impairment are reviewed for possible reversal of the impairment at the end of each reporting period.



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NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)



(i) Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with
financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank
overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

(j) Current receivables

Current receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method,
less provision for impairment. Amount receivable in relation to Goods and Services Tax (GST) and Value Added Tax (VAT) are due from the local taxation authorities and recorded based on the amount of GST and VAT paid on purchases. They are presented
as current assets unless collection is not expected for more than 12 months after the reporting date.

Collectability of current
receivables is reviewed on an ongoing basis. Receivables which are known to be uncollectible are written off by reducing the carrying amount. An allowance account is used when there is objective evidence that the group will not be able to collect
all amounts due.

(k) Investments and other financial assets

Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement,
except for financial assets at fair value through profit or loss. They are subsequently measured at either amortized cost or fair value depending on their classification. Classification is determined based on the purpose of the acquisition and
subsequent reclassification to other categories is restricted.

Financial assets are derecognized when the rights to receive cash flows
from the financial assets have expired or have been transferred and the consolidated entity has transferred substantially all the risks and rewards of ownership.

Loans and receivables

Loans and
receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are carried at amortized cost using the effective interest rate method. Gains and losses are recognized in profit or
loss when the asset is derecognized or impaired, as well as through the amortization process.

Impairment of financial assets

The group assesses at the end of each reporting period whether there is any objective evidence that a financial asset or group of financial
assets is impaired. Objective evidence includes significant financial difficulty of the issuer or obligor; a breach of contract such as default or delinquency in payments; the lender granting to a borrower concessions due to economic or legal
reasons that the lender would not otherwise do; it becomes probable that the borrower will enter bankruptcy or other financial reorganization; the disappearance of an active market for the financial asset; or observable data indicating that there is
a measurable decrease in estimated future cash flows.

The amount of the impairment allowance for loans and receivables carried at
amortized cost is the difference between the assets carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. If there is a reversal of impairment, the reversal cannot exceed the
amortized cost that would have been recognized had the impairment not been made and is reversed to profit or loss.

(l) Plant and equipment

Plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the
acquisition of the items.

Depreciation on other assets is calculated using the straight-line method to allocate their cost, net of their
residual values, over their estimated useful lives as follows:



| |  |  | Computers  3 years
| | - |  | -------------------



| |  |  | Plant and equipment  3-5 years
| | - |  | -------------------------------



| |  |  | Furniture  3-5 years
| | - |  | ---------------------



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##### Table of Contents

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)



(l) Plant and equipment (continued)



The assets residual values and useful lives are reviewed, and adjusted if appropriate,
at the end of each reporting period.

An assets carrying amount is written down immediately to its recoverable amount if the
assets carrying amount is greater than its estimated recoverable amount (note 1(h)).

Gains and losses on disposals are determined
by comparing proceeds with carrying amount. These are included in profit or loss.

(m) Intangible assets

(i) Intellectual property

Costs
incurred in acquiring intellectual property are capitalized and amortized on a straight line basis over a period not exceeding the life of the patents, which averages 14 years. Where a patent has not been formally granted, the company estimates the
life of the granted patent in accordance with the provisional application.

Costs include only those costs directly attributable to the
acquisition of the intellectual property. An assets carrying amount is written down immediately to its recoverable amount if the assets carrying amount is greater than its estimated recoverable amount (note 1(h)).

(ii) Research and development

Research expenditure on internal projects is recognized as an expense as incurred. Costs incurred on development projects (relating to the
design and testing of new or improved products) are recognized as intangible assets when it is probable that the project will, after considering its commercial and technical feasibility, be completed and generate future economic benefits and its
costs can be measured reliably. The expenditure that could be recognized comprises all directly attributable costs, including costs of materials, services, direct labor and an appropriate proportion of overheads. Other expenditures that do not meet
these criteria are recognized as an expense as incurred.

As the Company has not met the requirement under the standard to capitalize
costs in relation to development, these amounts have been expensed.

Development costs previously recognized as an expense are not
recognized as an asset in a subsequent period. Capitalized development costs are recorded as intangible assets and amortized from the point at which the asset is ready for use on a straight line basis over its useful life.

(iii) Goodwill

Goodwill is measured
as described in (note 1(g)). Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortized but it is tested for impairment annually or more frequently if events or changes in circumstances indicate that it
might be impaired, and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.

(n) Trade and other payables

These
amounts represent liabilities for goods and services provided to the group prior to the end of financial year which are unpaid.

The
amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months from the reporting date. They are recognized initially at their fair
value and subsequently remeasured at amortized cost using the effective interest method.



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NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)



(o) Compound instruments

Convertible notes, including the attached options and warrants, issued to Ridgeback Capital Investments are accounted for as share based
payments when the fair value of the instruments are higher than the consideration received, representing intangible benefits received from the strategic investor. The difference between the fair value and consideration received at issuance of
the convertible notes and attached options and warrants is recognised immediately in profit and loss as a share-based payment charge.

If
options or warrants contain a settlement choice between cash or shares, this settlement choice constitutes a compound feature of the convertible notes, which triggers the separation of debt and equity components to be accounted for separately. The
liability component is measured at fair value at initial recognition and subsequent changes in fair value are recognised in profit and loss. The difference between the fair value of the convertible notes and the liability component at inception is
accounted as an equity element and not remeasured subsequently.

(p) Finance costs

Finance costs are expensed in the period in which they are incurred.

(q) Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits and accumulating annual leave that are expected to be settled
wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employees services up to the end of the reporting period and are measured at the amounts expected to be paid
when the liabilities are settled. Liabilities for non-accumulating sick leave are recognized when the leave is taken and measured at the rates paid or payable.

(ii) Other long-term employee benefit obligations

The liabilities for long service leave and annual leave are not expected to be settled wholly within 12 months after the end of the period in
which the employees render the related service. They are therefore recognized in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the end
of the reporting period using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields
at the end of the reporting period of corporate bonds with terms and currencies that match, as closely as possible, the estimated future cash outflows. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are
recognized in profit or loss. The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when
the actual settlement is expected to occur.

(iii) Retirement benefit obligations

The group does not maintain a group superannuation plan. The group makes fixed percentage contributions for all Australian resident employees
to complying third party superannuation funds. The group has no statutory obligation and does not make contributions on behalf of its resident employees in the USA and Germany. The groups legal or constructive obligation is limited to these
contributions. Contributions to complying third party superannuation funds are recognized as an expense as they become payable.

(iv) Share-based
payments

Share-based compensation benefits are provided to employees via the Executive Incentive Plan (EIP) and Global Employee Shares
Option Plan (GESOP). Information relating to these schemes is set out in note 31.

The fair value of performance rights and options
granted under the EIP and GESOP are recognized as an employee benefits expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the options granted, which includes any market
performance conditions and the impact of any non-vesting conditions but excludes the impact of any service and non-market performance vesting conditions.



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NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)



Non-market vesting conditions are included in assumptions about the number of options that
are expected to vest. The total expense is recognized over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of
options that are expected to vest based on the non-marketing vesting conditions. It recognizes the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity.

(v) Termination benefits

Termination
benefits are payable when employment is terminated before the normal employment contract expiry date. The group recognizes termination benefits when it is demonstrably committed to terminating the employment of current employees.

(vi) Bonus plan

The group recognizes a
liability and an expense for bonuses. The group recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation.

(r) Contributed equity

Ordinary shares
are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.

(s) Earnings per share

(i) Basic earnings per share

Basic
earnings per share is calculated by dividing:



| |  |  | the profit or loss attributable to owners of the Company
| | - |  | --------------------------------------------------------



| |  |  | by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year. Bonus elements have been included in the calculation of the
weighted average number of ordinary shares and has been retrospectively applied to the prior financial year.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

(ii) Diluted earnings per
share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:



| |  |  | the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares, and
| | - |  | -------------------------------------------------------------------------------------------------------------------------



| |  |  | the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------

(t) Goods and Services Tax and other similar taxes (GST)

Revenues, expenses and assets are recognized net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation
authority. In this case it is recognized as part of the cost of acquisition of the asset or as part of the expense.

Receivables and
payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are
recoverable from, or payable to the taxation authority, are presented as operating cash flows.

Commitments and contingencies are
disclosed net of the amount of GST recoverable from, or payable to, the tax authority.



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NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)



(u) New Accounting Standards and Interpretations not yet mandatory or early adopted

Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2016 reporting periods and
have not been early adopted by the company. The companys assessment of the impact of these new standards and interpretations is set out below:



| | (i) | AASB 15 (IFRS 15) Revenue from Contracts with CustomersThe AASB has issued a new standard for the recognition of revenue. This will replace AASB 118 (IAS 18) which covers revenue arising from the sale of goods and
the rendering of services and AASB 111 (IAS 11) which covers construction contracts. The new standard is based on the principle that revenue is recognised when control of a good or service transfers to a customer. The standard permits either a full
retrospective or a modified retrospective approach for the adoption. It applies to annual reporting periods commencing on or after 1 January 2018. Management has performed a preliminary assessment of the impact of the new standard and has not
identified any instances where the new standard requirements will have a material impact on the financial statements of the Company.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii) | AASB 9 (IFRS 9) Financial InstrumentsAASB 9 (IFRS 9) addresses the classification, measurement and derecognition of financial assets and financial liabilities, introduces new rules for hedge accounting and a new
impairment model for financial assets. It applies to annual reporting periods commencing on or after 1 January 2018. Management has performed a preliminary assessment of the impact of the new standard and has not identified any instances where
the new standard requirements will have a material impact on the financial statements of the Company.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iii) | AASB 16 (IFRS 16) LeasesThe AASB 16 (IFRS 16) has issued a new standard for the accounting of leases. The new standard will predominantly affect lessees, with almost all leases brought onto the balance sheet. It
applies to annual reporting periods commencing on or after 1 January 2019. Management has performed a preliminary assessment of the impact of the new standard and has not identified any instances where the new standard requirements will have a
material impact on the financial statements of the Company.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

There are no other standards and interpretations that are not
yet effective and that are expected to have a material impact on the Group in the current or future reporting periods and on foreseeable future transactions.

(v) Parent entity financial information

The financial information for the parent entity, Prima BioMed Ltd, disclosed in note 32 has been prepared on the same basis as the consolidated
financial statements, except as set out below.

(i) Investments in subsidiaries, associates and joint venture entities

Investments in subsidiaries are accounted for at cost in the financial statements of Prima BioMed Ltd.

(ii) Tax consolidation legislation

Prima
BioMed Ltd and its wholly-owned Australian controlled entities have implemented the tax consolidation legislation. The head entity, Prima BioMed Ltd, and the controlled entities in the tax consolidated group account for their own current and
deferred tax amounts. These tax amounts are measured as if each entity in the tax consolidated group continues to be a stand-alone taxpayer in its own right.

The entities have also entered into a tax funding agreement under which the wholly-owned entities fully compensate for any current tax payable
assumed and are compensated by the head entity for any current tax receivable and deferred tax assets relating to unused tax losses or unused tax credits that are transferred to the head entity under the tax consolidation legislation. The funding
amounts are determined by reference to the amounts recognized in the wholly-owned entities financial statements.



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NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)



(v) Parent entity financial information (continued)



The amounts receivable/payable under the tax funding agreement is due upon receipt of the
funding advice from the head entity, which is issued as soon as practicable after the end of each financial year. The head entity may also require payment of interim funding amounts to assist with its obligations to pay tax installments. Assets or
liabilities arising under tax funding agreements with the tax consolidated entities are recognized as current amounts receivable from or payable to other entities in the group. Any difference between the amounts assumed and amounts receivable or
payable under the tax funding agreement are recognized as a contribution to (or distribution from) wholly-owned tax consolidated entities.

(iii)
Share-based payments

The grant by the company of options over its equity instruments to the employees of subsidiary undertakings in
the group is treated as a capital contribution to that subsidiary undertaking. The fair value of employee services received, measured by reference to the grant date fair value, is recognized over the vesting period as an increase to investment in
subsidiary undertakings, with a corresponding credit to equity.

NOTE 2. FINANCIAL RISK MANAGEMENT

The groups activities expose it to a variety of financial risks: market risk (including currency risk), credit risk and liquidity risk.
The groups overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance of the group. The group may use derivative financial instruments such
as foreign exchange contracts to hedge certain risk exposures. Derivatives are exclusively used for hedging purposes, i.e. not as trading or other speculative instruments. The group hedges its foreign exchange risk exposure arising from future
commercial transactions and recognized assets and liabilities using forward contracts or natural hedging. The group uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis and cash
flow forecasting in the case of foreign exchange and aging analysis for credit risk.

Risk management is carried out by senior management
under policies approved by the board of directors. Management identifies, evaluates and hedges financial risks in close co-operation with the groups operating units. The board provides the principles for overall risk management, as well as
policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

(a) Market risk

Foreign exchange risk

The group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to
the US dollar and Euro. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the entitys functional currency. The risk is measured using sensitivity
analysis and cash flow forecasting.

Management has set up a policy to manage the companys exchange risk within the group companies.
The group hedges its foreign exchange risk exposure arising from future commercial transactions and recognized assets and liabilities using forward contracts or natural hedging.

The group considers using forward exchange contracts to cover anticipated cash flow in USD and Euro periodically, as derivatives held for
trading and measured through the income statement. This policy is reviewed regularly by directors from time to time. There were no outstanding foreign exchange contracts as at 30 June 2016 and 30 June 2015.



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NOTE 2. FINANCIAL RISK MANAGEMENT(continued)



The groups exposure to foreign currency risk at the end of the reporting period,
expressed in Australian dollar, was as follows:



|                            |  |               |           |   |               |  |           |     |  |  |          |   |  |  |           |  
|--------------------------- |  | ------------- | --------- | - | ------------- |  | --------- | --- |  |  | -------- | - |  |  | --------- | -
|                            |  | June 30, 2016 |           |   | June 30, 2015 | 
|                            |  | USD           |           |   | EUR           |  |           | USD |  |  | EUR      |  
|Cash in bank                |  |               | 1,428,959 |   |               |  | 7,261,477 |     |  |  | 839,185  |   |  |  | 1,813,642 |  
|Trade and other receivables |  |               | 27,205    |   |               |  | 29,539    |     |  |  | 126,958  |   |  |  | 34,592    |  
|Trade and other payables    |  |               | (10,993   | ) |               |  | (256,364  | )   |  |  | (221,097 | ) |  |  | (201,561  | )
|Borrowings                  |  |               |          |   |               |  |          |     |  |  | (822,930 | ) |  |  | (300,000  | )

Sensitivity

Based on the financial assets and liabilities held at June 30, 2016, had the Australian dollar weakened/ strengthened by 10% against the
US dollar with all other variables held constant, the groups post-tax loss for the year would have been $194,610 higher/$194,610 lower (2015  $10,141 higher/$10,141 lower). Any impact on the equity will result in changes in retained
earnings.

Based on the financial instruments held at June 30, 2016, had the Australian dollar weakened/ strengthened by 10% against
the Euro with all other variables held constant, the groups post-tax loss for the year would have been $1,050,105 higher/$1,050,105 lower (2015  $196,137higher/$196,137 lower), mainly as a result of foreign exchange gains/losses on
translation of Euro denominated financial instruments.

The groups exposure to other foreign exchange movements is not material.

(b) Credit risk

Credit risk is
managed on a group basis. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks. For banks, only independently rated parties with a minimum rating of A according to
Standard & Poors are accepted.

The credit quality of financial assets that are neither past due nor impaired can be
assessed by reference to external credit ratings:



|                                          |  |              |            |  |              |  |           | 
|----------------------------------------- |  | ------------ | ---------- |  | ------------ |  | --------- | 
|                                          |  | 30 June 2016 |            |  | 30 June 2015 | 
|                                          |  | $            |            |  | $            | 
|Cash at bank and short-term bank deposits |  |              |            |  |              |  |           | 
|AA-                                       |  |              | 20,879,548 |  |              |  | 6,759,615 | 

(c) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash to meet obligations when due. At the end of the reporting period the
group held deposits at call of $20,879,548 (2015 $6,759,615) that are expected to readily generate cash inflows for managing liquidity risk. Management monitors rolling forecasts of the groups liquidity reserve cash and cash equivalents (note
7) on the basis of expected cash flows. In addition, the groups liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these.

As outlined in Note 3, the companys monitoring of its cash requirements extends to the consideration of potential capital raising
strategies and an active involvement with its institutional and retail investor base.

Maturities of financial liabilities

The tables below analyze the groups financial liabilities into relevant maturity groupings based on their contractual maturities for:



| | (a) | all non-derivative financial liabilities, and
| | --- | ---------------------------------------------



| | (b) | net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------



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NOTE 2. FINANCIAL RISK MANAGEMENT(continued)



The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due
within 12 months equal their carrying balances as the impact of discounting is not significant.



|                                                                 |  |                    |           |  |                   |  |            |                             |  |  |                                      |  |  |  |           | 
|---------------------------------------------------------------- |  | ------------------ | --------- |  | ----------------- |  | ---------- | --------------------------- |  |  | ------------------------------------ |  |  |  | --------- | 
|Contractual maturities of financial liabilities
At June 30, 2016 |  | Less than6 months$ |           |  | More than5 years$ |  |            | Totalcontractualcash flows$ |  |  | CarryingAmount(assets) /liabilities$ | 
|Non-Derivatives                                                  |  |                    |           |  |                   |  |            |                             |  |  |                                      |  |  |  |           | 
|Trade and other payables                                         |  |                    | 1,422,798 |  |                   |  |           |                             |  |  | 1,422,798                            |  |  |  | 1,422,798 | 
|Convertible note liability (refer note 15)                       |  |                    |          |  |                   |  | 17,876,076 |                             |  |  | 17,876,076                           |  |  |  | 5,027,168 | 
|                                                                 |  |                    |           |  |                   |  |            |                             |  |  |                                      |  |  |  |           | 
|                                                                 |  |                    | 1,422,798 |  |                   |  | 17,876,076 |                             |  |  | 19,298,874                           |  |  |  | 6,449,966 | 
|                                                                 |  |                    |           |  |                   |  |            |                             |  |  |                                      |  |  |  |           | 
|                                                                 |  |                    |           | 
|Contractual maturities of financial liabilities
At June 30, 2015 |  | Less than6 months$ |           |  | More than5 years$ |  |            | Totalcontractualcash flows$ |  |  | CarryingAmount(assets) /liabilities$ | 
|Non-Derivatives                                                  |  |                    |           |  |                   |  |            |                             |  |  |                                      |  |  |  |           | 
|Trade and other payables                                         |  |                    | 2,770,049 |  |                   |  |           |                             |  |  | 2,770,049                            |  |  |  | 2,770,049 | 
|Borrowings                                                       |  |                    | 1,508,473 |  |                   |  |           |                             |  |  | 1,508,473                            |  |  |  | 1,508,473 | 
|                                                                 |  |                    |           |  |                   |  |            |                             |  |  |                                      |  |  |  |           | 
|                                                                 |  |                    | 4,278,522 |  |                   |  |           |                             |  |  | 4,278,522                            |  |  |  | 4,278,522 | 
|                                                                 |  |                    |           |  |                   |  |            |                             |  |  |                                      |  |  |  |           | 

(d) Fair value measurements

The following table presents the groups financial assets and financial liabilities measured and recognized at fair value at June 30,
2016 and June 30, 2015 on a recurring basis:



|                                      |  |         |   |  |         |  |   |         |  |  |           |  |  |  |           | 
|------------------------------------- |  | ------- | - |  | ------- |  | - | ------- |  |  | --------- |  |  |  | --------- | 
|                                      |  | Level 1 |   |  | Level 2 |  |   | Level 3 |  |  | Total     | 
|At 30 June 2016                       |  | $       |   |  | $       |  |   | $       |  |  | $         | 
|Liabilities                           |  |         |   |  |         |  |   |         |  |  |           |  |  |  |           | 
|Convertible note liability            |  |         |  |  |         |  |  |         |  |  | 5,027,168 |  |  |  | 5,027,168 | 
|                                      |  |         |   |  |         |  |   |         |  |  |           |  |  |  |           | 
|Total liabilities                     |  |         |  |  |         |  |  |         |  |  | 5,027,168 |  |  |  | 5,027,168 | 
|                                      |  |         |   |  |         |  |   |         |  |  |           |  |  |  |           | 
|                                      |  |         |   | 
|                                      |  | Level 1 |   |  | Level 2 |  |   | Level 3 |  |  | Total     | 
|At 30 June 2015                       |  | $       |   |  | $       |  |   | $       |  |  | $         | 
|Assets                                |  |         |   |  |         |  |   |         |  |  |           |  |  |  |           | 
|Comparability milestone at fair value |  |         |  |  |         |  |  |         |  |  | 542,075   |  |  |  | 542,075   | 
|                                      |  |         |   |  |         |  |   |         |  |  |           |  |  |  |           | 
|Total Assets                          |  |         |  |  |         |  |  |         |  |  | 542,075   |  |  |  | 542,075   | 
|                                      |  |         |   |  |         |  |   |         |  |  |           |  |  |  |           | 

(i) Valuation techniques used to determine fair values

Level 1: The fair value of financial instruments trade in active markets (such as publicly traded derivatives, and trading and
available-for-sale securities) is based on quoted (unadjusted) market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example over-the-counter
derivatives) is determined using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to
fair value an instrument are observable, the instrument is included in level 2



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##### Table of Contents

NOTE 2. FINANCIAL RISK MANAGEMENT(continued)



Level 3: If one or more of the significant inputs is not based on observable market
data, the instrument is included in level 3. This is the case for unlisted equity securities.

Specific valuation techniques used to value
financial instruments include:



| |  |  | The use of quoted market prices or dealer quotes for similar instruments
| | - |  | ------------------------------------------------------------------------



| |  |  | The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date
| | - |  | -------------------------------------------------------------------------------------------------------------------------



| |  |  | The fair value of the remaining financial instruments is determined using discounted cash flow analysis.
| | - |  | --------------------------------------------------------------------------------------------------------

(ii) Fair value measurements using significant unobservable inputs (level 3)

The following table presents the changes in level 3 instruments for the year ended 30 June 2016:



|                                        |  |                        |          |   |                           |  |            |       |  |  |            |  
|--------------------------------------- |  | ---------------------- | -------- | - | ------------------------- |  | ---------- | ----- |  |  | ---------- | -
|                                        |  | Comparabilitymilestone |          |   | Convertible noteliability |  |            | Total | 
|                                        |  | $                      |          |   | $                         |  |            | $     | 
|Opening balance 1 July 2015             |  |                        | 542,075  |   |                           |  |           |       |  |  | 542,075    |  
|Other increases/(decreases)             |  |                        |         |   |                           |  | (4,419,531 | )     |  |  | (4,419,531 | )
|Changes in fair value                   |  |                        |         |   |                           |  | (607,637   | )     |  |  | (607,637   | )
|(Losses)/gains recognized as an expense |  |                        | (542,075 | ) |                           |  |           |       |  |  | (542,075   | )
|                                        |  |                        |          |   |                           |  |            |       |  |  |            |  
|Closing balance 30 June 2016            |  |                        |         |   |                           |  | (5,027,168 | )     |  |  | (5,027,168 | )
|                                        |  |                        |          |   |                           |  |            |       |  |  |            |  

(iii) Valuation inputs and relationships to fair value

The following table summarizes the quantitative information about the significant inputs used in level 3 fair value measurements:



|                 |  |                            |           |  |                     |                                                              |                 |  |                  | 
|---------------- |  | -------------------------- | --------- |  | ------------------- | ------------------------------------------------------------ | --------------- |  | ---------------- | 
|Description      |  | Fair value at30 June 2016$ |           |  | Unobservable inputs |                                                              | Range of inputs | 
|Convertible note |  |                            | 5,027,168 |  |                     | Face value Interest rate of note
Risk adjusted interest rate |                 |  | 13,750,8283%
15% | 

(iv) Valuation process

The convertible note was valued using a Black Scholes model. Prima used valuation specialists to perform these valuations based on the inputs
above.

NOTE 3. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future
events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances.

The group makes
estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year are discussed below.



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##### Table of Contents

NOTE 3. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS(continued)



Income taxes

The group has recognized deferred tax assets of $2.42m which related to carried forward tax losses in the Immutep subsidiary acquired in the
prior year. On acquisition, the group has recognized significant amortizing IP intangibles for which there will be no corresponding tax deduction, giving rise to a future taxable temporary difference and required the recognition of a deferred tax
liability as part of the business combination accounting. The entity had previously unrecognized tax losses which management is satisfied will continue to be available to be utilized by the subsidiary after the acquisition. As such, the group has
recognized a deferred tax asset to the extent of the deferred tax liability recognized on acquisition. The group has concluded that the deferred assets will be recoverable to the extent of the deferred tax liability recognized at each year.

All other remaining deferred tax assets relating to carried forward tax losses and taxable temporary differences have not been recognized
since the group is currently in a loss making position and unable to generate taxable income to utilize the carried forward tax losses and taxable temporary differences. The utilization of the tax losses also depends on the ability of the entity to
satisfy certain tests at the time the losses are recouped. The group is subject to income taxes in Australia and jurisdictions where it has foreign operations. Significant judgement is required in determining the worldwide provision for income
taxes. There are certain transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain. The group estimates its tax liabilities based on the groups understanding of the
tax law. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred income tax assets and liabilities in the period in which such determination is
made.

Research and development

The
consolidated entity has expensed all internal research and development expenditure incurred during the year as the costs relate to the initial expenditure for research and development of biopharmaceutical products and the generation of future
economic benefits is not considered probable given the current stage of development. It was considered appropriate to expense the research and development costs as they did not meet the criteria to be capitalized under AASB 138 (IAS 38)Intangible Assets.

Going Concern

The Group has experienced significant recurring operating losses and negative cash flows from operating activities since its inception. As at
30 June 2016, the Group holds cash and cash equivalents of $20,879,548 (2015: $6,759,615). In line with the Companys financial risk management, the directors have carefully assessed the financial and operating implications of the above
matters, including the expected cash outflows of ongoing research and development activities of the Company over the next 12 months. Based on this consideration, the directors are of the view that the Group will be able to pay its debts as and when
they fall due for at least 12 months following the date of these financial statements and that it is appropriate for the financial statements to be prepared on a going concern basis.

Monitoring and addressing the ongoing cash requirements of the Group is a key focus of the directors. This involves consideration of
alternative future capital raising initiatives and an active engagement with potential retail and institutional investors alike.

Amortization of
intellectual property

Costs incurred in acquiring intellectual property are capitalized and amortized on a straight line basis over a
period not exceeding the life of the patents, which averages 15 years. Where a patent has not been formally granted, the company estimates the life of the granted patent in accordance with the provisional application.

Costs include only those costs directly attributable to the acquisition of the intellectual property. An assets carrying amount is
written down immediately to its recoverable amount if the assets carrying amount is greater than its estimated recoverable amount (note 1(h)).



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##### Table of Contents

NOTE 4. SEGMENT REPORTING

Identification of reportable operating segments

Operating segments are reported in a manner consistent with internal reports which are reviewed and used by Management and the Board of
Directors (who are identified as the Chief Operating Decision Makers (CODM)). The Group operates in one operating segment, being Cancer Immunotherapy.

Operating segment information



|                               |  |                       |             |   |               |  |         |                |  |  |             |  
|------------------------------ |  | --------------------- | ----------- | - | ------------- |  | ------- | -------------- |  |  | ----------- | -
|June 30, 2016                  |  | CancerImmunotherapyA$ |             |   | UnallocatedA$ |  |         | ConsolidatedA$ | 
|Revenue                        |  |                       |             |   |               |  |         |                |  |  |             |  
|License revenue.               |  |                       | 175,052     |   |               |  |        |                |  |  | 175,052     |  
|Other income                   |  |                       |             |   |               |  |         |                |  |  |             |  
|Miscellaneous income           |  |                       | 702,743     |   |               |  |        |                |  |  | 702,743     |  
|Grant income                   |  |                       | 887,083     |   |               |  |        |                |  |  | 887,083     |  
|Interest income                |  |                       |            |   |               |  | 264,043 |                |  |  | 264,043     |  
|Total revenue and other income |  |                       | 1,764,878   |   |               |  | 264,043 |                |  |  | 2,028,921   |  
|Segment Result                 |  |                       | (63,460,244 | ) |               |  |        |                |  |  | (63,460,244 | )
|Loss before income tax expense |  |                       | (63,460,244 | ) |               |  | 264,043 |                |  |  | (63,196,201 | )
|Income tax benefit             |  |                       |             |   |               |  |         |                |  |  | 1,181,017   |  
|                               |  |                       |             |   |               |  |         |                |  |  |             |  
|Loss after income tax expense  |  |                       |             |   |               |  |         |                |  |  | (62,015,184 | )
|                               |  |                       |             |   |               |  |         |                |  |  |             |  
|                               |  |                       |            
|Total segment assets           |  |                       | 42,554,067  |   |               |  |        |                |  |  | 42,554,067  |  
|Total segment liabilities      |  |                       | 7,236,554   |   |               |  |        |                |  |  | 7,236,554   |  
|                               |  |                       |            
|June 30, 2015                  |  | CancerImmunotherapyA$ |             |   | UnallocatedA$ |  |         | ConsolidatedA$ | 
|Revenue                        |  |                       |             |   |               |  |         |                |  |  |             |  
|License revenue.               |  |                       |            |   |               |  |        |                |  |  |            |  
|Other income                   |  |                       |             |   |               |  |         |                |  |  |             |  
|Miscellaneous income           |  |                       | 168,322     |   |               |  |        |                |  |  | 168,322     |  
|Grant income                   |  |                       | 1,167,190   |   |               |  |        |                |  |  | 1,167,190   |  
|Net gain on foreign exchange   |  |                       |            |   |               |  | 538,248 |                |  |  | 538,428     |  
|Interest income                |  |                       |            |   |               |  | 219,107 |                |  |  | 219,107     |  
|Total revenue and other income |  |                       | 1,335,512   |   |               |  | 757,355 |                |  |  | 2,092,867   |  
|Segment Result                 |  |                       | (33,051,207 | ) |               |  |        |                |  |  | (33,051,207 | )
|Loss before income tax expense |  |                       | (33,051,207 | ) |               |  | 757,355 |                |  |  | (32,293,852 | )
|Income tax benefit             |  |                       |             |   |               |  |         |                |  |  | 142,156     |  
|                               |  |                       |             |   |               |  |         |                |  |  |             |  
|Loss after income tax expense  |  |                       |             |   |               |  |         |                |  |  | (32,151,696 | )
|                               |  |                       |             |   |               |  |         |                |  |  |             |  
|                               |  |                       |            
|Total segment assets           |  |                       | 30,983,445  |   |               |  |        |                |  |  | 30,983,455  |  
|Total segment liabilities      |  |                       | 6,293,702   |   |               |  |        |                |  |  | 6,293,702   |  



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##### Table of Contents

NOTE 4. SEGMENT REPORTING(continued)



|                               |  |                       |             |   |               |  |            |                |  |  |             |  
|------------------------------ |  | --------------------- | ----------- | - | ------------- |  | ---------- | -------------- |  |  | ----------- | -
|June 30, 2014                  |  | CancerImmunotherapyA$ |             |   | UnallocatedA$ |  |            | ConsolidatedA$ | 
|Revenue                        |  |                       |             |   |               |  |            |                |  |  |             |  
|License revenue.               |  |                       |            |   |               |  |           |                |  |  |            |  
|Other income                   |  |                       |             |   |               |  |            |                |  |  |             |  
|Miscellaneous income           |  |                       |            |   |               |  | 15,929     |                |  |  | 15,929      |  
|Grant income                   |  |                       | 2,004,198   |   |               |  |           |                |  |  | 2,004,198   |  
|Net gain on foreign exchange   |  |                       |            |   |               |  | 406,628    |                |  |  | 406,628     |  
|Interest income                |  |                       |            |   |               |  | 713,311    |                |  |  | 713,311     |  
|Total revenue and other income |  |                       | 2,004,198   |   |               |  | 1,135,868  |                |  |  | 3,140,066   |  
|Segment Result                 |  |                       | (11,819,437 | ) |               |  | (1,510,337 | )              |  |  | (13,329,774 | )
|Loss before income tax expense |  |                       | (11,819,437 | ) |               |  | (1,510,337 | )              |  |  | (13,329,774 | )
|Income tax expense             |  |                       |             |   |               |  |            |                |  |  | (13,607     | )
|                               |  |                       |             |   |               |  |            |                |  |  |             |  
|Loss after income tax expense  |  |                       |             |   |               |  |            |                |  |  | (13,343,381 | )
|                               |  |                       |             |   |               |  |            |                |  |  |             |  
|                               |  |                       |            
|Total segment assets           |  |                       | 25,377,955  |   |               |  |           |                |  |  | 25,377,955  |  
|Total segment liabilities      |  |                       | 2,785,635   |   |               |  |           |                |  |  | 2,785,635   |  

NOTE 5. EXPENSES



|                                                                 |  |                 |           |   |                 |  |            |                 |  |  |            | 
|---------------------------------------------------------------- |  | --------------- | --------- | - | --------------- |  | ---------- | --------------- |  |  | ---------- | 
|                                                                 |  | Consolidated    |          
|                                                                 |  | June 30, 2016A$ |           |   | June 30, 2015A$ |  |            | June 30, 2014A$ | 
|Loss before income tax includes the following specific expenses: |  |                 |           |   |                 |  |            |                 |  |  |            | 
|Research & Development and Intellectual Property                 |  |                 |           |   |                 |  |            |                 |  |  |            | 
|Research and development                                         |  |                 | 6,382,377 |   |                 |  | 8,515,150  |                 |  |  | 11,825,668 | 
|Intellectual property management                                 |  |                 | 677,151   |   |                 |  | 437,297    |                 |  |  | 105,189    | 
|                                                                 |  |                 |           |   |                 |  |            |                 |  |  |            | 
|Total Research & Development and Intellectual Property           |  |                 | 7,059,528 |   |                 |  | 8,952,447  |                 |  |  | 11,930,857 | 
|                                                                 |  |                 |           |   |                 |  |            |                 |  |  |            | 
|Corporate administrative expenses                                |  |                 |           |   |                 |  |            |                 |  |  |            | 
|Auditors remuneration                                           |  |                 | 441,741   |   |                 |  | 292,807    |                 |  |  | 222,720    | 
|Directors fee and employee expenses                              |  |                 | 3,714,522 |   |                 |  | 2,508,533  |                 |  |  | 1,969,494  | 
|Administrative expenses                                          |  |                 | 2,826,366 |   |                 |  | 2,921,766  |                 |  |  | 1,900,409  | 
|                                                                 |  |                 |           |   |                 |  |            |                 |  |  |            | 
|Total corporate administrative expenses                          |  |                 | 6,982,629 |   |                 |  | 5,723,106  |                 |  |  | 4,092,623  | 
|                                                                 |  |                 |           |   |                 |  |            |                 |  |  |            | 
|Depreciation                                                     |  |                 |           |   |                 |  |            |                 |  |  |            | 
|Plant and equipment                                              |  |                 | 168,924   |   |                 |  | 308,719    |                 |  |  | 370,237    | 
|Computers                                                        |  |                 | 10,676    |   |                 |  | 14,523     |                 |  |  | 18,987     | 
|Furniture and fittings                                           |  |                 | 2,776     |   |                 |  | 2,532      |                 |  |  | 2,698      | 
|                                                                 |  |                 |           |   |                 |  |            |                 |  |  |            | 
|Total depreciation                                               |  |                 | 182,376   |   |                 |  | 325,774    |                 |  |  | 391,922    | 
|                                                                 |  |                 |           |   |                 |  |            |                 |  |  |            | 
|Amortization                                                     |  |                 |           |   |                 |  |            |                 |  |  |            | 
|Patents                                                          |  |                 | 61,881    |   |                 |  | 55,002     |                 |  |  | 54,438     | 
|Intellectual Property Assets R&D                                 |  |                 | 1,748,836 |   |                 |  | 960,426    |                 |  |  |           | 
|                                                                 |  |                 |           |   |                 |  |            |                 |  |  |            | 
|Total amortization                                               |  |                 | 1,810,717 |   |                 |  | 1,015,428  |                 |  |  | 54,438     | 
|                                                                 |  |                 |           |   |                 |  |            |                 |  |  |            | 
|Total depreciation and amortization                              |  |                 | 1,993,093 |   |                 |  | 1,341,202  |                 |  |  | 446,360    | 
|                                                                 |  |                 |           |   |                 |  |            |                 |  |  |            | 
|(Gain)/loss on disposal of assets                                |  |                 |           |   |                 |  |            |                 |  |  |            | 
|Plant and equipment                                              |  |                 | (18,493   | ) |                 |  | 5,160      |                 |  |  |           | 
|                                                                 |  |                 |           |   |                 |  |            |                 |  |  |            | 
|Finance expenses                                                 |  |                 |           |   |                 |  |            |                 |  |  |            | 
|Interest expenses                                                |  |                 | 8,199     |   |                 |  | 26,789     |                 |  |  |           | 
|Other finance expenses  note 18                                 |  |                 |          |   |                 |  | 18,338,015 |                 |  |  |           | 
|                                                                 |  |                 |           |   |                 |  |            |                 |  |  |            | 
|Finance expense                                                  |  |                 | 8,199     |   |                 |  | 18,364,804 |                 |  |  |           | 
|                                                                 |  |                 |           |   |                 |  |            |                 |  |  |            | 



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##### Table of Contents

NOTE 5. EXPENSES(continued)



|                                                 |  |                 |            |  |                 |  |   |                 |  |  |   | 
|------------------------------------------------ |  | --------------- | ---------- |  | --------------- |  | - | --------------- |  |  | - | 
|                                                 |  | Consolidated    |           
|                                                 |  | June 30, 2016A$ |            |  | June 30, 2015A$ |  |   | June 30, 2014A$ | 
|Loss on foreign exchange                         |  |                 | 563,890    |  |                 |  |  |                 |  |  |  | 
|                                                 |  |                 |            |  |                 |  |   |                 |  |  |   | 
|Changes in fair value of comparability milestone |  |                 | 542,075    |  |                 |  |  |                 |  |  |  | 
|                                                 |  |                 |            |  |                 |  |   |                 |  |  |   | 
|Share Based Payment to strategic investor        |  |                 | 47,468,071 |  |                 |  |  |                 |  |  |  | 
|                                                 |  |                 |            |  |                 |  |   |                 |  |  |   | 



F-23



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##### Table of Contents

NOTE 6. INCOME TAX EXPENSE



|                                               |  |                 |            |   |                 |  |          |                 |  |  |        | 
|---------------------------------------------- |  | --------------- | ---------- | - | --------------- |  | -------- | --------------- |  |  | ------ | 
|                                               |  | Consolidated    |           
|                                               |  | June 30, 2016A$ |            |   | June 30, 2015A$ |  |          | June 30, 2014A$ | 
|Current tax                                    |  |                 |            |   |                 |  |          |                 |  |  |        | 
|Current tax on profits for the year            |  |                 | 3,121      |   |                 |  | 1,908    |                 |  |  | 13,607 | 
|                                               |  |                 |            |   |                 |  |          |                 |  |  |        | 
|Total current tax expense                      |  |                 | 3,121      |   |                 |  | 1,908    |                 |  |  | 13,607 | 
|                                               |  |                 |            |   |                 |  |          |                 |  |  |        | 
|                                               |  |                 |           
|Deferred income tax                            |  |                 |            |   |                 |  |          |                 |  |  |        | 
|Increase in deferred tax assets (note 12)      |  |                 | (921,463   | ) |                 |  |         |                 |  |  |       | 
|Decrease in deferred tax liabilities (note 12) |  |                 | (262,675   | ) |                 |  | (144,064 | )               |  |  |       | 
|                                               |  |                 |            |   |                 |  |          |                 |  |  |        | 
|Total deferred tax (benefit)/expense           |  |                 | (1,184,138 | ) |                 |  | (144,064 | )               |  |  |       | 
|                                               |  |                 |            |   |                 |  |          |                 |  |  |        | 
|                                               |  |                 |           
|Income tax (benefit)/expense                   |  |                 | (1,181,017 | ) |                 |  | (142,156 | )               |  |  | 13,607 | 
|                                               |  |                 |            |   |                 |  |          |                 |  |  |        | 



|                                                                                                              |  |                 |             |   |                 |  |             |                 |  |  |             |  
|------------------------------------------------------------------------------------------------------------- |  | --------------- | ----------- | - | --------------- |  | ----------- | --------------- |  |  | ----------- | -
|                                                                                                              |  | Consolidated    |            
|                                                                                                              |  | June 30, 2016A$ |             |   | June 30, 2015A$ |  |             | June 30, 2014A$ | 
|Numerical reconciliation of income tax expense to prima facie tax payable                                     |  |                 |             |   |                 |  |             |                 |  |  |             |  
|Loss before income tax expense                                                                                |  |                 | (63,196,201 | ) |                 |  | (32,293,852 | )               |  |  | (13,329,774 | )
|Tax at the Australian tax rate of 30%                                                                         |  |                 | (18,958,860 | ) |                 |  | (9,688,156  | )               |  |  | (3,998,932  | )
|Tax effect amounts which are not deductible/(taxable) in calculating taxable income:                          |  |                 |             |   |                 |  |             |                 |  |  |             |  
|Non-deductible share based payments                                                                           |  |                 | 14,858,019  |   |                 |  | 226,653     |                 |  |  |            |  
|Non-deductible financing costs                                                                                |  |                 |            |   |                 |  | 5,501,405   |                 |  |  |            |  
|Other non-deductible expenses                                                                                 |  |                 | 598,016     |   |                 |  | 306,360     |                 |  |  | 439,651     |  
|Non-assessable income                                                                                         |  |                 | (266,125    | ) |                 |  | (233,261    | )               |  |  | (479,616    | )
|Capital listing fee                                                                                           |  |                 | (90,305     | ) |                 |  | (188,530    | )               |  |  | (586,143    | )
|Difference in overseas tax rates*                                                                             |  |                 | 1,184,138   |   |                 |  | 184,251     |                 |  |  | 569         |  
|                                                                                                              |  |                 |             |   |                 |  |             |                 |  |  |             |  
|                                                                                                              |  |                 | (2,675,117  | ) |                 |  | (3,891,278  | )               |  |  | (4,624,471  | )
|Net adjustment to deferred tax assets and liabilities for tax losses and temporary differences not
recognized |  |                 | 1,494,100   |   |                 |  | 3,749,122   |                 |  |  | 4,638,078   |  
|                                                                                                              |  |                 |             |   |                 |  |             |                 |  |  |             |  
|Income tax expense**                                                                                          |  |                 | (1,181,017  | ) |                 |  | (142,156    | )               |  |  | 13,607      |  
|                                                                                                              |  |                 |             |   |                 |  |             |                 |  |  |             |  



|* | Difference in overseas tax rate is as a result of reduced corporate income tax rate of 15% applicable to the Immutep subsidiary.
|- | --------------------------------------------------------------------------------------------------------------------------------

|** | Income tax expense relates to tax payable in the United States and movement in deferred tax assets and liabilities for the French subsidiary.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------



|                                                                                    |  |                 |            |  |                 |  |            |                 |  |  |            |  
|----------------------------------------------------------------------------------- |  | --------------- | ---------- |  | --------------- |  | ---------- | --------------- |  |  | ---------- | -
|                                                                                    |  | Consolidated    |           
|                                                                                    |  | June 30, 2016A$ |            |  | June 30, 2015A$ |  |            | June 30, 2014A$ | 
|Deferred tax assets not recognized                                                  |  |                 |            |  |                 |  |            |                 |  |  |            |  
|Deferred tax assets not recognized comprises temporary differences attributable to: |  |                 |            |  |                 |  |            |                 |  |  |            |  
|Carried forward tax losses benefit                                                  |  |                 | 32,044,352 |  |                 |  | 31,262,135 |                 |  |  | 27,329,078 |  
|Temporary differences                                                               |  |                 | 438,284    |  |                 |  | (196,493   | )               |  |  | (402,644   | )
|                                                                                    |  |                 |            |  |                 |  |            |                 |  |  |            |  
|Total deferred tax assets not recognized                                            |  |                 | 32,482,636 |  |                 |  | 31,065,642 |                 |  |  | 26,926,434 |  
|                                                                                    |  |                 |            |  |                 |  |            |                 |  |  |            |  



F-24



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##### Table of Contents

NOTE 6. INCOME TAX EXPENSE(continued)



The above potential tax benefit, which includes tax losses and temporary differences has not
been recognized in the consolidated balance sheet as the recovery of this benefit is not probable. There is no expiration date for the tax losses carried forward. The estimated amount of cumulative tax losses at 30 June 2016 was $106,814,506
(2015  $104,207,118). Utilization of these tax losses is dependent on the parent entity satisfying certain tests at the time the losses are recouped.

NOTE 7. CASH AND CASH EQUIVALENTS



|                |  |                 |            |  |                 |  |           | 
|--------------- |  | --------------- | ---------- |  | --------------- |  | --------- | 
|                |  | Consolidated    |           
|                |  | June 30, 2016A$ |            |  | June 30, 2015A$ | 
|Cash on hand    |  |                 | 114        |  |                 |  | 1,296     | 
|Cash at bank    |  |                 | 20,619,806 |  |                 |  | 6,508,319 | 
|Cash on deposit |  |                 | 259,628    |  |                 |  | 250,000   | 
|                |  |                 |            |  |                 |  |           | 
|                |  |                 | 20,879,548 |  |                 |  | 6,759,615 | 
|                |  |                 |            |  |                 |  |           | 

The above cash and cash equivalent are held in AUD, USD, and Euro. The interest rate on these deposits range
from 0% to 2.05% in 2016 (2015  0% to 2.3%).

NOTE 8. CURRENT RECEIVABLES



|                  |  |                 |         |  |                 |  |         | 
|----------------- |  | --------------- | ------- |  | --------------- |  | ------- | 
|                  |  | Consolidated    |        
|                  |  | June 30, 2016A$ |         |  | June 30, 2015A$ | 
|GST receivable    |  |                 | 73,640  |  |                 |  | 150,143 | 
|Other receivables |  |                 | 94,660  |  |                 |  | 165,310 | 
|                  |  |                 |         |  |                 |  |         | 
|                  |  |                 | 168,300 |  |                 |  | 315,453 | 
|                  |  |                 |         |  |                 |  |         | 

Due to the short term nature of these receivables, the carrying value is assumed to be their fair value and at
30 June 2016. No receivables were impaired or past due.

NOTE 9. OTHER CURRENT ASSETS



|                        |  |                 |         |  |                 |  |         | 
|----------------------- |  | --------------- | ------- |  | --------------- |  | ------- | 
|                        |  | Consolidated    |        
|                        |  | June 30, 2016A$ |         |  | June 30, 2015A$ | 
|Prepayments*            |  |                 | 591,926 |  |                 |  | 380,749 | 
|Security deposit        |  |                 | 30,890  |  |                 |  | 21,224  | 
|Accrued interest        |  |                 | 204     |  |                 |  | 3,955   | 
|Comparability milestone |  |                 |        |  |                 |  | 542,075 | 
|                        |  |                 |         |  |                 |  |         | 
|                        |  |                 | 623,020 |  |                 |  | 948,003 | 
|                        |  |                 |         |  |                 |  |         | 



|* | Prepayments are in relation to the deposits paid to organizations involved in the clinical trials.
|- | --------------------------------------------------------------------------------------------------



F-25



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##### Table of Contents

NOTE 10. NON-CURRENT ASSETS  PLANT AND EQUIPMENT



|                          |  |                      |           |   |            |  |         |                        |  |  |         |   |  |  |           |  
|------------------------- |  | -------------------- | --------- | - | ---------- |  | ------- | ---------------------- |  |  | ------- | - |  |  | --------- | -
|                          |  | Plant andEquipmentA$ |           |   | ComputerA$ |  |         | FurnitureandfittingsA$ |  |  | TotalA$ |  
|At June 30, 2014          |  |                      |           |   |            |  |         |                        |  |  |         |   |  |  |           |  
|Cost or fair value        |  |                      | 1,248,948 |   |            |  | 62,789  |                        |  |  | 12,765  |   |  |  | 1,324,502 |  
|Accumulated depreciation  |  |                      | (701,967  | ) |            |  | (39,603 | )                      |  |  | (5,668  | ) |  |  | (747,238  | )
|                          |  |                      |           |   |            |  |         |                        |  |  |         |   |  |  |           |  
|Net book amount           |  |                      | 546,981   |   |            |  | 23,186  |                        |  |  | 7,097   |   |  |  | 577,264   |  
|                          |  |                      |           |   |            |  |         |                        |  |  |         |   |  |  |           |  
|Year ended June 30, 2015  |  |                      |           |   |            |  |         |                        |  |  |         |   |  |  |           |  
|Opening net book amount   |  |                      | 546,981   |   |            |  | 23,186  |                        |  |  | 7,097   |   |  |  | 577,264   |  
|Exchange differences      |  |                      | (681      | ) |            |  | 1,128   |                        |  |  | (22     | ) |  |  | 425       |  
|Additions                 |  |                      | 44,627    |   |            |  | 4,201   |                        |  |  |        |   |  |  | 48,828    |  
|Disposals                 |  |                      | (178      | ) |            |  | (5,332  | )                      |  |  |        |   |  |  | (5,510    | )
|Acquisition of subsidiary |  |                      | 787       |   |            |  | 1,937   |                        |  |  |        |   |  |  | 2,724     |  
|Depreciation charge       |  |                      | (308,719  | ) |            |  | (14,523 | )                      |  |  | (2,532  | ) |  |  | (325,774  | )
|                          |  |                      |           |   |            |  |         |                        |  |  |         |   |  |  |           |  
|Closing net book amount   |  |                      | 282,817   |   |            |  | 10,597  |                        |  |  | 4,543   |   |  |  | 297,957   |  
|                          |  |                      |           |   |            |  |         |                        |  |  |         |   |  |  |           |  
|At June 30, 2015          |  |                      |           |   |            |  |         |                        |  |  |         |   |  |  |           |  
|Cost or fair value        |  |                      | 605,648   |   |            |  | 28,016  |                        |  |  | 7,172   |   |  |  | 640,836   |  
|Accumulated depreciation  |  |                      | (322,831  | ) |            |  | (17,419 | )                      |  |  | (2,629  | ) |  |  | (342,879  | )
|                          |  |                      |           |   |            |  |         |                        |  |  |         |   |  |  |           |  
|Net book amount           |  |                      | 282,817   |   |            |  | 10,597  |                        |  |  | 4,543   |   |  |  | 297,957   |  
|                          |  |                      |           |   |            |  |         |                        |  |  |         |   |  |  |           |  
|Year ended June 30, 2016  |  |                      |           |   |            |  |         |                        |  |  |         |   |  |  |           |  
|Opening net book amount   |  |                      | 282,817   |   |            |  | 10,597  |                        |  |  | 4,543   |   |  |  | 297,957   |  
|Exchange differences      |  |                      | 10,518    |   |            |  | 391     |                        |  |  | 168     |   |  |  | 11,077    |  
|Additions                 |  |                      | 12,969    |   |            |  | 13,447  |                        |  |  | 714     |   |  |  | 27,130    |  
|Disposals                 |  |                      | (122,289  | ) |            |  |        |                        |  |  |        |   |  |  | (122,289  | )
|Depreciation charge       |  |                      | (168,924  | ) |            |  | (10,676 | )                      |  |  | (2,775  | ) |  |  | (182,375  | )
|                          |  |                      |           |   |            |  |         |                        |  |  |         |   |  |  |           |  
|Closing net book amount   |  |                      | 15,091    |   |            |  | 13,759  |                        |  |  | 2,650   |   |  |  | 31,500    |  
|                          |  |                      |           |   |            |  |         |                        |  |  |         |   |  |  |           |  
|At June 30, 2016          |  |                      |           |   |            |  |         |                        |  |  |         |   |  |  |           |  
|Cost or fair value        |  |                      | 511,195   |   |            |  | 41,971  |                        |  |  | 8,064   |   |  |  | 561,230   |  
|Accumulated depreciation  |  |                      | (496,104  | ) |            |  | (28,212 | )                      |  |  | (5,414  | ) |  |  | (529,730  | )
|                          |  |                      |           |   |            |  |         |                        |  |  |         |   |  |  |           |  
|Net book amount           |  |                      | 15,091    |   |            |  | 13,759  |                        |  |  | 2,650   |   |  |  | 31,500    |  
|                          |  |                      |           |   |            |  |         |                        |  |  |         |   |  |  |           |  



F-26



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##### Table of Contents

NOTE 11. NON-CURRENT ASSETS  INTANGIBLES



|                                        |  |           |            |   |                              |  |            |            |  |  |         |  |  |  |            |  
|--------------------------------------- |  | --------- | ---------- | - | ---------------------------- |  | ---------- | ---------- |  |  | ------- |  |  |  | ---------- | -
|                                        |  | PatentsA$ |            |   | IntellectualPropertyAssetsA$ |  |            | GoodwillA$ |  |  | TotalA$ | 
|At June 30, 2014                        |  |           |            |   |                              |  |            |            |  |  |         |  |  |  |            |  
|Cost                                    |  |           | 1,915,671  |   |                              |  |           |            |  |  |        |  |  |  | 1,915,671  |  
|Accumulated amortization and impairment |  |           | (1,798,788 | ) |                              |  |           |            |  |  |        |  |  |  | (1,798,788 | )
|                                        |  |           |            |   |                              |  |            |            |  |  |         |  |  |  |            |  
|Net book amount                         |  |           | 116,883    |   |                              |  |           |            |  |  |        |  |  |  | 116,883    |  
|                                        |  |           |            |   |                              |  |            |            |  |  |         |  |  |  |            |  
|Year ended June 30, 2015                |  |           |            |   |                              |  |            |            |  |  |         |  |  |  |            |  
|Opening net book amount                 |  |           | 116,883    |   |                              |  |           |            |  |  |        |  |  |  | 116,883    |  
|Acquisition of Immutep S.A              |  |           |           |   |                              |  | 23,451,000 |            |  |  | 109,962 |  |  |  | 23,560,962 |  
|Amortization charge                     |  |           | (55,002    | ) |                              |  | (960,426   | )          |  |  |        |  |  |  | (1,015,428 | )
|                                        |  |           |            |   |                              |  |            |            |  |  |         |  |  |  |            |  
|Closing net book amount                 |  |           | 61,881     |   |                              |  | 22,490,574 |            |  |  | 109,962 |  |  |  | 22,662,417 |  
|                                        |  |           |            |   |                              |  |            |            |  |  |         |  |  |  |            |  
|At June 30, 2015                        |  |           |            |   |                              |  |            |            |  |  |         |  |  |  |            |  
|Cost or fair value                      |  |           | 1,915,671  |   |                              |  | 23,451,000 |            |  |  | 109,962 |  |  |  | 25,476,633 |  
|Accumulated amortization and impairment |  |           | (1,853,790 | ) |                              |  | (960,426   | )          |  |  |        |  |  |  | (2,814,216 | )
|                                        |  |           |            |   |                              |  |            |            |  |  |         |  |  |  |            |  
|Net book amount                         |  |           | 61,881     |   |                              |  | 22,490,574 |            |  |  | 109,962 |  |  |  | 22,662,417 |  
|                                        |  |           |            |   |                              |  |            |            |  |  |         |  |  |  |            |  
|Year ended June 30, 2016                |  |           |            |   |                              |  |            |            |  |  |         |  |  |  |            |  
|Opening net book amount                 |  |           | 61,881     |   |                              |  | 22,490,574 |            |  |  | 109,962 |  |  |  | 22,662,417 |  
|Amortization charge                     |  |           | (61,881    | ) |                              |  | (1,748,837 | )          |  |  |        |  |  |  | (1,810,718 | )
|                                        |  |           |            |   |                              |  |            |            |  |  |         |  |  |  |            |  
|Closing net book amount                 |  |           |           |   |                              |  | 20,741,737 |            |  |  | 109,962 |  |  |  | 20,851,699 |  
|                                        |  |           |            |   |                              |  |            |            |  |  |         |  |  |  |            |  
|At June 30, 2016                        |  |           |            |   |                              |  |            |            |  |  |         |  |  |  |            |  
|Cost or fair value                      |  |           | 1,915,671  |   |                              |  | 23,451,000 |            |  |  | 109,962 |  |  |  | 25,476,633 |  
|Accumulated amortization and impairment |  |           | (1,915,671 | ) |                              |  | (2,709,263 | )          |  |  |        |  |  |  | (4,624,934 | )
|                                        |  |           |            |   |                              |  |            |            |  |  |         |  |  |  |            |  
|Net book amount                         |  |           |           |   |                              |  | 20,741,737 |            |  |  | 109,962 |  |  |  | 20,851,699 |  
|                                        |  |           |            |   |                              |  |            |            |  |  |         |  |  |  |            |  

(i) Amortization methods and useful lives

The group amortizes intangible assets with a limited useful life using the straight-line method over the following periods:



| |  |  | Patents, trademark and licenses  13  21 years
| | - |  | -----------------------------------------------



| |  |  | Intellectual property assets  14 years
| | - |  | ---------------------------------------

NOTE 12. DEFERRED TAX BALANCES

(i) Deferred tax assets

The balance
comprises temporary differences attributable to:



|                                                                   |  |                 |            |   |                 |  |            |  
|------------------------------------------------------------------ |  | --------------- | ---------- | - | --------------- |  | ---------- | -
|                                                                   |  | Consolidated    |           
|                                                                   |  | June 30, 2016A$ |            |   | June 30, 2015A$ | 
|Tax losses                                                         |  |                 | 2,417,066  |   |                 |  | 1,495,603  |  
|Total deferred tax assets                                          |  |                 | 2,417,066  |   |                 |  | 1,495,603  |  
|Set-off of deferred tax liabilities pursuant to set-off provisions |  |                 | (2,417,066 | ) |                 |  | (1,495,603 | )
|                                                                   |  |                 |            |   |                 |  |            |  
|Net deferred tax assets                                            |  |                 |           |   |                 |  |           |  
|                                                                   |  |                 |            |   |                 |  |            |  



F-27



---

##### Table of Contents

NOTE 12. DEFERRED TAX BALANCES(continued)



(ii) Expected recovery of Deferred Tax Assets



|                                                                       |  |                 |           |  |                 |  |           | 
|---------------------------------------------------------------------- |  | --------------- | --------- |  | --------------- |  | --------- | 
|                                                                       |  | Consolidated    |          
|                                                                       |  | June 30, 2016A$ |           |  | June 30, 2015A$ | 
|Deferred tax assets expected to be recovered within 12months           |  |                 | 262,325   |  |                 |  | 262,325   | 
|Deferred tax assets expected to be recovered after more than 12 months |  |                 | 2,154,741 |  |                 |  | 1,233,278 | 
|Net deferred tax assets                                                |  |                 | 2,417,066 |  |                 |  | 1,495,603 | 

(iii) Deferred tax liabilities

The balance comprises temporary differences attributable to:



|                                                                    |  |                 |            |   |                 |  |            |  
|------------------------------------------------------------------- |  | --------------- | ---------- | - | --------------- |  | ---------- | -
|                                                                    |  | Consolidated    |           
|                                                                    |  | June 30, 2016A$ |            |   | June 30, 2015A$ | 
|Intangible assets                                                   |  |                 | 3,111,260  |   |                 |  | 3,373,936  |  
|Total deferred tax liabilities                                      |  |                 | 3,111,260  |   |                 |  | 3,373,936  |  
|Set-off of deferred tax liabilities pursuant to set-off provisions  |  |                 | (2,417,066 | ) |                 |  | (1,495,603 | )
|                                                                    |  |                 |            |   |                 |  |            |  
|Net deferred tax liabilities                                        |  |                 | 694,194    |   |                 |  | 1,878,333  |  
|                                                                    |  |                 |            |   |                 |  |            |  
|                                                                    |  |                
|Deferred tax liabilities expected to be settled within 12 months    |  |                 | 262,325    |   |                 |  | 232,625    |  
|Deferred tax liabilities expected to be settled more than 12 months |  |                 | 431,869    |   |                 |  | 1,616,008  |  
|                                                                    |  |                 |            |   |                 |  |            |  
|                                                                    |  |                 | 694,194    |   |                 |  | 1,878,333  |  
|                                                                    |  |                 |            |   |                 |  |            |  

(iv) Movements in deferred tax balances



|                                |  |              |           |  |                     |  |            |         |  |  |            |  
|------------------------------- |  | ------------ | --------- |  | ------------------- |  | ---------- | ------- |  |  | ---------- | -
|                                |  | Tax LossesA$ |           |  | Intangible AssetsA$ |  |            | TotalA$ | 
|Movement                        |  |              |           |  |                     |  |            |         |  |  |            |  
|At 30 June 2015                 |  |              | 1,495,603 |  |                     |  | (3,373,936 | )       |  |  | (1,878,333 | )
|(Charged)/credited              |  |              |           |  |                     |  |            |         |  |  |            |  
| to profit or loss             |  |              | 921,463   |  |                     |  | 262,676    |         |  |  | 1,184,139  |  
| to other comprehensive income |  |              |          |  |                     |  |           |         |  |  |           |  
| directly to equity            |  |              |          |  |                     |  |           |         |  |  |           |  
|                                |  |              |           |  |                     |  |            |         |  |  |            |  
|At 30 June 2016                 |  |              | 2,417,066 |  |                     |  | (3,111,260 | )       |  |  | (694,194   | )
|                                |  |              |           |  |                     |  |            |         |  |  |            |  



F-28



---

##### Table of Contents

NOTE 13. CURRENT LIABILITES  TRADE AND OTHER PAYABLES



|                            |  |                 |           |  |                 |  |           | 
|--------------------------- |  | --------------- | --------- |  | --------------- |  | --------- | 
|                            |  | Consolidated    |          
|                            |  | June 30, 2016A$ |           |  | June 30, 2015A$ | 
|Trade payables              |  |                 | 561,263   |  |                 |  | 2,201,864 | 
|Other payables and accruals |  |                 | 861,535   |  |                 |  | 568,185   | 
|                            |  |                 |           |  |                 |  |           | 
|                            |  |                 | 1,422,798 |  |                 |  | 2,770,049 | 
|                            |  |                 |           |  |                 |  |           | 

NOTE 14. CURRENT LIABILITES  BORROWINGS



|                                   |  |                 |   |  |                 |  |           | 
|---------------------------------- |  | --------------- | - |  | --------------- |  | --------- | 
|                                   |  | Consolidated    |  
|                                   |  | June 30, 2016A$ |   |  | June 30, 2015A$ | 
|Amounts payable to related parties |  |                 |  |  |                 |  | 1,071,523 | 
|Other borrowings                   |  |                 |  |  |                 |  | 436,950   | 
|                                   |  |                 |   |  |                 |  |           | 
|                                   |  |                 |  |  |                 |  | 1,508,473 | 
|                                   |  |                 |   |  |                 |  |           | 

In the prior year, Dr Frédéric Triebel provided an unsecured loan to the company of $1,071,523.
Interest is charged on this loan at the rate of 10% per annum and was repaid in full in August 2015.

Other borrowings relate to an
interest-free loan advanced by Frances innovation agency, ANVAR, which was repaid in full in July 2015.



F-29



---

##### Table of Contents

NOTE 15. NON CURRENT LIABILITES  CONVERTIBLE NOTE



|                               |  |                 |           |  |                 |  |   | 
|------------------------------ |  | --------------- | --------- |  | --------------- |  | - | 
|                               |  | Consolidated    |          
|                               |  | June 30, 2016A$ |           |  | June 30, 2015A$ | 
|Convertible note at fair value |  |                 | 5,027,168 |  |                 |  |  | 
|                               |  |                 |           |  |                 |  |   | 
|                               |  |                 | 5,027,168 |  |                 |  |  | 
|                               |  |                 |           |  |                 |  |   | 

On 11 May 2015, the Company entered into a subscription agreement with Ridgeback Capital Investments
(Ridgeback) to invest in Convertible Notes and Warrants of the Company for cash consideration totaling $13,750,828, which was subject to shareholder approval at an Extraordinary General Meeting. Shareholder approval was received on 31 July
2015.

The 13,750,828 Convertible Notes issued have a face value of $1.00 per note which are exercisable at a price of $0.02 per share,
mature on 4 August 2025 and accrue interest at a rate of 3% per annum which may also be converted into shares. Conversions may occur during the period (i) at least 3 months after the Issue Date and (ii) at least 15 business days
prior to the maturity date into 50 ordinary shares of the Company per note (subject to customary adjustments for rights or bonus issues, off market buybacks, issues at less than current market price, share purchase plan, dividend reinvestment
plan at a discount, return of capital or dividend or other adjustment). If a change of control event, delisting event or event of default has occurred, Ridgeback may elect to convert the notes into shares or repayment of principal and interest. The
Convertible Notes rank at least equal with all present and future unsubordinated and unsecured debt obligations of the Company and contain customary negative pledges regarding financial indebtedness, dividend payments, related party transaction and
others.

8,475,995 Warrants were granted to Ridgeback which are exercisable at a price of $0.025 per share on or before 4 August
2025. 371,445,231 Warrants were granted to Ridgeback which are exercisable at a price of $0.0237 per share on or before 4 August 2020. All warrants may be settled on a gross or net basis and the number of warrants or exercise price may be
adjusted for a pro rata issue of shares, a bonus issue or capital reorganization. The Warrants do not confer any rights to dividends or a right to participate in a new issue without exercising the warrant.

In addition to the above cash financing from Ridgeback, it was disclosed at the Extraordinary General Meeting explanatory memorandum that
Ridgeback also provides the company with additional benefits, including:



| |  |  | Introductions to other well respected investment institutions which will help in future financing
| | - |  | -------------------------------------------------------------------------------------------------



| |  |  | The ability to attract other top level executives and researchers to the company and the board
| | - |  | ----------------------------------------------------------------------------------------------



| |  |  | Potential introductions for additional in-licensing opportunities; and
| | - |  | ----------------------------------------------------------------------



| |  |  | Increased visibility to other biotechnology and pharmaceutical companies and potential partners and collaborators on Primas internal assets
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------

As a result of the above, the additional benefits provided to Prima determine that the financing transaction, including the issue of warrants,
is to be accounted for as a Share-Based Payment and are expensed on the grant date in accordance with AASB 2 (IFRS 2). The value of the share-based payment to the strategic investor has been calculated by determining the fair value of the
convertible note and warrants at the time of EGM approval and deducting the net cash proceeds from Ridgeback.



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NOTE 15. NON CURRENT LIABILITES  CONVERTIBLE NOTE(continued)



|                                          |  |                 |             |  
|----------------------------------------- |  | --------------- | ----------- | -
|                                          |  | June 30, 2016A$ |            
|Fair value of convertible note            |  |                 | 45,851,305  |  
|Fair value of warrants                    |  |                 | 15,367,594  |  
|Less: cash received                       |  |                 | (13,750,828 | )
|                                          |  |                 |             |  
|Share based payment to strategic investor |  |                 | 47,468,071  |  
|                                          |  |                 |             |  

(i) Fair value of convertible notes

The initial fair value of the convertible notes has been estimated by an external valuer using a combination of the Black-Scholes methodology
for the conversion option component of the notes and a discounted cashflow valuation for the debt component of the note. Key terms of the note are included above. The following assumptions which were based on market conditions that existed at the
grant date:



|                            |  |                  |        |  |           |                                                                                                  
|--------------------------- |  | ---------------- | ------ |  | --------- | -------------------------------------------------------------------------------------------------
|Assumption                  |  | Convertiblenotes |        |  | Rationale
|Historic volatility         |  |                  | 85.0%  |  |           | Based on the Companys historical volatility data                                                
|Share price re              |  | $                | 0.051  |  |           | Closing market share price on 31 July 2015                                                       
|Risk free interest rate     |  |                  | 2.734% |  |           | Based on Australian Government securities yields which match the term of the convertible note    
|Risk adjusted interest rate |  |                  | 15.0%  |  |           | An estimate of the expected interest rate of a similar non-convertible note issued by the company
|Dividend yield              |  |                  | 0.0%   |  |           | Based on the Companys nil dividend history                                                      
|Risk free rate              |  |                  | 2.734% |  |           | Based on 10 year Australian Government securities yield                                          

The fair value of the convertible note is allocated between a financial liability for the traditional note
component of the convertible note and into equity which represents the conversion feature. The traditional note component of the convertible note was initially recorded at fair value of $4.4m, based on the present value of the contractual cash flows
of the note discounted at 15%. After initial recognition, the liability component of the convertible note has been measured at fair value as required by AASB 2 (IFRS 2). The remaining value of the convertible note was allocated to the
conversion feature and recognized as equity.



|                        |  |                  |           |  |                            |  |            | 
|----------------------- |  | ---------------- | --------- |  | -------------------------- |  | ---------- | 
|                        |  | Note  Liability |           |  | Conversionfeature  Equity | 
|Fair value at issuance  |  |                  | 4,419,531 |  |                            |  | 41,431,774 | 
|Fair value movements    |  |                  | 607,637   |  |                            |  |           | 
|                        |  |                  |           |  |                            |  |            | 
|Balance at 30 June 2016 |  |                  | 5,027,168 |  |                            |  | 41,431,774 | 
|                        |  |                  |           |  |                            |  |            | 

(ii) Fair value of warrants

The fair value of each warrant granted is not traded in an active market and instead has been estimated by an external valuer using the
Black-Scholes pricing model based on the following assumptions. Key terms of the warrants were included above. The following assumptions were based on market conditions that existed at the grant date:



|                        |  |                |        |  |                 |   |        |           |  |                                                                                     
|----------------------- |  | -------------- | ------ |  | --------------- | - | ------ | --------- |  | ------------------------------------------------------------------------------------
|Assumption              |  | 5 yearwarrants |        |  | 10 yearwarrants |   |        | Rationale
|Historic volatility     |  |                | 85.0%  |  |                 |   | 85.0%  |           |  | Based on 3 year historical volatility data for the Company                          
|Exercise price          |  | $              | 0.0237 |  |                 | $ | 0.0250 |           |  | As per subscription agreement                                                       
|Share price             |  | $              | 0.0510 |  |                 | $ | 0.0510 |           |  | Closing share price on valuation date from external market source                   
|Risk-free interest rate |  |                | 2.177% |  |                 |   | 2.886% |           |  | Based on Australian Government securities yields which match the term of the warrant
|Dividend yield          |  |                | 0.0%   |  |                 |   | 0.0%   |           |  | Based on the Companys nil dividend history                                         
|Fair value              |  | $              | 0.0457 |  |                 | $ | 0.0403 |           |  | Determined using Black-Scholes models with the inputs above                         



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##### Table of Contents

NOTE 16. EMPLOYEE BENEFITS



|             |  |                 |        |  |                 |  |        | 
|------------ |  | --------------- | ------ |  | --------------- |  | ------ | 
|             |  | Consolidated    |       
|             |  | June 30, 2016A$ |        |  | June 30, 2015A$ | 
|Annual leave |  |                 | 27,694 |  |                 |  | 80,304 | 
|             |  |                 |        |  |                 |  |        | 

The current provision for employee benefits is in relation to accrued annual leave and covers all
unconditional entitlements where employees have completed the required period of service. The entire amount of the provision is presented as current, since the group does not have an unconditional right to defer settlement for any of these
obligations.

NOTE 17. EMPLOYEE BENEFITS



|                   |  |                 |        |  |                 |  |        | 
|------------------ |  | --------------- | ------ |  | --------------- |  | ------ | 
|                   |  | Consolidated    |       
|                   |  | June 30, 2016A$ |        |  | June 30, 2015A$ | 
|Long service leave |  |                 | 43,151 |  |                 |  | 35,706 | 
|                   |  |                 |        |  |                 |  |        | 

NOTE 18. CONTRIBUTED EQUITY



|                             |  |       |  |                 |             |  |                 |  |             | 
|---------------------------- |  | ----- |  | --------------- | ----------- |  | --------------- |  | ----------- | 
|                             |  |       |  | Consolidated    |            
|                             |  | Note  |  | June 30, 2016A$ |             |  | June 30, 2015A$ | 
|Fully paid ordinary shares   |  | 18(a) |  |                 | 184,868,978 |  |                 |  | 170,216,482 | 
|Options over ordinary shares |  |       |  |                 | 9,661,954   |  |                 |  | 9,661,954   | 
|                             |  |       |  |                 |             |  |                 |  |             | 
|                             |  |       |  |                 | 194,530,932 |  |                 |  | 179,878,436 | 
|                             |  |       |  |                 |             |  |                 |  |             | 

(a) Ordinary Shares



|                                                                 |  |       |  |               |               |  |               |  |             |     |  |  |               |  |  |  |             |  
|---------------------------------------------------------------- |  | ----- |  | ------------- | ------------- |  | ------------- |  | ----------- | --- |  |  | ------------- |  |  |  | ----------- | -
|                                                                 |  |       |  | June 30, 2016 |               |  | June 30, 2015 | 
|                                                                 |  | Note  |  | No.           |               |  | A$            |  |             | No. |  |  | A$            | 
|At the beginning of reporting period                             |  |       |  |               | 1,751,494,601 |  |               |  | 170,216,482 |     |  |  | 1,228,709,341 |  |  |  | 139,352,418 |  
|Shares issued during year                                        |  | 18(b) |  |               | 283,158,931   |  |               |  | 13,761,075  |     |  |  | 284,274,073   |  |  |  | 7,365,369   |  
|Exercise of options and warrants (Shares issued during the year) |  | 18(b) |  |               | 26,977,412    |  |               |  | 1,174,567   |     |  |  | 72,413,924    |  |  |  | 3,731,339   |  
|Exercise of convertible notes (Shares issued during the year)    |  | 18(b) |  |               |              |  |               |  |            |     |  |  | 166,097,263   |  |  |  | 19,931,672  |  
|Transaction costs relating to share issues                       |  |       |  |               |              |  |               |  | (283,146    | )   |  |  |              |  |  |  | (164,316    | )
|                                                                 |  |       |  |               |               |  |               |  |             |     |  |  |               |  |  |  |             |  
|At reporting date                                                |  |       |  |               | 2,061,630,944 |  |               |  | 184,868,978 |     |  |  | 1,751,494,601 |  |  |  | 170,216,482 |  
|                                                                 |  |       |  |               |               |  |               |  |             |     |  |  |               |  |  |  |             |  

(b) Shares issued



|                                        |  |        |             |  |               |  |      |         |  |  |            | 
|--------------------------------------- |  | ------ | ----------- |  | ------------- |  | ---- | ------- |  |  | ---------- | 
|2016 Details                            |  | Number |             |  | Issue PriceA$ |  |      | TotalA$ | 
|Shares issued under Share Purchase Plan |  |        | 200,000,000 |  |               |  | 0.05 |         |  |  | 10,000,000 | 
|Ridgeback shares issued                 |  |        | 12,136,750  |  |               |  | 0.02 |         |  |  | 209,966    | 
|Share placement                         |  |        | 31,022,181  |  |               |  | 0.05 |         |  |  | 1,551,109  | 
|Share placement                         |  |        | 40,000,000  |  |               |  | 0.05 |         |  |  | 2,000,000  | 
|Performance rights exercised            |  |        | 26,977,409  |  |               |  | 0.04 |         |  |  | 1,174,566  | 
|Options exercised                       |  |        | 3           |  |               |  | 0.20 |         |  |  | 1          | 
|                                        |  |        |             |  |               |  |      |         |  |  |            | 
|                                        |  |        | 310,136,343 |  |               |  |      |         |  |  | 14,935,642 | 
|                                        |  |        |             |  |               |  |      |         |  |  |            | 



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##### Table of Contents

NOTE 18. CONTRIBUTED EQUITY(continued)



|                                                   |  |        |             |  |               |  |      |         |  |  |            | 
|-------------------------------------------------- |  | ------ | ----------- |  | ------------- |  | ---- | ------- |  |  | ---------- | 
|2015 Details                                       |  | Number |             |  | Issue PriceA$ |  |      | TotalA$ | 
|Bergen commencement fee                            |  |        | 11,792,588  |  |               |  | 0.04 |         |  |  | 483,496    | 
|Bergen collateral shares                           |  |        | 17,800,000  |  |               |  | 0.02 |         |  |  | 338,200    | 
|Bergen first tranche                               |  |        | 13,163,514  |  |               |  | 0.04 |         |  |  | 526,541    | 
|Performance right exercised                        |  |        | 1,715,686   |  |               |  | 0.04 |         |  |  | 63,480     | 
|Bergen second tranche                              |  |        | 15,214,606  |  |               |  | 0.03 |         |  |  | 517,297    | 
|Consideration buyer shares to Immutep stakeholders |  |        | 86,120,815  |  |               |  | 0.03 |         |  |  | 2,593,959  | 
|Bergen third tranche                               |  |        | 15,323,414  |  |               |  | 0.03 |         |  |  | 505,674    | 
|Bergen fourth tranche                              |  |        | 22,936,950  |  |               |  | 0.02 |         |  |  | 527,550    | 
|Ridgeback share issued                             |  |        | 28,000,000  |  |               |  | 0.02 |         |  |  | 560,000    | 
|Ridgeback first placement                          |  |        | 72,206,500  |  |               |  | 0.02 |         |  |  | 1,249,172  | 
|Bergen option exercised                            |  |        | 19,800,000  |  |               |  | 0.05 |         |  |  | 1,084,050  | 
|Conversion of Warrants  Immutep                   |  |        | 52,371,500  |  |               |  | 0.05 |         |  |  | 2,628,525  | 
|Employee option exercised                          |  |        | 242,424     |  |               |  | 0.08 |         |  |  | 18,764     | 
|Exercise of convertible note                       |  |        | 166,097,263 |  |               |  | 0.12 |         |  |  | 19,931,672 | 
|                                                   |  |        |             |  |               |  |      |         |  |  |            | 
|                                                   |  |        | 522,785,260 |  |               |  |      |         |  |  | 31,028,380 | 
|                                                   |  |        |             |  |               |  |      |         |  |  |            | 

In October 2014, Prima entered into an investment agreement with the Bergen Global Opportunity Fund, LP
(Bergen). Under the agreement, Bergen subscribed to a 36-month interest-free convertible security in the amount of $2,833,000, expiring on 2 October 2017. In addition, Bergen could invest in the range of $438k (US$360k) and $1.8m (US$1.5m) per
month in monthly tranches, dependent on meeting certain conditions. Bergen was also issued 19,800,000 options and was issued with 17,800,000 shares as security over the investment agreement.

The investment agreement with Bergen concluded in May 2015 and was formally terminated in August 2015. Upon the conclusion of the investment
agreement, Bergen exercised their options, and convertible note as detailed above.

Finance costs relating to the Bergen investment
agreement was $18,338,015 for the year ended 30 June 2015. The finance costs incurred relate to the following terms of the Bergen agreement.



|                                                                           |  |                 |   |  |                 |  |            | 
|-------------------------------------------------------------------------- |  | --------------- | - |  | --------------- |  | ---------- | 
|                                                                           |  | Consolidated    |  
|                                                                           |  | June 30, 2016A$ |   |  | June 30, 2015A$ | 
|Commencement fee                                                           |  |                 |  |  |                 |  | 483,496    | 
|Discount to fair value of tranche funding                                  |  |                 |  |  |                 |  | 211,124    | 
|Share based payment expense related to collateral shares                   |  |                 |  |  |                 |  | 151,264    | 
|Share based payment expense related to options                             |  |                 |  |  |                 |  | 414,342    | 
|Discount to fair value on exercise of convertible notes to ordinary shares |  |                 |  |  |                 |  | 17,077,789 | 
|                                                                           |  |                 |   |  |                 |  |            | 
|                                                                           |  |                 |  |  |                 |  | 18,338,015 | 
|                                                                           |  |                 |   |  |                 |  |            | 



| | 1) | The convertible note issued to Bergen was recorded on issuance date as a financial liability and then re-measured at fair value through the profit and loss in accordance with AASB 139 (IAS 39). Under the Agreement the
conversion price was calculated based on the average of any five daily VWAPs per share during twenty consecutive actual trading days immediately prior to the selected conversion date, at the discretion of Bergen. The conversion price was
calculated at $0.0190 per share and the calculated number of shares issued to Bergen was 166,097,263. The market price on the day that the shares were issued to Bergen was $0.12 per share resulting in a fair value re-measurement loss of $17,077,789
being recorded.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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##### Table of Contents

NOTE 18. CONTRIBUTED EQUITY(continued)



|                                           |  |      |  |        |            |  |               |  |       |         |  |  |           |  
|------------------------------------------ |  | ---- |  | ------ | ---------- |  | ------------- |  | ----- | ------- |  |  | --------- | -
|2014 Details                               |  | Note |  | Number |            |  | Issue PriceA$ |  |       | TotalA$ | 
|Share purchase plan                        |  | i)   |  |        | 85,562,500 |  |               |  | 0.080 |         |  |  | 6,845,000 |  
|Exercise of PRRO options                   |  | ii)  |  |        | 3          |  |               |  | 0.200 |         |  |  | 1         |  
|Transaction costs relating to share issues |  |      |  |        |            |  |               |  |       |         |  |  | (157,606  | )
|                                           |  |      |  |        |            |  |               |  |       |         |  |  |           |  
|                                           |  |      |  |        | 85,562,503 |  |               |  |       |         |  |  | 6,687,395 |  
|                                           |  |      |  |        |            |  |               |  |       |         |  |  |           |  

Ordinary shares

Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion to the number of
and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company does not have a limited amount of authorized capital.

The fully paid ordinary shares have no par value and the company does not have a limited amount of authorized capital.

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.

Options

Information relating to the
Companys Global Employee Share Option Plan, including details of options issued, exercised and lapsed during the financial year and options outstanding at the end of the reporting period, is set out in note 31.

Unlisted Options



|                  |  |                |         |  |        |  |             | 
|----------------- |  | -------------- | ------- |  | ------ |  | ----------- | 
|Expiration Date   |  | Exercise Price |         |  | Number | 
|June 30, 2018     |  | $              | 0.0774  |  |        |  | 1,680,868   | 
|December 12, 2018 |  | $              | 0.05019 |  |        |  | 147,628,500 | 
|August 4, 2020    |  | $              | 0.0237  |  |        |  | 371,445,231 | 
|October 30, 2020  |  | $              | 0.057   |  |        |  | 793,103     | 
|March 7, 2021     |  | $              | 0.04    |  |        |  | 1,026,272   | 
|August 4, 2025    |  | $              | 0.025   |  |        |  | 8,475,995   | 
|                  |  |                |         |  |        |  |             | 
|Total             |  |                |         |  |        |  | 531,049,969 | 
|                  |  |                |         |  |        |  |             | 

Share buy-back

There is no current on-market share buy-back.

Capital risk management

The consolidated
entitys objectives when managing capital are to safeguard its ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital
structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the consolidated entity may adjust
the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The
consolidated entity would look to raise capital when an opportunity to invest in a business or company was seen as value adding relative to the current parent entitys share price at the time of the investment. The consolidated entity is not
actively pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in order to maximize synergies.



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##### Table of Contents

NOTE 19. EQUITY  RESERVES AND RETAINED EARNINGS



|                                                                  |  |                 |              |   |                 |  |              |  
|----------------------------------------------------------------- |  | --------------- | ------------ | - | --------------- |  | ------------ | -
|                                                                  |  | Consolidated    |             
|                                                                  |  | June 30, 2016A$ |              |   | June 30, 2015A$ | 
|(a) Reserves                                                      |  |                 |              |   |                 |  |              |  
|Options issued reserve                                            |  |                 | 19,116,205   |   |                 |  | 3,748,611    |  
|Conversion feature of convertible note reserve                    |  |                 | 41,431,774   |   |                 |  |             |  
|Foreign currency translation reserve                              |  |                 | 38,945       |   |                 |  | (268,052     | )
|Share-based payment reserve                                       |  |                 | 2,671,263    |   |                 |  | 1,787,170    |  
|                                                                  |  |                 |              |   |                 |  |              |  
|                                                                  |  |                 | 63,258,187   |   |                 |  | 5,267,729    |  
|                                                                  |  |                 |              |   |                 |  |              |  
|Movement in options issued reserve were as follows:               |  |                 |              |   |                 |  |              |  
|Opening balance                                                   |  |                 | 3,748,611    |   |                 |  | 1,547,574    |  
|Options issued during the year                                    |  |                 | 15,367,594   | * |                 |  | 2,201,037    |  
|                                                                  |  |                 |              |   |                 |  |              |  
|Ending balance                                                    |  |                 | 19,116,205   |   |                 |  | 3,748,611    |  
|                                                                  |  |                 |              |   |                 |  |              |  
|Movements in conversion feature of convertible note reserve:      |  |                 |              |   |                 |  |              |  
|Opening balance                                                   |  |                 |             |   |                 |  |             |  
|Conversion feature of convertible note                            |  |                 | 41,431,774   | * |                 |  |             |  
|                                                                  |  |                 |              |   |                 |  |              |  
|Ending balance                                                    |  |                 | 41,431,774   |   |                 |  |             |  
|                                                                  |  |                 |              |   |                 |  |              |  
|Movement in foreign currency translation reserve were as follows: |  |                 |              |   |                 |  |              |  
|Opening balance                                                   |  |                 | (268,052     | ) |                 |  | (211,145     | )
|Currency translation differences arising during the year          |  |                 | 306,997      |   |                 |  | (56,907      | )
|                                                                  |  |                 |              |   |                 |  |              |  
|Ending balance                                                    |  |                 | 38,945       |   |                 |  | (268,052     | )
|                                                                  |  |                 |              |   |                 |  |              |  
|Movement in share-based payment reserve were as follows:          |  |                 |              |   |                 |  |              |  
|Opening balance                                                   |  |                 | 1,787,170    |   |                 |  | 546,245      |  
|Employee options issued during the year                           |  |                 | 1,976,417    |   |                 |  | 738,799      |  
|Exercise of vested performance rights                             |  |                 | (1,174,566   | ) |                 |  | (63,480      | )
|Share-based payments                                              |  |                 | 82,242       |   |                 |  | 565,606      |  
|                                                                  |  |                 |              |   |                 |  |              |  
|Ending balance                                                    |  |                 | 2,671,263    |   |                 |  | 1,787,170    |  
|                                                                  |  |                 |              |   |                 |  |              |  
|                                                                  |  |                
|(b) Accumulated losses                                            |  |                 |              |   |                 |  |              |  
|Movement in accumulated losses were as follows:                   |  |                 |              |   |                 |  |              |  
|Opening balance                                                   |  |                 | (160,456,422 | ) |                 |  | (128,304,726 | )
|Net loss for the year                                             |  |                 | (62,015,184  | ) |                 |  | (32,151,696  | )
|                                                                  |  |                 |              |   |                 |  |              |  
|Balance                                                           |  |                 | (222,471,606 | ) |                 |  | (160,456,422 | )
|                                                                  |  |                 |              |   |                 |  |              |  



|* | Current year movements relate to the fair value of convertible notes and warrants issued to Ridgeback accounted for in accordance with AASB 2 (IFRS 2). Refer to note 15 for further information.
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

(c) Nature and purpose of reserves

(i) Options issued
reserve

On 4 August 2015 warrants were granted to Ridgeback Capital Investments. 8,475,995 Warrants were granted which are
exercisable at a price of $0.025 per share on or before 4 August 2025. 371,445,231 Warrants were granted which are exercisable at a price of $0.0237 per share on or before 4 August 2020. All warrants may be settled on a gross or net basis
and the number of warrants or exercise price may be adjusted for a pro rata issue of shares, a bonus issue or capital reorganisation. The Warrants do not confer any rights to dividends or a right to participate in a new issue without exercising the
warrant. For further information, refer to note 15.

In October 2014, the Company issued 19,800,000 options with an exercise price of
$0.05475 in relation to the Bergen investment agreement. In December 2014, the Company issued 200,000,000 warrants at an exercise price of $0.05019 to the vendors of Immutep S.A. The options expire on 2 October 2017 and 12 December
2018. Each option and warrant is exercisable for one ordinary share in the capital of the Company. As at 30 June 2015, all options held by Bergen were exercised, and 52,371,500 warrants were exercised by the vendors of Immutep S.A. The options
held are exercisable at any time before its expiry date.



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NOTE 19. EQUITY  RESERVES AND RETAINED EARNINGS(continued)



(ii) Conversion feature of convertible note reserve

This amount relates to the conversion feature of the convertible note issued to Ridgeback Capital Investments which has been measured at fair
value as required by AASB 2 (IFRS 2). For further information, refer to note 15.

(iii) Foreign currency translation reserve

Exchange differences arising on translation of the foreign controlled entity a recognized in other comprehensive loss as described in note 1(d)
and accumulated in a separate reserve within equity. The cumulative amount is reclassified to profit or loss when the net investment is disposed of.

(iv) Share-based payments reserve

The
share-based payments reserve is used to recognize the grant date fair value of options and performance rights issued to employees but not exercised. For a reconciliation of movements in the share-based payment reserves refer to note 31.

NOTE 20. DIVIDENDS

There were no
dividends paid or declared during the current or previous financial year.

NOTE 21. BUSINESS COMBINATION

(a) Summary of prior years acquisition

Acquisition of Immutep S.A.

On
12 December 2014, the Group acquired 100% of the issued share capital of Immutep S.A., a French biopharmaceutical company in the field of Immuno-Oncology, for consideration of $26,275,569. The acquisition has significantly increased the
portfolio of Immuno-Oncology technologies for further clinical development.

There have been no changes to the provisionally determined
fair values of assets and liabilities recognised as a result of the acquisition in the previous financial year.

(b) Net cash outflow for prior
years acquisition



|                                                            |  |                 |   |  |                 |  |            |  
|----------------------------------------------------------- |  | --------------- | - |  | --------------- |  | ---------- | -
|                                                            |  | Consolidated    |  
|                                                            |  | June 30, 2016A$ |   |  | June 30, 2015A$ | 
|Outflow of cash to acquire subsidiary, net of cash acquired |  |                 |   |  |                 |  |            |  
|Cash consideration*                                         |  |                 |  |  |                 |  | 21,458,107 |  
|Less: Balance acquired cash                                 |  |                 |  |  |                 |  | (545,195   | )
|                                                            |  |                 |   |  |                 |  |            |  
|                                                            |  |                 |  |  |                 |  | 20,912,912 |  
|                                                            |  |                 |   |  |                 |  |            |  



|* | The total cash paid during the year ended 30 June 2015 in relation to the acquisition of Immutep S.A. was $21,458,107.
|- | ----------------------------------------------------------------------------------------------------------------------

(c) Comparability milestone

As part of
the acquisition of Immutep S.A in the previous financial year, an amount of $1,084,149 was paid into a retention account and it was determined that there was a 50% likelihood that a comparability study was required. The fair value of the amount
refundable on acquisition was $542,075 and as such the cash paid in relation to the purchase consideration was reduced by this amount. As the refundable consideration was contingent on an uncertain future event, it was recognized as a financial
asset at fair value in accordance with AASB 3 (IFRS 3) on acquisition. During the year, the comparability study was not required, and was subsequently measured at fair value through profit or loss in accordance with AASB 3 (IFRS 3). Accordingly the
$542,075 was recognized as an expense for the year ended 30 June 2016.



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NOTE 22. KEY MANAGEMENT PERSONNEL DISCLOSURES

(a) Directors and key management personnel compensation



|                             |  |                 |           |  |                 |  |           |                 |  |  |           | 
|---------------------------- |  | --------------- | --------- |  | --------------- |  | --------- | --------------- |  |  | --------- | 
|                             |  | Consolidated    |          
|                             |  | June 30, 2016A$ |           |  | June 30, 2015A$ |  |           | June 30, 2014A$ | 
|Short-term employee benefits |  |                 | 1,300,140 |  |                 |  | 1,509,877 |                 |  |  | 1,533,114 | 
|Long-term employee benefits  |  |                 | 5,817     |  |                 |  | 6,231     |                 |  |  |          | 
|Post-employment benefits     |  |                 | 42,471    |  |                 |  | 43,056    |                 |  |  | 40,377    | 
|Share-based payments         |  |                 | 1,824,643 |  |                 |  | 467,002   |                 |  |  | 41,919    | 
|                             |  |                 |           |  |                 |  |           |                 |  |  |           | 
|                             |  |                 | 3,173,071 |  |                 |  | 2,026,166 |                 |  |  | 1,615,410 | 
|                             |  |                 |           |  |                 |  |           |                 |  |  |           | 

(b) Equity instrument disclosures relating to key management personnel

(i) Options provided as remuneration and shares issued on exercise of such options

For details of options provided as remuneration and shares issued on the exercise of such options, together with terms and conditions of the
options, please refer to note 31.

(ii) Shareholding

The numbers of shares in the company held during the financial year by each director of and other key management personnel of the group,
including their personally related parties, are set out below. There were no shares granted during the reporting period as compensation.



|                      |  |                             |            |   |                                                              |  |             |                                                  |  |  |                              |  |  |                           |            |   |  |  |               |  
|--------------------- |  | --------------------------- | ---------- | - | ------------------------------------------------------------ |  | ----------- | ------------------------------------------------ |  |  | ---------------------------- |  |  | ------------------------- | ---------- | - |  |  | ------------- | -
|June 30, 2016         |  | Balance atstart of the year |            |   | Received during theyear on the exerciseof performance rights |  |             | Received duringthe year on theexercise ofoptions |  |  | Other changesduring the year |  |  | Balance at endof the year |           
|Ordinary shares       |  |                             |            |   |                                                              |  |             |                                                  |  |  |                              |  |  |                           |            |   |  |  |               |  
|Ms. Lucy Turnbull, AO |  |                             | 20,059,576 |   |                                                              |  |            |                                                  |  |  |                             |  |  |                           | 300,000    |   |  |  | 20,359,576    |  
|Mr. Albert Wong       |  |                             | 3,537,500  |   |                                                              |  |            |                                                  |  |  |                             |  |  |                           | 300,000    |   |  |  | 3,837,500     |  
|Dr. Russell Howard    |  |                             |           |   |                                                              |  |            |                                                  |  |  |                             |  |  |                           |           |   |  |  |              |  
|Mr. Pete Meyers       |  |                             | 1,715,686  |   |                                                              |  | 2,573,529   |                                                  |  |  |                             |  |  |                           |           |   |  |  | 4,289,215     |  
|Mr. Marc Voigt        |  |                             | 870,000150 | * |                                                              |  | 10,735,293 |                                                  |  |  |                            |  |  |                           |          |   |  |  | 11,605,293150 | *
|Ms. Deanne Miller     |  |                             | 20,924     |   |                                                              |  | 6,450,980   |                                                  |  |  |                             |  |  |                           | (1,520,924 | ) |  |  | 4,950,980     |  
|Dr. Frédéric Triebel  |  |                             | 9,311,383  |   |                                                              |  | 3,333,333   |                                                  |  |  |                             |  |  |                           |           |   |  |  | 12,644,716    |  
|                      |  |                             |            |   |                                                              |  |             |                                                  |  |  |                              |  |  |                           |            |   |  |  |               |  
|Total ordinary shares |  |                             | 35,515,219 |   |                                                              |  | 23,093,135  |                                                  |  |  |                             |  |  |                           | (920,924   | ) |  |  | 57,687,430    |  
|                      |  |                             |            |   |                                                              |  |             |                                                  |  |  |                              |  |  |                           |            |   |  |  |               |  
|Total ADR             |  |                             | 150        |   |                                                              |  |            |                                                  |  |  |                             |  |  |                           |           |   |  |  | 150           |  
|                      |  |                             |            |   |                                                              |  |             |                                                  |  |  |                              |  |  |                           |            |   |  |  |               |  



|* | American Depositary Receipts (ADR) traded on the NASDAQ
|- | -------------------------------------------------------



F-37



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##### Table of Contents

NOTE 22. KEY MANAGEMENT PERSONNEL DISCLOSURES(continued)



|                      |  |                             |                 |   |                                                            |  |           |                                                  |  |  |                              |  |  |                           |           |   |  |  |                 |  
|--------------------- |  | --------------------------- | --------------- | - | ---------------------------------------------------------- |  | --------- | ------------------------------------------------ |  |  | ---------------------------- |  |  | ------------------------- | --------- | - |  |  | --------------- | -
|June 30, 2015         |  | Balance atstart of the year |                 |   | Received duringthe year on theexercise ofperformancerights |  |           | Received duringthe year on theexercise ofoptions |  |  | Other changes duringthe year |  |  | Balance at endof the year |          
|Ordinary shares       |  |                             |                 |   |                                                            |  |           |                                                  |  |  |                              |  |  |                           |           |   |  |  |                 |  
|Ms. Lucy Turnbull, AO |  |                             | 20,059,576      |   |                                                            |  |          |                                                  |  |  |                             |  |  |                           |          |   |  |  | 20,059,576      |  
|Mr. Albert Wong       |  |                             | 3,537,500       |   |                                                            |  |          |                                                  |  |  |                             |  |  |                           |          |   |  |  | 3,537,500       |  
|Dr. Russell Howard    |  |                             |                |   |                                                            |  |          |                                                  |  |  |                             |  |  |                           |          |   |  |  |                |  
|Mr. Pete Meyers       |  |                             |                |   |                                                            |  | 1,715,686 |                                                  |  |  |                             |  |  |                           |          |   |  |  | 1,715,686       |  
|Mr. Matt Lehman       |  |                             | 1,617,76332,706 | * |                                                            |  |          |                                                  |  |  |                             |  |  |                           |          |   |  |  | 1,617,76332,706 | *
|Dr. Sharron Gargosky  |  |                             |                |   |                                                            |  |          |                                                  |  |  |                             |  |  |                           |          |   |  |  |                |  
|Mr. Marc Voigt        |  |                             | 720,000150      | * |                                                            |  |          |                                                  |  |  |                             |  |  |                           | 150,000  |   |  |  | 870,000150      | *
|Ms. Deanne Miller     |  |                             |                |   |                                                            |  |          |                                                  |  |  | 242,424                      |  |  |                           | (221,500  | ) |  |  | 20,924          |  
|Dr. Frédéric Triebel  |  |                             |                |   |                                                            |  |          |                                                  |  |  |                             |  |  |                           | 9,311,383 |   |  |  | 9,311,383       |  
|                      |  |                             |                 |   |                                                            |  |           |                                                  |  |  |                              |  |  |                           |           |   |  |  |                 |  
|Total ordinary shares |  |                             | 25,934,839      |   |                                                            |  | 1,715,686 |                                                  |  |  | 242,424                      |  |  |                           | 9,239,883 |   |  |  | 37,132,832      |  
|                      |  |                             |                 |   |                                                            |  |           |                                                  |  |  |                              |  |  |                           |           |   |  |  |                 |  
|Total ADR             |  |                             | 32,856          |   |                                                            |  |          |                                                  |  |  |                             |  |  |                           |          |   |  |  | 32,856          |  
|                      |  |                             |                 |   |                                                            |  |           |                                                  |  |  |                              |  |  |                           |           |   |  |  |                 |  



|* | American Depositary Receipts (ADR) traded on the NASDAQ
|- | -------------------------------------------------------



|                      |  |                             |                |   |                                                  |  |      |                             |  |  |                           |   |  |  |                 |  
|--------------------- |  | --------------------------- | -------------- | - | ------------------------------------------------ |  | ---- | --------------------------- |  |  | ------------------------- | - |  |  | --------------- | -
|June 30, 2014         |  | Balance atstart of the year |                |   | Received duringthe year on theexercise ofoptions |  |      | Other changesduring theyear |  |  | Balance at endof the year |  
|Ordinary shares       |  |                             |                |   |                                                  |  |      |                             |  |  |                           |   |  |  |                 |  
|Ms. Lucy Turnbull, AO |  |                             | 17,759,576     |   |                                                  |  |     |                             |  |  | 2,300,000                 |   |  |  | 20,059,576      |  
|Mr. Albert Wong       |  |                             | 3,537,500      |   |                                                  |  |     |                             |  |  |                          |   |  |  | 3,537,500       |  
|Mr. Martin Rogers**   |  |                             | 20,542,179     |   |                                                  |  |     |                             |  |  |                          |   |  |  | 20,542,179      |  
|Dr. Richard Hammel**  |  |                             | 10,444,987     |   |                                                  |  |     |                             |  |  |                          |   |  |  | 10,444,987      |  
|Dr. Russell Howard    |  |                             |               |   |                                                  |  |     |                             |  |  |                          |   |  |  |                |  
|Mr. Pete Meyers       |  |                             |               |   |                                                  |  |     |                             |  |  |                          |   |  |  |                |  
|Mr. Matt Lehman       |  |                             | 1,617,7634,400 | * |                                                  |  |    |                             |  |  |   28,306                 | * |  |  | 1,617,76332,706 | *
|Dr. Sharron Gargosky  |  |                             | 25,000         | * |                                                  |  |     |                             |  |  | (25,000                   | ) |  |  |                |  
|Mr. Marc Voigt        |  |                             | 620,000150     | * |                                                  |  |    |                             |  |  | 100,000                  |   |  |  | 720,000150      | *
|                      |  |                             |                |   |                                                  |  |      |                             |  |  |                           |   |  |  |                 |  
|Total ordinary shares |  |                             | 54,522,005     |   |                                                  |  |     |                             |  |  | 2,400,000                 |   |  |  | 56,922,005      |  
|                      |  |                             |                |   |                                                  |  |      |                             |  |  |                           |   |  |  |                 |  
|Total ADR             |  |                             | 29,550         |   |                                                  |  |     |                             |  |  | 3,306                     |   |  |  | 32,856          |  
|                      |  |                             |                |   |                                                  |  |      |                             |  |  |                           |   |  |  |                 |  



|* | American Depositary Receipts (ADR) traded on the NASDAQ
|- | -------------------------------------------------------

|** | As the date of resignation
|-- | --------------------------



F-38



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##### Table of Contents

NOTE 22. KEY MANAGEMENT PERSONNEL DISCLOSURES(continued)



(iii) Option holdings

The number of options over ordinary shares in the parent entity held during the financial year by each director and other members of key
management personnel of the consolidated entity, including their personally related parties, is set out below:



|                             |  |                            |            |  |         |  |   |           |  |  |              |  |  |                          |          |   |                       |  |            |          |  |  |            |  |  |  |   | 
|---------------------------- |  | -------------------------- | ---------- |  | ------- |  | - | --------- |  |  | ------------ |  |  | ------------------------ | -------- | - | --------------------- |  | ---------- | -------- |  |  | ---------- |  |  |  | - | 
|June 30, 2016                |  | Balance atstart ofthe year |            |  | Granted |  |   | Exercised |  |  | OtherChanges |  |  | Balance atendof the year |          |   | Vested andexercisable |  |            | Unvested | 
|Options over ordinary shares |  |                            |            |  |         |  |   |           |  |  |              |  |  |                          |          |   |                       |  |            |          |  |  |            |  |  |  |   | 
|Ms. Lucy Turnbull, AO        |  |                            | 4,439,894  |  |         |  |  |           |  |  |             |  |  |                          |         |   |                       |  | 4,439,894  |          |  |  | 4,439,894  |  |  |  |  | 
|Mr. Albert Wong              |  |                            |           |  |         |  |  |           |  |  |             |  |  |                          |         |   |                       |  |           |          |  |  |           |  |  |  |  | 
|Dr. Russell Howard           |  |                            |           |  |         |  |  |           |  |  |             |  |  |                          |         |   |                       |  |           |          |  |  |           |  |  |  |  | 
|Mr. Pete Meyers              |  |                            |           |  |         |  |  |           |  |  |             |  |  |                          |         |   |                       |  |           |          |  |  |           |  |  |  |  | 
|Mr. Marc Voigt               |  |                            | 1,171,754  |  |         |  |  |           |  |  |             |  |  |                          | (450,000 | ) |                       |  | 721,754    |          |  |  | 721,754    |  |  |  |  | 
|Ms. Deanne Miller            |  |                            | 121,212    |  |         |  |  |           |  |  |             |  |  |                          |         |   |                       |  | 121,212    |          |  |  | 121,212    |  |  |  |  | 
|Dr Frédéric Triebel          |  |                            | 24,000,600 |  |         |  |  |           |  |  |             |  |  |                          |         |   |                       |  | 24,000,600 |          |  |  | 24,000,600 |  |  |  |  | 
|                             |  |                            |            |  |         |  |   |           |  |  |              |  |  |                          |          |   |                       |  |            |          |  |  |            |  |  |  |   | 
|                             |  |                            | 29,733,460 |  |         |  |  |           |  |  |             |  |  |                          | (450,000 | ) |                       |  | 29,283,460 |          |  |  | 29,283,460 |  |  |  |  | 
|                             |  |                            |            |  |         |  |   |           |  |  |              |  |  |                          |          |   |                       |  |            |          |  |  |            |  |  |  |   | 



|                             |  |                            |           |  |         |  |   |           |  |  |              |   |  |                          |            |  |                       |  |            |          |  |  |            |  |  |  |   | 
|---------------------------- |  | -------------------------- | --------- |  | ------- |  | - | --------- |  |  | ------------ | - |  | ------------------------ | ---------- |  | --------------------- |  | ---------- | -------- |  |  | ---------- |  |  |  | - | 
|June 30, 2015                |  | Balance atstart ofthe year |           |  | Granted |  |   | Exercised |  |  | OtherChanges |   |  | Balance atendof the year |            |  | Vested andexercisable |  |            | Unvested | 
|Options over ordinary shares |  |                            |           |  |         |  |   |           |  |  |              |   |  |                          |            |  |                       |  |            |          |  |  |            |  |  |  |   | 
|Ms. Lucy Turnbull, AO        |  |                            | 4,439,894 |  |         |  |  |           |  |  |             |   |  |                          |           |  |                       |  | 4,439,894  |          |  |  | 4,439,894  |  |  |  |  | 
|Mr. Albert Wong              |  |                            |          |  |         |  |  |           |  |  |             |   |  |                          |           |  |                       |  |           |          |  |  |           |  |  |  |  | 
|Mr. Martin Rogers            |  |                            |          |  |         |  |  |           |  |  |             |   |  |                          |           |  |                       |  |           |          |  |  |           |  |  |  |  | 
|Dr. Russell Howard           |  |                            |          |  |         |  |  |           |  |  |             |   |  |                          |           |  |                       |  |           |          |  |  |           |  |  |  |  | 
|Mr. Pete Meyers              |  |                            |          |  |         |  |  |           |  |  |             |   |  |                          |           |  |                       |  |           |          |  |  |           |  |  |  |  | 
|Mr. Matt Lehman              |  |                            | 2,104,441 |  |         |  |  |           |  |  |             |   |  |                          |           |  |                       |  | 2,104,441  |          |  |  | 2,104,441  |  |  |  |  | 
|Dr. Sharron Gargosky         |  |                            | 1,537,275 |  |         |  |  |           |  |  |             |   |  |                          |           |  |                       |  | 1,537,275  |          |  |  | 1,537,275  |  |  |  |  | 
|Mr. Marc Voigt               |  |                            | 1,171,754 |  |         |  |  |           |  |  |             |   |  |                          |           |  |                       |  | 1,171,754  |          |  |  | 1,171,754  |  |  |  |  | 
|Ms. Deanne Miller            |  |                            | 363,636   |  |         |  |  |           |  |  | (242,424     | ) |  |                          |           |  |                       |  | 121,212    |          |  |  | 121,212    |  |  |  |  | 
|Dr Frédéric Triebel          |  |                            |          |  |         |  |  |           |  |  |             |   |  |                          | 24,000,600 |  |                       |  | 24,000,600 |          |  |  | 24,000,600 |  |  |  |  | 
|                             |  |                            |           |  |         |  |   |           |  |  |              |   |  |                          |            |  |                       |  |            |          |  |  |            |  |  |  |   | 
|                             |  |                            | 9,617,000 |  |         |  |  |           |  |  | (242,424     | ) |  |                          |           |  |                       |  | 33,375,176 |          |  |  | 33,375,176 |  |  |  |  | 
|                             |  |                            |           |  |         |  |   |           |  |  |              |   |  |                          |            |  |                       |  |            |          |  |  |            |  |  |  |   | 



F-39



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##### Table of Contents

NOTE 22. KEY MANAGEMENT PERSONNEL DISCLOSURES(continued)



|                             |  |                            |            |  |         |  |           |                    |  |  |              |  |  |                          |             |   |                       |  |            |          |  |  |            |  |  |  |         | 
|---------------------------- |  | -------------------------- | ---------- |  | ------- |  | --------- | ------------------ |  |  | ------------ |  |  | ------------------------ | ----------- | - | --------------------- |  | ---------- | -------- |  |  | ---------- |  |  |  | ------- | 
|June 30, 2014                |  | Balance atstart ofthe year |            |  | Granted |  |           | Entitlementoptions |  |  | OtherChanges |  |  | Balance atendof the year |             |   | Vested andexercisable |  |            | Unvested | 
|Options over ordinary shares |  |                            |            |  |         |  |           |                    |  |  |              |  |  |                          |             |   |                       |  |            |          |  |  |            |  |  |  |         | 
|Ms. Lucy Turnbull, AO        |  |                            | 14,439,894 |  |         |  |          |                    |  |  |             |  |  |                          | (10,000,000 | ) |                       |  | 4,439,894  |          |  |  | 4,439,894  |  |  |  |        | 
|Mr. Albert Wong              |  |                            | 7,500,000  |  |         |  |          |                    |  |  |             |  |  |                          | (7,500,000  | ) |                       |  |           |          |  |  |           |  |  |  |        | 
|Mr. Martin Rogers            |  |                            | 12,500,000 |  |         |  |          |                    |  |  |             |  |  |                          | (10,000,000 | ) |                       |  | 2,500,000  |          |  |  | 2,500,000  |  |  |  |        | 
|Dr. Richard Hammel           |  |                            | 5,000,000  |  |         |  |          |                    |  |  |             |  |  |                          | (5,000,000  | ) |                       |  |           |          |  |  |           |  |  |  |        | 
|Dr. Russell Howard           |  |                            |           |  |         |  |          |                    |  |  |             |  |  |                          |            |   |                       |  |           |          |  |  |           |  |  |  |        | 
|Mr. Pete Meyers              |  |                            |           |  |         |  |          |                    |  |  |             |  |  |                          |            |   |                       |  |           |          |  |  |           |  |  |  |        | 
|Mr. Matt Lehman              |  |                            | 2,104,441  |  |         |  |          |                    |  |  |             |  |  |                          |            |   |                       |  | 2,104,441  |          |  |  | 2,104,441  |  |  |  |        | 
|Ms. Deanne Miller            |  |                            |           |  |         |  | 363,636   |                    |  |  |             |  |  |                          |            |   |                       |  | 363,636    |          |  |  | 242,424    |  |  |  | 121,212 | 
|Dr. Sharron Gargosky         |  |                            | 900,000    |  |         |  | 637,275   |                    |  |  |             |  |  |                          |            |   |                       |  | 1,537,275  |          |  |  | 1,324,850  |  |  |  | 212,425 | 
|Mr. Marc Voigt               |  |                            | 528,125    |  |         |  | 643,629   |                    |  |  |             |  |  |                          |            |   |                       |  | 1,171,754  |          |  |  | 957,211    |  |  |  | 214,543 | 
|                             |  |                            |            |  |         |  |           |                    |  |  |              |  |  |                          |             |   |                       |  |            |          |  |  |            |  |  |  |         | 
|                             |  |                            | 42,972,460 |  |         |  | 1,644,540 |                    |  |  |             |  |  |                          | (32,500,000 | ) |                       |  | 12,117,000 |          |  |  | 11,568,820 |  |  |  | 548,180 | 
|                             |  |                            |            |  |         |  |           |                    |  |  |              |  |  |                          |             |   |                       |  |            |          |  |  |            |  |  |  |         | 

(iv) Performance rights holdings

The number of performance rights over ordinary shares in the parent entity held during the financial year by each director and other members of
key management personnel of the consolidated entity, including their personally related parties, is set out below:



|                            |  |                            |            |  |         |  |            |           |  |  |              |   |  |                          |   |  |                       |  |            |          |  |  |   |  |  |  |            | 
|--------------------------- |  | -------------------------- | ---------- |  | ------- |  | ---------- | --------- |  |  | ------------ | - |  | ------------------------ | - |  | --------------------- |  | ---------- | -------- |  |  | - |  |  |  | ---------- | 
|June 30, 2016               |  | Balance atstart ofthe year |            |  | Granted |  |            | Exercised |  |  | OtherChanges |   |  | Balance atendof the year |   |  | Vested andexercisable |  |            | Unvested | 
|Rights over ordinary shares |  |                            |            |  |         |  |            |           |  |  |              |   |  |                          |   |  |                       |  |            |          |  |  |   |  |  |  |            | 
|Ms. Lucy Turnbull, AO       |  |                            |           |  |         |  |           |           |  |  |             |   |  |                          |  |  |                       |  |           |          |  |  |  |  |  |  |           | 
|Mr. Albert Wong             |  |                            |           |  |         |  |           |           |  |  |             |   |  |                          |  |  |                       |  |           |          |  |  |  |  |  |  |           | 
|Dr. Russell Howard          |  |                            |           |  |         |  |           |           |  |  |             |   |  |                          |  |  |                       |  |           |          |  |  |  |  |  |  |           | 
|Mr. Pete Meyers             |  |                            | 6,004,902  |  |         |  |           |           |  |  | (2,573,529   | ) |  |                          |  |  |                       |  | 3,431,373  |          |  |  |  |  |  |  | 3,431,373  | 
|Mr. Marc Voigt              |  |                            | 16,323,529 |  |         |  | 20,000,000 |           |  |  | (10,735,293  | ) |  |                          |  |  |                       |  | 25,588,235 |          |  |  |  |  |  |  | 25,588,236 | 
|Ms. Deanne Miller           |  |                            | 6,127,451  |  |         |  | 12,000,000 |           |  |  | (6,450,980   | ) |  |                          |  |  |                       |  | 11,676,471 |          |  |  |  |  |  |  | 11,676,471 | 
|Dr. Frédéric Triebel        |  |                            |           |  |         |  | 11,486,326 |           |  |  | (3,333,333   | ) |  |                          |  |  |                       |  | 8,152,993  |          |  |  |  |  |  |  | 8,152,993  | 
|                            |  |                            |            |  |         |  |            |           |  |  |              |   |  |                          |   |  |                       |  |            |          |  |  |   |  |  |  |            | 
|                            |  |                            | 28,455,882 |  |         |  | 43,486,326 |           |  |  | (23,093,135  | ) |  |                          |  |  |                       |  | 48,849,072 |          |  |  |  |  |  |  | 48,849,073 | 
|                            |  |                            |            |  |         |  |            |           |  |  |              |   |  |                          |   |  |                       |  |            |          |  |  |   |  |  |  |            | 



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NOTE 22. KEY MANAGEMENT PERSONNEL DISCLOSURES(continued)



|                            |  |                            |   |  |         |  |            |           |  |  |              |   |  |                          |   |  |                       |  |            |          |  |  |   |  |  |  |            | 
|--------------------------- |  | -------------------------- | - |  | ------- |  | ---------- | --------- |  |  | ------------ | - |  | ------------------------ | - |  | --------------------- |  | ---------- | -------- |  |  | - |  |  |  | ---------- | 
|June 30, 2015               |  | Balance atstart ofthe year |   |  | Granted |  |            | Exercised |  |  | OtherChanges |   |  | Balance atendof the year |   |  | Vested andexercisable |  |            | Unvested | 
|Rights over ordinary shares |  |                            |   |  |         |  |            |           |  |  |              |   |  |                          |   |  |                       |  |            |          |  |  |   |  |  |  |            | 
|Ms. Lucy Turnbull, AO       |  |                            |  |  |         |  |           |           |  |  |             |   |  |                          |  |  |                       |  |           |          |  |  |  |  |  |  |           | 
|Mr. Albert Wong             |  |                            |  |  |         |  |           |           |  |  |             |   |  |                          |  |  |                       |  |           |          |  |  |  |  |  |  |           | 
|Dr. Russell Howard          |  |                            |  |  |         |  |           |           |  |  |             |   |  |                          |  |  |                       |  |           |          |  |  |  |  |  |  |           | 
|Mr. Pete Meyers             |  |                            |  |  |         |  | 7,720,588  |           |  |  | (1,715,686   | ) |  |                          |  |  |                       |  | 6,004,902  |          |  |  |  |  |  |  | 6,004,902  | 
|Mr. Matthew Lehman          |  |                            |  |  |         |  |           |           |  |  |             |   |  |                          |  |  |                       |  |           |          |  |  |  |  |  |  |           | 
|Dr. Sharron Gargosky        |  |                            |  |  |         |  | 6,127,451  |           |  |  |             |   |  |                          |  |  |                       |  | 6,127,451  |          |  |  |  |  |  |  | 6,127,451  | 
|Mr. Marc Voigt              |  |                            |  |  |         |  | 16,323,529 |           |  |  |             |   |  |                          |  |  |                       |  | 16,323,529 |          |  |  |  |  |  |  | 16,323,529 | 
|Ms. Deanne Miller           |  |                            |  |  |         |  | 6,127,451  |           |  |  |             |   |  |                          |  |  |                       |  | 6,127,451  |          |  |  |  |  |  |  | 6,127,451  | 
|Dr. Frédéric Triebel        |  |                            |  |  |         |  |           |           |  |  |             |   |  |                          |  |  |                       |  |           |          |  |  |  |  |  |  |           | 
|                            |  |                            |   |  |         |  |            |           |  |  |              |   |  |                          |   |  |                       |  |            |          |  |  |   |  |  |  |            | 
|                            |  |                            |  |  |         |  | 36,299,019 |           |  |  | (1,715,686   | ) |  |                          |  |  |                       |  | 34,583,333 |          |  |  |  |  |  |  | 34,583,333 | 
|                            |  |                            |   |  |         |  |            |           |  |  |              |   |  |                          |   |  |                       |  |            |          |  |  |   |  |  |  |            | 

NOTE 23. REMUNERATION OF AUDITORS

During the year the following fees were paid or payable for services provided by the auditor of the parent entity, its related practices and
non-related audit firms



|                                                                              |  |                 |         |  |                 |  |         |                 |  |  |         | 
|----------------------------------------------------------------------------- |  | --------------- | ------- |  | --------------- |  | ------- | --------------- |  |  | ------- | 
|                                                                              |  | Consolidated    |        
|                                                                              |  | June 30, 2016A$ |         |  | June 30, 2015A$ |  |         | June 30, 2014A$ | 
|Audit fees
PricewaterhouseCoopers Australia                                   |  |                 |         |  |                 |  |         |                 |  |  |         | 
|Audit or review of the financial report                                       |  |                 | 232,000 |  |                 |  | 286,000 |                 |  |  | 209,420 | 
|Other audit and assurance services in relation to regulatory filings overseas |  |                 | 209,741 |  |                 |  |        |                 |  |  | 12,500  | 
|                                                                              |  |                 |         |  |                 |  |         |                 |  |  |         | 
|                                                                              |  |                 | 441,741 |  |                 |  | 286,000 |                 |  |  | 221,920 | 
|Audit-related fees                                                            |  |                 |         |  |                 |  |         |                 |  |  |         | 
|Network firm of PricewaterhouseCoopers Australia                              |  |                 |         |  |                 |  |         |                 |  |  |         | 
|Due Diligence services                                                        |  |                 |        |  |                 |  | 66,986  |                 |  |  |        | 
|                                                                              |  |                 |         |  |                 |  |         |                 |  |  |         | 
|                                                                              |  |                 |        
|Non-PwC audit firm                                                            |  |                 |         |  |                 |  |         |                 |  |  |         | 
|Audit or review of the financial report                                       |  |                 |        |  |                 |  |        |                 |  |  |        | 
|Preparation of the tax return and other consulting services                   |  |                 |        |  |                 |  |        |                 |  |  |        | 
|                                                                              |  |                 |         |  |                 |  |         |                 |  |  |         | 
|                                                                              |  |                 |        |  |                 |  |        |                 |  |  |        | 
|                                                                              |  |                 |         |  |                 |  |         |                 |  |  |         | 
|                                                                              |  |                 | 441,741 |  |                 |  | 352,986 |                 |  |  | 221,920 | 
|                                                                              |  |                 |         |  |                 |  |         |                 |  |  |         | 

NOTE 24. CONTINGENT LIABILITIES

There were no material contingent liabilities in existence at June 30, 2016 and June 30, 2015.

NOTE 25. COMMITMENTS FOR EXPENDITURE

There were no material capital or leasing commitments at June 30, 2016 and June 30, 2015.



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NOTE 26. RELATED PARTY TRANSACTIONS

Parent entity

Prima BioMed Ltd is the
parent entity.

Subsidiaries

Interests in subsidiaries are set out in note 27.

Key management personnel

Disclosures
relating to key management personnel are set out in note 22.

Receivable from and payable to related parties

There were no trade receivables from or trade payables due to related parties at the reporting date.

Loans to/from related parties

There were
no loans to or from related parties at the reporting date.

NOTE 27. SUBSIDIARIES

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the
accounting policy described in note 1:



|                               |  |                         |  |                |        |  |                |  |        | 
|------------------------------ |  | ----------------------- |  | -------------- | ------ |  | -------------- |  | ------ | 
|                               |  |                         |  | Equity holding |       
|Name of entity                 |  | Country ofincorporation |  | June 30, 2016% |        |  | June 30, 2015% | 
|Prima BioMed USA Inc           |  | United States           |  |                | 100.00 |  |                |  | 100.00 | 
|PRR Middle East FZ LLC         |  | United Arab Emirates    |  |                | 100.00 |  |                |  | 100.00 | 
|Prima BioMed GmbH              |  | Germany                 |  |                | 100.00 |  |                |  | 100.00 | 
|Prima Biomed Australia Pty Ltd |  | Australia               |  |                | 100.00 |  |                |  | 100.00 | 
|Prima Biomed IP Pty Ltd        |  | Australia               |  |                | 100.00 |  |                |  | 100.00 | 
|Immutep S.A.S.                 |  | France                  |  |                | 100.00 |  |                |  | 100.00 | 

NOTE 28. EVENTS OCCURRING AFTER THE REPORTING DATE

No matter or circumstance has arisen since 30 June 2016 that has significantly affected, or may significantly affect the consolidated
entitys operations, the results of those operations or the consolidated entitys state of affairs in future financial years.



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NOTE 29. RECONCILIATION OF LOSS AFTER INCOME TAX TO NET CASH USED IN OPERATING ACTIVITIES



|                                                        |  |                 |             |   |                 |  |             |                 |  |  |             |  
|------------------------------------------------------- |  | --------------- | ----------- | - | --------------- |  | ----------- | --------------- |  |  | ----------- | -
|                                                        |  | Consolidated    |            
|                                                        |  | June 30, 2016A$ |             |   | June 30, 2015A$ |  |             | June 30, 2014A$ | 
|Loss after income tax expense for the year              |  |                 | (62,015,184 | ) |                 |  | (32,151,696 | )               |  |  | (13,343,381 | )
|Adjustments for:                                        |  |                 |             |   |                 |  |             |                 |  |  |             |  
|Depreciation and amortization                           |  |                 | 1,993,093   |   |                 |  | 1,341,202   |                 |  |  | 446,360     |  
|Add back share based payments                           |  |                 | 2,058,659   |   |                 |  | 738,799     |                 |  |  | 57,309      |  
|Non-cash share based payment to strategic investor      |  |                 | 47,468,071  |   |                 |  |            |                 |  |  |            |  
|Changes in fair value of comparability milestone        |  |                 | 542,075     |   |                 |  |            |                 |  |  |            |  
|Add back (gain)/loss on disposal of assets              |  |                 | (18,493     | ) |                 |  | 5,160       |                 |  |  |            |  
|Add back Non-cash finance expenses                      |  |                 |            |   |                 |  | 18,338,015  |                 |  |  |            |  
|Unrealized gain on exchange through the profit and loss |  |                 | 844,864     |   |                 |  | (1,039,537  | )               |  |  | (908,594    | )
|Change in operating assets and liabilities:             |  |                 |             |   |                 |  |             |                 |  |  |             |  
|Decrease/(increase) in current receivables              |  |                 | (394,922    | ) |                 |  | 5,958,640   |                 |  |  | 4,071       |  
|Decrease/(increase) in other operating assets           |  |                 | 324,983     |   |                 |  | 350,970     |                 |  |  | 297,320     |  
|(Decrease)/increase in trade and other payables         |  |                 | (1,491,882  | ) |                 |  | (1,187,960  | )               |  |  | (816,276    | )
|Increase/(decrease) in employee benefits                |  |                 | (45,165     | ) |                 |  | (357        | )               |  |  | 79,821      |  
|(Decrease)/increase in derivative financial instruments |  |                 |            |   |                 |  |            |                 |  |  | (33,714     | )
|(Decrease)/increase in income tax payable               |  |                 | 712         |   |                 |  | 3,849       |                 |  |  | (10,077     | )
|Decrease/(increase) in deferred tax liability           |  |                 | (1,184,139  | ) |                 |  | (144,064    | )               |  |  |            |  
|                                                        |  |                 |             |   |                 |  |             |                 |  |  |             |  
|Net cash used in operating activities                   |  |                 | (11,309,691 | ) |                 |  | (7,786,979  | )               |  |  | (14,227,161 | )
|                                                        |  |                 |             |   |                 |  |             |                 |  |  |             |  



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##### Table of Contents

NOTE 30. EARNINGS PER SHARE



|                                                                                          |  |                 |               |   |                 |  |               |                 |  |  |               |  
|----------------------------------------------------------------------------------------- |  | --------------- | ------------- | - | --------------- |  | ------------- | --------------- |  |  | ------------- | -
|                                                                                          |  | Consolidated    |              
|                                                                                          |  | June 30, 2016A$ |               |   | June 30, 2015A$ |  |               | June 30, 2014A$ | 
|Loss after income tax                                                                     |  |                 | (62,015,184   | ) |                 |  | (32,151,696   | )               |  |  | (13,343,381   | )
|                                                                                          |  |                 |               |   |                 |  |               |                 |  |  |               |  
|Loss after income tax attributable to the owners of Prima BioMed Ltd                      |  |                 | (62,015,184   | ) |                 |  | (32,151,696   | )               |  |  | (13,343,381   | )
|                                                                                          |  |                 |               |   |                 |  |               |                 |  |  |               |  
|                                                                                          |  |                 |              
|                                                                                          |  | Number          |               |   | Number          |  |               | Number          | 
|Weighted average number of ordinary shares used in calculating basic earnings per share   |  |                 | 2,236,250,813 |   |                 |  | 1,591,116,220 |                 |  |  | 1,439,768,245 |  
|                                                                                          |  |                 |               |   |                 |  |               |                 |  |  |               |  
|Weighted average number of ordinary shares used in calculating diluted earnings per share |  |                 | 2,236,250,813 |   |                 |  | 1,591,116,220 |                 |  |  | 1,439,768,245 |  
|                                                                                          |  |                 |               |   |                 |  |               |                 |  |  |               |  
|                                                                                          |  |                 |              
|                                                                                          |  | Cents           |               |   | Cents           |  |               | Cents           | 
|Basic earnings per share                                                                  |  |                 | (2.77         | ) |                 |  | (2.02         | )               |  |  | (0.93         | )
|Diluted earnings per share                                                                |  |                 | (2.77         | ) |                 |  | (2.02         | )               |  |  | (0.93         | )

Information concerning other notes and options issued:

The following table summarizes the convertible notes, listed options and unlisted options that were not included in the calculation of weighted
average number of ordinary shares because they are anti-dilutive for the periods presented.



|                  |  |                 |             |  |                 |  |             |                 |  |  |            | 
|----------------- |  | --------------- | ----------- |  | --------------- |  | ----------- | --------------- |  |  | ---------- | 
|                  |  | Consolidated    |            
|                  |  | June 30, 2016A$ |             |  | June 30, 2015A$ |  |             | June 30, 2014A$ | 
|Listed options    |  |                 | 77,378,693  |  |                 |  | 77,378,696  |                 |  |  | 77,378,696 | 
|Unlisted options  |  |                 | 531,049,969 |  |                 |  | 164,894,609 |                 |  |  | 16,942,441 | 
|Convertible notes |  |                 | 706,476,966 |  |                 |  |            |                 |  |  |           | 
|                  |  |                 |             |  |                 |  |             |                 |  |  |            | 

NOTE 31. SHARE-BASED PAYMENTS

a) Executive Incentive Plan (EIP)

Equity
incentives are granted under the Executive Incentive Plan (EIP) which was approved by shareholders at the 2012 Annual General Meeting. In light of our increasing operations globally the Board reviewed the Companys incentive arrangements to
ensure that it continued to retain and motivate key executives in a manner that is aligned with members interests. As a result of that review, an umbrella EIP was adopted to which eligible executives are invited to apply for the
grant of performance rights and/or options. Equity incentives granted in accordance with the EIP Rules are designed to provide meaningful remuneration opportunities and will reflect the importance of retaining a world-class management team. The
Company endeavors to achieve simplicity and transparency in remuneration design, whilst also balancing competitive market practices in France, Germany, and Australia. The company grants Short Term Incentives (STIs) and Long Term Incentives (LTIs)
under the EIP.



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##### Table of Contents

NOTE 31. SHARE-BASED PAYMENTS(continued)



Set out below are summaries of all STI and LTI performance rights granted under the EIP:



|                   |  |           |       |  |                                   |  |            |                              |  |  |                                |  |  |                             |            |  |                                 |  |            |                                               |  |  |            |  |  |  |   | 
|------------------ |  | --------- | ----- |  | --------------------------------- |  | ---------- | ---------------------------- |  |  | ------------------------------ |  |  | --------------------------- | ---------- |  | ------------------------------- |  | ---------- | --------------------------------------------- |  |  | ---------- |  |  |  | - | 
|2016
Grant date    |  | Fairvalue |       |  | Balance atstart of theyear Number |  |            | Grantedduring theyear Number |  |  | Exercisedduring theyear Number |  |  | Lapsed duringthe yearNumber |            |  | Balance atend of theyear Number |  |            | Vested andexercisable atend of the yearNumber | 
|September 19, 2014 |  |           | 0.042 |  |                                   |  | 7,398,896  |                              |  |  |                               |  |  |                             | 5,390,073  |  |                                 |  | 2,008,823  |                                               |  |  |           |  |  |  |  | 
|September 19, 2014 |  |           | 0.044 |  |                                   |  | 10,845,588 |                              |  |  |                               |  |  |                             |           |  |                                 |  | 5,422,794  |                                               |  |  | 5,422,794  |  |  |  |  | 
|September 19, 2014 |  |           | 0.044 |  |                                   |  | 3,615,196  |                              |  |  |                               |  |  |                             |           |  |                                 |  | 1,807,598  |                                               |  |  | 1,807,598  |  |  |  |  | 
|November 14, 2014  |  |           | 0.037 |  |                                   |  | 4,068,627  |                              |  |  |                               |  |  |                             | 4,068,627  |  |                                 |  |           |                                               |  |  |           |  |  |  |  | 
|November 14, 2014  |  |           | 0.038 |  |                                   |  | 9,191,177  |                              |  |  |                               |  |  |                             |           |  |                                 |  |           |                                               |  |  | 9,191,177  |  |  |  |  | 
|November 14, 2014  |  |           | 0.040 |  |                                   |  | 3,063,725  |                              |  |  |                               |  |  |                             |           |  |                                 |  |           |                                               |  |  | 3,063,725  |  |  |  |  | 
|August 5, 2015     |  |           | 0.047 |  |                                   |  |           |                              |  |  | 945,180                        |  |  |                             | 945,180    |  |                                 |  |           |                                               |  |  |           |  |  |  |  | 
|August 5, 2015     |  |           | 0.050 |  |                                   |  |           |                              |  |  | 2,551,985                      |  |  |                             |           |  |                                 |  | 2,551,985  |                                               |  |  |           |  |  |  |  | 
|August 5, 2015     |  |           | 0.051 |  |                                   |  |           |                              |  |  | 850,662                        |  |  |                             |           |  |                                 |  | 850,662    |                                               |  |  |           |  |  |  |  | 
|August 5, 2015     |  |           | 0.047 |  |                                   |  |           |                              |  |  | 42,000,000                     |  |  |                             | 13,999,999 |  |                                 |  |           |                                               |  |  | 28,000,001 |  |  |  |  | 
|October 1, 2015    |  |           | 0.060 |  |                                   |  |           |                              |  |  | 600,000                        |  |  |                             |           |  |                                 |  |           |                                               |  |  | 600,000    |  |  |  |  | 
|October 1, 2015    |  |           | 0.061 |  |                                   |  |           |                              |  |  | 200,000                        |  |  |                             |           |  |                                 |  |           |                                               |  |  | 200,000    |  |  |  |  | 
|December 29, 2015  |  |           | 0.050 |  |                                   |  |           |                              |  |  | 1,538,462                      |  |  |                             |           |  |                                 |  |           |                                               |  |  | 1,538,462  |  |  |  |  | 
|March 7, 2016      |  |           | 0.041 |  |                                   |  |           |                              |  |  | 1,486,326                      |  |  |                             |           |  |                                 |  |           |                                               |  |  | 1,486,326  |  |  |  |  | 
|                   |  |           |       |  |                                   |  |            |                              |  |  |                                |  |  |                             |            |  |                                 |  |            |                                               |  |  |            |  |  |  |   | 
|Total              |  |           |       |  |                                   |  | 38,183,209 |                              |  |  | 50,172,615                     |  |  |                             | 24,403,879 |  |                                 |  | 12,641,862 |                                               |  |  | 51,310,083 |  |  |  |  | 
|                   |  |           |       |  |                                   |  |            |                              |  |  |                                |  |  |                             |            |  |                                 |  |            |                                               |  |  |            |  |  |  |   | 



|                   |  |           |       |  |                                   |  |   |                              |  |  |                                |  |  |                             |   |  |                                 |  |   |                                               |  |  |            |  |  |  |   | 
|------------------ |  | --------- | ----- |  | --------------------------------- |  | - | ---------------------------- |  |  | ------------------------------ |  |  | --------------------------- | - |  | ------------------------------- |  | - | --------------------------------------------- |  |  | ---------- |  |  |  | - | 
|2015
Grant date    |  | Fairvalue |       |  | Balance atstart of theyear Number |  |   | Grantedduring theyear Number |  |  | Exercisedduring theyear Number |  |  | Lapsed duringthe yearNumber |   |  | Balance atend of theyear Number |  |   | Vested andexercisable atend of the yearNumber | 
|September 19, 2014 |  |           | 0.042 |  |                                   |  |  |                              |  |  | 7,398,896                      |  |  |                             |  |  |                                 |  |  |                                               |  |  | 7,398,896  |  |  |  |  | 
|September 19, 2014 |  |           | 0.044 |  |                                   |  |  |                              |  |  | 10,845,588                     |  |  |                             |  |  |                                 |  |  |                                               |  |  | 10,845,588 |  |  |  |  | 
|September 19, 2014 |  |           | 0.044 |  |                                   |  |  |                              |  |  | 3,615,196                      |  |  |                             |  |  |                                 |  |  |                                               |  |  | 3,615,196  |  |  |  |  | 
|November 14, 2014  |  |           | 0.037 |  |                                   |  |  |                              |  |  | 4,068,627                      |  |  |                             |  |  |                                 |  |  |                                               |  |  | 4,068,627  |  |  |  |  | 
|November 14, 2014  |  |           | 0.038 |  |                                   |  |  |                              |  |  | 9,191,177                      |  |  |                             |  |  |                                 |  |  |                                               |  |  | 9,191,177  |  |  |  |  | 
|November 14, 2014  |  |           | 0.040 |  |                                   |  |  |                              |  |  | 3,063,725                      |  |  |                             |  |  |                                 |  |  |                                               |  |  | 3,063,725  |  |  |  |  | 
|                   |  |           |       |  |                                   |  |   |                              |  |  |                                |  |  |                             |   |  |                                 |  |   |                                               |  |  |            |  |  |  |   | 
|Total              |  |           |       |  |                                   |  |  |                              |  |  | 38,183,209                     |  |  |                             |  |  |                                 |  |  |                                               |  |  | 38,183,209 |  |  |  |  | 
|                   |  |           |       |  |                                   |  |   |                              |  |  |                                |  |  |                             |   |  |                                 |  |   |                                               |  |  |            |  |  |  |   | 

The fair value at grant date for Short Term Incentive (STI) performance rights are determined using a
Black-Scholes option pricing model that takes into account the exercise price, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate
for the term of the option.

The model inputs for STI performance rights granted during the year ended 30 June 2016 included:



|                                                  |  |              |       |   |                 |   |       |             |  |   |       |  
|------------------------------------------------- |  | ------------ | ----- | - | --------------- | - | ----- | ----------- |  | - | ----- | -
|Grant date                                        |  | 5 August2015 |       |   | 29 December2015 |   |       | 7 March2016 | 
|Share price at grant date                         |  | $            | 0.047 |   |                 | $ | 0.050 |             |  | $ | 0.041 |  
|Expected price volatility of the Companys shares |  |              | 167   | % |                 |   | 169   | %           |  |   | 169   | %
|Expected dividend yield                           |  |              | Nil   |   |                 |   | Nil   |             |  |   | Nil   |  
|Risk-free interest rate                           |  |              | 2.03  | % |                 |   | 1.97  | %           |  |   | 2.14  | %

The model inputs for STI performance rights granted during the year ended 30 June 2015 included:



|                                                  |  |                  |       |   |                 |   |       |  
|------------------------------------------------- |  | ---------------- | ----- | - | --------------- | - | ----- | -
|Grant date                                        |  | 19 September2014 |       |   | 14 November2014 |  
|Share price at grant date                         |  | $                | 0.047 |   |                 | $ | 0.050 |  
|Expected price volatility of the Companys shares |  |                  | 90    | % |                 |   | 90    | %
|Expected dividend yield                           |  |                  | Nil   |   |                 |   | Nil   |  
|Risk-free interest rate                           |  |                  | 2.86  | % |                 |   | 2.55  | %

There were no performance rights granted in fiscal year 2014.



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NOTE 31. SHARE-BASED PAYMENTS(continued)



The fair value at grant date for 42,000,000 long term incentives issued on 5 August 2015
are determined using a Black Scholes option pricing model that takes into account the exercise price, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the
risk free interest rate for the term of the option.

The model inputs for these performance rights granted included:



|                                                  |  |  |                                |  
|------------------------------------------------- |  |  | ------------------------------ | -
|Grant date                                        |  |  | 5 August 2015                  |  
|Measurement period                                |  |  | 5 August 2015 to 5 August 2017 |  
|Share price at grant date                         |  |  | $0.047                         |  
|Expected price volatility of the Companys shares |  |  | 162                            | %
|Expected dividend yield                           |  |  | Nil                            |  
|Risk-free interest rate                           |  |  | 1.95                           | %

The fair value at grant date for long term incentives are determined using an Up and in Call
Barrier Option Pricing Model.

The model inputs for performance rights granted during the year ended 30 June 2016 included:



|                                                  |  |  |                                         |  |  |  |                                         | 
|------------------------------------------------- |  |  | --------------------------------------- |  |  |  | --------------------------------------- | 
|Grant date                                        |  |  | 5 August 2015                           |  |  |  | 1 October 2015                          | 
|Measurement period  tranche 1                    |  |  | 5 August 2015 to2 October 2017          |  |  |  | 1 October 2015 to2 October 2017         | 
|Measurement period  tranche 2                    |  |  | 5 August 2015 to2 October 2018          |  |  |  | 1 October 2015 to2 October 2018         | 
|Barrier price                                     |  |  | CAGR 20% perannum overmeasurementperiod |  |  |  | CAGR 20% perannum overmeasurementperiod | 
|Share price at grant date                         |  |  | $0.047                                  |  |  |  | $0.058                                  | 
|Expected price volatility of the Companys shares |  |  | 120%                                    |  |  |  | 120%                                    | 
|Expected dividend yield                           |  |  | Nil                                     |  |  |  | Nil                                     | 
|Risk-free interest rate                           |  |  | 2.12%                                   |  |  |  | 1.94%                                   | 

The model inputs for performance rights granted during the year ended 30 June 2015 included:



|                                                  |  |  |                                         |  |  |  |                                         | 
|------------------------------------------------- |  |  | --------------------------------------- |  |  |  | --------------------------------------- | 
|Grant date                                        |  |  | 19 September 2014                       |  |  |  | 14 November 2014                        | 
|Measurement period  tranche 1                    |  |  | 19 September 2014to 2 October 2017      |  |  |  | 19 September2014 to 2 October2017       | 
|Measurement period  tranche 2                    |  |  | 19 September 2014to 2 October 2018      |  |  |  | 19 September2014 to 2 October2018       | 
|Barrier price                                     |  |  | CAGR 20% perannum overmeasurementperiod |  |  |  | CAGR 20% perannum overmeasurementperiod | 
|Share price at grant date                         |  |  | $0.042                                  |  |  |  | $0.037                                  | 
|Expected price volatility of the Companys shares |  |  | 90%                                     |  |  |  | 90%                                     | 
|Expected dividend yield                           |  |  | Nil                                     |  |  |  | Nil                                     | 
|Risk-free interest rate                           |  |  | 2.86%                                   |  |  |  | 2.55%                                   | 



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##### Table of Contents

NOTE 31. SHARE-BASED PAYMENTS(continued)



Set out below are summaries of options granted under the EIP:



|                                |  |             |              |  |               |  |        |                                   |  |  |                              |  |  |                                |   |  |                                |  |   |                                 |  |  |                                               |  |  |  |           |  |  |  |           | 
|------------------------------- |  | ----------- | ------------ |  | ------------- |  | ------ | --------------------------------- |  |  | ---------------------------- |  |  | ------------------------------ | - |  | ------------------------------ |  | - | ------------------------------- |  |  | --------------------------------------------- |  |  |  | --------- |  |  |  | --------- | 
|2016
Grant date                 |  | Expiry date |              |  | Exerciseprice |  |        | Balance atstart of theyear Number |  |  | Grantedduring theyear Number |  |  | Exercisedduring theyear Number |   |  | Forfeited duringthe yearNumber |  |   | Balance atend of theyear Number |  |  | Vested andexercisable atend of the yearNumber | 
|December 23, 2013               |  |             | 30 June 2018 |  |               |  | 0.0774 |                                   |  |  | 1,515,752                    |  |  |                                |  |  |                                |  |  |                                 |  |  |                                              |  |  |  | 1,515,752 |  |  |  | 1,515,752 | 
|January 24, 2014                |  |             | 30 June 2018 |  |               |  | 0.0774 |                                   |  |  | 165,116                      |  |  |                                |  |  |                                |  |  |                                 |  |  |                                              |  |  |  | 165,116   |  |  |  | 165,116   | 
|                                |  |             |              |  |               |  |        |                                   |  |  |                              |  |  |                                |   |  |                                |  |   |                                 |  |  |                                               |  |  |  |           |  |  |  |           | 
|Total                           |  |             |              |  |               |  |        |                                   |  |  | 1,680,868                    |  |  |                                |  |  |                                |  |  |                                 |  |  |                                              |  |  |  | 1,680,868 |  |  |  | 1,680,868 | 
|                                |  |             |              |  |               |  |        |                                   |  |  |                              |  |  |                                |   |  |                                |  |   |                                 |  |  |                                               |  |  |  |           |  |  |  |           | 
|Weighted average exercise price |  |             |              |  |               |  | 0.0774 |                                   |  |  |                              |  |  |                                |   |  |                                |  |   |                                 |  |  |                                               |  |  |  | 0.0774    |  |  |  |           | 



|                                |  |             |              |  |               |  |        |                                   |  |  |                              |  |  |                                |   |  |                                |  |          |                                 |  |  |                                               |  |  |  |           |  |  |  |           | 
|------------------------------- |  | ----------- | ------------ |  | ------------- |  | ------ | --------------------------------- |  |  | ---------------------------- |  |  | ------------------------------ | - |  | ------------------------------ |  | -------- | ------------------------------- |  |  | --------------------------------------------- |  |  |  | --------- |  |  |  | --------- | 
|2015
Grant date                 |  | Expiry date |              |  | Exerciseprice |  |        | Balance atstart of theyear Number |  |  | Grantedduring theyear Number |  |  | Exercisedduring theyear Number |   |  | Forfeited duringthe yearNumber |  |          | Balance atend of theyear Number |  |  | Vested andexercisable atend of the yearNumber | 
|December 23, 2013               |  |             | 30 June 2018 |  |               |  | 0.0774 |                                   |  |  | 1,758,176                    |  |  |                                |  |  |                                |  | (242,424 | )                               |  |  |                                              |  |  |  | 1,515,752 |  |  |  | 1,515,752 | 
|January 24, 2014                |  |             | 30 June 2018 |  |               |  | 0.0774 |                                   |  |  | 165,116                      |  |  |                                |  |  |                                |  |         |                                 |  |  |                                              |  |  |  | 165,116   |  |  |  | 165,116   | 
|                                |  |             |              |  |               |  |        |                                   |  |  |                              |  |  |                                |   |  |                                |  |          |                                 |  |  |                                               |  |  |  |           |  |  |  |           | 
|Total                           |  |             |              |  |               |  |        |                                   |  |  | 1,923,292                    |  |  |                                |  |  |                                |  | (242,424 | )                               |  |  |                                              |  |  |  | 1,680,868 |  |  |  | 1,680,868 | 
|                                |  |             |              |  |               |  |        |                                   |  |  |                              |  |  |                                |   |  |                                |  |          |                                 |  |  |                                               |  |  |  |           |  |  |  |           | 
|Weighted average exercise price |  |             |              |  |               |  | 0.0774 |                                   |  |  |                              |  |  |                                |   |  |                                |  |          |                                 |  |  |                                               |  |  |  | 0.0774    |  |  |  |           | 



|                                |  |             |              |  |               |  |        |                                   |  |  |                              |  |  |                                |         |  |                                |  |   |                                 |  |  |                                               |  |  |  |           |  |  |  |           | 
|------------------------------- |  | ----------- | ------------ |  | ------------- |  | ------ | --------------------------------- |  |  | ---------------------------- |  |  | ------------------------------ | ------- |  | ------------------------------ |  | - | ------------------------------- |  |  | --------------------------------------------- |  |  |  | --------- |  |  |  | --------- | 
|2014
Grant date                 |  | Expiry date |              |  | Exerciseprice |  |        | Balance atstart of theyear Number |  |  | Grantedduring theyear Number |  |  | Exercisedduring theyear Number |         |  | Forfeited duringthe yearNumber |  |   | Balance atend of theyear Number |  |  | Vested andexercisable atend of the yearNumber | 
|December 23, 2013               |  |             | 30 June 2018 |  |               |  | 0.0774 |                                   |  |  | 1,758,176                    |  |  |                                |        |  |                                |  |  |                                 |  |  |                                              |  |  |  | 1,758,176 |  |  |  | 1,758,176 | 
|January 24, 2014                |  |             | 30 June 2018 |  |               |  | 0.0774 |                                   |  |  |                             |  |  |                                | 165,116 |  |                                |  |  |                                 |  |  |                                              |  |  |  | 165,116   |  |  |  | 165,116   | 
|                                |  |             |              |  |               |  |        |                                   |  |  |                              |  |  |                                |         |  |                                |  |   |                                 |  |  |                                               |  |  |  |           |  |  |  |           | 
|Total                           |  |             |              |  |               |  |        |                                   |  |  | 1,758,176                    |  |  |                                | 165,116 |  |                                |  |  |                                 |  |  |                                              |  |  |  | 1,923,292 |  |  |  | 1,923,292 | 
|                                |  |             |              |  |               |  |        |                                   |  |  |                              |  |  |                                |         |  |                                |  |   |                                 |  |  |                                               |  |  |  |           |  |  |  |           | 
|Weighted average exercise price |  |             |              |  |               |  | 0.0774 |                                   |  |  |                              |  |  |                                |         |  |                                |  |   |                                 |  |  |                                               |  |  |  | 0.0774    |  |  |  |           | 

No options expired during the periods covered by the above tables.

The weighted average share price at the date of exercise of options exercised during the year ended 30 June 2016 was $0.0774 (2015 
$0.0774). The weighted average remaining contractual life of share options outstanding at the end of the period was 4 years. Options vest in three equal tranches, 33.3% vested on December 31, 2013, 33.3% vested on June 30, 2014, and 33.3%
to vest on June 30, 2015. Vesting is contingent upon the employee being continuously employed in good standing through the vesting period. The options are subject to accelerated vesting according to agreed terms in each persons employment
contract.

Fair value of options granted

No options were granted during the year ended June 30, 2016 (2015 Nil, 2014 165,116 options granted). The fair value at grant date is
determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected
dividend yield and the risk free interest rate for the term of the option.



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##### Table of Contents

NOTE 31. SHARE-BASED PAYMENTS(continued)



The model inputs for options granted included:



|                                                  |  |  |                         |  |  |  |                         | 
|------------------------------------------------- |  |  | ----------------------- |  |  |  | ----------------------- | 
|Grant date                                        |  |  | 23 December 2013        |  |  |  | 24 January 2014         | 
|Exercise price                                    |  |  | $0.0774                 |  |  |  | $0.0774                 | 
|Expiry period                                     |  |  | 36 months after vesting |  |  |  | 36 months after vesting | 
|Share price at grant date                         |  |  | $0.04                   |  |  |  | $0.05                   | 
|Expected price volatility of the Companys shares |  |  | 112%                    |  |  |  | 116%                    | 
|Expected dividend yield                           |  |  | Nil                     |  |  |  | Nil                     | 
|Risk-free interest rate                           |  |  | 2.92%                   |  |  |  | 2.81%                   | 

The expected price volatility is based on the historic volatility (based on the remaining life of the
options), adjusted for any expected changes to future volatility due to publicly available information.

(b) Global Employee Share Option Plan (GESOP)

The establishment of the GESOP Plan was approved by shareholders at the 2011 annual general meeting. The GESOP is designed to provide
long-term incentives for employees excluding directors to deliver long-term shareholder returns. Under the plan, participants are granted options based on certain performance standards being met. Participation in the plan is at the boards
discretion and no individual has a contractual right to participate in the plan or to receive any guaranteed benefits.

Options granted
under the plan carry no dividend or voting rights. When exercisable, each option is convertible into one ordinary share. The exercise price of options is based on the volume weighted average price at which the companys shares are traded on the
Australian Securities Exchange (ASX) during the seven days up to and including the date of the grant.

Set out below are summaries of
options granted under the GESOP:



|                                 |  |             |                  |  |               |  |       |                                   |  |  |                              |  |  |                                |   |  |                                |  |   |                                 |  |  |                                               |   |  |  |   |  |  |  |   | 
|-------------------------------- |  | ----------- | ---------------- |  | ------------- |  | ----- | --------------------------------- |  |  | ---------------------------- |  |  | ------------------------------ | - |  | ------------------------------ |  | - | ------------------------------- |  |  | --------------------------------------------- | - |  |  | - |  |  |  | - | 
|2016
Grant date                  |  | Expiry date |                  |  | Exerciseprice |  |       | Balance atstart of theyear Number |  |  | Grantedduring theyear Number |  |  | Exercisedduring theyear Number |   |  | Forfeited duringthe yearNumber |  |   | Balance atend of theyear Number |  |  | Vested andexercisable atend of the yearNumber |  
|August 1, 2012                   |  |             | 1 August 2015    |  |               |  | 0.185 |                                   |  |  | 1,600,000                    |  |  |                                |  |  |                                |  |  |                                 |  |  | (1,600,000                                    | ) |  |  |  |  |  |  |  | 
|November 16, 2012                |  |             | 1 August 2015    |  |               |  | 0.185 |                                   |  |  | 1,200,000                    |  |  |                                |  |  |                                |  |  |                                 |  |  | (1,200,000                                    | ) |  |  |  |  |  |  |  | 
|February 20, 2013                |  |             | 20 February 2016 |  |               |  | 0.173 |                                   |  |  | 200,000                      |  |  |                                |  |  |                                |  |  |                                 |  |  | (200,000                                      | ) |  |  |  |  |  |  |  | 
|                                 |  |             |                  |  |               |  |       |                                   |  |  |                              |  |  |                                |   |  |                                |  |   |                                 |  |  |                                               |   |  |  |   |  |  |  |   | 
|Total                            |  |             |                  |  |               |  |       |                                   |  |  | 3,000,000                    |  |  |                                |  |  |                                |  |  |                                 |  |  | (3,000,000                                    | ) |  |  |  |  |  |  |  | 
|                                 |  |             |                  |  |               |  |       |                                   |  |  |                              |  |  |                                |   |  |                                |  |   |                                 |  |  |                                               |   |  |  |   |  |  |  |   | 
|Weighted average exercised price |  |             |                  |  |               |  | 0.184 |                                   |  |  |                              |  |  |                                |  |  |                                |  |   |                                 |  |  |                                               |   |  |  |  |  |  |  |   | 



|                                 |  |             |                  |  |               |  |       |                                   |  |  |                              |  |  |                                |   |  |                                |  |   |                                 |  |  |                                               |   |  |  |           |  |  |  |           | 
|-------------------------------- |  | ----------- | ---------------- |  | ------------- |  | ----- | --------------------------------- |  |  | ---------------------------- |  |  | ------------------------------ | - |  | ------------------------------ |  | - | ------------------------------- |  |  | --------------------------------------------- | - |  |  | --------- |  |  |  | --------- | 
|2015
Grant date                  |  | Expiry date |                  |  | Exerciseprice |  |       | Balance atstart of theyear Number |  |  | Grantedduring theyear Number |  |  | Exercisedduring theyear Number |   |  | Forfeited duringthe yearNumber |  |   | Balance atend of theyear Number |  |  | Vested andexercisable atend of the yearNumber |  
|November 3, 2011                 |  |             | 3 November 2014  |  |               |  | 0.279 |                                   |  |  | 100,000                      |  |  |                                |  |  |                                |  |  |                                 |  |  | (100,000                                      | ) |  |  |          |  |  |  |          | 
|January 3, 2012                  |  |             | 3 January 2015   |  |               |  | 0.233 |                                   |  |  | 100,000                      |  |  |                                |  |  |                                |  |  |                                 |  |  | (100,000                                      | ) |  |  |          |  |  |  |          | 
|August 1, 2012                   |  |             | 1 August 2015    |  |               |  | 0.185 |                                   |  |  | 1,600,000                    |  |  |                                |  |  |                                |  |  |                                 |  |  |                                              |   |  |  | 1,600,000 |  |  |  | 1,600,000 | 
|November 16, 2012                |  |             | 1 August 2015    |  |               |  | 0.185 |                                   |  |  | 1,200,000                    |  |  |                                |  |  |                                |  |  |                                 |  |  |                                              |   |  |  | 1,200,000 |  |  |  | 1,200,000 | 
|February 20, 2013                |  |             | 20 February 2016 |  |               |  | 0.173 |                                   |  |  | 200,000                      |  |  |                                |  |  |                                |  |  |                                 |  |  |                                              |   |  |  | 200,000   |  |  |  | 200,000   | 
|                                 |  |             |                  |  |               |  |       |                                   |  |  |                              |  |  |                                |   |  |                                |  |   |                                 |  |  |                                               |   |  |  |           |  |  |  |           | 
|Total                            |  |             |                  |  |               |  |       |                                   |  |  | 3,200,000                    |  |  |                                |  |  |                                |  |  |                                 |  |  | (200,000                                      | ) |  |  | 3,000,000 |  |  |  | 3,000,000 | 
|                                 |  |             |                  |  |               |  |       |                                   |  |  |                              |  |  |                                |   |  |                                |  |   |                                 |  |  |                                               |   |  |  |           |  |  |  |           | 
|Weighted average exercised price |  |             |                  |  |               |  | 0.189 |                                   |  |  |                              |  |  |                                |  |  |                                |  |   |                                 |  |  |                                               |   |  |  | 0.184     |  |  |  |           | 



|                                 |  |             |                  |  |               |  |       |                                   |  |  |                              |  |  |                                |   |  |                                |  |   |                                 |  |  |                                               |  |  |  |           |  |  |  |         | 
|-------------------------------- |  | ----------- | ---------------- |  | ------------- |  | ----- | --------------------------------- |  |  | ---------------------------- |  |  | ------------------------------ | - |  | ------------------------------ |  | - | ------------------------------- |  |  | --------------------------------------------- |  |  |  | --------- |  |  |  | ------- | 
|2014
Grant date                  |  | Expiry date |                  |  | Exerciseprice |  |       | Balance atstart of theyear Number |  |  | Grantedduring theyear Number |  |  | Exercisedduring theyear Number |   |  | Forfeited duringthe yearNumber |  |   | Balance atend of theyear Number |  |  | Vested andexercisable atend of the yearNumber | 
|November 3, 2011                 |  |             | 3 November 2014  |  |               |  | 0.279 |                                   |  |  | 100,000                      |  |  |                                |  |  |                                |  |  |                                 |  |  |                                              |  |  |  | 100,000   |  |  |  | 100,000 | 
|January 3, 2012                  |  |             | 3 January 2015   |  |               |  | 0.233 |                                   |  |  | 100,000                      |  |  |                                |  |  |                                |  |  |                                 |  |  |                                              |  |  |  | 100,000   |  |  |  | 100,000 | 
|August 1, 2012                   |  |             | 1 August 2015    |  |               |  | 0.185 |                                   |  |  | 1,600,000                    |  |  |                                |  |  |                                |  |  |                                 |  |  |                                              |  |  |  | 1,600,000 |  |  |  | 450,000 | 
|November 16, 2012                |  |             | 1 August 2015    |  |               |  | 0.185 |                                   |  |  | 1,200,000                    |  |  |                                |  |  |                                |  |  |                                 |  |  |                                              |  |  |  | 1,200,000 |  |  |  |        | 
|February 20, 2013                |  |             | 20 February 2016 |  |               |  | 0.173 |                                   |  |  | 200,000                      |  |  |                                |  |  |                                |  |  |                                 |  |  |                                              |  |  |  | 200,000   |  |  |  |        | 
|                                 |  |             |                  |  |               |  |       |                                   |  |  |                              |  |  |                                |   |  |                                |  |   |                                 |  |  |                                               |  |  |  |           |  |  |  |         | 
|Total                            |  |             |                  |  |               |  |       |                                   |  |  | 3,200,000                    |  |  |                                |  |  |                                |  |  |                                 |  |  |                                              |  |  |  | 3,200,000 |  |  |  | 650,000 | 
|                                 |  |             |                  |  |               |  |       |                                   |  |  |                              |  |  |                                |   |  |                                |  |   |                                 |  |  |                                               |  |  |  |           |  |  |  |         | 
|Weighted average exercised price |  |             |                  |  |               |  | 0.189 |                                   |  |  |                              |  |  |                                |  |  |                                |  |   |                                 |  |  |                                               |  |  |  | 0.189     |  |  |  |         | 



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NOTE 31. SHARE-BASED PAYMENTS(continued)



All remaining options granted under the GESOP expired during the financial year and were
forfeited as the exercise price as above the underlying share price.

There were no share options exercised during the year (2015 
$nil). The weighted average remaining contractual life of share options outstanding at the end of the period was Nil (2015  1 year). Options vested after a period of twelve months from the grant date.

Fair value of options granted

There were
no options granted during the year ended 30 June 2016 (2015   Nil). The fair value at grant date is determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the
impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

(c) Employee Share Option Plan (ESOP)

The establishment of the ESOP Plan was approved by shareholders on April 30, 2010. The company has ceased to issue options under the
ESOP.

The ESOP was designed to provide long-term incentives for employees excluding directors to deliver long-term shareholder returns.
Under the plan, participants were granted options based on certain performance standards being met. Participation in the plan was at the boards discretion and no individual had a contractual right to participate in the plan or to receive any
guaranteed benefits. Options under the ESOP vested on grant date.

Options granted under the ESOP carried no dividend or voting rights.
Each options granted under the ESOP is convertible into one ordinary share. The exercise price of options granted under the ESOP is $0.10 per option. All options granted under the ESOP were forfeited in the prior year as the exercise price was above
the underlying share price.

Set out below are summaries of options granted under the ESOP:



|                                 |  |             |                 |  |               |  |      |                                  |  |  |                             |  |  |                               |   |  |                                |  |   |                                |  |  |                                               |   |  |  |   |  |  |  |   | 
|-------------------------------- |  | ----------- | --------------- |  | ------------- |  | ---- | -------------------------------- |  |  | --------------------------- |  |  | ----------------------------- | - |  | ------------------------------ |  | - | ------------------------------ |  |  | --------------------------------------------- | - |  |  | - |  |  |  | - | 
|2015
Grant date                  |  | Expiry date |                 |  | Exerciseprice |  |      | Balance atstart of theyearNumber |  |  | Grantedduring theyearNumber |  |  | Exercisedduring theyearNumber |   |  | Forfeited duringthe yearNumber |  |   | Balance atend of theyearNumber |  |  | Vested andexercisable atend of the yearNumber |  
|August 26, 2011                  |  |             | August 26, 2014 |  |               |  | 0.10 |                                  |  |  | 500,000                     |  |  |                               |  |  |                                |  |  |                                |  |  | (500,000                                      | ) |  |  |  |  |  |  |  | 
|                                 |  |             |                 |  |               |  |      |                                  |  |  |                             |  |  |                               |   |  |                                |  |   |                                |  |  |                                               |   |  |  |   |  |  |  |   | 
|Total                            |  |             |                 |  |               |  |      |                                  |  |  | 500,000                     |  |  |                               |  |  |                                |  |  |                                |  |  | (500,000                                      | ) |  |  |  |  |  |  |  | 
|                                 |  |             |                 |  |               |  |      |                                  |  |  |                             |  |  |                               |   |  |                                |  |   |                                |  |  |                                               |   |  |  |   |  |  |  |   | 
|Weighted average exercised price |  |             |                 |  |               |  | 0.10 |                                  |  |  |                             |  |  |                               |   |  |                                |  |   |                                |  |  |                                               |   |  |  |  |  |  |  |  | 



|                                 |  |             |                 |  |               |  |      |                                  |  |  |                             |  |  |                               |   |  |                                |  |   |                                |  |  |                                               |  |  |  |         |  |  |  |         | 
|-------------------------------- |  | ----------- | --------------- |  | ------------- |  | ---- | -------------------------------- |  |  | --------------------------- |  |  | ----------------------------- | - |  | ------------------------------ |  | - | ------------------------------ |  |  | --------------------------------------------- |  |  |  | ------- |  |  |  | ------- | 
|2014
Grant date                  |  | Expiry date |                 |  | Exerciseprice |  |      | Balance atstart of theyearNumber |  |  | Grantedduring theyearNumber |  |  | Exercisedduring theyearNumber |   |  | Forfeited duringthe yearNumber |  |   | Balance atend of theyearNumber |  |  | Vested andexercisable atend of the yearNumber | 
|August 26, 2011                  |  |             | August 26, 2014 |  |               |  | 0.10 |                                  |  |  | 500,000                     |  |  |                               |  |  |                                |  |  |                                |  |  |                                              |  |  |  | 500,000 |  |  |  | 500,000 | 
|                                 |  |             |                 |  |               |  |      |                                  |  |  |                             |  |  |                               |   |  |                                |  |   |                                |  |  |                                               |  |  |  |         |  |  |  |         | 
|Total                            |  |             |                 |  |               |  |      |                                  |  |  | 500,000                     |  |  |                               |  |  |                                |  |  |                                |  |  |                                              |  |  |  | 500,000 |  |  |  | 500,000 | 
|                                 |  |             |                 |  |               |  |      |                                  |  |  |                             |  |  |                               |   |  |                                |  |   |                                |  |  |                                               |  |  |  |         |  |  |  |         | 
|Weighted average exercised price |  |             |                 |  |               |  | 0.10 |                                  |  |  |                             |  |  |                               |   |  |                                |  |   |                                |  |  |                                               |  |  |  | 0.10    |  |  |  | 0.10    | 

500,000 options expired during the financial year and were forfeited as the exercise price was above the underlying share
price

Fair value of options granted

There were no options granted during the year ended 30 June 2016 (2015  $nil). The fair value at grant date is determined using a
Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the
risk free interest rate for the term of the option.



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NOTE 31. SHARE-BASED PAYMENTS(continued)



The expected price volatility is based on the historic volatility (based on the remaining
life of the options), adjusted for any expected changes to future volatility due to publicly available information, where options are issued to employees of subsidiaries within the group.

d) Options issued to directors with shareholders approval

At the 2010 annual general meeting, shareholders approved the issue of 34,500,000 options to the directors. Options granted under the plan
carry no dividend or voting rights. When exercisable, each option is convertible into one ordinary share. The exercise price of options is $0.20 for 32,500,000 and $0.10 for 2,000,000.

Set out below are summaries of options granted with shareholders approvals:



|                                 |  |             |                  |  |               |  |      |                                  |  |  |                            |  |  |                               |   |  |                             |  |   |                                |  |  |                                               |   |  |  |   |  |  |  |   | 
|-------------------------------- |  | ----------- | ---------------- |  | ------------- |  | ---- | -------------------------------- |  |  | -------------------------- |  |  | ----------------------------- | - |  | --------------------------- |  | - | ------------------------------ |  |  | --------------------------------------------- | - |  |  | - |  |  |  | - | 
|2015
Grant date                  |  | Expiry date |                  |  | Exerciseprice |  |      | Balance atstart of theyearNumber |  |  | GrantedduringtheyearNumber |  |  | Exercisedduring theyearNumber |   |  | Lapsed duringthe yearNumber |  |   | Balance atend of theyearNumber |  |  | Vested andexercisable atend of the yearNumber |  
|December 6, 2010*                |  |             | December 6, 2014 |  |               |  | 0.10 |                                  |  |  | 2,000,000                  |  |  |                               |  |  |                             |  |  |                                |  |  | (2,000,000                                    | ) |  |  |  |  |  |  |  | 
|                                 |  |             |                  |  |               |  |      |                                  |  |  |                            |  |  |                               |   |  |                             |  |   |                                |  |  |                                               |   |  |  |   |  |  |  |   | 
|Total                            |  |             |                  |  |               |  |      |                                  |  |  | 2,000,000                  |  |  |                               |  |  |                             |  |  |                                |  |  | (2,000,000                                    | ) |  |  |  |  |  |  |  | 
|                                 |  |             |                  |  |               |  |      |                                  |  |  |                            |  |  |                               |   |  |                             |  |   |                                |  |  |                                               |   |  |  |   |  |  |  |   | 
|Weighted average exercised price |  |             |                  |  |               |  | 0.10 |                                  |  |  | 0.10                       |  |  |                               |   |  |                             |  |   |                                |  |  |                                               |   |  |  |  |  |  |  |  | 



|* | these options were issued to Neil Frazer and had a 4 year vesting period and were fully vested as at 30 June 2014 upon his termination of employment
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------



|                                 |  |             |                  |  |               |  |       |                                  |  |  |                            |  |  |                               |   |  |                             |  |   |                                |  |  |                                               |   |  |  |           |  |  |  |           | 
|-------------------------------- |  | ----------- | ---------------- |  | ------------- |  | ----- | -------------------------------- |  |  | -------------------------- |  |  | ----------------------------- | - |  | --------------------------- |  | - | ------------------------------ |  |  | --------------------------------------------- | - |  |  | --------- |  |  |  | --------- | 
|2014
Grant date                  |  | Expiry date |                  |  | Exerciseprice |  |       | Balance atstart of theyearNumber |  |  | GrantedduringtheyearNumber |  |  | Exercisedduring theyearNumber |   |  | Lapsed duringthe yearNumber |  |   | Balance atend of theyearNumber |  |  | Vested andexercisable atend of the yearNumber |  
|December 6, 2010                 |  |             | December 6, 2013 |  |               |  | 0.20  |                                  |  |  | 32,500,000                 |  |  |                               |  |  |                             |  |  |                                |  |  | (32,500,000                                   | ) |  |  |          |  |  |  |          | 
|December 6, 2010*                |  |             | December 6, 2014 |  |               |  | 0.10  |                                  |  |  | 2,000,000                  |  |  |                               |  |  |                             |  |  |                                |  |  |                                              |   |  |  | 2,000,000 |  |  |  | 2,000,000 | 
|                                 |  |             |                  |  |               |  |       |                                  |  |  |                            |  |  |                               |   |  |                             |  |   |                                |  |  |                                               |   |  |  |           |  |  |  |           | 
|Total                            |  |             |                  |  |               |  |       |                                  |  |  | 34,500,000                 |  |  |                               |  |  |                             |  |  |                                |  |  | (32,500,000                                   | ) |  |  | 2,000,000 |  |  |  | 2,000,000 | 
|                                 |  |             |                  |  |               |  |       |                                  |  |  |                            |  |  |                               |   |  |                             |  |   |                                |  |  |                                               |   |  |  |           |  |  |  |           | 
|Weighted average exercised price |  |             |                  |  |               |  | 0.194 |                                  |  |  | 0.194                      |  |  |                               |   |  |                             |  |   |                                |  |  |                                               |   |  |  | 0.10      |  |  |  | 0.10      | 



|* | these options were issued to Neil Frazer and had a 4 year vesting period and were fully vested as at 30 June 2014 upon his termination of employment
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------

All options granted were forfeited in the prior year as the exercise price was above the underlying share price.

(e) Performance rights issued to directors with shareholders approval

At the 2015 extraordinary general meeting, shareholders approved the issue of 20,000,000 performance rights to the directors. Performance
rights granted under the plan carry no dividend or voting rights. When exercisable, each performance right is convertible into one ordinary share. The weighted average remaining contractual life of performance rights outstanding at the end of the
period was less than 1.1 years (2015  1.8 years).

Set out below are summaries of performance rights granted with shareholders approval.



|                  |  |            |       |  |                                   |  |            |                              |  |  |                                |  |  |                             |            |  |                                 |  |   |                                               |  |  |            |  |  |  |   | 
|----------------- |  | ---------- | ----- |  | --------------------------------- |  | ---------- | ---------------------------- |  |  | ------------------------------ |  |  | --------------------------- | ---------- |  | ------------------------------- |  | - | --------------------------------------------- |  |  | ---------- |  |  |  | - | 
|2016
Grant date   |  | Fair value |       |  | Balance atstart of theyear Number |  |            | Grantedduring theyear Number |  |  | Exercisedduring theyear Number |  |  | Lapsed duringthe yearNumber |            |  | Balance atend of theyear Number |  |   | Vested andexercisable atend of the yearNumber | 
|November 14, 2014 |  |            | 0.037 |  |                                   |  | 6,004,902  |                              |  |  |                               |  |  |                             | 2,573,529  |  |                                 |  |  |                                               |  |  | 3,431,373  |  |  |  |  | 
|November 14, 2014 |  |            | 0.037 |  |                                   |  | 4,068,627  |                              |  |  |                               |  |  |                             | 4,068,627  |  |                                 |  |  |                                               |  |  | 4,068,627  |  |  |  |  | 
|November 14, 2014 |  |            | 0.038 |  |                                   |  | 9,191,177  |                              |  |  |                               |  |  |                             |           |  |                                 |  |  |                                               |  |  | 9,191,177  |  |  |  |  | 
|November 14, 2014 |  |            | 0.040 |  |                                   |  | 3,063,725  |                              |  |  |                               |  |  |                             |           |  |                                 |  |  |                                               |  |  | 3,063,725  |  |  |  |  | 
|August 5, 2015    |  |            | 0.047 |  |                                   |  |           |                              |  |  | 20,000,000                     |  |  |                             | 6,666,666  |  |                                 |  |  |                                               |  |  | 13,333,334 |  |  |  |  | 
|                  |  |            |       |  |                                   |  |            |                              |  |  |                                |  |  |                             |            |  |                                 |  |   |                                               |  |  |            |  |  |  |   | 
|Total             |  |            |       |  |                                   |  | 22,328,431 |                              |  |  | 20,000,000                     |  |  |                             | 13,308,822 |  |                                 |  |  |                                               |  |  | 29,019,609 |  |  |  |  | 
|                  |  |            |       |  |                                   |  |            |                              |  |  |                                |  |  |                             |            |  |                                 |  |   |                                               |  |  |            |  |  |  |   | 



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NOTE 31. SHARE-BASED PAYMENTS(continued)



|                  |  |           |       |  |                                   |  |   |                              |  |  |                                |  |  |                             |           |  |                                 |  |   |                                               |  |  |            |  |  |  |   | 
|----------------- |  | --------- | ----- |  | --------------------------------- |  | - | ---------------------------- |  |  | ------------------------------ |  |  | --------------------------- | --------- |  | ------------------------------- |  | - | --------------------------------------------- |  |  | ---------- |  |  |  | - | 
|2015
Grant date   |  | Fairvalue |       |  | Balance atstart of theyear Number |  |   | Grantedduring theyear Number |  |  | Exercisedduring theyear Number |  |  | Lapsed duringthe yearNumber |           |  | Balance atend of theyear Number |  |   | Vested andexercisable atend of the yearNumber | 
|November 14, 2014 |  |           | 0.037 |  |                                   |  |  |                              |  |  | 7,720,588                      |  |  |                             | 1,715,686 |  |                                 |  |  |                                               |  |  | 6,004,902  |  |  |  |  | 
|November 14, 2014 |  |           | 0.037 |  |                                   |  |  |                              |  |  | 4,068,627                      |  |  |                             |          |  |                                 |  |  |                                               |  |  | 4,068,627  |  |  |  |  | 
|November 14, 2014 |  |           | 0.038 |  |                                   |  |  |                              |  |  | 9,191,177                      |  |  |                             |          |  |                                 |  |  |                                               |  |  | 9,191,177  |  |  |  |  | 
|November 14, 2014 |  |           | 0.040 |  |                                   |  |  |                              |  |  | 3,063,725                      |  |  |                             |          |  |                                 |  |  |                                               |  |  | 3,063,725  |  |  |  |  | 
|                  |  |           |       |  |                                   |  |   |                              |  |  |                                |  |  |                             |           |  |                                 |  |   |                                               |  |  |            |  |  |  |   | 
|Total             |  |           |       |  |                                   |  |  |                              |  |  | 24,044,117                     |  |  |                             | 1,715,686 |  |                                 |  |  |                                               |  |  | 22,328,431 |  |  |  |  | 
|                  |  |           |       |  |                                   |  |   |                              |  |  |                                |  |  |                             |           |  |                                 |  |   |                                               |  |  |            |  |  |  |   | 

Fair value of performance rights granted

The fair value at grant date for Short Term Incentive performance rights is determined using a Black-Scholes option pricing model that takes
into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the
performance right. The fair value at grant date for Long Term Incentive performance rights is determined using an Up and in Call Barrier Option Pricing Model.

(f) Options issued to other parties

During the year, options were issued to Ridgeback Capital Investments and Trout Group LLC.

Set out below is a summary of the options granted to both parties



|                     |  |                  |  |               |        |  |                                  |  |   |                             |  |  |                               |  |  |                             |   |  |                                |  |   |                                               |  |  |             |  |  |  |             | 
|-------------------- |  | ---------------- |  | ------------- | ------ |  | -------------------------------- |  | - | --------------------------- |  |  | ----------------------------- |  |  | --------------------------- | - |  | ------------------------------ |  | - | --------------------------------------------- |  |  | ----------- |  |  |  | ----------- | 
|2016
Grant date      |  | Expiry date      |  | Exerciseprice |        |  | Balance atstart of theyearNumber |  |   | Grantedduring theyearNumber |  |  | Exercisedduring theyearNumber |  |  | Lapsed duringthe yearNumber |   |  | Balance atend of theyearNumber |  |   | Vested andexercisable atend of the yearNumber | 
|July 31, 2015....    |  | August 5, 2020   |  |               | 0.0237 |  |                                  |  |  |                             |  |  | 371,445,231                   |  |  |                             |  |  |                                |  |  |                                               |  |  | 371,445,231 |  |  |  | 371,445,231 | 
|July 31, 2015..      |  | August 5, 2021   |  |               | 0.025  |  |                                  |  |  |                             |  |  | 8,475,995                     |  |  |                             |  |  |                                |  |  |                                               |  |  | 8,475,995   |  |  |  | 8,475,995   | 
|October 30, 2015.... |  | October 30, 2020 |  |               | 0.057  |  |                                  |  |  |                             |  |  | 793,103                       |  |  |                             |  |  |                                |  |  |                                               |  |  | 793,103     |  |  |  | 793,103     | 
|March 7, 2016....    |  | March 7, 2021    |  |               | 0.040  |  |                                  |  |  |                             |  |  | 1,026,272                     |  |  |                             |  |  |                                |  |  |                                               |  |  | 1,026,272   |  |  |  | 1,026,272   | 



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NOTE 31. SHARE-BASED PAYMENTS(continued)



Fair value of options granted

There were 381,739,601 options granted during the year ended 30 June 2016 (2015  $nil). The fair value at grant date is determined
using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield
and the risk free interest rate for the term of the option.

(g) Expenses arising from share-based payment transactions

Total expenses arising from share-based payment transactions recognized during the period as part of employee benefit expense were as follows:



|                                          |  |                 |            |  |                 |  |           | 
|----------------------------------------- |  | --------------- | ---------- |  | --------------- |  | --------- | 
|                                          |  | Consolidated    |           
|                                          |  | June 30, 2016A$ |            |  | June 30, 2015A$ | 
|Share-based payment expense               |  |                 | 82,242     |  |                 |  | 565,606   | 
|Employee share-based payment expense      |  |                 | 1,976,417  |  |                 |  | 738,799   | 
|Share Based Payment to strategic investor |  |                 | 47,468,071 |  |                 |  |          | 
|                                          |  |                 |            |  |                 |  |           | 
|                                          |  |                 | 49,529,730 |  |                 |  | 1,304,405 | 
|                                          |  |                 |            |  |                 |  |           | 

Share-based payment transactions with employees are recognised during the period as a part of corporate
administrative expenses.



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NOTE 32. PARENT ENTITY INFORMATION

Set out below is the supplementary information about the parent entity.

Statement of comprehensive loss



|                         |  |                 |             |   |                 |  |             |                 |  |  |             |  
|------------------------ |  | --------------- | ----------- | - | --------------- |  | ----------- | --------------- |  |  | ----------- | -
|                         |  | Parent          |            
|                         |  | June 30, 2016A$ |             |   | June 30, 2015A$ |  |             | June 30, 2014A$ | 
|Loss after income tax    |  |                 | (61,973,221 | ) |                 |  | (29,484,263 | )               |  |  | (15,651,281 | )
|Total comprehensive loss |  |                 | (61,973,221 | ) |                 |  | (29,484,263 | )               |  |  | (15,651,281 | )

Statement of financial position



|                              |  |                 |              |   |                 |  |              |  
|----------------------------- |  | --------------- | ------------ | - | --------------- |  | ------------ | -
|                              |  | Parent          |             
|                              |  | June 30, 2016A$ |              |   | June 30, 2015A$ | 
|Total current assets          |  |                 | 20,205,467   |   |                 |  | 6,103,198    |  
|Total non current assets      |  |                 | 20,903,050   |   |                 |  | 26,255,547   |  
|                              |  |                 |              |   |                 |  |              |  
|Total assets                  |  |                 | 41,108,517   |   |                 |  | 32,358,745   |  
|                              |  |                 |              |   |                 |  |              |  
|Total current liabilities     |  |                 | 1,103,005    |   |                 |  | 1,848,136    |  
|Total non current liabilities |  |                 | 5,847,876    |   |                 |  | 6,715,710    |  
|                              |  |                 |              |   |                 |  |              |  
|Total liabilities             |  |                 | 6,950,881    |   |                 |  | 8,563,846    |  
|                              |  |                 |              |   |                 |  |              |  
|Equity                        |  |                 |              |   |                 |  |              |  
| Contributed equity          |  |                 | 194,530,932  |   |                 |  | 179,878,437  |  
| Reserves                    |  |                 | 63,219,244   |   |                 |  | 5,535,781    |  
| Accumulated losses          |  |                 | (223,592,540 | ) |                 |  | (161,619,319 | )
|                              |  |                 |              |   |                 |  |              |  
|Total equity                  |  |                 | 34,157,636   |   |                 |  | 23,794,899   |  
|                              |  |                 |              |   |                 |  |              |  

Guarantees of financial support

There are no guarantees entered into by the parent entity.

Contingent liabilities of the parent entity

Refer to note 24 for details in relation to contingent liabilities as at June 30, 2016 and June 30, 2015.

Capital commitments  Property, plant and equipment

The parent entity did not have any capital commitments for property, plant and equipment at as June 30, 2016 and June 30, 2015.



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SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the
undersigned to sign this annual report on its behalf.



PRIMA BIOMED LTD/s/ Marc VoigtBy: Marc Voigt Title: Chief Executive Officer,
Chief Financial Officer and Chief Business Officer


Date: October 3, 2016



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##### Table of Contents

|ITEM 19. | EXHIBITS
|-------- | --------

The following exhibits are filed as part of this Annual Report on Form 20-F:

EXHIBIT INDEX



|        |  |                                                                                                                                                                                                                  |  |                           |      |  |             |  |           |         |  |  |           |  |  |  |          | 
|------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------- | ---- |  | ----------- |  | --------- | ------- |  |  | --------- |  |  |  | -------- | 
|        |  |                                                                                                                                                                                                                  |  | Incorporated by Reference |     
|Exhibit |  | Description                                                                                                                                                                                                      |  | Schedule/Form             |      |  | File
Number |  |           | Exhibit |  |  | File
Date | 
|        |  |                                                                                                                                                                                                                  |  |                           |     
|1.1     |  | Constitution of Registrant                                                                                                                                                                                       |  |                           | 20-F |  |             |  | 001-35428 |         |  |  | 1.1       |  |  |  | 2/13/12  | 
|        |  |                                                                                                                                                                                                                  |  |                           |     
|2.1     |  | Form of Deposit Agreement between Prima BioMed, The Bank of New York Mellon, as Depositary, and owners and holders from time to time of ADSs issued thereunder, including the Form of American Depositary Shares |  |                           | 20-F |  |             |  | 001-35428 |         |  |  | 2.1       |  |  |  | 4/2/12   | 
|        |  |                                                                                                                                                                                                                  |  |                           |     
|2.2     |  | Subscription Agreement between Prima BioMed Ltd and Ridgeback Capital Investments L.P., dated May 14, 2015, as amended (including form warrants and notes)                                                       |  |                           | 20-F |  |             |  | 001-35428 |         |  |  | 2.2       |  |  |  | 10/30/15 | 
|        |  |                                                                                                                                                                                                                  |  |                           |     
|4.1     |  | Deed of Novation between The MacFarlane Burnet Institute for Medical Research and Public Health Ltd, Prima BioMed and Cancer Vac Pty Ltd, dated April 18, 2012                                                   |  |                           | 20-F |  |             |  | 001-35428 |         |  |  | 4.4.1     |  |  |  | 10/30/13 | 
|        |  |                                                                                                                                                                                                                  |  |                           |     
|4.2+    |  | Prima BioMed Employee Share Option Plan                                                                                                                                                                          |  |                           | 20-F |  |             |  | 001-35428 |         |  |  | 4.12      |  |  |  | 2/13/12  | 
|        |  |                                                                                                                                                                                                                  |  |                           |     
|4.3+    |  | Prima BioMed Global Employee Share Option Plan                                                                                                                                                                   |  |                           | 20-F |  |             |  | 001-35428 |         |  |  | 4.10      |  |  |  | 10/3/12  | 
|        |  |                                                                                                                                                                                                                  |  |                           |     
|4.4+    |  | Prima Executive Incentive Plan                                                                                                                                                                                   |  |                           | 20-F |  |             |  | 001-35428 |         |  |  | 4.11      |  |  |  | 10/30/13 | 
|        |  |                                                                                                                                                                                                                  |  |                           |     
|4.5+    |  | Employment Agreement between Prima BioMed and Marc Voigt, effective July 1, 2012                                                                                                                                 |  |                           | 20-F |  |             |  | 001-35428 |         |  |  | 4.15      |  |  |  | 10/3/12  | 
|        |  |                                                                                                                                                                                                                  |  |                           |     
|4.6+    |  | Chief Executive Officer Employment Agreement between Prima BioMed and Marc Voigt, effective July 9, 2014                                                                                                         |  |                           | 20-F |  |             |  | 001-35428 |         |  |  | 4.15.1    |  |  |  | 9/24/14  | 
|        |  |                                                                                                                                                                                                                  |  |                           |     
|4.7+    |  | Executive and Business Manager Employment Contract between Prima Biomed GmbH and Marc Voigt, effective July 9, 2014                                                                                              |  |                           | 20-F |  |             |  | 001-35428 |         |  |  | 4.15.2    |  |  |  | 9/24/14  | 
|        |  |                                                                                                                                                                                                                  |  |                           |     
|4.8+    |  | Variation to Executive Employment Agreement between Prima BioMed and Marc Voigt, effective June 1, 2015                                                                                                          |  |                           | 20-F |  |             |  | 001-35428 |         |  |  | 4.15.3    |  |  |  | 10/30/15 | 
|        |  |                                                                                                                                                                                                                  |  |                           |     
|4.9#+   |  | Second Variation to Executive Employment Agreement between Prima BioMed and Marc Voigt, effective September 8, 2016                                                                                              |  |                           |      |  |             |  |           |         |  |  |           |  |  |  |          | 
|        |  |                                                                                                                                                                                                                  |  |                           |     
|4.10#+  |  | Amendment to Executive and Business Manager Employment Contract between Prima Biomed GmbH and Marc Voigt, effective September 8, 2016                                                                            |  |                           |      |  |             |  |           |         |  |  |           |  |  |  |          | 
|        |  |                                                                                                                                                                                                                  |  |                           |     
|4.11+   |  | Employment Agreement between Prima BioMed and Deanne Miller, dated October 13, 2012                                                                                                                              |  |                           | 20-F |  |             |  | 001-35428 |         |  |  | 4.16      |  |  |  | 10/30/13 | 
|        |  |                                                                                                                                                                                                                  |  |                           |     
|4.12+   |  | Variation to Executive Employment Agreement between Prima BioMed and Deanne Miller, effective February 1, 2013                                                                                                   |  |                           | 20-F |  |             |  | 001-35428 |         |  |  | 4.16.1    |  |  |  | 10/30/13 | 
|        |  |                                                                                                                                                                                                                  |  |                           |     
|4.13+   |  | Variation to Executive Employment Agreement between Prima BioMed and Deanne Miller, effective June 1, 2015                                                                                                       |  |                           | 20-F |  |             |  | 001-35428 |         |  |  | 4.16.2    |  |  |  | 9/24/14  | 
|        |  |                                                                                                                                                                                                                  |  |                           |     
|4.14*   |  | Supply, Distribution and Licensing Agreement between Prima BioMed and Neopharm Ltd., dated February 19, 2014                                                                                                     |  |                           | 20-F |  |             |  | 001-35428 |         |  |  | 4.20      |  |  |  | 9/24/14  | 



---

##### Table of Contents

|        |  |                                                                                                                                                                  |  |                           |      |  |             |  |           |         |  |  |           |  |  |  |          | 
|------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------- | ---- |  | ----------- |  | --------- | ------- |  |  | --------- |  |  |  | -------- | 
|        |  |                                                                                                                                                                  |  | Incorporated by Reference |     
|Exhibit |  | Description                                                                                                                                                      |  | Schedule/Form             |      |  | File
Number |  |           | Exhibit |  |  | File
Date | 
|        |  |                                                                                                                                                                  |  |                           |     
|4.15*   |  | Share Sale Agreement, dated October 2, 2014, by and between Prima BioMed and Immutep S.A.                                                                        |  |                           | 20-F |  |             |  | 001-35428 |         |  |  | 4.21      |  |  |  | 10/30/15 | 
|        |  |                                                                                                                                                                  |  |                           |     
|4.16+   |  | Amendment to the Indefinite Term Employment Contract Entered Into Effect On May 1st 2004, dated 1 October 2014, by and between Immutep S.A. and Frédéric Triebel |  |                           | 20-F |  |             |  | 001-35428 |         |  |  | 4.22      |  |  |  | 10/30/15 | 
|        |  |                                                                                                                                                                  |  |                           |     
|4.17#+  |  | Variation to the Amendment to the Indefinite Term Employment Contract, by and between Immutep S.A. and Frédéric Triebel, effective March 1, 2016                 |  |                           |      |  |             |  |           |         |  |  |           |  |  |  |          | 
|        |  |                                                                                                                                                                  |  |                           |     
|4.18#** |  | Sub-License, License and Asset Purchase Agreement, by and among Prima BioMed Ltd. and Sydys Corporation, dated May 12, 2016                                      |  |                           |      |  |             |  |           |         |  |  |           |  |  |  |          | 
|        |  |                                                                                                                                                                  |  |                           |     
|12.1#   |  | Certification of Chief Executive Officer and Chief Financial Officer as required by Rule 13a-14(a) of the Securities Exchange Act of 1934                        |  |                           |      |  |             |  |           |         |  |  |           |  |  |  |          | 
|        |  |                                                                                                                                                                  |  |                           |     
|13.1#   |  | Certification of Chief Executive Officer and Chief Financial Officer as required by Rule 13a-14(b) of the Securities Exchange Act of 1934                        |  |                           |      |  |             |  |           |         |  |  |           |  |  |  |          | 



|* | Confidential treatment has been granted with respect to certain portions of this exhibit. Omitted portions have been submitted separately with the U.S. Securities and Exchange Commission.
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|** | Confidential treatment has been requested with respect to certain portions of this exhibit. Omitted portions have been submitted separately with the U.S. Securities and Exchange Commission.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|+ | Indicates management contract or compensatory plan.
|- | ---------------------------------------------------

|# | Filed herewith.
|- | ---------------

In accordance with SEC Release Nos. 33-8238 and 34-47986, Final Rule:
Managements Reports on Internal Control Over Financial Reporting and Certification of Disclosure in Exchange Act Periodic Reports, and the instructions to Form 20-F, the certifications furnished in Exhibits 13.1 and 13.2 hereto are deemed to
accompany this Annual Report on Form 20-F and will not be deemed filed for purpose of Section 18 of the Exchange Act. Such certifications will not be deemed to be incorporated by reference into any filing under the U.S.
Securities Act of 1933, as amended, or the U.S. Securities Exchange Act of 1934, as amended, except to the extent that we specifically incorporates it by reference.