~~Current~~UNITED ~~fiscal~~STATES SECURITIES ~~year~~AND toEXCHANGE Preceding fiscal year date Current interim period to date Preceding interim period June 30 June 30 June 30 June 30 ------------------------------------------------- ------------------------------------------------- 2001 2001 2000 2000 $ $ $ $ ------------------------------------------------- ------------------------------------------------ REVENUE Contract revenue $ 2COMMISSION Washington,~~877,393~~ $ 1,487,325 $ - $ - Direct costs on contract revenue (1,715,645) (886,920) - - --------------------------------------------------------------------------------- ------------------------------------------------ Gross margin 1,161,748 600,405 - - Rental revenue 640,620 333,285 - - --------------------------------------------------------------------------------- ------------------------------------------------ 1,802,368 933,690 - - --------------------------------------------------------------------------------- ------------------------------------------------ EXPENSES Research and development 4,081,546 2,108,079 4,497,100 4,124,064 General and administrative 2,335,992 1,256,739 523,790 290,123 Amortization 672,668 322,029 79,812 46,300 Loss on writedown of intellectual properties 94,682 94,682 - - --------------------------------------------------------------------------------- ------------------------------------------------ 7,184,888 3,781,529 5,100,702 4,460,487 --------------------------------------------------------------------------------- ------------------------------------------------ Loss before undernoted items 5,382,520 2,847,839 5,100,702 4,460,487 - Interest and other income (35,076) (12,080) (107,246) (79,197) Capital gain (11,675) (11,675) - - Interest on long-term liability 105,593 44,842 - - Interest on capital leases 19,016 8,404 - - Gain on disposal of Azure (936,663) (891,279) - - Dilution gain amortization (90,770) (90,770) - - Equity in loss of significantly influenced companies 1,182,096 579,405 - - --------------------------------------------------------------------------------- ------------------------------------------------ 232,521 (373,153) (107,246) (79,197) ================================================================================= ================================================ Loss before income taxes and minority Interest 5,615,041 2,474,686 4,993,456 4,381,290 Income taxes- Current 233,000 233,000 - - Income taxes- Future - - - - --------------------------------------------------------------------------------- ------------------------------------------------- Loss before minority interest 5,848,041 2,707,686 4,993,456 4,381,290 Minority interest in loss from subsidiaries (312,701) (31,012) - - --------------------------------------------------------------------------------- ------------------------------------------------- Net loss for the period 5,535,340 2,676,674 4,993,456 4,381,290 Deficit, beginning of period 12,427,133 15,285,799 3,485,360 4,097,526 - --------------------------------------------------------------------------------- ------------------------------------------------- Deficit, end of period $ 17,962,473 $ 17,962,473 $ 8,478,816 $ 8,478,816 ================================================================================= ================================================ Loss per common share 0D.~~09 0~~C.04 0.17 0.15 --------------------------------------------------------------------------------- ------------------------------------------------- Weighted average number of outstanding shares 63,321,405 63,321,405 30,041,831 30,041,831 -------------------------------------------------------------------------------- -------------------------------------------------20549

~~Current~~FORM fiscal year to Preceding fiscal year date Current interim period to date Preceding interim period June 30 June 30 June 30 June 30 ------------------------------------------------ ------------------------------------------------- 2001 2001 2000 2000 $ $ $ $ ------------------------------------------------- ------------------------------------------------ OPERATING ACTIVITIES Loss for the period $ (5,535,340) $ (2,676,674) $ (4,993,456) $ (4,381,290) Items not involving cash Amortization 672,668 332,229 79,812 46,300 Amortization of deferred charges 19,076 8,876 2,580 2,580 Minority interest in loss from subsidiary (312,700) (31,007) - - Dilution gain amortization (90,770) (45,386) - - Equity in loss from significantly influenced companies 1,182,096 579,405 - - Gain on Disposal of shares in Azure Dynamics (936,663) (936,663) - - Loss on writedown of intellectual properties 94,682 94,682 - - Long term liability for clinical research 409,133 348,379 1,502,002 1,502,002 ------------------------------------------------- ------------------------------------------------ (4,497,818) (2,326,159) (3,409,062) (2,830,408) Accounts receivable (88,679) (69,806) (255,474) (222,238) Unbilled revenue (31,816) (20,758) - - Government grants receivable 10,000 7,500 (7,604) (7,688) Investment tax credit and taxes recoverable 94,077 94,112 - - Deposits and prepaid expenses 90,532 70,480 (100,232) (8,597) Accounts payable and accrued liabilities 2,347,170 1,833,003 144,639 (79,242) Taxes payable 213,000 213,000 - - Receivable on sale of shares (750,000) (750,000) - - Unearned revenue 36,792 (63,168) - - ------------------------------------------------- ------------------------------------------------ Cash used in operating activities (2,576,741) (1,011,795) (3,627,733) (3,148,173) ------------------------------------------------- ------------------------------------------------ FINANCING ACTIVITIES Proceeds from share subscription received - - - - special warrants (75,000) (75,000) 7,962,890 (137,853) Proceeds from issuance of common shares 96,981 75,000 874,985 442,800 Repayment (advance) of loan from (to) officer - - - - Payment on obligations under capital leases (65,453) (32,308) (1,389) (1,389) Repayment (advance) of loan from (to) officer - - 32,213 12,113 Dividend on common shares (38,484) (38,484) - - ------------------------------------------------- ------------------------------------------------ Cash provided by financing activities (81,956) (70,792) 8,868,699 315,671 ------------------------------------------------- ------------------------------------------------ INVESTING ACTIVITIES Purchase of intellectual properties (8,712) (8,712) (209,064) (169,764) Process from disposition of Azure 1,037,500 1,037,500 - - Purchase of capital assets (140,364) (70,885) (63,922) (37,480) Purchase of investments (291,888) 8,152 (24,995) (10,709) Purchase of short term investment (50,712) 5,538 (25,000) 1,578,352 Purchase of convertible loan - - (74,241) (74,241) ------------------------------------------------- ------------------------------------------------ Cash used in investing activities 545,824 971,593 (397,222) 1,286,158 ------------------------------------------------- ------------------------------------------------ Increase (decrease) in cash and cash equivalents (2,112,873) (110,994) 4,843,744 (1,546,344) ------------------------------------------------- ------------------------------------------------ Cash and cash equivalents, beginning of period 2,578,731 576,852 117,058 6~~,507,146~~ ------------------------------------------------- ------------------------------------------------ Cash and cash equivalents, end of period $ 465,858 $ 465,858 $ 4,960,802 $ 4,960,802 ================================================================================= ================================================K

~~-------------------------------------------------------------------------------------------------------------------------------~~REPORT ~~Date~~OF ofFOREIGN ~~Type~~PRIVATE ofISSUER ~~Type~~PURSUANT ofTO ~~Number~~RULE Price Total Type of Commission Issue Security Issue Proceeds Consideration Paid =============================================================================================================================== April 13a-16 25OR ~~Common shares Special Warrant 400,000 0.15 60,000 Cash NIL Converted April~~ 15d-16 25UNDER ~~Common~~THE ~~shares~~SECURITIES ~~Special~~EXCHANGE ~~Warrant~~ACT ~~100,000~~OF 0.15 15,000 Cash NIL Converted ------------------------------------------------------------------------------------------------------------------------------- Total 500,000 75,000 ===============================================================================================================================1934

~~Exercise~~For ~~Exercise~~the ~~Stock~~month ~~Options Price Number~~ of ~~Stock Price Outstanding $ Expiry Date Options Exercisable $ =================================================================================================== 70~~March,~~000~~ 0.15 21-May-04 70,000 0.15 50,000 0.15 20-May-03 50,000 0.15 80,500 0.23 09-Jun-04 80,500 0.23 70,000 0.23 25-Jul-04 70,000 0.23 681,500 0.40 24-Jan-05 731,500 0.40 1,020,000 1.20 20-Apr-05 1,020,000 1.20 1,485,000 0.25 02-Jan-06 445,500 0.25 50,000 0.30 04-Mar-02 - 0.30 1,800,000 0.10 22-May-06 - 0.10 =================================================================================================== 5,307,000 0.40 2,467,500 0.68 ===================================================================================================2002

~~Current~~Immune ~~fiscal~~Network year to Preceding fiscal year date Current interim period to date Preceding interim period June 30 June 30 June 30 June 30 ------------------------------------------------- ------------------------------------------------- 2001 2001 2000 2000 $ $ $ $ ------------------------------------------------- ------------------------------------------------ REVENUE Contract revenue $ 2,877,393 $ 1,487,325 $ - $ - Direct costs on contract revenue (1,715,645) (886,920) - - --------------------------------------------------------------------------------- ------------------------------------------------ Gross margin 1,161,748 600,405 - - Rental revenue 640,620 333,285 - - --------------------------------------------------------------------------------- ------------------------------------------------ 1,802,368 933,690 - - --------------------------------------------------------------------------------- ------------------------------------------------ EXPENSES Research and development 4,081,546 2,108,079 4,497,100 4,124,064 General and administrative 2,335,992 1,256,739 523,790 290,123 Amortization 672,668 322,029 79,812 46,300 Loss on writedown of intellectual properties 94,682 94,682 - - --------------------------------------------------------------------------------- ------------------------------------------------ 7,184,888 3,781,529 5,100,702 4,460,487 --------------------------------------------------------------------------------- ------------------------------------------------ Loss before undernoted items 5,382,520 2,847,839 5,100,702 4,460,487 - Interest and other income (35,076) (12,080) (107,246) (79,197) Capital gain (11,675) (11,675) - - Interest on long-term liability 105,593 44,842 - - Interest on capital leases 19,016 8,404 - - Gain on disposal of Azure (936,663) (891,279) - - Dilution gain amortization (90,770) (90,770) - - Equity in loss of significantly influenced companies 1,182,096 579,405 - - --------------------------------------------------------------------------------- ------------------------------------------------ 232,521 (373,153) (107,246) (79,197) ================================================================================= ================================================ Loss before income taxes and minority Interest 5,615,041 2,474,686 4,993,456 4,381,290 Income taxes- Current 233,000 233,000 - - Income taxes- Future - - - - --------------------------------------------------------------------------------- ------------------------------------------------- Loss before minority interest 5,848,041 2,707,686 4,993,456 4,381,290 Minority interest in loss fromLtd.

(Translation of registrant's name into English)

~~Current~~3650 ~~fiscal~~Wesbrook year to Preceding fiscal year date Current interim period to date Preceding interim period June 30 June 30 June 30 June 30 ------------------------------------------------- ------------------------------------------------ 2001 2001 2000 2000 $ $ $ $ ------------------------------------------------- ------------------------------------------------ subsidiaries (312Mall,~~701)~~ ~~(31~~Vancouver,~~012)~~ ~~- - -------------------------------------------------------------------------------- ------------------------------------------------- Net loss for the period 5~~BC,~~535,340~~ ~~2,676,674~~Canada V6S 4,993,456 4,381,290 Deficit, beginning of period 12,427,133 15,285,799 3,485,360 4,097,526 - --------------------------------------------------------------------------------- ------------------------------------------------ Deficit, end of period $ 17,962,473 $ 17,962,473 $ 8,478,816 $ 8,478,816 ================================================================================= ================================================ Loss per common share 0.09 0.04 0.17 0.15 --------------------------------------------------------------------------------- ------------------------------------------------ Weighted average number of outstanding shares 63,321,405 63,321,405 30,041,831 30,041,831 --------------------------------------------------------------------------------- ------------------------------------------------2L2

(Address of principal executive office)

~~Current~~[Indicate ~~fiscal~~by ~~year~~check tomark ~~Preceding~~whether fiscal year date Current interim period to date Preceding interim period June 30 June 30 June 30 June 30 ------------------------------------------------- ------------------------------------------------ 2001 2001 2000 2000 $ $ $ $ ------------------------------------------------- ------------------------------------------------ OPERATING ACTIVITIES Loss for the ~~period~~registrant $files ~~(5,535,340)~~or $will ~~(2,676,674)~~file $annual ~~(4,993,456)~~reports $under ~~(4,381,290)~~cover ~~Items not involving cash Amortization 672,668 332,229 79,812 46,300 Amortization~~ of ~~deferred~~Form ~~charges 19,076 8,876 2,580 2,580 Minority interest in loss from subsidiary (312,700) (31,007)~~ 20-F -or ~~Dilution~~Form ~~gain amortization (90,770) (45,386)~~ 40-F] Form - Equity in loss from significantly influenced companies 1,182,096 579,405 - - Gain on Disposal of shares in Azure Dynamics (936,663) (936,663) - - Loss on writedown of intellectual properties 94,682 94,682 - - Long term liability for clinical research 409,133 348,379 1,502,002 1,502,002 ------------------------------------------------- ------------------------------------------------ (4,497,818) (2,326,159) (3,409,062) (2,830,408) Accounts receivable (88,679) (69,806) (255,474) (222,238) Unbilled revenue (31,816) (20~~,758)~~ -F [X -] Form ~~Government grants receivable 10,000 7,500 (7,604) (7,688) Investment tax credit and taxes recoverable 94,077 94,112~~ 40-F [ - Deposits and prepaid expenses 90,532 70,480 (100,232) (8,597) Accounts payable and accrued liabilities 2,347,170 1,833,003 144,639 (79,242) Taxes payable 213,000 213,000 - - Receivable on sale of shares (750,000) (750,000) - - Unearned revenue 36,792 (63,168) - - ------------------------------------------------- ------------------------------------------------ Cash used in operating activities (2,576,741) (1,011,795) (3,627,733) (3,148,173) ------------------------------------------------- ------------------------------------------------ FINANCING ACTIVITIES Proceeds from share subscription received - - - - special warrants (75,000) (75,000) 7,962,890 (137,853) Proceeds from issuance of common shares 96,981 75,000 874,985 442,800]

~~Current~~[Indicate ~~fiscal~~by ~~year~~check tomark ~~Preceding~~whether ~~fiscal~~the ~~year~~registrant ~~date~~by ~~Current~~furnishing ~~interim~~the ~~period~~information tocontained ~~date~~in ~~Preceding~~this ~~interim~~Form ~~period~~is ~~June~~also 30thereby ~~June~~furnishing 30the ~~June~~information 30 June 30 ------------------------------------------------- ------------------------------------------------ 2001 2001 2000 2000 $ $ $ $ ------------------------------------------------- ------------------------------------------------ Repayment (advance) of loan from (to) ~~officer~~the -Commission -pursuant ~~- - Payment on obligations under capital leases (65,453) (32,308) (1,389) (1,389) Repayment (advance) of loan from (~~to) ~~officer~~Rule 12g3- - 32,213 12,113 Dividend on common shares (38,484) (38,484) - - ------------------------------------------------- ------------------------------------------------ Cash provided by financing activities (81,956) (70,792) 8,868,699 315,671 ------------------------------------------------- ------------------------------------------------ INVESTING ACTIVITIES Purchase of intellectual properties (8,712) (8,712) (209,064) (169,764) Process from disposition of Azure 1,037,500 1,037,500 - - Purchase of capital assets (140,364) (70,885) (63,922) (37,480) Purchase of investments (291,888) 8,152 (24,995) (10,709) Purchase of short term investment (50,712) 5,538 (25,000) 1,578,352 Purchase of convertible loan - - (74,241) (74,241) ------------------------------------------------- ------------------------------------------------ Cash used in investing activities 545,824 971,593 (397,222) 1,286,158 ------------------------------------------------- ------------------------------------------------ Increase (decrease) in cash and cash equivalents (2~~,112,873)~~ (~~110,994~~b) ~~4,843,744~~under ~~(1,546,344)~~the ~~-------------------------------------------------~~Securities ~~------------------------------------------------~~Exchange ~~Cash~~Act ~~and cash equivalents, beginning~~ of ~~period~~1934. Yes [ 2,578,731 576,852 117,058 6,507,146 ------------------------------------------------- ------------------------------------------------ Cash and cash equivalents, end of period $ 465,858 $ 465,858 $ 4,960,802 $ 4,960,802 ================================================================================= ================================================] No [X]

~~Current~~[If ~~fiscal~~"Yes" ~~year~~is tomarked, ~~Preceding~~indicate ~~fiscal~~below ~~year~~the ~~date~~file ~~Current~~number ~~interim~~assigned ~~period~~ to ~~date~~the ~~Preceding~~registrant interim period June 30 June 30 June 30 June 30 ------------------------------------------------- ------------------------------------------------- 2001 2001 2000 2000 $ $ $ $ ------------------------------------------------- ------------------------------------------------ REVENUE Contract revenue $ 2,877,393 $ 1,487,325 $ - $ - Direct costs on contract revenue (1,715,645) (886,920) - - --------------------------------------------------------------------------------- ------------------------------------------------ Gross margin 1,161,748 600,405 - - Rental revenue 640,620 333,285 - - --------------------------------------------------------------------------------- ------------------------------------------------ 1,802,368 933,690 - - --------------------------------------------------------------------------------- ------------------------------------------------ EXPENSES Research and development 4,081,546 2,108,079 4,497,100 4,124,064 General and administrative 2,335,992 1,256,739 523,790 290,123 Amortization 672,668 322,029 79,812 46,300 Loss on writedown of intellectual properties 94,682 94,682 - - --------------------------------------------------------------------------------- ------------------------------------------------ 7,184,888 3,781,529 5,100,702 4,460,487 --------------------------------------------------------------------------------- ------------------------------------------------ Loss before undernoted items 5,382,520 2,847,839 5,100,702 4,460,487 - Interest and other income (35,076) (12,080) (107,246) (79,197) Capital gain (11,675) (11,675) - - Interest on long-term liability 105,593 44,842 - - Interest on capital leases 19,016 8,404 - - Gain on disposal of Azure (936,663) (891,279) - - Dilution gain amortization (90,770) (90,770) - - Equity in ~~loss~~connection ofwith ~~significantly~~Rule ~~influenced companies 1,182,096 579,405~~ 12g3- - --------------------------------------------------------------------------------- ------------------------------------------------ 232,521 (373,153) (107,246) (79,197) ================================================================================= ================================================ Loss before income taxes and minority Interest 5,615,041 2,474,686 4,993,456 4,381,290 Income taxes- Current 233,000 233,000 - - Income taxes- Future - - - - --------------------------------------------------------------------------------- ------------------------------------------------ Loss before minority interest 5,848,041 2,707,686 4,993,456 4,381,290 Minority interest in loss from subsidiaries (~~312,701~~b): 82 ~~(31,012)~~ - - --------------------------------------------------------------------------------- ------------------------------------------------ Net loss for the period 5,535,340 2,676,674 4,993,456 4,381,290 Deficit, beginning of period 12,427,133 15,285,799 3,485,360 4,097,526 - --------------------------------------------------------------------------------- ------------------------------------------------ Deficit, end of period $ 17,962,473 $ 17,962,473 $ 8,478,816 $ 8,478,816 ================================================================================= ================================================ Loss per common share 0.09 0.04 0.17 0.15 --------------------------------------------------------------------------------- ------------------------------------------------ Weighted average number of outstanding shares 63,321,405 63,321,405 30,041,831 30,041,831 --------------------------------------------------------------------------------- ------------------------------------------------

~~Current~~FOR ~~fiscal~~IMMEDIATE year to Preceding fiscal year date Current interim period to date Preceding interim period June 30 June 30 June 30 June 30 ------------------------------------------------- ------------------------------------------------ 2001 2001 2000 2000 $ $ $ $ ------------------------------------------------- ------------------------------------------------ OPERATING ACTIVITIES Loss for the period $ (5,535,340) $ (2,676,674) $ (4,993,456) $ (4,381,290) Items not involving cash Amortization 672,668 332,229 79,812 46,300 Amortization of deferred charges 19,076 8,876 2,580 2,580 Minority interest in loss from subsidiary (312,700) (31,007) - - Dilution gain amortization (90,770) (45,386) - - Equity in loss from significantly influenced companies 1,182,096 579,405 - - Gain on Disposal of shares in Azure Dynamics (936,663) (936,663) - - Loss on writedown of intellectual properties 94,682 94,682 - - Long term liability for clinical research 409,133 348,379 1,502,002 1,502,002 ------------------------------------------------- ------------------------------------------------ (4,497,818) (2,326,159) (3,409,062) (2,830,408) Accounts receivable (88,679) (69,806) (255,474) (222,238) Unbilled revenue (31,816) (20,758) - - Government grants receivable 10,000 7,500 (7,604) (7,688) Investment tax credit and taxes recoverable 94,077 94,112 - - Deposits and prepaid expenses 90,532 70,480 (100,232) (8,597) Accounts payable and accrued liabilities 2,347,170 1,833,003 144,639 (79,242) Taxes payable 213,000 213,000 - - Receivable on sale of shares (750,000) (750,000) - - Unearned revenue 36,792 (63,168) - - ------------------------------------------------- ------------------------------------------------ Cash used in operating activities (2,576,741) (1,011,795) (3,627,733) (3,148,173) ------------------------------------------------- ------------------------------------------------ FINANCING ACTIVITIES Proceeds from share subscription received - - - - special warrants (75,000) (75,000) 7,962,890 (137,853) Proceeds from issuance of common shares 96,981 75,000 874,985 442,800 Repayment (advance) of loan from (to) officer - - - - Payment on obligations under capital leases (65,453) (32,308) (1,389) (1,389) Repayment (advance) of loan from (to) officer - - 32,213 12,113 Dividend on common shares (38,484) (38,484) - - ------------------------------------------------- ------------------------------------------------ Cash provided by financing activities (81,956) (70,792) 8,868,699 315,671 ------------------------------------------------- ------------------------------------------------RELEASE

~~Current~~Immune ~~fiscal~~Network ~~year~~Ltd. toCompletes ~~Preceding~~Unit ~~fiscal~~Placement year date Current interim period to date Preceding interim period June 30 June 30 June 30 June 30 ------------------------------------------------- ------------------------------------------------- 2001 2001 2000 2000 $ $ $ $ ------------------------------------------------- ------------------------------------------------ INVESTING ACTIVITIES Purchase of intellectual properties (8,712) (8,712) (209,064) (169,764) Process from disposition of Azure 1,037,500 1,037,500 - - Purchase of capital assets (140,364) (70,885) (63,922) (37,480) Purchase of investments (291,888) 8,152 (24,995) (10,709) Purchase of short term investment (50,712) 5,538 (25,000) 1,578,352 Purchase of convertible loan - - (74,241) (74,241) ------------------------------------------------- ------------------------------------------------ Cash used in investing activities 545,824 971,593 (397,222) 1,286,158 ------------------------------------------------- ------------------------------------------------ Increase (decrease) in cash and ~~cash~~Allots ~~equivalents~~Incentive ~~(2,112,873)~~Stock (110,994) 4,843,744 (1,546,344) ------------------------------------------------- ------------------------------------------------ Cash and cash equivalents, beginning of period 2,578,731 576,852 117,058 6,507,146 ------------------------------------------------- ------------------------------------------------ Cash and cash equivalents, end of period $ 465,858 $ 465,858 $ 4,960,802 $ 4,960,802 ================================================================================= ================================================Options

VANCOUVER, CANADA, March 7, 2002 -
Immune Network Ltd. (OTCBB: IMMKF) has completed a private placement to employees and directors of the company for total proceeds of US $35,000, for general working capital. The company has also authorized new employee and director stock options, based on the current share structure.

The private placement issue is comprised of an aggregate of 3,500,000 units, each unit consisting of one share and two non-transferable share purchase warrants. The shares issued under this private placement are subject to certain resale restrictions under applicable securities laws. The warrants will vest and become exercisable only upon approval by the shareholders at the next annual general meeting of the Company of an increase in the authorized capital of the Company by at least ten million shares. Each vested warrant will entitle its holder to purchase one common share for a period of three years from the date of its issuance at a price of US $0.02; such common shares will also be subject to resale restrictions under applicable securities laws.

The Company continues to seek further equity or debt financing to continue and expand its operations. There is no assurance that such financing will be available in an amount or on such terms as may be necessary to meet the Company's ongoing capital requirements.

The Company has granted employee and director incentive stock options entitling the holders thereof to acquire, subject to vesting, an aggregate total of 48,000,000 common shares for a period of up to ten years at a price of US $0.015 per share. The options will vest and become exercisable only upon approval by the shareholders at the next annual general meeting of the Company of an increase in the authorized capital of the Company by at least ten million shares. Any common shares issued upon exercise of any vested options will be subject to resale restrictions under applicable securities laws.

On behalf of the Board of Directors

Allen Bain, Ph.D., CEO

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

This news release contains forward looking statements that are not historical facts and are subject to risks and uncertainties which could cause actual results to differ materially from those set forth in or implied herein. These risks are described in detail in the company's Securities and Exchange Commission filings.

Company Contact:

Investor Relations
Immune Network Ltd.
3650 Wesbrook Mall, Vancouver, BC, Canada V6S 2L2
Tel. (604) 222-5541
Toll Free 1-877-644-5541 Ext. 466
Fax. (604) 222-5542
Internet http://www.immunenetwork.com
Email info@immunenetwork.com
or
CEOcast, Inc. for Immune Network

Mathew Henderson, 212-732-4300

BC FORM 53-901F
(Previously Form 27)

Securities Act

Material Change Report Under Section 85(1) of the Securities Act (BC)

Material Change Report Under Section 118(1) of the Securities Act (AB)

Material Change Report Under Section 74 of the Securities Act (ON)

Item 1. Reporting Issuer

State the full name and address of the principal office in Canada of the reporting issuer:

Immune Network Ltd. (the "Company")
3650 Wesbrook Mall
Vancouver, BC V6S 2L2
Item 2. Date of Material Change

State the date of the material change:

March 7, 2002
Item 3. Press Release

State the date and place(s) of issuance of the press release issued under section 85(1) of the Act.

March 7, 2002
Vancouver, BC
Item 4. Summary of Material Change

Provide a brief but accurate summary of the nature and substance of the material change:

The Company announced that it has completed its private placement to employees and directors of the Company for total proceeds of US$35,000. The proceeds will be used for general working capital. The Company also announces that it has granted employee and director incentive stock options entitling the holders to acquire, subject to vesting, an aggregate total of 48,000,000 common shares for a period of up to ten years at a price of US$0.015 per share.
Item 5. Full Description of Material Change
See attached Schedule "A".
Item 6. Reliance on Section 85(2) of the Act

If the report is being filed on a confidential basis in reliance on section 85(2) of the Act, state the reasons for that reliance:

N/A
Item 7. Omitted Information
N/A
Item 8. Senior Officers

Give the name and business telephone number of a senior officer of the reporting issuer who is knowledgeable about the material change and the report or an officer through whom the Commission may contact that senior officer:

Allen Bain, Ph.D., Chief Executive Officer and President
(604) 222-5541
Item 9. Statement of Senior Officer
The foregoing accurately discloses the material change referred to herein.

DATED at Vancouver, BC, this 7th day of March, 2002.

/s/ Allen Bain
Allen Bain,
Chief Executive Officer

FOR IMMEDIATE RELEASE

Immune Network Ltd. Completes Unit Placement and Allots Incentive Stock Options

VANCOUVER, CANADA, March 7, 2002 -
Immune Network Ltd. (OTCBB: IMMKF) has completed a private placement to employees and directors of the company for total proceeds of US $35,000, for general working capital. The company has also authorized new employee and director stock options, based on the current share structure.

On behalf of the Board of Directors

Allen Bain, Ph.D., CEO

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

Company Contact:

CEOcast, Inc. for Immune Network
Mathew Henderson, 212-732-4300

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

IMMUNE NETWORK INC.

Date: March 7th, 2002

/s/ Allen Bain
Allen Bain, Chief Executive Officer

Filing Compare · IMMUNE NETWORK LTD