Offer Information Statement - OIS 2010.indd

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					   Oncology Research International Limited
                                               ACN 067 964 621

                                Offer Information Statement
                                 Dated 25 November 2010
For the issue of:

For the issue of 5,000,000 fully paid ordinary shares in Oncology Research International Limited (ORIL)
to raise $5 million at an issue price of:

$0.50 each share until 31 December 2010 payable in full on application
$1.00 each share post 31 December 2010 payable in full on application

Each two shares subscribed for until 31 December 2010 under the Offer will have an accompanying
free option to acquire a fully paid ordinary share in ORIL exercisable at $0.50 at anytime up to 31
December 2015.

This Offer Information Statement is not a prospectus within the meaning of the Corporations Act 2001 and has a lower level of disclosure
requirements than a prospectus.

This document is important and should be read in its entirety. Please consult your professional advisor to obtain professional investment
advice before you invest under this Offer Information Statement.

The Shares to be issued under this Offer Information Statement should be considered speculative in nature.

Applications for ordinary shares in Oncology Research International Limited can only be made by completing the application form
contained in this Offer Information Statement in accordance with the instructions set out on the application form.
This page is left blank intentionally

Corporate Directory ........................................................................................................................................ 4

1.     Important Information............................................................................................................................ 5

2.     The Share Offer....................................................................................................................................... 6

3.     Executive Summary ............................................................................................................................... 9

4.     ORIL’s Technology and Product ............................................................................................................. 10

5.     Company .............................................................................................................................................. 17

6.     Company Strategy ................................................................................................................................ 21

7.     Intellectual Property ............................................................................................................................. 24

8.     Financial Plan ....................................................................................................................................... 26

9.     Risks ..................................................................................................................................................... 27

10. The Oncology Market - Analysis ............................................................................................................ 29

11. Additional Information ......................................................................................................................... 30


Appendix 1             Summary of Key Scientific Results
Appendix 2             Examples of Alliances/Collaborations 2009-2010
Appendix 3             Financial Statements

    Corporate Directory

    John Gordon McVie
    Philip Andrew Marshall
    Kenneth Michael Wayte

    Kenneth Michael Wayte

    WHK Horwath
    Level 6
    256 St Georges Terrace
    Perth 6000
    Western Australia

    Telephone:     +61 (0)8 9481 1448
    Facsimile:     +61 (0)8 9481 0152


    WHK Horwath
    Level 6
    256 St Georges Terrace
    Perth 6000
    Western Australia

    Telephone:     +61 (0)8 9481 1448
    Facsimile:     +61 (0)8 9481 0152

    Grant Thornton Audit Pty Ltd
    Level 1
    10 Kings Park Road
    West Perth 6050
    Western Australia

    Telephone:     +61 (0)8 9480 2000
    Facsimile:     +61 (0)8 9322 7787

1. Important Information

This Offer Information Statement (OIS) is dated 25 November 2010. A copy of the OIS was
lodged with the Australian Securities and Investments Commission (ASIC) on 25 November
2010. The ASIC takes no responsibility for the content of this OIS. No securities (shares) will
be allotted or offered on the basis of this OIS later than 13 months after the date of this OIS.

The OIS will be available on request to members of the public by calling Oncology Research
International Limited (ORIL) during the Exposure Period. The purpose of the Exposure
Period is to provide market participants and the ASIC an opportunity to consider the
information in the OIS prior to the raising of funds. Potential investors should be aware
that such examination may result in the identification of deficiencies in the OIS and, in
those circumstances any application that has been received may need to be dealt with in
accordance with Section 724 of the Corporations Act 2001.

The Exposure Period is a period of 7 days following lodgement of the OIS with ASIC;
however, where disclosures under the OIS are considered to be deficient the period may be
extended to a maximum of 14 days.

Applications for ordinary shares during the Exposure Period will not be accepted until the
Exposure Period has expired and no preference will be given to persons who lodge their
Application Forms during the Exposure Period.

Before deciding to apply for ordinary shares in ORIL pursuant to this OIS, prospective
investors should obtain professional advice.

You should carefully consider whether shares are an appropriate investment for you.
Refer to the section titled ‘Risks of Investing’ for details relating to investment risks and
investment considerations.

The distribution of this OIS in jurisdictions outside Australia may be restricted by law and
persons who come into possession of this OIS should seek advice on and observe the
requirements of these laws. Non-observance by such persons may violate securities laws.
Any recipient of this OIS residing outside Australia should consult their professional legal
advisors before investing. This OIS does not constitute an offer in any jurisdiction in which,
or to any person to whom, it would not be lawful to make such an offer.

1.1 Photographs and Images
Photographs and images used throughout this OIS do not necessarily depict assets of ORIL
unless expressly indicated otherwise.

    2. The Share Offer

    2.1 The Offer
    The funds raised from the Offer will be used by ORIL for the preclinical and clinical
    program and to provide working capital for its research project.

    ORIL is seeking an investment of AU$5 million to fund the preclinical testing program
    that is a necessary prerequisite to first-in-man (Phase I) clinical studies and to fund the
    Phase I study itself.

    2.1.1 The Offer

    Oncology Research International Limited (ORIL) is offering for subscription fully paid
    ordinary shares (“Shares”) payable in full on application to raise up to $5,000,000.

    2.1.2 Share subscriptions to 31 December 2010

    The shares are offered for subscription at an issue price of $0.50 per share until 31
    December 2010. For every two shares subscribed for until 31 December 2010 under the
    Offer an accompanying free option will be issued exercisable at $0.50 at any time up to
    31 December 2015.

    For example:

    An application for 2,000 shares at $0.50 will receive 1,000 free options exercisable at
    $0.50 cents at any time up to 31 December 2015.

    Applications for Shares up to 31 December 2010 at $0.50 per share must be for a
    minimum of 2,000 shares ($1,000.)

    2.1.3 Share subscriptions post 31 December 2010

    The shares are offered for subscription at an issue price of $1.00 per share post 31
    December 2010. No options will accompany shares acquired post 31 December 2010
    under the Offer.

    Applications for Shares post 31 December 2010 at $1.00 per share must be for a
    minimum of 1,000 shares ($1,000.)

    The Directors consider it appropriate to provide an incentive to investors to subscribe
    for Shares by offering for subscription until 31 December 2010 Shares at $0.50 per share
    together with an accompanying free option for each two new shares as these funds will
    be used by ORIL for the filing of patent applications and to provide working capital for its
    research project.

    The Directors will endeavour to allocate Shares under the Offer on a first come first
    served basis; however, the Directors retain absolute discretion when deciding whether
    or not to accept any particular application in part or in full and will not be liable to any
    applicant who is not allocated Shares.

    ORIL is an unlisted company (ie, its Shares are not admitted to quotation on the
    Australian Stock Exchange Limited or any other stock exchange). ORIL does not state or
    imply that the Shares offered in this OIS will be listed or that application will necessarily
    be made for listing at a particular time at all.

The Shares offered pursuant to this OIS will, from their allotment and issue, rank equally
in all respects with all existing Shares. The rights attaching to the Shares arise from a
combination of ORIL’s Constitution, statutory and general law. Further details of Shares are
set out in Section 11.3.

Application monies will be held in a separate bank account in trust for the applicants until
allotment of Shares occurs. This account has been established solely for the purpose of
depositing application monies received.

All interest earned on all application monies (including those which do not result in
allotments of Shares) will be retained by ORIL.

The Directors are empowered by ORIL’s Constitution to pay a commission to persons for
subscribing or procuring the subscription of Shares.

2.2 Minimum Subscription
There is no minimum amount to be raised under this OIS.

2.3 ORIL’s Business
ORIL is an unlisted Australian public company with its registered office in Perth, Western
Australia; its research base is in Adelaide, South Australia. ORIL has discovered a family of
plant-derived compounds that has a unique mode of action in anticancer activity against a
wide range of cancer types.

The company is developing the compounds as a pharmaceutically acceptable product ready
for administration in the first study in humans (Phase I) in 2012.

2.4 Use of Funds
ORIL is seeking to raise funds for its research project and to provide other working capital as
set out in Section 8 of this OIS.

2.5 Risks
Investment in the Shares of ORIL under this OIS involves risk. Investment in ORIL should
be considered speculative. This OIS should be read in its entirety. In particular, attention is
drawn to the Risks of Investing described in Section 9 of this OIS.

2.6 Financial Report
The audited financial report of Oncology Research International Limited as at 30 June 2010
is included at Appendix 3 of this OIS.

2.7 Instructions to Applicants for Shares
If you wish to subscribe for Shares pursuant to this OIS you must complete and return to the
ORIL share registry at:

        WHK Horwath                   OR                   WHK Horwath
        Level 6                                            GPO Box P1213
        256 St Georges Terrace                             Perth, Western Australia 6844
        Perth, Western Australia 6001

    The share application form issued and attached to this OIS, accompanied by a cheque
    drawn on an Australian bank and made payable in Australian currency or a bank draft
    payable in Australian currency for the appropriate subscription amount to “Oncology
    Research International Limited” and crossed “Not Negotiable”, by the closing date.

    The Directors may decline to accept an application in which case, the whole of the
    application money accompanying the declined application will be refunded and returned
    not later than 30 days after receipt of the application.

    2.8 Applications Received During the Exposure Period
    The Corporations Act prohibits ORIL from processing applications in the seven-day period
    after the lodgement of this OIS (the exposure period). Applications received during the
    exposure period will not be processed until after the expiry of that period. The exposure
    period may be extended by the ASIC, in which case applications received during the
    extended exposure period will not be processed until after the expiry of that period.
    Applications lodged before the end of the exposure period will be treated as if they were
    received at the same time as the end of the exposure period.

3. Executive Summary

Oncology Research International Limited (ORIL), an Australian unlisted public company,
has discovered a family of plant-derived compounds that has a unique mode of action in
anticancer activity against a wide range of cancer types.

The company is developing the compounds as an oral product ready for administration for
the first study in humans (Phase I) in 2012.

The compounds have a remarkable combination of important features:

•   Targeting and killing a range of cancer types
•   Unique first-in-class mode of action
•   Low toxicity against normal cells
•   Enhancement of activity of co-administered anticancer agents
•   Anti-angiogenic activity
•   Antifungal activity

The unique mode of action of ORIL’s compounds enables the specific targeting of
cancer cells in preference to normal cells; the compounds disrupt the functioning of the
membranes of cancer cells, preventing them from sending the signals to the cancer cell
nucleus that are required for cell growth, survival, proliferation and angiogenesis – ORIL’s
compounds therefore shut down the proliferation and cell survival mechanisms that
function abnormally in cancer.

ORIL is not aware of any comparative product on the market that has all of the above
features. ORIL’s technology and products with their associated features therefore have a
distinct advantage over conventional anticancer agents that have limited specificity and
adverse side effects, but importantly fail to be effective after a relatively short period of

The advantages of the technology provide a number of benefits, including several revenue
streams, because of the broad range of cancers against which the ORIL compounds are

As the technology, compounds, methods and use are subject to international patents,
these cannot be easily copied, providing protection for the duration of the patents. The
technology is 100% owned by the Company.

ORIL is seeking an investment of AU$5 million to fund the preclinical testing program that is
a necessary prerequisite for first-in-man (Phase I) clinical studies.

The sales value of cancer therapies is increasing as demonstrated by:

      The top 15 anticancer products had 2009 worldwide sales ranging from US$1.2
      billion to US$5.8 billion

      ‘The global oncology market is predicted to become the largest single therapy
      sector in value by 2012 - worth in excess of $70 billion. The $55 billion oncology
      market will outpace, in terms of outright sales value, all other therapeutic
      areas.’ (IMS website, 2010)

Oncology Research International Limited (ORIL) is offering for subscription fully paid
ordinary shares payable in full on application to raise $5 million.

Applications for Shares under the Offer must be for a minimum of $1,000.

     4. ORIL’s Technology and Product

     ORIL technology is based on the unique mode of anticancer action of ORIL’s first-in-class
     compounds and the associated products. ORIL compounds disrupt the functioning of the
     membranes of cancer cells, thereby stopping the activation of various receptors located
     within the cell membrane that must be activated in order to send signals to the nucleus
     of the cancer cell. In effect this stops the signals that are required to trigger cell growth,
     survival, proliferation and angiogenesis from being sent to the nucleus of the cancer cell.
     The novel mode of action of ORIL compounds enables the specific targeting of cancer
     cells in preference to normal healthy cells.

     ORIL’s compounds therefore shut down the proliferation and cell survival mechanisms
     that function abnormally in cancer.

     4.1 Background
     4.1.1 Cancer

     Cancer is a class of diseases in which a group of cells display uncontrolled growth
     (division beyond the normal limits), invasion (intrusion on and destruction of adjacent
     tissues), and often metastasis (which is the ability of cancer cells to invade and grow in
     normal tissues elsewhere), making cancer a life-threatening disease. There are two basic
     forms of tumour: benign and malignant. Benign tumours grow but do not spread to
     other parts of the body. Malignant tumours are the most dangerous as they metastasise
     and spread to other parts of the body where they form secondary tumours that are very
     hard to treat; they have a built in resistance to current anticancer treatments.

     Most cancer deaths are caused not by the primary tumour but by metastases or
     secondary tumours that arise in sites remote from the original malignant tumour.

     Benign tumours as well as malignant tumours require a blood supply to provide oxygen
     and nutrients and to remove waste. This blood supply is provided through a process of
     angiogenesis where new blood vessels are formed, connecting the tumour to nearby
     blood vessels, as described further under section 4.3 below.

     There are two important aspects to tumour progression: survival where the cancer cells
     resist destruction through chemotherapy or other toxic attacks; and proliferation or
     uncontrolled growth. Cancer cells require instructions from outside the cell that are sent
     via cell signalling pathways (messages)
     inside the cell to tell the nucleus to                                           Receptor

     actively divide and therefore proliferate,        Cell
     and also to survive against destructive        membrane
     influences such as immune defence
     mechanisms and chemotherapy. Cancer
     cells, in the simplest of terms, are made
     up of an encompassing outer envelope                             Nucleus

     (or membrane) that encloses a milieu
     of aqueous medium and a number of
     inner sub-cellular components that drive
     the functioning of the cell. Of these                                 Growth
     sub-cellular components, the nucleus is                              Survival
     pivotal in receiving and acting on survival Figure 1               Proliferation
     and proliferation signals sent through the
     cell from the cell membrane. The cell membrane and nucleus are illustrated in Figure 1,
     which also shows a receptor that extends from the outer surface of the cell membrane,
     through the membrane, and sends survival and proliferation signals through signalling
     pathways (brown) to the nucleus.

4.1.2 Statistics demonstrate the problem

One in three persons contracts cancer and one in four deaths are from cancer (data from
Cancer Research UK). According to the American Cancer Society, 7.6 million people died
from cancer in the world during 2008. The World Health Organisation has dubbed cancer
“the global burden”.

Table 1 shows the incidence, mortality and death rates for the principal cancers, recorded
for the US National Cancer Institute in SEER Cancer Statistics Review, 1975-2007. It will
be noted that the combined incidence of prostate, breast, lung and colorectal cancers
comprise more than 50% of all the cancers.

Table 1
 Incidence, Mortality, Death Rate from most prevalent cancers in US, 2003-2007
                                 Incidence              Mortality          Survival         Incidence (%)
 Pancreas                           11.7                  10.7                   6%             2.5%
 Lung & bronchus                    62.5                  52.5               16%               13.5%
 Colorectal                         47.9                  17.6               65%               10.4%
 Breast                             66.5                  13.5               89%               14.4%
 Prostate                           69.9                   9.5               99%               15.1%
 All sites                         461.6                  183.8              66%               100%
 Mortality and Incidence: per 100,000
 Survival: 5-Year Relative Survival Rate (2000-2006)
 (National Cancer Institute: SEER Cancer Statistics Review, 1975-2007)

Of particular note are pancreatic and lung cancers, which have extremely low survival rates
of 6% and 16% respectively. These cancers have no effective treatments due to the lack of
a single drug (or a combination of drugs) that will effectively shut down all of the signalling
receptors that are almost universally present in the cell membranes of these cancers. The
most active receptors, in terms of promoting survival and proliferation of a cancer, are
present at high levels in each of those cancers that are effectively untreatable.

The combination of (i) deficiencies in current targeted therapy, (ii) acquired resistance and
(iii) the resultant unmet clinical need provides an opportunity for an alternative and better
strategy. ORIL has recognised this opportunity through its discoveries and is developing its
compounds accordingly.

4.1.3 Current anticancer drug therapies – why they aren’t working

Cancer cells are typically rapidly proliferating; the conventional therapeutic approach
disrupts the DNA in the nucleus of rapidly growing cells so the cancer cells cannot
reproduce. Unfortunately this treatment also causes damage to normal cells that rapidly
proliferate, such as hair, stomach lining and bone marrow.

Current drug therapies and strategies are
directed toward inhibiting the activation                   Targeting

and signalling of specific receptors located              anticancer drug
within the cancer cell membrane; ie,
they target specific receptors. When the                                               X
receptor is ‘activated’ it is able to send
signals to the nucleus for cancer cell
survival and proliferation (see Figure 1).
Figure 2 shows the effect of targeting                                             Nucleus
a particular receptor (gray), where the
activation of the receptor is stopped and
signals are no longer able to be transmitted
from the surface of the cancer cell to                  Figure 2
its nucleus. Survival and proliferation
mechanisms are therefore inactivated.

     Two approaches are being used to target and inhibit these receptors: (i) monoclonal
     antibodies that interfere with the function of the receptor at the external surface of the
     cell membrane and (ii) tyrosine kinase inhibitors that interfere with the signalling from the
     receptor at the inner surface of the cell membrane.

     An advantage of targeting and inhibiting specific receptors is avoidance of the toxicity
     problems of chemotherapy. The major disadvantage is that there are many different types
     of receptor, and targeting only one receptor results in other receptors coming into effect.

     In this context it is useful to consider the two blockbuster targeting anti-cancer agents by
     Roche in Table 2.

     Table 2
                         Sales 2009
      Drug                               Target        Indication         Type
                         (US$ Billion)

      Herceptin*         4.9             HER2          Breast             Monoclonal antibody

      Tarceva*           1.2             EGFR          Lung, pancreatic   Tyrosine kinase inhibitor

     Herceptin (Trastuzumab, a monoclonal antibody) was approved by the FDA in 1998. It has
     been a very successful drug in terms of sales value as it is prescribed specifically for breast
     cancer patients having high levels of the receptor HER2. There is typically an initial positive
     response to the therapy, but disappointingly this is short-lived as the treatment inevitably
     fails after 6-12 months. Similarly, Tarceva (Erlotinib, a tyrosine kinase inhibitor) has been
     found to be effective initially against lung cancer where high levels of the receptor EGFR
     have been detected, but there is subsequent failure, often within 6 months, generally
     due to development of mutations as well as
     activation of alternate receptors and their

     corresponding cell signalling pathways.
     Figure 3 shows the opening of alternate             activated                X
     signalling pathways (plum and green) as
     alternate receptors are activated, providing

     signalling to the nucleus causing continued
     growth, survival and proliferation.

     The current approach of targeting specific
     receptors is therefore simply not working.
     ORIL regards this approach as unlikely to
     succeed in the long term and has recognised                                    Survival
     the opportunity for a new and unique              Figure 3                   Proliferation
     approach using ORIL compounds.

     4.2 ORIL compounds
     4.2.1 ORIL compounds provide the solution

     ORIL’s approach is to implement a strategy where multiple receptors are inactivated
     by disrupting the function of the cell membrane to prevent activation of the receptors
     responsible for survival and proliferation of the cancer cells.

     As shown in Figure 4, ORIL compounds act within the cell membrane and not at the outer
     or inner surface of the membrane. ORIL has discovered a family of compounds that has
     the unique property of preventing the activation of the receptors and therefore preventing
     them from sending signals to the cancer cell nucleus for survival and proliferation.

By targeting the cancer cell membrane as a whole, and not specific receptors, ORIL
compounds act independently of any mutations that may occur in the signalling pathways,
especially in the receptors themselves that
would allow the cancer cell to adapt and
continue growth and proliferation.

By preventing receptor activation ORIL
                                                    ORIL            Y
compounds have the capability to prevent
both primary and secondary resistance:


alternate or redundant pathways cannot be
utilised as they are all blocked or inhibited.
                                                            X     Nucleus

                                                 Figure 4                        ORIL
4.2.2 ORIL compounds and toxicity

One question is frequently asked when presented with an all-encompassing drug
treatment: “What about toxicity?” ORIL compounds have a mode of action that is
unique, as it not only inhibits a range of receptors by preventing their activation, it also
preferentially targets cancer cells. There are subtle differences between cancer cells (with
high levels of receptors) and normal cells. ORIL compounds recognise and exploit these
differences; normal cells are therefore unaffected by the treatment.

The unique preferential cancer-selection property of ORIL compounds means that non-
cancerous cells will not have their normal signalling pathways disrupted. In contrast,
specific targeting drugs focus on specific receptors and they inhibit their activity, whether
they are present in cancer cells or normal tissue cells. ORIL compounds therefore have
properties that potentially preclude them from unacceptable levels of toxicity.

4.3 Anti-angiogenesis
An additional valuable property is that ORIL compounds are anti-angiogenic; ie, they are
able to inhibit the development of angiogenesis. This is a valuable property as it gives ORIL
compounds a two-pronged attack for killing cancer cells.

Angiogenesis is necessary for cancerous tumours to keep growing and spreading; without
angiogenesis, tumour growth stops at a diameter of about 1-2 mm. The process of
angiogenesis is illustrated in Figure 5. Angiogenesis is the creation and proliferation of
a network of blood vessels that penetrate into cancerous growths, supplying nutrients
and oxygen and removing waste products. It starts with cancerous tumour cells releasing
molecules that send signals to surrounding normal host tissue that activates certain genes
in the host tissue that, in turn, make proteins to encourage growth of new blood vessels.

Figure 5

     Cancer spreads to other sites of the body by metastasis: cancer cells penetrate into the
     bloodstream, then invade and grow in other remote (or secondary) locations in the
     body. After the tumour cells have left the primary site and have settled into a secondary
     (metastatic) site, angiogenesis allows the secondary tumour mass to grow and expand.
     Inhibition of angiogenesis therefore has the potential to prevent the effect of metastasis
     as well as primary tumour growth.

     Anti-angiogenesis therapy has tremendous potential in the areas of cancer suppression
     through starvation of oxygen and nutrients required for growth of existing tumours and
     secondary tumours.

     ORIL’s anticancer compounds have been found to have potent anti-angiogenic properties
     at the same concentrations that are effective in killing cancer cells.

     Angiogenesis is also a requirement for diabetic retinopathy as well as having been found
     to be a significant contributor to the progression of types of arthritis. The opportunities
     for developing anti-angiogenesis treatments are additional drivers for ORIL’s IP portfolio
     (refer Section 4.5).

     4.4 Advantages of ORIL technology
     ORIL has discovered a family of compounds that have the ability to shut down multiple
     signalling pathways by inhibiting the activation of multiple receptors located within the
     cancer cell membrane indicated in Figure 4 above (provisional patent filed). Furthermore,
     this inhibition of receptor function occurs irrespective of whether the receptors are
     changed or ‘mutated’ – current targeting therapies are susceptible to resistance created
     by a range of mutations. By using these ORIL compounds, a more comprehensive ‘shut
     down’ of key cancer cell signalling pathways can be achieved at their starting point,
     severely reducing the opportunities for side-stepping to alternative pathways, or the
     activation of otherwise redundant pathways, leading to a more effective and reliable
     treatment of cancer.

     In addition to having potent anticancer activity when used alone, preclinical studies by
     an independent laboratory have shown a significant improvement in the therapeutic
     profile of small molecule chemotherapeutic agents when used in combination with
     ORIL compounds. ORIL’s technology has the potential to enhance the clinical utility and
     commercial potential of many different therapeutics, from small molecule anticancer
     agents to large antibodies, providing value at all stages of a combination product’s life

     ORIL’s product has significant potential advantages over competitor products: treatment
     of a range of cancer types, anti-angiogenesis, and enhancement of efficacy of other
     chemotherapeutic drugs. It delivers solutions to the problems of limited efficacy
     and resistance to treatment, clearly distinguishing it from competitor products. ORIL
     compounds have the potential to significantly improve the outcomes of treatment
     of cancers that are currently untreatable, either alone or in combination with other
     anticancer agents, providing the attributes and potential for an extremely successful
     product. Testing in humans therefore needs to be done as quickly as is reasonably
     possible, so that this potential can be realised.

     4.5 Other opportunities for ORIL technology
     Research results indicate that ORIL’s molecules have other biological actions besides
     anticancer, including antifungal activity which is useful in patients with a compromised
     immune system, treatment of ophthalmic diseases caused by angiogenesis, and possibly
     inflammatory diseases. ORIL’s compounds also have the potential to be labelled to detect
     metastatic disease, therefore also functioning as a diagnostic tool.

     These opportunities can be separately investigated, evaluated and appropriately
     developed as the anticancer program becomes commercialised, creating additional
     revenue streams.

4.6 Evidence of benefits
In vitro studies have already shown that ORIL compounds are effective in inhibiting growth
of a range of common cancer types, including prostate cancer, breast cancer, colon cancer,
lung cancer, melanoma, ovarian cancer and leukaemia, providing a strong basis for further
in vivo evaluation.

The testing of difficult-to-treat cancer cell lines such as pancreatic cancer will form an
important element of efficacy testing in the Program. Due to the disease severity and lack
of effective treatments in these cancers it is anticipated that ORIL compounds could utilise
a fast-track strategy to obtain regulatory approval, thereby achieving more rapid marketing
approval. This provides a basis for (i) revenue and (ii) importantly, further application to
other cancers.

Appendix 1 provides further details on ORIL’s key scientific results that demonstrate in vitro
and in vivo anticancer activity by:

(i)     targeting and killing a range of cancer types
(ii)    enhancing the effectiveness of co-administered anticancer agents
(iii)   anti-angiogenesis

Data and information that demonstrate ORIL’s unique and first-in-class mode of action,
as described in Section 4.2.1, are confidential and are maintained within the company’s
knowledge management system; these data can be provided under an appropriate
confidentiality agreement. Further work is in progress to support a Composition of Matter
patent application in 2011.

4.7 ORIL product
It is proposed to formulate the compounds initially as an injectable dosage form (in order to
expedite the testing of the product in humans) whilst concurrently developing oral (solid)
dosage forms to be administered once daily, using a suitable drug delivery system. There
is considerable formulation experience and expertise within ORIL management and it is
anticipated there will be formulation patents, thereby adding value to the technology.

4.8 Which cancers to attack?
Table 1 is instructive as it lists the four most prevalent cancers (lung, colorectal, breast
and prostate) together with pancreatic cancer. It can be seen that the four most prevalent
cancers comprise over 50% of incidence for all cancers (ie, all sites). Pancreatic cancer has
been included in Table 1 as it is by far the most deadly cancer with only 6% 5-year survival;
it ranks fourth in cancer mortality in the US.

Lung cancer and pancreatic cancer stand apart as being by far the most difficult cancers to
treat. It is therefore important to look at the reasons for failure of the current therapeutic
approaches, described in the paragraphs below.

4.8.1 Lung cancer

Erlotinib (Tarceva) is prescribed for patients with EGFR-positive non-small cell lung cancer
(NSCLC), this being the most common form of lung cancer comprising approximately 85% of
cases. More than 60% of NSCLC patients have high levels of the receptor EGFR, but only 10-
20% of NSCLC patients will be sensitive to Erlotinib as sensitivity to small molecule targeting
agents requires a particular mutation of EGFR. Also Imatinib targets a particular mutation of
EGFR, and is also very effective in the small numbers of patients where recent excitement
has been aroused by the finding of a translocation affecting the ALK gene. A targeted
compound, Crizotinib, has achieved astonishingly high response rates which we hope will
translate into a survival benefit. Unfortunately the molecular mistake is only present in 5%
of NSCLC patients, mostly non-smokers, so its impact overall will be limited. In summary, 80-
90% of NSCLC patients have intrinsic resistance to targeted agents from diagnosis, mainly
due to availability of alternative receptor-activated signaling pathways.
     The remainder of the patients, when prescribed Erlotinib or an alternative therapy, will
     succumb to the cancer within 12 months due to acquired resistance. (Kono et al, 2009).
     Lung cancer patients would therefore benefit from a drug therapy that inhibits not only
     EGFR, but the majority of receptors, and that is not influenced in its effectiveness by
     mutations in EGFR or other receptors.

     4.8.2 Pancreatic cancer

     There is currently no effective treatment for metastatic pancreatic cancer. The only
     recommended treatment is based on chemotherapy (Gemcitabine) and this has no
     significant effect on outcome. Pancreatic cancer is without doubt the most difficult
     cancer to treat due to the wide range of receptors that are present at elevated levels in
     pancreatic cancers, (eg, EGFR, HER2, HER3, IGF1R, MET, VEGFR, FGFR; Hezel et al, 2006;
     Xie et al, 2006). It is not surprising that targeted therapies are ineffective in treating
     pancreatic cancer. Because pancreatic cancer has no current cure, it is a cancer that has
     the potential to respond significantly to a drug therapy that directly inhibits a wide range
     of receptors.

     4.8.3 ORIL compounds and difficult-to-treat cancers

     A very large number of biotechnology companies as well as large pharmaceutical
     companies are developing compounds that inhibit receptors, as well as component
     proteins of the signalling pathways that are frequently adversely affected by mutations.
     To ORIL’s knowledge, none of these companies is developing compounds or a therapy
     that target the cell membrane as a whole with the aim of inhibiting a wide range of
     receptors. As ORIL’s compounds do not target normal cells, they are ideally suited to
     treating difficult cancers that have so far been without a treatment due to their having a
     wide range of active receptors.

     ORIL’s strategy and its associated compounds should answer the problem of treating
     difficult cancers such as pancreatic cancer and lung cancer.

     4.9 Summary
     The major features, advantages and benefits of ORIL technology and product are
     summarised in Table 3:

     Table 3
      Feature                 Advantage(s)                             Benefit
      Mode of action          Unique                                   Meets unmet clinical need
                                                                       Overcomes resistance
                                                                       Works where others fail
      Patent protection of    Novel and inventive                      First to market
      technology                                                       Cannot be copied
      Broad spectrum          Active against range of cancer types     Several revenue streams

      Antifungal              Immunocompromised (including             Additional protection
                              cancer) patients susceptible to fungal
      Anti-angiogenic         Stops precursor to metastasis            Other product development
                              Other indications                        applications; eg, for retinopathy
                                                                       (in diabetes)
                                                                       Other revenue streams
      Targets cancer cells    Minimal activity against normal cells    Safe

      Long plasma half life   Once daily administration                Patient compliance

      Formulation             Oral administration                      Ease of administration
                                                                       Patient compliance

5. Company

5.1 Overview
Oncology Research International Limited (ORIL) is an Australian, public, unlisted company1.
The registered office (ACN: 067 964 621) of the Company is in Perth, WA, and the scientific
program is managed from Adelaide, SA.

The technology is 100% owned by the Company.

The operational structure of ORIL is fluid depending on research organisations contracted at
a given time but the company structure may be represented as follows:

ORIL Organisation Chart

                                                     Board of Directors
                                                     Prof Gordon McVie

                           Dr Philip Marshall                             Scientific Advisory
                                  CEO                                         Committee

                         Dr Michael Story                                 Contract Research
                    Principal Research Scientist                            Organisations

5.2 Management: skills and experience
The Company is managed by its CEO, Dr Philip Marshall, reporting directly to the Board of
Directors, chaired by Professor Gordon McVie, a leading world authority in the research
and treatment of cancer. The senior people at ORIL have extensive hands-on management
skills and experience in the pharmaceutical industry in bringing products from concept to

Members of ORIL’s management team have held senior level positions in the
pharmaceutical and chemical industries in both Australia and Europe.

Dr Marshall and Dr Michael Story, the company’s Principal Research Scientist, both have
extensive experience in the private sector, with hands-on and management experience
in projects with real commercial outcomes; eg, drug development from concept (drug
discovery) to commercialisation.

1 In many countries, eg the USA, ORIL is regarded as a private company.
     5.3 Directors
                                          Professor J Gordon McVie MD, FRCP, FRCPS,
                                          FRCSE, FMedSci, DSc (Hon) is Chairman of the
                                          Board and Chairman of ORIL’s Scientific Advisory
                                          Committee. Professor McVie was formerly Director
                                          General of the Cancer Research Campaign in the
                                          UK before it merged with the Imperial Cancer
                                          Research Foundation to form Cancer Research UK,
                                          when he became co-Director General. Professor
                                          McVie is a leading world authority in the research
                                          and treatment of cancer, having trialled over 80
                                          new molecules in the clinic. He is currently Senior
                                          Consultant at the Scientific Directorate within
     the European Institute of Oncology, Milan and Director of Cancer Intelligence, which
     provides advisory services to biotechnology and pharmaceutical companies, investors,
     the media and cancer patients. He is visiting professor at Glasgow University and
     honorary consultant in medical oncology at the Welsh Cancer Institute, Cardiff.

                                            Dr Philip A Marshall BSc (Hons), PhD, FRACI,
                                            CChem is Chief Executive Officer and was formerly
                                            Chief Scientific Officer. Dr Marshall manages the
                                            corporate aspects of the Company, as well as the
                                            scientific and research programs. Dr Marshall
                                            has 30 years’ international experience at senior
                                            and executive management level in scientific
                                            affairs within the pharmaceutical industry. He has
                                            considerable experience in bringing products from
                                            concept to commercialisation, risk mangement,
                                            quality systems and compliance to best practice,
     international regulatory affairs, clinical studies, due diligence and in patents.

     Dr Marshall’s skills and training cover synthetic organic chemistry, pharmaceutical
     science, formulation development, manufacturing, quality assurance, and regulatory
     affairs. In 1991 he founded his consultancy company, Pharmchem Technical Services
     Pty Ltd, which has provided independent advice to over 130 companies in Europe,
     South Africa, the Americas and throughout Asia-Pacific. From 2004-06, he was also
     General Manager, Scientific Affairs at Sigma Pharmaceuticals, where he had executive
     responsibility over the company’s 6 Australian sites for R&D strategic planning, quality,
     regulatory affairs and technical due diligence in acquisitions, whilst overseeing 180
     scientific staff.

                                           Dr K Michael Wayte is Company Secretary of ORIL.
                                           Dr Wayte was full time CEO of ORIL from 2003 to
                                           2008 and is a major shareholder. He was diagnosed
                                           with bowel cancer in 1986. After following a
                                           demanding and restrictive vegetarian diet with
                                           specific plant-based therapies he recovered and
                                           is alive and well today. As a result of his recovery
                                           he founded ORIL in 1993 with the objective of
                                           researching plant-based therapies for cancer.

5.4 Advisor to Board
Mr Peter Fallon is a chartered accountant and principal at WHK Horwath, where he
heads the highly specialised Tax Consulting Division. Mr Fallon has over twenty five years
experience in professional practice and has extensive practical experience in all aspects
of corporate taxation, specialising in corporate reorganisation, capital gains tax and goods
and services tax. He advises corporate clients in all aspects of tax law, including demergers,
takeovers, tax consolidation, due diligence, international tax planning and business sale
transactions. He has also developed a Business Planning process to assist businesses cope
with the ever-increasing challenges.

5.5 Management
Dr Philip Marshall BSc (Hons), PhD, FRACI, CChem is Chief Executive Officer (See above).

                                       Dr Michael J Story BE(Hons), PhD(Cantab) is Principal
                                       Research Scientist.

                                          Until June 2006, Dr Story was Chief Scientific Officer
                                          for ORIL and continues to have a key role in the
                                          Company as Principal Research Scientist. He has
                                          over 30 years experience with the pharmaceutical
                                          industry including 13 years with FH Faulding &
                                          Co Limited (now Halcygen). Whilst with Faulding
                                          he held a range of positions covering product
                                          development, marketing and manufacturing, before
                                          managing the R&D division for 6 years. He introduced
new technology and formulation skills to Faulding, which led to the highly successful
international commercialisation of products based on these technologies. Dr Story founded
his pharmaceutical consulting company, Story Pharmaceutics Pty Ltd, in 1991. Dr Story
has played a leading role in bringing the science of ORIL’s compounds to their current
position, resulting in the filing of four patents; he is co-inventor of the new technology. His
continued input to understanding the science and mode of action of ORIL’s compounds, and
his experience in commercialising pharmaceutical products is essential to the continued
progress of ORIL.

5.6 Virtual structure
ORIL utilises an outsourcing approach to development, tailored to its specific needs at
any stage of the R&D program. ORIL considers it is inefficient to create and fund in-house
infrastructure and capabilities when high-quality companies and institutions already
exist to provide services to manage key elements as discrete projects. This is also a more
cost-effective approach which maximises the use of existing internal skills and purchases
external services on a fee for service basis.

Many major companies (eg, Pfizer in Asia Pacific) utilise this approach in the management
of their biotech and pharma R&D. ORIL’s CEO oversees a network of outsourced
organisations which includes medical research institutes, universities, hospitals and
specialist contract research organisations. Where possible and provided the organisation
has the expertise for the particular project, the R&D is conducted in Australia.

At all times the technology remains 100% owned by the Company.

     5.7 Capital structure
     ORIL Capital Structure at October 2010 is shown below in Table 4.

     Table 4
           Number of Shares                                                   AU$

                                              Authorised Capital

               500,000,000             Ordinary shares of 20 cents each       100,000,000

                                                Issued Capital

               22,740,510           Ordinary shares including vendor shares     7,142,347


                 3,350,000             Exercisable at 75 cents per share

                  300,000              Exercisable at 50 cents per share

6. Company Strategy

6.1 Investment and commercialisation strategy
ORIL’s commercialisation and investment strategy is deliberately flexible to meet changing
economic and financial circumstances. It has maintained a lean management structure
and a virtual infrastructure by predominantly contracting out to research groups, such as
medical research institutes, universities and hospitals and in so doing has minimised its
overheads. ORIL management has recognised the significantly increased value that can be
achieved from developing its compounds and products from discovery through preclinical
into clinical stage.

Although funding the early development will extend ORIL’s financial commitment, it is
widely acknowledged that larger pharmaceutical companies are prepared to pay more
for licensing or acquiring proven, reduced-risk products than spend less on earlier stage
opportunities. As a general rule the further down the product development path (and
hence lower the risk) the more a large pharmaceutical company is prepared to pay.

6.2 Commercial strategy
ORIL is a drug discovery company. Its mission is to select novel plant-based compounds,
determine their relevant biological activity, determine their mode of action, demonstrate
relevant proof-of-principle in anticancer activity in the lead compounds and their novel
analogues, and to conduct the preclinical evaluations that are required for initial (Phase I)
studies in humans. The research program is balanced with ORIL’s strategy of creating value
by protecting its intellectual property through patents.

The data package or portfolio thus generated provides the negotiation tool to arrange
collaborations with strategic partners who will complete the more expensive clinical trials
program to enable market authorisation by the regulatory agencies and commercialisation
of the products.

Major pharmaceutical companies, despite having extremely large research budgets, are still
unable to achieve the success hit rates from their research pipeline to provide sufficient
blockbuster drugs to replace many of those coming off patent in 2012-2014. They therefore
continue to seek new drug candidates. On the other hand, small research-based companies
have the inventiveness and resources in specialised areas to research products to the end
of Phase I studies. These companies are very often created by an idea and lateral thinking,
which cannot readily occur in a large pharmaceutical company where the research is often
in a controlled direction and locked within distinct research silos, thereby restricting lateral
thinking and cross fertilisation of ideas.

The smaller companies can research and develop the idea into a product or reach
a significant development milestone, and then find a suitable strategic partner to
commercialise the product. These companies also recognise the need for flexibility and can
respond quickly to changing circumstances and opportunity.

The benefits to the large pharmaceutical companies are becoming so evident that they
are more frequently acquiring products through a strategic alliance at the end of Phase
I studies, or as shown in Appendix 2, even at the discovery stage before a key or lead
compound has been selected. ORIL recognises the need to be flexible and is ready for
negotiation at any time, should an opportunity arise.

     6.3 Development strategy
     ORIL has discovered a family of plant-based compounds, determined their biological
     mode of action, demonstrated proof-of-principle in anticancer activity, and conducted
     preliminary preclinical and safety testing. Due to the vagary of natural supply of these
     compounds, ORIL has synthesised the lead candidates in the laboratory, together with
     the design and synthesis of novel structural analogues. This approach closely mirrors
     that of the blockbuster anti-cancer drug Taxol (paclitaxel), in which the active molecule
     occurred in trace amounts in the bark of the Pacific Yew tree. Not only was the complex
     synthesis achieved, but the novel structural analogues created are also successful anti-
     cancer drugs.

     ORIL’s strategy is to take ORIL’s development program through to the end of Phase I
     testing by raising the capital required for each of the stages of preclinical and Phase I

     The resources required to execute the company’s scientific programme are diverse
     and are located within medical research institutes, universities and contract research
     organisations in several parts of Australia and overseas. It is the policy of the Company
     therefore to form effective working relationships with centres of excellence and
     to contract out the research to such organisations as appropriate to each area of
     development activity. All work is carried out to international standards and best
     laboratory/scientific practices.

     Selection criteria are based on the organisation’s reputation, expertise, capabilities,
     capacity and compliance to ensure data are robust, of high quality and integrity and
     are thereby suitable for use in future regulatory submissions and possible due diligence

     Working in this way provides ORIL with distinct quality and financial advantages as it
     enables the best and most appropriate organisation to be selected via a competitive
     bidding process. Dr Philip Marshall, CEO of ORIL, has extensive experience in managing
     these activities, both through his consultancy business and his former position as
     General Manager, Scientific Affairs for Sigma Pharmaceuticals, where he was responsible
     for its 6 Australian sites. Dr Marshall is also skilled in project management of concurrent
     and diverse pharmaceutical projects and exercises the associated need to coordinate,
     interact and negotiate to ensure each project progresses against formal plans, schedules
     and budgets.

     6.4 Exit strategy and revenue model
     The table in Appendix 2 gives examples of alliance and collaboration deals struck by
     major pharmaceutical companies in 2009-2010. The second column gives details of
     upfront milestone payments (MPs) and sales-target-achievement payments (STPs).

     A report by Datamonitor, ‘Pharmaceutical Licensing Overview’ states:

           “The number of in-licensing deals in 2009 increased by 12% over 2008,
           confirming that Big Pharma is actively seeking acquisitions and licensing
           agreements as a more cost-effective means of gaining access to novel
           products than carrying out extensive in-house R&D.”

           “Although deals for drugs at the earliest stages of development accounted
           for almost 60% of all product in-licensing deals analyzed, Big Pharma greatly
           increased its focus on Phase II and III products in 2009 as it looks to offset
           the 2011 patent cliff by incorporating more advanced-stage products into its
           pipelines to enhance short/mid-term growth.”


Commercialisation options for ORIL include but are not limited to:

•   Strategic alliance with suitable major biopharma company to enable progression of
    products to market
•   Partnering with drug development company
•   Merger acquisition (M&A) with major biopharma company
•   Out-license products to pharmaceutical companies after having successfully developed
    these to the end of Phase l human testing. Sizeable upfront payments would be
    expected on out-licensing of these products, followed by milestone payments.
    Following the marketing approval and launch of these products, the Company would
    derive revenues from royalties on sales over the life of the patents.
•   Reverse merger into a public shell which would immediately provide access to suitable
•   Public share offering through an IPO

ORIL has a flexible approach to potential exits and there are a number of options to pursue,
each of which could be most attractive depending upon ORIL’s stage of development at
the time of the opportunity. As an example and of comparative interest was LEO Pharma’s
AU$350 million acquisition of Peplin, ( which saw the late-stage
drug (skin cancer) development company’s shares surge when the deal was announced
(September 3, 2009).

     7. Intellectual Property

     ORIL’s intellectual property (IP) strategy is to aggressively seek intellectual property
     protection on proprietary technologies where the scientific, business and legal support
     for such protection are soundly based. The technology is 100% owned by the Company.

     The PCT applications and provisional patent applications (PP) listed in Table 5 have been
     filed or are planned to be filed in the near future:

     Table 5: ORIL Patent Applications
                                                                             Patent Application
      Title                                                Priority Date
      Methods and compositions for promoting activity of
                                                           3 August 2006     PCT/AU2007/001091
      anti-cancer therapies
      Methods and compositions for inhibiting
                                                           3 August 2006     PCT/AU2007/001092
      Methods for modulating transmembrane receptor                          Not yet issued by IP
                                                           5 November 2010
      activity and signalling                                                Australia
      Formulation                                          To be filed

      Composition of matter – structural analogues         To be filed

     The PCT applications entered the National Phase Entry in major countries and global
     jurisdictions in January 2009 and currently await examination in each country.

     ORIL is advised on patent and intellectual property matters by:

              Phillips Ormonde Fitzpatrick
              Patent & Trademark Attorneys
              Level 9, 81 Flinders Street,
              Adelaide SA 5000

     Within the ORIL management team, both Dr Story (co-inventor of ORIL technology)
     and Dr Marshall have extensive international experience in patent matters relating to
     pharmaceutical compounds, compositions and processes, the evaluation of intellectual
     property, and in legal matters as ‘Expert Witness’ in many Australian and international
     patent and related cases.

     7.1 Promoting activity of anticancer therapies
     This patent application protects the use of steroid saponins (or their mixtures) in
     combination with conventional chemotherapeutic drugs where the steroid saponins
     enhance the anticancer activity of the chemotherapeutic drug, potentially allowing lower
     doses of the chemotherapeutic drug for the same efficacy and hence a reduction in the
     incidence of side effects.

     7.2 Inhibiting angiogenesis
     This patent application protects the use of steroid saponins as sole agents or their
     mixtures as anti-angiogenic agents in the treatment of cancer, ophthalmic diseases and
     inflammatory diseases.

7.3 Modulating transmembrane receptor activity and signalling
This patent application protects methods for inhibiting the activity of transmembrane
receptors and their associated cell signalling pathways.

7.4 Formulation
This provisional patent application has not yet been filed, but will be directed towards
novel oral delivery systems, as well as covering intravenous formulations. It is not planned
for filing until 2012 to allow sufficient development and testing work to be conducted
to support the application. The oral delivery system will ensure effective delivery of the
intact steroid saponin molecules to the systemic circulation, supplanting the more onerous
intravenous parenteral delivery that is required for a large proportion of anticancer drugs.
The delivery system will be very beneficial in (i) improving patient compliance and ease
of use, (ii) adding value to ORIL’s IP position, and (iii) providing a significant marketing

7.5 Composition of matter
This provisional patent application has not yet been filed, but will be directed towards novel
structural analogues of the steroid saponins. Using the in-house knowledge of structural
activity relationships of the ORIL compounds, together with computer-aided design, the
design and synthesis of novel structural analogues of ORIL lead candidate molecules is
underway to strengthen ORIL’s IP position. Two new structural analogues have already been
created, synthesised and others are planned. The patent application is planned for filing in
2011 to allow sufficient development and support testing work to be completed.

7.6 Knowledge management
The information and views expressed in this document reflect the culmination of several
years of research by leading world research groups in universities, medical research
institutes and contract research organisations in accordance with recognised good
laboratory and scientific research practices. In addition to the patent applications, other
company technology and knowledge, including extensive documented reviews of the
scientific literature to support its research activities are captured within its internal records
and technical reporting system. Further detailed information on ORIL technology may be
disclosed under a written confidentiality agreement.

     8. Financial Plan

     ORIL’s next funding round will be held in 2010-11. The intention for this round is to raise
     AU$5 million to advance its lead candidate molecule through the preclinical program
     and to the end of Phase I testing in humans. The preclinical program is designed to
     provide sufficient data on the safety and efficacy of ORIL compounds in treating cancer
     for progress to Phase I. The package includes external R&D costs and company operating
     costs associated with patenting, scientific and administration costs.

     The proposed budget for calendar years 2010-13 (AU$M), is given below in Table 6. The
     budget plans for the first study in humans (Phase I) 2012 and for the Phase II study in

     Table 6: ORIL Budget for 2010-2013
       Budget AU$M                2010          2011              2012              2013

       Total                       1.0           2.3               1.6               10

       Cumulative Total            1.0           3.4               5.0               15

9. Risks

9.1 Project Risks
Areas in which the proposed program could fail to achieve complete success or the
projected times of achievement, and the level of probability of these unfavourable
outcomes occurring, include:

•   Failure to manufacture molecule(s) in sufficient quantity or quality to enable preclinical

•   Failure of the selected compound(s) to meet necessary preclinical safety and or
    toxicology requirements to enable Phase I studies

•   Failure to produce a suitable pharmaceutical injectable or oral formulation to enable
    ORIL molecule(s) to reach the target within the body

•   Failure of the first study in humans (Phase I) studies.

ORIL considers that the risks can be mitigated by good management of the science and
R&D program entailing the knowledge and experience of the key personnel, and that the
milestones are deliverable and achievable based on results achieved to date, and that the
timings are reasonable subject to necessary funding.

9.2 Investment Risks
In addition to the usual risks associated with an investment in a business at an early stage of
its development, the following specific factors should be considered carefully in evaluating
whether to make an investment in ORIL. Apart from competition, key risks include:

Speculative investment: Investing in ORIL, which is at an early stage in its drug development
program within the pharmaceutical industry, should be considered to be highly speculative.

Research may not be successful: In developing products for use as therapeutics there
are many preclinical and clinical studies which need to be performed. Regardless of
the robustness of intellectual property or the science, a pharmaceutical product under
development may undergo years of trials in animals and humans only to fail at one of the
final steps and thus not be granted market approval by the regulatory agency of a particular
country. Thus, no assurances can be given that any one of the company’s products will
become a commercial success.

Dependence on key personnel: ORIL is dependent on a small number of highly experienced
and capable individuals.

Platform science and technology: This may not prove useful in the long term.

Licensing to pharmaceutical companies: Pharmaceutical companies may consider the in-
licensing of early stage research as too high risk.

Inability to fill product pipeline: No assurances can be given that any one of the company’s
future products will become a commercial success.

     Intellectual property: Patent prosecution does not result in commercially valuable claims
     being granted. Failure of PCT patent applications to be accepted by the various international
     patent offices during National Phase Entry.

     Financing: ORIL may have insufficient funds to complete its projects. No assurance can be
     given that sufficient funds will be raised to complete the planned research program.

     The risks listed above do not necessarily comprise all those associated with an investment in

10. The Oncology Market - Analysis

10.1 The cancer market
The global oncology market is expanding rapidly, in part due to the ageing population.
The market dynamic is also changing as the older chemotherapeutic or cytotoxic drugs
reach the end of their life cycle, they become recognised as less than adequate due to
their limited efficacy, development of resistance, and very severe side-effect profiles.
The attention of most researchers is now being directed towards (i) targeting specific
cancers more specifically using molecular targeting, (ii) stopping the growth of cancers
by inhibiting angiogenesis, and (iii) vaccines for preventing the occurrence of cancer in
target sub-populations.

Reports are continually being published giving overviews of the anticancer product
research, and of the oncology market as a whole. IMS Health reported oncology market
predictions (from Reuters report, 15 May 2008): $48 billion in 2008 rising to $80 billion
in 2012, an annualised increase of 14% pa.

The market potential for an effective anticancer drug continues to be enormous.

10.2 Competitor analysis
There has been a recent surge in activity in developing new anticancer drugs. Appendix
2 provides an insight into the activity in developing new drugs with particular emphasis
on deals between biotech and big pharma companies.

Table 7 provides a list of the current major oncology products.

Table 7: Current Major Anticancer Products
                                       Sales 2009
 Drug             Company                                Indication                    Target
                                       (US$ billion)
 Avastin*         Roche                5.8               Breast, colorectal, lung      Anti-ang Mab
 MabThera*        Roche                5.7               Non-Hodgkin’s lymphoma        B cell/CD20
 Herceptin*       Roche                4.9               Breast                        HER2 Mab
 Gleevec*         Novartis             3.9               Leukaemia (CML)               BCR-Abl
 Taxotere         Sanofi-Aventis        2.8               Breast, lung, prostate        Chemo
 Arimidex         AstraZeneca          1.9               Breast                        Chemo
 Eloxatin         Sanofi-Aventis        1.7               Colorectal                    Chemo
 Erbitux*         BMS/Meck Serono      1.7               Colorectal, head & neck       EGFR
 Alimta           Eli Lilly            1.7               Lung                          Chemo
 Zometa           Novartis             1.5               Cancer complications          Bisphosphonate
 Gemzar           Eli Lilly            1.4               Lung, pancreatic              Chemo
 Casodex          AstraZeneca          1.3               Prostate                      Chemo
 Fernara          Novartic             1.3               Breast                        Hormonal
 Tarceva*         Roche                1.2               Adv lung, adv pancreatic      EGFR
 Xeloda           Roche                1.2               Breast, colorectal, stomach   Chemo

[* = targeted therapy; adv = advanced; Mab = monoclonal antibody; ang = angiogenesis; CML = chronic
myeloid leukaemia; Chemo = chemotherapeutic drug]; [1 CHF = US$0.86; €1.00 = US$1.28]

     11. Additional Information

     11.1 Commissions
     ORIL may pay a commission of up to 10% of amounts raised under this OIS to licensed

     11.2 Underwriting
     The Offer is not underwritten.

     11.3 Rights Attaching to Shares
     A summary of the more significant rights attaching to the Shares is set out below. This
     summary is not exhaustive, nor does it constitute a definitive statement of the rights and
     liabilities of the ORIL’s Shareholders.

     (a)     Voting Rights

     At a general meeting of the Company, every holder of shares present in person or by an
     attorney, representative or proxy has one vote on a show of hands on a poll. Similarly at a
     general meeting of the Company on a poll every person present who is a shareholder or
     a proxy attorney or representative of a shareholder shall, in respect of partly paid shares
     in the Company held by the person or in respect of which the person is appointed a proxy
     attorney or representative share such number of votes as bears the same proportion to
     the total of such shares regarded in the shareholder’s name as the amount of that issue
     price thereof paid up bears to the total issue price.

     (b)     Dividend Rights

     Subject to the rights of holders of shares issued with any special, preferential or qualified
     rights (at present there are none), shares carry dividend entitlements proportional to
     the amount of their issue price paid up or credited as paid up, unless it is a term of issue
     of such shares that they carry fully dividend rights and such Shares were issued on a pro
     rata basis to shareholders. Interim dividends and final dividends are determined by the

     (c)     Transfer of Shares

     Subject to the Constitution of the Company and the Corporations Act 2001 shares in the
     Company are freely transferable.

     (d)     General Meeting

     Each holder of Shares will be entitled to receive notice of, and to attend and vote
     at, general meetings of the Company and to receive all notices, accounts and other
     documents required to be furnished to shareholders under the Constitution of the
     Company and the Corporations Act 2001.

11.4 Consents
Grant Thornton Audit Pty Ltd has given and, as at the date hereof, has not withdrawn its
written consent to being named as the auditors of ORIL in this OIS and to the inclusion
of its audit opinion dated 30 October 2010 in the form and context in which it appears.
Grant Thornton Audit Pty Ltd has not been involved in the preparation of any part of this
OIS other than its audit opinion dated 30 October 2010, nor authorised or caused the
issue of this OIS.

Phillips Ormonde Fitzpatrick has given, and as at the date hereof, has not withdrawn its
written consent to being named as patent attorneys to ORIL. Philips Ormonde Fitzpatrick
has not been involved in the preparation of any part of this OIS, nor authorised or
caused the issue of this OIS.

WHK Horwath has given, and as at the date hereof, has not withdrawn its written
consent to being named as the Registered Office and Share Registry in the form and
context in which it is named.

Dr Michael Story, has given, and at the date hereof, has not withdrawn his written
consent to being named in the OIS in the form and context in which he is named. Dr
Michael Story has not authorised or caused the issue of this OIS.

Peter Fallon has given, and at the date hereof, has not withdrawn his written consent to
being named in the OIS in the form and context in which he is named. Peter Fallon has
not authorised or caused the issue of this OIS.

11.5 Directors’ Consent to Lodgement
Each of the Directors of Oncology Research International Limited have given their written
consent to the lodgement of this OIS with ASIC.

The Directors state that they have made all reasonable enquiries and on that basis have
reasonable grounds to believe that any statements made in this OIS are not misleading
or deceptive.

For the purpose of lodgement of this OIS with ASIC, Dr K Michael Wayte on behalf of
Oncology Research International Limited has signed this OIS pursuant to Section 351 of
the Corporations Act 2001.

Dr K Michael Wayte

Appendix 1 - Summary of Key Scientific Results

A1.1    Discovery

ORIL’s research has focused on a family of naturally occurring plant compounds from
which a range of lead compounds or candidates has been discovered, identified and
screened for anticancer activity.

Whilst ORIL’s compounds may be found in the plant kingdom, ORIL has synthesised its
lead candidate molecules in the laboratory in order to be independent of the need to
harvest rare plant species, and of the vagaries of nature, thereby enabling surety of
supply. ORIL has also designed and synthesised two novel structural analogues and is in
the process of creating others.

ORIL’s compounds have potent in vitro anticancer activity against a wide range of cancer
cell lines, including prostate cancer, breast cancer, colon cancer, lung cancer, melanoma,
ovarian cancer and leukaemia, providing the screening basis for further in vivo evaluation.

Key results from the stages of discovery are summarised in the following paragraphs. For
the purposes of confidentiality, the compounds have been coded to protect their identity.
Effective anticancer therapeutic doses are typically in the 5-10 mg/kg range in the mouse
model (doses roughly equivalent to 25-50 mg in humans), using a pharmaceutically
acceptable administration and once daily dose regime.

A1.2    Anticancer activity

In a path finding study, ORIL003 was shown to inhibit growth of (B16) mouse melanoma
following single daily dose by intravenous (iv) and/or intraperitoneal (ip) administration as
shown below.

This initial in vivo result in the recognised ‘tough’ model of B16, provided ORIL with
the impetus to test anticancer activity in other in vivo model systems and against
other cancer types. For example, the following graph illustrates that ORIL007 inhibited
growth of mouse breast cancer (4T1) more effectively than the chemotherapeutic agent
ORIL has shown that co-administration of its lead candidate compounds significantly
enhances the in vitro anticancer inhibitory activity of a number of chemotherapeutic
agents (eg, 5-Flurouracil (5FU), docetaxel, doxorubicin, vincristine) against a range of
cancer cell types. More importantly, this effect has also been shown in vivo, where
the range of cancer types and chemotherapeutic and molecular targeting drugs tested
continues to be expanded. For example, ORIL003 was shown to synergistically enhance
the anticancer activity of 5FU against HT29 human colon cancer in a xenograft mouse
model, as shown in the graph below.

A1.3    Anti-angiogenic activity

ORIL has demonstrated that its lead candidate compounds have potent anti-angiogenic
activity when tested at micromolar concentrations in an ex vivo model system (Aortic
Explant) and in two in vivo models (Angiosponge and Angiochamber), providing
the potential for cancer treatment and prevention of metastatic secondary tumour
development. The following photographs illustrate the difference in growth of sprouts
and branches growing from untreated and treated (ORIL003) 1mm2 pieces of mouse
aorta placed in a medium containing growth factors (Aortic Explant model). ORIL003
significantly inhibited vessel sprouts (at 10 and 3 μM) and vessel branches (at 10, 3 and 1
μM) from aortic explants, after 10 days, in comparison to the control.

                Without ORIL003 Treatment                Treated with ORIL003
Appendix 2 - Examples of Alliances/Collaborations

In the following table, the data have been extracted from the press releases given on
the websites of the first named company in column 1. The data extracted was only for
product-directed deals; company acquisitions involving multiple products have not been
included. Only the larger multinational companies have been included in the analysis,
with emphasis on those involved in oncology developments. Deals with no disclosure of
financial details have not been included.

It will be noted that there were a considerable number of deals for projects in Discovery/
Preclinical, involving large upfront payments and potential payments.

($=US$; MPs = milestone payments; STPs = sales target payments)

 Alliance                  Deal                            Intellectual Property       Status                Indications
 Abbott/Neurocrine         $75m + $500m MPs                Elagolix, GnRH antagonist   Phase IIb (06/10)     Endometriosis
 Abbott/Pierre Fabre SA    $25m + MPs + royalties          c Met Mab                   Preclinical (02/10)   Cancers
 Abbott/PanGenetics        $170m + $20m MPs                Antibody to HGF             Phase I (11/09)       Chronic pain
 AstraZeneca/Rigel         $100m +$345m MPs + $800m        Spleen tyrosine kinase      Phase II (02/10)      Rheumatoid arthritis
 Pharmaceuticals           STPs + double digit royalties   inhibitor
 AstraZeneca/Novexel       Acquisition $430m + $75m        2 Antibiotic combinations   Phase II (12/09)      Infections
 AstraZeneca/Targacept     $200m + $540m MPs + $500m       Nicotinic channel blocker   Phase IIb (12/09)     Antidepressant
 AstraZeneca/Nektar        $125m + $325m MPs + $375m       Combination product         Phase II (09/09)      Opiod constipation and
 Therapeutics              STPs + double digit royalties                                                     pain
 Sanofi Aventis/TargeGen   Acquisition, $75m + $485m       Small molecule kinase       Phase I/II (06/10)    Leukaemia, lymphoma
                           MPs                             inhibitors
 Sanofi                    $235m upfront and MPs +         Receptor agonist, Type II   Phase I (06/10)       Type II diabetes
 Aventis/Metabolex         royalties                       diabetes
 Sanofi Aventis/Regulus    $25m upfront; total up to       Micro RNA therapeutics      Discovery (06/10)     Fibrosis + other targets
 Sanofi Aventis/Vivalis    €3m + €35m/product +            Human monoclonal            Discovery (06/10)     Infectious diseases
                           royalties                       antibodies
 Sanofi Aventis/Ascenta    Up to total of $398m +          Re activation of P53        Discovery (06/10)     Cancers
 Sanifi Aventis/Glenmark   Up to total of $325m +          Vallinoid receptor          Phase I (05/10)       Chronic pain
                           royalties                       antagonist
 Sanofi Aventis/Cure DM    Up to total of $335m +          Human peptide               Preclinical           Types 1 and 2 diabetes
 Sanofi/Aventis/Alopexx    Up to total of $375m +          Human Mab                   Preclinical (12/09)   Serious infections
 Sanofi Aventis/Micromet   €8m + €162m MPs + €150m         BiTE antibodies             Discovery (10/09)     Cancers
                           STPs + royalties
 Sanofi/Aventis/Wellstat   Up to total of $350m + STPs +   Insulin sentizer            Phase II (10/09)      Type 1 diabetes
 Therapeutics              royalties
 Sanofi                    $60m + $410m MPs                Mab to block HER3           Phase 1 (10/09)       Solid tumours
 Sanofi Aventis/Exelixis   Upfront and MPs to $1billion    Small molecule PI3K         Phase I (05/09)       Solid tumours
                           + STPs + roylaties              inhibitors
 Sanofi Aventis/Kyowa      Up to total of $315m +          Anti LIGHT human Mab        Preclinical (05/09)   Ulcerative colitis, Crohn's
 Hakko Kirin               royalties                                                                         disease
Alliance                    Deal                            Intellectual Property         Status                  Indications
Boehringer                  $60m + $210m MPs/program        Bispecific antibody           Discovery (10/10)       Various diseases incl.
Ingelheim/MacroGenics                                       technology                                            oncology
Boehringer                  Upfront + €86m MPs +            mdm2/p53 inhibitors           Discovery (01/10)       Cancers
Ingelheim/Priaxon           royalties
Boehringer                  $42m + $200m MPs + STPs +       Beta secretase inhibitors     Discovery (06/09)       Alzheimer's disease
Ingelheim/Vitae             royalties
Boehringer                  €7m + €237m MPs                 Novel therapeutics (?)        Discovery (05/09)       Diabetes and diabetic
Ingelheim/DeveloGen                                                                                               disorders
Boehringer                  $15m + $339m MPs +              S1P1 agonists                 Discovery (05/09)       Autoimmune diseases
Ingelheim/Exelixis          royalties
Bristol Myers               $85m + $764m MPs + $200m        Humanized Mab                 Phase IIa (11/09)       Rheumatoid arthritis
Squibb/Alder                STPs + royalties
Bristol Myers               $40m + $170m MPs + $175m        IKACh inhibitor               Phase I (03/09)         Atrial fibrillation
Squibb/Nissan Chemical      STPs + royalties
& Teijin Pharma
Bristol Myers               $105m + $430m MPs +$285m        PEG interferon lambda         Phase Ib (01/09)        Hepatitis C
Squibb/ZymoGenetics         STPs
Eli Lilly/Acrux (ASX)       $50m + $87m MPs +$195m          Underarm testosterone         Registration (03/10)    Testosterone deficiency
                            STPs + royalties                solution
Eli Lilly/Incyte            $90m + $665m MPs +              JAK1/JAK2 inhibitor           Phase II (12/09)        Inflammatory and
                            royalties                                                                             autoimmune diseases
GlaxoSmithKline/Amicus      $30m + $170m MPs & STPs +       Pharmacological chaperone     Phase III (10/10)       Fabry disease
Therapeutics                double digit royalties
GlaxoSmithKline/Genmab      £90m + £145m MPs +              Antibody treatments           Phase I (07/10)         Autoimmune & oncology
GlaxoSmithKline/Isis        $35m + up to $1.5billion MPs    Antisense therapies           Discovery (03/10)       Infectious diseases
                            for total of 6 products +
                            double digit royalties
GlaxoSmithKline/NanoBio     $14.5m + $40m MPs +             Viral antimicrobial           Marketed (12/09)        Cold sores:
Corp                        royalties
GlaxoSmithKline/Intercell   €33.6m + €84                    Needle free patches           Phase II/III (12/09)    Vaccines
GlaxoSmithKline/Nabi        $40m + $500m MPs                Nicotine conjugate vaccine    Phase III (11/09)       Anti smoking
GlaxoSmithKline/Chroma      ~$1billion MPs for 4 projects   Esterase sensitive motif      Discovery (06/09)       Inflammatory disorders, eg,
Therapeutics                                                technology                                            RA
GlaxoSmithKline/Concert     $35m + $1billion in MPs for 6   Deuterium containing          Discovery/preclinical   Various including HIV, renal
Pharmaceuticals             programs                        medicines                     (06/09)                 disease
GlaxoSmithKline/Idenix      $34m + $416m MPs & STPs +       Non nucleoside reverse        Phase Ii (02/09)        HIV/AIDS
Pharmaceuticals             double digit royalties          transcriptase inhibitor
Roche/Medingo               $160 + $40m STPs                Semi disposable insulin       Market 2012 (04/10)     Insulin delivery, Type 1
                                                            patch pump                                            diabetes
Novartis/Corthera           $120m + $500m MPs & STPs        Relaxin                       Phase Ii (12/09)        Acute decompensated
                                                                                                                  heart failure
Pfizer/Biocon               $200m + $150m MPs + STPs        Biosimilar insulin products   Regulatory/marketing    Type 2 diabetes
Pfizer/Protalix             $60m + $55m MPs                 Taliglucerase alfa            Regulatory (12/09)      Gaucher's disease
Takeda/Orexigen             $50m + ~$1billion MPs & STPs    Naltrexone SR/bupropion       Regulatory (09/10)      Obesity
Therapeutics                                                SR
Takeda/AMAG                 $60m + $220m MPs & STPs         Ferumoxytol for iron          Regulatory (04/10)      Adult chronic kidney
Pharmaceuticals                                             deficiency anaemia                                    disease
Takeda/Seattle Genetics     $60m + $230m MPs + double       Antibody drug conjugate       Phase I (12/09)         Lymphomas
                            digit royalties                 (ADC) targeting CD30
Takeda/Amylin               $75m + ~$1billion for MPs &     Anti obesity metabolic        Phase II (11/09)        Obesity
                            STPs + double digit royalties   drugs
Appendix 3 - Financial Statements
                  ABN:  34 067 964 621 
                AND CONTROLLED ENTITY 
                   FINANCIAL REPORT 
                  FOR THE YEAR ENDED 
                      30 JUNE 2010 
                                 ONCOLOGY RESEARCH INTERNATIONAL LIMITED  
                                            ABN 34 067 964 621 
                                         AND CONTROLLED ENTITY 
Directors’ Report                                                              1‐4 
Auditor’s Independence Declaration                                               5 
Statements of Comprehensive Income                                               6 
Statements of Financial Position                                                 7 
Statements of Changes in Equity                                                  8 
Statements of Cash Flow                                                          9 
Notes to the Financial Statements                                            10‐30 
Directors’ Declaration                                                          31 
Auditors’ Report                                                             32‐34 
                                     ONCOLOGY RESEARCH INTERNATIONAL LIMITED  
                                                ABN 34 067 964 621 
                                             AND CONTROLLED ENTITY 
                                               DIRECTORS’ REPORT 
Your directors present this report on the company and its controlled entity for the financial year ended June 30 2010.  
The names of each person who has been a director during the year and to the date of this report are: 
Professor McVie is Chairman of the Board of Oncology Research International Ltd and Chairman of ORIL’s Scientific 
Advisory Committee. Professor McVie was formerly Director General of the Cancer Research Campaign in the UK before it 
merged with the Imperial Cancer Research Foundation to form Cancer Research UK, when he became co‐Director General. 
Professor McVie is a leading world authority in the research and treatment of cancer. He is currently Senior Consultant at 
the Scientific Directorate within the European Institute of Oncology, Milan.  
Dr Marshall is Chief Executive Officer and Chief Scientific Officer of Oncology Research International Ltd. Dr Marshall 
manages the corporate aspects of the Company, as well as the scientific and research programs. Dr Marshall has nearly 30 
years’ international experience at senior and executive management level in scientific affairs within the pharmaceutical 
industry. He has considerable experience in bringing products from concept to commercialization, risk mangement, quality 
systems and compliance to best practice, international regulatory affairs, clinical studies, due diligence and in patents.
Mr Wayte is a Doctor of Chiropractic having graduated from the Canadian Memorial Chiropractic College in 1970.  He was 
the recipient of the “Chiropractor of the Year” award in Ontario in 1974.  He served as secretary of the Australian 
Chiropractors Association, Western Australia from 1977 to 1980. He was diagnosed with bowel cancer in 1986; after 
following a demanding and restrictive vegetarian diet with specific plant‐based therapies he recovered and is alive and well 
today. As a result of his recovery he founded ORIL in 1993 with the objective of researching plant‐based therapies for 
cancer and initiated the ORIL research programme.
WILLIAM SHEMLEY (Deceased 7 September 2009) 
Mr Shemley, founder and Board member, sadly passed away in September 2009; his significant contribution is respectfully 
acknowledged. Mr Shemley resided in British Columbia, Canada. He established the first fibreglass manufacturing plant in 
Western Canada over 50 years ago. Mr Shemley acted as a consultant to various major companies and brought extensive 
business experience, particularly in developing early‐stage companies to Oncology Research International Ltd.  
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. 
Mr Kenneth Michael Wayte held the position of company secretary at the end of the financial year. 

                                                                                                                     Page 1 
                                     ONCOLOGY RESEARCH INTERNATIONAL LIMITED  
                                                ABN 34 067 964 621 
                                             AND CONTROLLED ENTITY 
                                               DIRECTORS’ REPORT 
The principal activity of the consolidated group during the financial year is medical research. There have been no 
significant changes in the nature of these activities during the financial year. 
The consolidated operating loss of the consolidated group after providing for income tax for the financial year amounted 
to $241,959 (30 June 2009: Loss $769,235.) 
No dividends were paid or declared since the start of the financial year. No recommendation for payment of dividends has 
been made. 
A review of the consolidated group during the financial year and the key results of those operations are as follows: 
ORIL has been in a holding pattern for much of 2009/10 due to an acute shortage of funding. During the past few months 
the limited funding available has been almost fully directed towards synthesizing novel and water‐soluble structural 
analogues of ORIL compounds. Solubilizing the compounds through chemical synthesis will provide additional and 
considerable intellectual property for ORIL through composition of matter patents for the novel compounds. The synthesis 
has proved to be difficult but novel approaches recently applied have been positive.  It is curious how the story closely 
mirrors that of taxol (which went on to become a blockbuster) ‐ the project has shown considerable promise. 
ORIL has recently contracted to conduct a study at a prestigious cancer research centre in Australia that will demonstrate 
at a molecular level the mode of action that differentiates ORIL compounds from other anticancer drugs. This study has 
commenced and the results (expected in early 2011) will be used to acquire the significant level of funding required to take 
ORIL's compounds through formal preclinical studies and then into Phase I studies, that is, the first studies in man. 
During 2009‐10, extensive background research has identified that the unique properties of ORIL compounds have the 
potential to provide a significant contribution to the treatment of cancers. The action of ORIL compounds is different from 
that of other approaches currently under research, providing anticancer activity against a wide range of cancer types. Dr 
Michael Story has done extensive literature reviews and written some excellent reports capturing our current knowledge, 
 understanding, and potential new directions. 
 As a result, ORIL’s intellectual property position is strengthened through ORIL lodging an Australian Provisional Patent 
 Application for the invention, “Methods for Modulating Transmembrane Receptor Activity and Signalling”, which together 
 with the other research programs, continues to add value to the ORIL intellectual property portfolio. The features and 
 benefits of this technology are being developed towards first‐in‐man studies to confirm its therapeutic potential. 
There have been no significant changes in the state of affairs of the consolidated group during the financial year. 
No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly 
affect the operations of the consolidated group, the results of those operations or the state of affairs of the consolidated 
group in future financial years. 
                                                                                                                        Page 2 
                                     ONCOLOGY RESEARCH INTERNATIONAL LIMITED  
                                                ABN 34 067 964 621 
                                             AND CONTROLLED ENTITY 
                                               DIRECTORS’ REPORT 
Likely developments in the operations of the consolidated group and the expected results of those operations in future 
financial years have been discussed where appropriate in relation to the consolidated group's medical research prospects 
in the Review of Operations contained in this report. 
There are no further likely developments of which the directors are aware which could be expected to affect the result of 
the consolidated group's operations in future years. 
The Company’s operations are not regulated by any significant environmental regulation under a law of the 
Commonwealth or of a State or Territory. 
No indemnities have been given or agreed to be given or insurance premiums paid or agreed to be paid, during or since 
the end of the financial year, for any person who is or has been an officer or auditor of the company. 
No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to 
which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those 
The company was not a party to any such proceedings during the year. 
As at the date of this report, the unissued ordinary shares of Oncology Research International under option are as follows: 
  Grant Date                                Date of Expiry                  Exercise Price              Number under Option 
  14 May 2004                               6 December 2012                     $0.50                                  300,000 
  7 December 2007                           6 December 2012                     $0.75                                3,250,000 
  16 October 2008                           6 December 2012                     $0.75                                  100,000 
 No person entitled to exercise the option had or has any right by virtue of the option to participate in any share issue of 
any other body corporate. 
For details of options issued to directors and key management personnel as remuneration refer Note 14 Key Management 
Personnel Compensation. 

                                                                                                                       Page 3 
                                   ONCOLOGY RESEARCH INTERNATIONAL LIMITED  
                                              ABN 34 067 964 621 
                                           AND CONTROLLED ENTITY 
                                             DIRECTORS’ REPORT 
During the financial year, 14 meetings of directors were held, attendance of Directors at those meetings were: 
                                                Meetings                     Meetings Eligible 
                                                Attended                           to Attend 
J G McVie                                             14                                   14 
P A Marshall                                          14                                    14 
K M Wayte                                             14                                    14 
W Shemley (Deceased 7 September 2009)                   ‐                                    ‐ 
The auditor’s independence declaration for the year ended 30 June 2010 has been received and can be found on page 5 of 
the directors’ report. 
Signed in accordance with a resolution of the Board of Directors. 
_______________________________                                              ________________________________ 
P A MARSHALL                                                                 K M WAYTE 
DIRECTOR                                                                     DIRECTOR 
Dated this 30th day of October 2010 

                                                                                                                Page 4 
                                                                                                                    10 Kings Park Road
                                                                                                                    West Perth WA 6005
                                                                                                                    PO BOX 570
                                                                                                                    West Perth WA 6872

                                                                                                                    T +61 8 9480 2000
                                                                                                                    F +61 8 9322 7787

Auditor’s Independence Declaration
To the Directors of Oncology Research International Limited

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead
auditor for the audit of Oncology Research International Limited for the year ended 30 June
2010, I declare that, to the best of my knowledge and belief, there have been:

a        no contraventions of the auditor independence requirements of the Corporations Act
         2001 in relation to the audit; and

b        no contraventions of any applicable code of professional conduct in relation to the

Chartered Accountants

J W Vibert
Director - Audit & Assurance

Perth, 30 October 2010

                                                                                                                                   Page 5

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Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member
firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services
independently in Australia.
Liability limited by a scheme approved under Professional Standards Legislation.
                                   ONCOLOGY RESEARCH INTERNATIONAL LIMITED 
                                              ABN 34 067 964 621 
                                            AND CONTROLLED ENTITY 
                                     STATEMENTS OF COMPREHENSIVE INCOME 
                                        FOR THE YEAR ENDED 30 JUNE 2010 
                                           NOTE           Consolidated Group                  Parent Entity 
                                                              2010             2009           2010                  2009
                                                                  $                $              $                     $
Other Income                                  2            343,014          367,739        343,014               367,739
Depreciation expense                                        (1,384)          (1,401)        (1,384)               (1,401)
Accountancy                                               (53,500)         (48,000)       (53,500)              (48,000)
Audit fees                                                (10,320)         (10,770)       (10,320)              (10,770)
Capital Raising Costs                                             ‐        (56,199)               ‐             (56,199)
Corporate Advisory                                          (6,000)        (43,450)         (6,000)             (43,450)
Consultancy fees                                         (133,332)        (159,996)      (133,332)             (159,996)
Option expenses                                                   ‐          (8,700)              ‐               (8,700)
Patents                                                   (26,812)        (195,496)       (26,812)             (195,496)
Printing, postage and stationery                            (9,158)        (14,815)         (9,158)             (14,815)
Provision for non recovery of loan                                ‐                ‐          (212)                 (482)
Research & Development                                   (296,969)        (476,503)      (296,969)             (476,503)
Secretarial fees                                            (5,500)        (18,250)         (5,500)             (18,250)
Travel and Accommodation                                  (28,189)         (76,375)       (28,189)              (76,375)
Other expenses                                            (13,809)         (27,019)       (13,597)              (26,537)
Loss before income tax                        3           (241,959)       (769,235)      (241,959)             (769,235)
Income tax expense                            5                   ‐                ‐              ‐                     ‐
Loss for the year                                         (241,959)       (769,235)      (241,959)             (769,235)
Total comprehensive loss attributable to                                                            
members of the parent entity                              (241,959)       (769,235)      (241,959)             (769,235)
The accompanying notes form part of these financial statements. 

                                                                                                          Page 6 
                                    ONCOLOGY RESEARCH INTERNATIONAL LIMITED 
                                               ABN 34 067 964 621 
                                            AND CONTROLLED ENTITY 
                                       STATEMENTS OF FINANCIAL POSITION 
                                               AS AT 30 JUNE 2010 
                                              NOTE        Consolidated Group              Parent Entity 
                                                            2010              2009        2010                 2009
                                                                $                $            $                   $
CURRENT ASSETS                                                                                    
Cash and cash equivalents                      6            6,270         155,000         6,270             155,000
Trade and other receivables                    7           21,403          30,949        21,403              30,949
TOTAL CURRENT ASSETS                                       27,673         185,949        27,673             185,949
NON‐CURRENT ASSETS                                                                                
Trade and other receivables                    7                ‐                ‐            ‐                   ‐
Financial assets                               8                ‐                ‐            ‐                   ‐
Property, plant & equipment                    9            2,050            3,232        2,050               3,232
TOTAL NON‐CURRENT ASSETS                                    2,050            3,232        2,050               3,232
TOTAL ASSETS                                               29,723         189,181        29,723             189,181
CURRENT LIABILITIES                                                                                  
Trade and other payables                      10           227,425        301,939        227,425            301,939
Borrowings                                    11                 ‐        107,985              ‐            107,985
TOTAL CURRENT LIABILITIES                                  227,425        409,924        227,425            409,924
TOTAL LIABILITIES                                          227,425        409,924        227,425            409,924
NET ASSETS (LIABILITIES)                                 (197,702)       (220,743)     (197,702)           (220,743)
Contributed Equity                            12         7,057,347       6,792,347     7,057,347          6,792,347
Reserves                                      13           210,540         210,540       210,540            210,540
Accumulated losses                                     (7,465,589)     (7,223,630)   (7,465,589)        (7,223,630)
TOTAL EQUITY (DEFICIENCY)                                (197,702)       (220,743)     (197,702)           (220,743)
The accompanying notes form part of these financial statements. 

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                                   ONCOLOGY RESEARCH INTERNATIONAL LIMITED 
                                              ABN 34 067 964 621 
                                            AND CONTROLLED ENTITY 
                                       STATEMENTS OF CHANGES IN EQUITY  
                                        FOR THE YEAR ENDED 30 JUNE 2010 
                                                 Contributed       Accumulated                        
                                                    Equity            Losses                                 Total
                                                       $                 $            $                    $ 
Consolidated group                                                                                    
Balance at 1 July 2008                               6,282,847       (6,454,395)     201,840               30,292
Total comprehensive income for the year                                                               
Loss attributable to members of parent entity                ‐         (769,235)           ‐             (769,235)
Transactions with equity holders in their                                                             
capacity as equity holders 
Shares issued during the year                          509,500                 ‐           ‐               509,500
Options issued during the year                               ‐                 ‐       8,700                 8,700
Balance at 30 June 2009                              6,792,347       (7,223,630)     210,540             (220,743)
Total comprehensive income for the year                                                               
Loss attributable to members of parent entity                ‐         (241,959)           ‐             (241,959)
Transactions with equity holders in their                                                             
capacity as equity holders 
Shares issued during the year                          265,000                 ‐           ‐               265,000
Balance at 30 June 2010                              7,057,347       (7,465,589)     210,540             (197,702)
Parent Entity                                                                                         
Balance at 1 July 2008                               6,282,847       (6,454,395)     201,840               30,292
Total comprehensive income for the year                                                               
Loss attributable to members of parent entity                ‐         (769,235)           ‐             (769,235)
Transactions with equity holders in their                                                             
capacity as equity holders 
Shares issued during the year                          509,500                 ‐           ‐               509,500
Options issued during the year                               ‐                 ‐       8,700                 8,700
Balance at 30 June 2009                              6,792,347       (7,223,630)     210,540             (220,743)
Total comprehensive income for the year                                                               
Loss attributable to members of parent entity                ‐         (241,959)           ‐             (241,959)
Transactions with equity holders in their                                                             
capacity as equity holders 
Shares issued during the year                          265,000                 ‐           ‐               265,000
Balance at 30 June 2010                              7,057,347       (7,465,589)     210,540             (197,702)
The accompanying notes form part of these financial statements. 
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                                   ONCOLOGY RESEARCH INTERNATIONAL LIMITED 
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                                          STATEMENTS OF CASH FLOW 
                                       FOR THE YEAR ENDED 30 JUNE 2010 
                                                 NOTE                 Consolidated Group                                      Parent Entity 
                                                                         2010                     2009                          2010                 2009
                                                                                $                        $                          $                    $
CASH FLOWS FROM OPERATING ACTIVITIES                                                                         
Interest received                                                           886                  4,214                            886               4,214
Goods & Services tax refund                                           42,404                   87,053                        42,404               87,053
Research & Development Tax Offset Refund                           342,235                   363,584                       342,235              363,584
Payments to suppliers                                            (536,068)             (1,083,402)                       (535,856)        (1,082,920)
Net cash (used in) operating activities                16        (150,543)                (628,551)                      (150,331)           (628,069)
CASH FLOWS FROM INVESTING ACTIVITIES                                                                         
Purchase of Plant and Equipment                                          (202)                    (817)                         (202)                (817)
Net cash (used in) investing activities                                  (202)                    (817)                         (202)                (817)
CASH FLOWS FROM FINANCING ACTIVITIES                                                                         
Proceeds from issue of shares                                       265,000                  509,500                       265,000              509,500
Proceeds from funds held in trust                                (155,000)                   155,000                     (155,000)              155,000
Loan to controlled entity                                                        ‐                        ‐                     (212)                (482)
Net cash  provided by financing activities                          110,000                  664,500                       109,788              664,018
Net increase/(decrease) in cash held                               (40,745)                    35,132                      (40,745)               35,132
Cash at the beginning of the financial year                           47,015                   11,883                        47,015               11,883
Cash at the end of the financial year                   6               6,270                  47,015                          6,270              47,015
The accompanying notes form part of these financial statements. 

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                                         ABN 34 067 964 621 
                                      AND CONTROLLED ENTITY 
                                 NOTES TO THE FINANCIAL STATEMENTS 
                                  FOR THE YEAR ENDED 30 JUNE 2010 
     This financial report includes the consolidated financial statements and notes of Oncology Research International 
     Ltd and controlled entity (Consolidated Group), and the separate financial statements and notes of Oncology 
     Research International Ltd as an individual parent entity (Parent Entity). 
     Basis of Preparation 
     The financial report is a general purpose financial report that has been prepared in accordance with Australian 
     Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian 
     Accounting Standards Board (AASB) and the Corporations Act 2001. 
     Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial 
     report containing relevant and reliable information about transactions, events and conditions to which they apply. 
     Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with 
     International Financial Reporting Standards. Material accounting policies adopted in the preparation of the financial 
     report are presented below. They have been consistently applied, unless otherwise stated. 
     The financial report has been prepared on an accruals basis and is based on historical costs, modified, where 
     applicable, by the measurement at fair value of selected non‐current assets, financial assets and financial liabilities. 
     Inclusion of parent entity financial statements in financial reports 
     The entity has applied the relief available to it under ASIC Class Order 10/654 and accordingly, has included parent 
     entity financial statements as part of its financial report. 
     Accounting Policies 
     (a)   Principles of Consolidation 
     A controlled entity is any entity over which Oncology Research International Ltd has the power to govern the 
     financial and operating policies so as to obtain benefits from its activities. In assessing the power to govern, the 
     existence and effect of holdings actual and potential voting rights are considered. 
     Details of the controlled entity are contained in Note 20 to the financial report. The controlled entity has a June 
     financial year end. 
     As at reporting date, the assets and liabilities of the controlled entity have been incorporated into the consolidated 
     financial statements as well as their results for the year then ended.  
     All inter‐group balances and transactions between entities in the consolidated group, including any unrealised 
     profits or losses, have been eliminated on consolidation. 
     (b)  Property, Plant and Equipment  
     Plant and equipment  
     Plant and equipment are measured on the cost basis. 
     The depreciable amount of all fixed assets is depreciated on a straight line basis over their useful lives to the 
     consolidated group commencing from the time the asset is held ready for use.  
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                                    ONCOLOGY RESEARCH INTERNATIONAL LIMITED 
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                                            AND CONTROLLED ENTITY 
                                       NOTES TO THE FINANCIAL STATEMENTS 
                                        FOR THE YEAR ENDED 30 JUNE 2010 
      (b)  Property, Plant and Equipment (Continued) 
      The depreciation rates used for each class of depreciable assets are: 
      Class of Fixed Assets              Useful Life 
      Plant and equipment                5 to 10 years 
      The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. 
      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. 
      Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and 
      losses are included in the income statement. 
      (c)    Income Tax 
      The income tax expense (revenue) for the year comprises current income tax expense (income) and deferred tax 
      expense (income.) 
      Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using the 
      rates of tax enacted, or are substantially enacted, as at reporting date. Current tax liabilities (assets) are therefore 
      measured at the amounts expected to be paid to (recovered from) the relevant taxation authority. 
      Deferred tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as 
      well as unused tax losses. 
      Current and deferred income tax expense (income) is charged or credited directly to equity instead of the profit or 
      loss when the tax relates to items that are charged or credited directly to equity. 
      Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of 
      assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where 
      amounts have been fully expensed but future tax deductions are available. No deferred income tax will be 
      recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no 
      effect on accounting or taxable profit or loss. 
      Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the 
      asset is realised or liability is settled, based on tax rates enacted or substantially enacted at reporting date. Their 
      measurement also reflects the manner in which management expects to recover or settle the carrying amount of 
      the related asset or liability. 
      Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it 
      is probable that future tax profit will be available against which the benefits of the deferred tax asset can be 
      The amount of benefits brought to account or which may be realised in the future is based on the assumption that 
      no adverse change will occur in income tax legislation and the anticipation that the consolidated group will derive 
      sufficient future assessable income to enable the benefit to be realised and comply with the conditions of 
      deductibility imposed by the law. 

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                                  ONCOLOGY RESEARCH INTERNATIONAL LIMITED 
                                             ABN 34 067 964 621 
                                          AND CONTROLLED ENTITY 
                                      FOR THE YEAR ENDED 30 JUNE 2010 
      (c) Income Tax (continued) 
      Where temporary differences exist in relation to investments in subsidiaries, deferred tax assets and liabilities are 
      not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable 
      that the reversal will occur in the foreseeable future. 
      Tax Consolidation 
      Oncology Research International Ltd and its wholly owned Australian subsidiary have formed an income tax 
      consolidated group from 1 July 2003 under tax consolidation legislation.  Oncology Research International Ltd is 
      responsible for recognising the current and deferred tax liabilities for the tax consolidated group. 
      (d)   Impairment of Non Financial Assets 
      At each reporting date, the group reviews the carrying value of its tangible and intangible assets to determine 
      whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable 
      amount of the asset, being higher of the asset’s fair value less costs to sell and value in use, is compared to the 
      asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the 
      income statement. 
      Impairment testing is performed annually for intangible assets with indefinite lives. 
      Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the 
      recoverable amount of the cash‐generating unit to which the asset belongs. 
      (e)  Intangibles  
      Research and Development 
      Expenditure during the research phase of a project is recognised as an expense when incurred. Development costs 
      are capitalised only when technical feasibility studies identify that the project will deliver future economic benefits 
      and these benefits can be measured reliably. 
      Developments costs have a finite life and are amortised on a systematic basis matched to the future economic 
      benefits over the useful life of the project. 
      (f)   Revenue 
      Interest revenue is recognised using the effective interest rate method, which, for floating rate financial assets, is 
      the rate inherent in the instrument. 
      All revenue is stated net of the amount of goods and services tax (GST.) 
      (g)   Goods and Services Tax (GST) 
      Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred 
      is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of 
      acquisition of the asset or as part of an item of the expense.  Receivables and payables in the Statement of Financial 
      Position are shown inclusive of GST. 
      Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing 
      and financing activities, which are disclosed as operating cash flows. 
                                                                                                                    Page 12 
                                        ONCOLOGY RESEARCH INTERNATIONAL LIMITED 
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                                                    AND CONTROLLED ENTITY 
                                 NOTES TO AND FORMING PART OF THE FINANCIAL REPORT 
                                               FOR THE YEAR ENDED 30 JUNE 2010 
      (h)   Foreign Currency Transactions and Balances 
      Functional and presentation currency 
      The functional currency of each of the group’s entities is measured using the currency of the primary economic 
      environment in which it operates. The consolidated financial statements are presented in Australian dollars which is 
      the parent entity’s functional and presentation currency. 
      Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date 
      of the transaction.  Exchange rate differences arising on translation are recognised in the income statement. 
      (i)    Cash and Cash Equivalents 
      Cash and cash equivalents include cash on hand, deposits held at call with banks, other short‐term highly liquid 
      investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within 
      short‐term borrowings in current liabilities on the balance sheet. 
      (j)   Financial instruments 
      Financial instruments, incorporating financial assets and financial liabilities, are initially measured at cost on trade 
      date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial 
      recognition these instruments are measured as set out below.  
      Financial assets at fair value through profit and loss  
      A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if 
      so designated by management and within the requirements of AASB 139: Recognition and Measurement of 
      Financial Instruments. Realised and unrealised gains and losses arising from changes in the fair value of these assets 
      are included in the income statement in the period in which they arise. 
      Loans and receivables  
      Loans and receivables are non‐derivative financial assets with fixed or determinable payments that are not quoted 
      in an active market and are stated at amortised cost using the effective interest rate method.  
      Available‐for‐sale financial assets  
      Available‐for‐sale financial assets include any financial assets not included in the above categories. Available‐for‐sale 
      financial assets are reflected at fair value. Unrealised gains and losses arising from changes in fair value are taken 
      directly to equity. 
      Financial liabilities  
      Non‐derivative financial liabilities are recognised at amortised cost, comprising original debt less principal payments 
      and amortisation.  
      Fair value  
      Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length 
      transactions, reference to similar instruments and option pricing models.  
      At each reporting date, the group assesses whether there is objective evidence that a financial instrument has been 
       impaired.  Impairment losses are recognised in the income statement. 

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                                          ABN 34 067 964 621 
                                        AND CONTROLLED ENTITY 
                                    FOR THE YEAR ENDED 30 JUNE 2010 
       (k)    Share‐based payments 

       The Company provides benefits to key management personnel (including directors) of the Company in the form of 
       share‐based  payment  transactions,  whereby  services  are  rendered  in  exchange  for  options  over  shares  (‘equity‐
       settled transactions’). 
      The fair value of the equity to which the key management personnel become entitled is measured at grant date and 
      recognised as an expense over the vesting period, with a corresponding increase to an equity account. 
      (l)     Going concern 
      The company and consolidated entity has incurred a loss during the year ended 30 June 2010 of $241,959, and as of 
      that date, the company’s and consolidated entity’s current liabilities exceeded its total assets by $197,702. 
      Negotiations with existing creditors are ongoing to delay the due date for payment of amounts recorded as current 
      liabilities to a date when the group has sufficient funds to meet these repayments. In light of the trading terms 
      which exist between the group and its principal suppliers, the directors are confident that the group will not be 
      called upon to pay those amounts recorded as current liabilities until such times as sufficient funds are available. 
      Negotiations are also ongoing in relation to securing funding for the continued development of the group’s 
      technologies. The directors are confident that such funding will become available. The accounts have been prepared 
      on the assumption that such continued funding will be available. This outcome cannot be guaranteed as unforeseen 
      technical, market or commercial issues may arise. The conditions indicate the existence of a material uncertainty 
      which may cast significant doubt about the consolidated entity’s ability to continue as a going concern and 
      therefore the consolidated entity may be unable to realise its assets and discharge its liabilities in the normal course 
      of business and at the amounts stated in the financial report. 
      Whilst acknowledging the above material uncertainties, in the director’s opinion there are reasonable grounds to 
      believe that the company and consolidated entity will be able to pay their debts as and when they become due and 
      payable, and the company and controlled entity who are party to the deed described in Note 7 will, as a consolidated 
      entity, be able to meet any obligations or liabilities to which they are, or may become, liable by virtue of the deed of 
      cross guarantee dated 8 December 1995. 
      (m)   Comparative Figures 
      Where required by Accounting Standards, comparative figures have been adjusted to conform to changes in 
      presentation for the current financial year. 
      (n)   Adoption of new and revised accounting standards and interpretations 
      AASB 101: Presentation of Financial Statements 
      In September 2007, the Australian Accounting Standards Board revised AASB 101, and as a result there have been 
      changes to the presentation and disclosure of certain information within the financial statements.  Below is an 
      overview of the key changes and the impact on the Group’s financial statements. 
      Disclosure impact 
      Terminology changes — The revised version of AASB 101 contains a number of terminology changes, including the 
      amendment of the names of the primary financial statements. 

                                                                                                                        Page 14 
                                   ONCOLOGY RESEARCH INTERNATIONAL LIMITED 
                                              ABN 34 067 964 621 
                                            AND CONTROLLED ENTITY 
                                        FOR THE YEAR ENDED 30 JUNE 2010 
          (n)    Adoption of new and revised accounting standards and interpretations (continued) 
          Reporting changes in equity — The revised AASB 101 requires all changes in equity arising from transactions with 
          owners in their capacity as owners to be presented separately from non‐owner changes in equity.  Owner changes 
          in equity are to be presented in the statement of changes in equity, with non‐owner changes in equity presented in 
          the statement of comprehensive income.  The previous version of AASB 101 required that owner changes in equity 
          and other comprehensive income be presented in the statement of changes in equity. 
          Statement of comprehensive income — The revised AASB 101 requires all income and expenses to be presented in 
          either one statement — the statement of comprehensive income, or two statements — a separate income 
          statement and a statement of comprehensive income.  The previous version of AASB 101 required only the 
          presentation of a single income statement. 
          The Group’s financial statements now contain a statement of comprehensive income. 
          Other comprehensive income — The revised version of AASB 101 introduces the concept of ‘other comprehensive 
          income’ which comprises of income and expense that are not recognised in profit or loss as required by other 
          Australian Accounting Standards.  Items of other comprehensive income are to be disclosed in the statement of 
          comprehensive income.  Entities are required to disclose the income tax relating to each component of other 
          comprehensive income. The previous version of AASB 101 did not contain an equivalent concept. 
          Certain  new  accounting  standards  and  interpretations  have  been  published  that  are  not  mandatory  for  30  June 
          2010  reporting  periods.  The  Consolidated  Group’s  assessment  of  the  impact  of  these  new  standards  and 
          interpretations is set out below. 
          (i) AASB 2009‐8 Amendments to Australian Accounting Standards – Company Cash‐Settled Share based Payment 
          Transactions [AASB 2] (effective from 1 January 2010) 
          The amendments made by the AASB to AASB 2 confirm that an entity receiving goods or services in a Company 
          share‐based payment arrangement must recognise an expense for those goods or services regardless of which 
          entity in the Company settles the transaction or whether the transaction is settled in shares or cash. They also 
          clarify how the Company share‐based payment arrangement should be measured, that is, whether it is measured as 
          an equity‐ or a cash‐settled transaction. The Consolidated Group will apply these amendments retrospectively for 
          the financial reporting period commencing on 1 July 2010. There will be no impact on the financial statements of 
          the Group. 
           (ii) AASB 2009‐10 Amendments to Australian Accounting Standards – Classification of Rights Issues [AASB 132] 
          (effective from 1 February 2010) 
          In October 2009 the AASB issued an amendment to AASB 132 Financial Instruments: Presentation which addresses 
          the accounting for rights issues that are denominated in a currency other than the functional currency of the issuer. 
          Provided certain conditions are met, such rights issues are now classified as equity regardless of the currency in 
          which the exercise price is denominated. Previously, these issues had to be accounted for as derivative liabilities. 
          The amendment must be applied retrospectively in accordance with AASB 108 Accounting Policies, Changes in 
          Accounting Estimates and Errors. The Consolidated Group will apply the amended standard from 1 July 2010. As the 
          Company has not made any such rights issues, the amendment will not have any effect on the  financial statements 
          of the Consolidated Group. 
                                                                                                                            Page 15 
                                          ABN 34 067 964 621 
                                        AND CONTROLLED ENTITY 
                                    FOR THE YEAR ENDED 30 JUNE 2010 
      (n)  Adoption of new and revised accounting standards and interpretations (continued) 
       (iii) AASB 9 Financial Instruments and AASB 2009‐11 Amendments to Australian Accounting Standards arising from 
       AASB 9 (effective from 1 January 2013) 
       AASB 9 Financial Instruments addresses the classification and measurement of financial assets and is likely to affect 
       the Company’s accounting for its financial assets. The standard is not applicable until 1 January 2013 but is available 
       for early adoption. The Consolidated Group is yet to assess its full impact. However, initial indications are that it will 
       not affect the Consolidated Group’s accounting for its available‐for‐sale financial assets, as AASB 9 appears to 
       continue the current treatment of the recognition of fair value gains and losses in other comprehensive income if 
       they relate to equity investments that are not held for trading. The Consolidated Group has not yet decided when to 
       adopt AASB 9. 
       (iv) AASB Interpretation 19 Extinguishing financial liabilities with equity instruments and AASB 2009‐13 
       Amendments to Australian Accounting Standards arising from Interpretation 19 (effective from 1 July 2010) 
       AASB Interpretation 19 clarifies the accounting when an entity renegotiates the terms of its debt with the result 
       that the liability is extinguished by the debtor issuing its own equity instruments to the creditor (debt for equity 
       swap). It requires a gain or loss to be recognised in profit or loss which is measured as the difference between the 
       carrying amount of the financial liability and the fair value of the equity instruments issued. The Consolidated Group 
       will apply the interpretation from 1 July 2010. It is not expected to have any impact on the financial statements of 
       the Consolidated Group since it is only retrospectively applied from the beginning of the earliest period presented 
       (1 July 2009) and the Consolidated Group has not entered into any debt for equity swaps since that date. 
       (v) AASB 2009‐14 Amendments to Australian Interpretation – Prepayments of a Minimum Funding Requirement 
        (effective from 1 January 2011) 
        In December 2009, the AASB made an amendment to Interpretation 14 The Limit on a Defined Benefit Asset, 
        Minimum Funding Requirements and their Interaction. The amendment removes an unintended consequence of the 
        interpretation related to voluntary prepayments when there is a minimum funding requirement in regard to the 
        entity's defined benefit scheme. It permits entities to recognise an asset for a prepayment of contributions made to 
        cover minimum funding requirements. The Consolidated Group does not make any such prepayments. The 
        amendment is therefore not expected to have any impact on the financial statements of the Consolidated Group. 
        The Consolidated Group intends to apply the amendment from 1 July 2011. 

                                                                                                                        Page 16 
                                          ONCOLOGY RESEARCH INTERNATIONAL LIMITED 
                                                          ABN 34 067 964 621 
                                                       AND CONTROLLED ENTITY 
                                    NOTES TO AND FORMING PART OF THE FINANCIAL REPORT 
                                                  FOR THE YEAR ENDED 30 JUNE 2010 
                                                                       Consolidated Group                   Parent Entity 
                                                                          2010             2009            2010                 2009
                                                                              $                $              $                    $
2.         REVENUE                                                                                 
           Operating activities                                                                    
           ‐ interest received                                             779             4,154            779                4,154
           ‐ Research & Development Tax Offset Refund                  342,235          363,585         342,235              363,585
         Total Revenue                                                 343,014          367,739         343,014              367,739
3.         LOSS FOR THE YEAR                                                                       
           ‐ Research & development costs                              296,969          476,503         476,503              476,503
4.      AUDITORS’ REMUNERATION                                                                     
           Remuneration of the auditor of the parent entity                                        
           ‐ auditing or reviewing the financial report                 10,320           10,770          10,320               10,770
           ‐ non audit services                                               ‐                ‐              ‐                    ‐
           ‐ other services provided by related practice of                                        
               auditor                                                        ‐                ‐              ‐                    ‐
                                                                        10,320           10,770          10,320               10,770
5.         INCOME TAX                                                                               
           The prima facie tax payable (benefit) on the                                             
           profit/(loss) from ordinary activities before 
           income tax is reconciled to the income tax 
           expense or benefit as follows: 
       Prima facie income tax payable (benefit) on 
       profit/(loss) from ordinary activities before 
       income tax at 30%                                            (72,588)         (230,771)          (72,588)         (230,771)
       Tax effect of differences:                                                                   
       Non assessable items:                                                                        
       ‐ Research & Development Tax Offset Refund                  (102,671)         (109,076)         (102,671)         (109,076)
       Non allowable items:                                                                         
       ‐ Provision for doubtful debts – loan to                                                     
          controlled entity                                                ‐                  ‐               64                  145
       ‐ Research & Development Tax Offset Claim                      83,409           256,869            83,409             256,869
       ‐ Option expenses                                                   ‐              2,610                ‐                2,610
       ‐ Other non allowable items                                     3,595                396            3,595                  315
       Decrease (Increase) in Deferred Tax Asset                       3,131             27,661            3,131               27,663
                                                                    (85,124)           (52,311)         (85,060)             (52,245)
       Deferred Tax Assets not brought to account at                                                
       30%                                                           85,124              52,311          85,060               52,245
       Income tax benefit attributable to profit/(loss)                                             
       from ordinary activities before income tax                          ‐                  ‐                ‐                    ‐
       Potential tax benefit at 30% of unused tax losses                                            
       for which no Deferred Tax Asset has been                    1,199,296         1,113,595          406,793              321,090

                                                                                                                    Page 17 
                                          ONCOLOGY RESEARCH INTERNATIONAL LIMITED 
                                                        ABN 34 067 964 621 
                                                      AND CONTROLLED ENTITY 
                                    NOTES TO AND FORMING PART OF THE FINANCIAL REPORT 
                                                 FOR THE YEAR ENDED 30 JUNE 2010 
                                                         Note         Consolidated Group                             Parent Entity 
                                                                         2010               2009                     2010                      2009
                                                                             $                  $                          $                          $
6.         CASH AND CASH EQUIVALENTS                                                                
           Cash at bank and in hand                                     6,270            155,000                   6,270                  155,000
           Reconciliation of Cash                                                                     
           Cash at the end of the financial year as shown in                                        
           the Cash Flow Statement is reconciled to items in 
           the balance sheet as follows: 
           Cash and cash equivalents                                    6,270            155,000                   6,270                  155,000
           Borrowings                                    11                  ‐         (107,985)                            ‐          (107,985)
                                                                        6,270             47,015                   6,270                    47,015
7.         TRADE AND OTHER RECEIVABLES                                                              
           Other receivables                                              547             27,115                       547                  27,115
           Goods & Services Tax Receivable                             20,856              3,834                 20,856                       3,834
                                                                       21,403             30,949                 21,403                     30,949
           Amounts receivable from:                                                                 
           ‐ wholly owned subsidiary                                         ‐                  ‐           1,726,225                  1,726,013
           Provision for doubtful debts                                                             
           ‐  wholly owned subsidiary                                        ‐                  ‐      (1,726,225)                  (1,726,013)
                                                                             ‐                  ‐                           ‐                          ‐
             Oncology Research International Limited has agreed to financially support Oncology Research Associates Pty Ltd.  
             A deed of Cross‐Guarantee was entered into with Oncology Research Associates Pty Ltd on 8 December 1995 in 
             which the group guarantees payment of any debt incurred in accordance with the Deed of Cross‐Guarantee. 
                                                                     Consolidated Group                              Parent Entity 
                                                                         2010             2009                       2010                      2009
                                                                             $                $                            $                          $
8.         OTHER FINANCIAL ASSETS                                                                     
           Unlisted investments, at recoverable amount                                                
           ‐ shares in subsidiary at cost 
           (refer note 20)                                                   ‐                ‐             2,000,000                  2,000,000
           Provision for write down to recoverable amount                    ‐                ‐    (2,000,000)                      (2,000,000)
                                                                             ‐                ‐                             ‐                          ‐

                                                                                                                                      Page 18 
                                   ONCOLOGY RESEARCH INTERNATIONAL LIMITED 
                                               ABN 34 067 964 621 
                                             AND CONTROLLED ENTITY 
                                         FOR THE YEAR ENDED 30 JUNE 2010 
                                                           Consolidated Group                        Parent Entity 
                                                               2010            2009                  2010                2009
                                                                   $              $                     $                   $
9.     PROPERTY, PLANT & EQUIPMENT                                                     
       Plant & equipment, at cost                              8,545          8,343                  7,910              7,708
       Accumulated depreciation                              (6,495)        (5,111)                (5,860)            (4,476)
                                                               2,050          3,232                  2,050              3,232
       (a)  Movements in Carrying Amounts 
       Movement in the carrying amounts for each class of property, plant and equipment between the beginning and end 
       of the current financial year. 
                                                               Consolidated Group                     Parent Entity 
                                                                    2010             2009             2010               2009
                                                                        $                $               $                  $
        Plant and Equipment                                                                     
        Balance at beginning of year                                3,232            3,816           3,232              3,816
        Additions                                                     202              817             202                817
        Depreciation Expense                                      (1,384)          (1,401)         (1,384)            (1,401)
        Carrying amount at the end of the year                      2,050            3,232           2,050              3,232
                                                               Consolidated Group                    Parent Entity 
                                                                    2010             2009            2010               2009
                                                                        $                $              $                  $
10.    TRADE AND OTHER PAYABLES                                                               
       Trade  payables                                          227,425           146,939         227,425            146,939
       Funds held in trust                                              ‐         155,000                ‐           155,000
                                                                227,425           301,939         227,425            301,939
11.    BORROWINGS                                                                             
       Bank                                                             ‐         107,985                ‐           107,985

                                                                                                              Page 19 
                                   ONCOLOGY RESEARCH INTERNATIONAL LIMITED 
                                               ABN 34 067 964 621 
                                             AND CONTROLLED ENTITY 
                                         FOR THE YEAR ENDED 30 JUNE 2010 

                                                                 Consolidated Group                        Parent Entity 
                                                                    2010             2009                 2010                 2009
                                                                        $               $                     $                   $
12.    CONTRIBUTED EQUITY                                                                       
       22,655,510 (2009: 22,390,510)                                                            
       Fully paid ordinary shares                               7,057,347          6,792,347          7,057,347         6,792,347
       Ordinary shares                                                                          
       At the beginning of the reporting period                22,390,510         21,485,510         22,390,510        21,485,510
       Shares issued during the year                              265,000            905,000            265,000           905,000
       At reporting date                                       22,655,510         22,390,510         22,655,510        22,390,510
       The company issued an Offer Information Statement (OIS) dated 10 October 2008. No shares are to be allotted or 
       offered on the basis of the OIS later than 13 months after the date of the OIS.  
       During the year, the company raised $265,000 through the issue of 265,000 ordinary shares at $1.00 under the OIS 
       dated 10 October 2008. 
       Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the 
       number of shares held. 
       At shareholders meetings each ordinary share is entitled to one vote when a poll is called, otherwise each 
       shareholder has one vote on a show of hands. 
       At balance date, share options existed which if exercised would result in the issue of 3,650,000 (2009: 3,650,000) 
       fully paid ordinary shares as follows: 
        Grant Date                           Date of Expiry                 Exercise Price            Number under Option 
        14 May 2004                          6 December 2012                   $0.50                              300,000 
        7 December 2007                      6 December 2012                   $0.75                            3,250,000 
        16 October 2008                      6 December 2012                   $0.75                              100,000 
       The options are exercisable before 6 December 2012 at the discretion of the option holder. 

                                                                                                                    Page 20 
                                     ONCOLOGY RESEARCH INTERNATIONAL LIMITED 
                                                 ABN 34 067 964 621 
                                               AND CONTROLLED ENTITY 
                                 NOTES TO AND FORMING PART OF THE FINANCIAL REPORT 
                                             FOR THE YEAR ENDED 30 JUNE 2010 
       12. ISSUED CAPITAL (continued) 
         For information relating to share options issued to key management personnel during the financial year refer to 
         Note 14 Key Management Personnel Compensation. 
         Capital Management 

         The company’s objectives when managing capital are to ensure the group can fund its operations and continue as a 
         going concern. 
         The company monitors its working capital position against expenditure requirements to undertake its planned 
         research and development program and maintain its ongoing operations.  Where required the company will issue 
         new securities or modify its research and development program to ensure the company’s working capital 
         requirements are met. 
         There have been no changes in the policy adopted by management to control the capital of the company since the 
         prior year. 
13.      RESERVES 
         Option Reserve 
         The Option Reserve is used to recognise fair value of options issued to key management personnel (including 
         directors) and their associates.  Details of the movement in reserves are shown on the face of the statement of 
         changes in equity. 
         The names and positions held of economic and parent entity key management personnel in office at any time 
         during the financial year are: 
          J G McVie                     Director and Chairman of the Board  
          P A Marshall                  Director, Chief Executive Officer and Chief Scientific Officer  
          K M Wayte                     Director and Secretary 
          W Shemley                     Director (Deceased 7 September 2009) 
          M J Story                     Principal Research Scientist 
         Compensation Practices 
                                                    Short Term         Share based payments             
                                                    Cash fees          Options2       Shares               Total 
           Name                                         $                 $             $                    $ 
           Kenneth Michael Wayte                      133,332                  ‐             ‐             133,332 
           Philip A Marshall                           79,350                                ‐              79,350 
           Michael J Story                            120,000                  ‐             ‐             120,000 
           Total                                      332,682                  ‐             ‐             332,682 

                                                                                                                      Page 21 
                                    ONCOLOGY RESEARCH INTERNATIONAL LIMITED 
                                                ABN 34 067 964 621 
                                              AND CONTROLLED ENTITY 
                                NOTES TO AND FORMING PART OF THE FINANCIAL REPORT 
                                            FOR THE YEAR ENDED 30 JUNE 2010 
                                                   Short Term           Share based payments           
                                                    Cash fees          Options2         Shares             Total 
          Name                                          $                  $               $                 $ 
          Kenneth Michael Wayte                      159,996                    ‐               ‐           159,996 
          Philip A Marshall                          171,450               8,700                ‐           180,150 
          Michael J Story                            120,000                    ‐               ‐           120,000 
          Total                                      451,446               8,700                ‐           460,146 
        Compensation Practices 
        Note 1: 
        During the years ended 30 June 2010 and 30 June 2009 there was no compensation paid directly by the company to 
        the key management personnel. 
        Altnamus Pty Ltd, an entity associated with Dr K M Wayte, provided consulting services to the consolidated group 
        totalling $133,332 excluding GST (2009: $159,996 excluding GST). The balance owing to Altnamus Pty Ltd by the 
        consolidated group at 30 June 2010 was $80,000 excluding GST. 
        Pharmchem Technical Services Pty Ltd, an entity associated with Dr P A Marshall provided consulting services to the 
        consolidated group totalling $79,350 excluding GST (2009: $174,450 excluding GST). The balance owing to 
        Pharmchem Technical Services Pty Ltd by the consolidated group at 30 June 2010 was $36,750 excluding GST. 
        Story Pharmaceutics Pty Ltd, an entity associated with Dr M J Story provided consulting services to the consolidated 
        group totalling $120,000 excluding GST (2009: $120,000 excluding GST).  The balance owing to Story Pharmaceutics 
        Pty Ltd by the consolidated group at 30 June 2010 was $80,000 excluding GST. 
        Note 2: 
        The share based payments to the key management personnel include options issued to associated individuals and 
        Other transactions and balances with key management personnel are disclosed in Note 15. 

                                                                                                                    Page 22 
                                         ONCOLOGY RESEARCH INTERNATIONAL LIMITED 
                                                     ABN 34 067 964 621 
                                                   AND CONTROLLED ENTITY 
                                     NOTES TO AND FORMING PART OF THE FINANCIAL REPORT 
                                                 FOR THE YEAR ENDED 30 JUNE 2010 
       Number of Shares Held by Key Management Personnel 
       Key Management Personnel                                         Balance         Transfers/             Balance
                                                                     1 July 2009        Ceasing as        30 June 2010 
       K M Wayte                                                                                                       
                   ‐ Directly ordinary shares                         2,520,000                  ‐           2,520,000 
                   ‐ Indirectly ordinary shares                       1,469,292           (90,000)           1,379,292 
                                                                      3,989,292           (90,000)           3,899,292 
       W Shemley                                                                                                       
       (Deceased 7 September 2009) 
                   ‐ Indirectly ordinary shares                         574,700         (574,700)                    ‐ 
       P A Marshall                                                                                                    
                   ‐ Indirectly ordinary shares                         100,000                 ‐              100,000 
       M J Story                                                                                                       
                 ‐      Indirectly ordinary shares                      195,500                 ‐              195,500 
                                                                      4,859,492         (664,700)            4,194,792 
       Key Management Personnel                                         Balance         Transfers/             Balance
                                                                     1 July 2008        Ceasing as        30 June 2009 
       K M Wayte                                                                                                       
                   ‐ Directly ordinary shares                         2,520,000                  ‐           2,520,000 
                   ‐ Indirectly ordinary shares                       1,527,626           (58,334)           1,469,292 
                                                                      4,047,626           (58,334)           3,989,292 
       W Shemley                                                                                                       
                   ‐ Indirectly ordinary shares                         638,700           (64,000)             574,700 
       P A Marshall                                                                                                    
                   ‐ Indirectly ordinary shares                         100,000                  ‐             100,000 
       M J Story                                                                                                       
                 ‐      Indirectly ordinary shares                      195,500                  ‐             195,500 
                                                                      4,981,826          (122,334)           4,859,492 

                                                                                                               Page 23 
                                       ONCOLOGY RESEARCH INTERNATIONAL LIMITED 
                                                        ABN 34 067 964 621 
                                                    AND CONTROLLED ENTITY 
                                  NOTES TO AND FORMING PART OF THE FINANCIAL REPORT 
                                              FOR THE YEAR ENDED 30 JUNE 2010 
        Number of Options Held by Key Management Personnel 
    Key Management Personnel               Balance              Granted as            Held date of           Transfers/           Balance 
                                              1 July          Compensation               appointment          Ceasing as        30 June 2010 
                                               2009                                       as Director           Director 
    J G McVie                                                                                                                              
      ‐ Indirectly share options           300,000                          ‐                                           ‐         300,000 
    K M Wayte                                                                                                                              
     ‐ Indirectly share options            500,000                          ‐                          ‐                ‐         500,000 
    W Shemley                                                                                                                              
    (Deceased 7 September 2009) 
     ‐ Indirectly share options            100,000                          ‐                          ‐       (100,000)                 ‐ 
    P A Marshall                                                                                                                           
     ‐  Indirectly share options           220,000                          ‐                          ‐                ‐         220,000 
    M J Story                                                                                                                              
     ‐  Indirectly share options           700,000                          ‐                          ‐                ‐         700,000 
                                         1,820,000                          ‐                          ‐       (100,000)    1,720,000 
    Key Management                       Balance             Granted as         Held date of              Transfers/          Balance 
    Personnel                               1 July        Compensation              appointment            Ceasing as       30 June 2009 
                                             2008                                     as Director            Director 
    J G McVie                                                                                                                          
    (Appointed 5 February 2009)
      ‐ Indirectly share options                 ‐                       ‐                  300,000                  ‐        300,000 
    K M Wayte                                                                                                                          
     ‐ Indirectly share options          500,000                         ‐                         ‐                 ‐        500,000 
    W Shemley                                                                                                                          
     ‐ Indirectly share options          100,000                         ‐                         ‐                 ‐        100,000 
    P A Marshall                                                                                                                       
     ‐  Indirectly share options         120,000                 100,000                           ‐                 ‐        220,000 
    M J Story                                                                                                                          
     ‐  Indirectly share options         700,000                         ‐                         ‐                 ‐        700,000 
                                       1,420,000                 100,000                    300,000                  ‐    1,820,000 
        The options issued as compensation during the year ended 30 June 2009 were issued under the following terms and 
       conditions to key management personnel or their associated entities: 
       Key Management              Granted                             Terms & conditions for each grant 
       personnel                     No           Issue Date/Date           Value per            Exercise           Expiry Date 
                                                Vested & Exercisable         option at              price 
                                                                            grant date            (cents) 
       P A Marshall                 100,000            16 October 2008                  8.7            75        6 December 2012 

                                                                                                                            Page 24 
                                            ABN 34 067 964 621 
                                         AND CONTROLLED ENTITY 
                                     FOR THE YEAR ENDED 30 JUNE 2010 
        Other transactions with Key Management Personnel 
       Dr Kenneth Michael Wayte and his associated entity, Altnamus Pty Ltd were reimbursed during the year for 
       administration expenditure incurred by Dr Wayte and Altnamus Pty Ltd in respect of the consolidated group 
       totalling $3,804 excluding GST (2009: $2,372 excluding GST.) 
       Cancer Strategies and Communication Ltd, an entity associated with Professor J Gordon McVie was reimbursed 
       during the year for travel expenditure incurred by Cancer Strategies and Communication Ltd in respect of the 
       consolidated group totalling  $10,349 excluding GST (2009: nil.) 
       Pharmchem Technical Services Pty Ltd, an entity associated with Dr Philip Marshall was reimbursed during the year 
       for travel and other expenditure incurred by Pharmchem Technical Services Pty Ltd in respect of the consolidated 
       group totalling $18,336 excluding GST (2009: $47,298 excluding GST.) 
       Story Pharmaceutics Pty Ltd, an entity associated with Dr Michael Story was reimbursed during the year for travel 
       and other expenditure incurred by Story Pharmaceutics Pty Ltd in respect of the consolidated group totalling $1,859 
       excluding GST (2009: $39,649 excluding GST) 
       Mr William Shemley and his associated entity, SBC Triple D Equities Ltd were reimbursed during the year ended 30 
       June 2009 for administration expenditure incurred by Mr Shemley and SBC Triple D Equities Ltd in respect of the 
       consolidated group totalling  $1,601 excluding GST. No expenditure was incurred during the year ended 30 June 
       Details of key management personnel compensation are disclosed separately in note 13. Details of consulting fees 
       paid to key management personnel are disclosed separately in note 14. 

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                                         ONCOLOGY RESEARCH INTERNATIONAL LIMITED 
                                                      ABN 34 067 964 621 
                                                    AND CONTROLLED ENTITY 
                                  NOTES TO AND FORMING PART OF THE FINANCIAL REPORT 
                                                FOR THE YEAR ENDED 30 JUNE 2010 
                                                                     Consolidated Group                         Parent Entity 
                                                                         2010                2009              2010                 2009
                                                                             $                  $                 $                     $
16.  CASHFLOW INFORMATION                                                                           
         Reconciliation of Cash used in Operations with                                             
         Profit after Income Tax 
         Loss after income tax                                      (241,959)          (769,235)          (241,959)          (769,235)
         Non‐cash flows in loss                                                                     
         Depreciation                                                   1,384               1,401             1,384                1,401
         Provision for doubtful debt – loan to controlled                                           
         entity                                                              ‐                  ‐               212                  482
        Issue of options for services provided                               ‐              8,700                  ‐               8,700
         Changes in assets & liabilities                                                            
         (Decrease)/Increase in payables                               80,486            141,219             80,486             141,219
         Decrease/(Increase) in other debtors                           9,546            (10,636)             9,546             (10,636)
         Cash (used in) operating activities                        (150,543)          (628,551)          (150,331)          (628,069)
  17.  SHARE – BASED PAYMENTS                                                                       
          The following share based payments existed at 30 June 2010: 
                                                                               2010                                  2009 
                                                                Number  of           Weighted           Number  of       Weighted 
                                                                options              Average            Options          average 
                                                                                     exercise                            exercise 
                                                                                     price                               price 
          Outstanding at the beginning of the year                    2,420,000           75 cents         2,320,000           75 cents 
          Granted                                                               ‐                  ‐         100,000           75 cents 
          Forfeited                                                             ‐                 ‐                  ‐                  ‐ 
          Exercised                                                             ‐                 ‐                  ‐                  ‐ 
          Expired                                                               ‐                  ‐                 ‐                  ‐ 
          Outstanding at year end                                     2,420,000           75 cents         2,420,000           75 cents 
          Exercisable at year end                                     2,420,000           75 cents         2,420,000           75 cents 
        2,420,000 options have been issued to company officers and consultants in consideration of services provided, with an 
        exercise price of 75 cents and a term of 5 years. The fair value of an option is approximately 8.7 cents based on the Tables 
        included in Section 139FM of the Income Tax Assessment Act 1936 which apply to determining the value of options for 
        the taxation of Employee Share Schemes. The Directors consider that this is a suitable basis for determining the fair value 
        of the options. 
      All options granted to key management personnel are ordinary shares in Oncology Research International Ltd, which 
      confer a right of one ordinary share for every option held. 
      Included under option expense in the income statement for the year ended 30 June 2009 is $8,700 and relates in full, 
      to equity settled share based transaction payments. No option expenses were incurred during the year ended 30 June 

                                                                                                                          Page 26 
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                                             AND CONTROLLED ENTITY 
                                         FOR THE YEAR ENDED 30 JUNE 2010 
        Financial Risk Management 
        The group’s financial instruments consist mainly of deposits with banks, accounts receivable and payable and loans 
        to subsidiaries. 
        The main purpose of non‐derivative financial instruments is to raise finance for the group operations. 
         The group does not have any derivative instruments at 30 June 2010. 
        (a)    Interest rate risk 
        Interest rate risk is where the value of a financial instrument will fluctuate due to changes in market interest rates. 
        Receivables and loans to and from related entities are interest free and therefore do not evidence interest rate risk. 
        The consolidated group's exposure to interest rate risk and the effective interest rates on financial assets and 
        financial liabilities at the balance date is as follows:  
                                                                                              Total carrying        Weighted average 
                                                 Floating             Non‐interest 
       Financial Instruments                                                                 Amount as per              Effective 
                                               Interest rate            Bearing 
                                                                                            the balance sheet         interest rate 
                                              2010        2009       2010       2009       2010      2009      2010       2009 
       (i)  Financial assets                                                                                             
       Cash                                    6,270     155,000           ‐          ‐     6,270  155,000        1.0        2.1 
       Other debtors                               ‐            ‐    21,403     30,949     21,403    30,949      N/A        N/A 
       Total financial assets                  6,270     155,000     21,403     30,949     27,673  185,949           ‐          ‐ 
       (ii)  Financial liabilities                                                                                                          
       Borrowings                                      ‐  107,985            ‐          ‐            ‐  107,985              ‐            ‐ 
       Trade creditors & accruals                      ‐         ‐  227,425  146,939  227,425  146,939                       ‐            ‐ 
       Total financial liabilities                     ‐  107,985  227,425  146,939  227,425  254,924                        ‐            ‐ 
           Interest rate sensitivity 
           At 30 June 2010, if interest rates had changed by ‐/+ 80 basis points from the year‐end rates with all other variables 
           held constant, post‐tax profit for the year would have been $433 lower/higher (2009 – change of 80 bps: $991 
           lower/higher), mainly as a result of higher/lower interest income from cash and cash equivalents. Equity would 
           have been $433 lower/higher (2009 ‐ $991 lower/higher) mainly as a result of an increase/decrease in the interest 
           income from cash and cash equivalents. 
          (b)   Liquidity risk 
           Liquidity risk is the risk that the consolidated entity will not be able to meet is financial obligations as they fall due. 
           The consolidated entity’s approach to managing liquidity is to ensure, as far as possible, that it will always have 
           sufficient liquidity to meet is liabilities when due, under both normal and stressed conditions, without incurring 
           unacceptable losses or risking damage to the consolidated entity’s reputation. 
           The consolidated entity manages liquidity risks by maintaining adequate reserves by continuously monitoring 
           forecast and actual cash flows. 

                                                                                                                              Page 27 
                                             ONCOLOGY RESEARCH INTERNATIONAL LIMITED 
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                                                      AND CONTROLLED ENTITY 
                                     NOTES TO AND FORMING PART OF THE FINANCIAL REPORT 
                                                 FOR THE YEAR ENDED 30 JUNE 2010 
18.     FINANCIAL INSTRUMENTS (Continued) 
          The table below reflects the contractual maturities of financial liabilities, including estimated interest payments. 
          Cash flows realised from financial assets reflect management’s expectation as to the timing of realisation. Actual 
          timing may therefore differ from that disclosed. 
          Financial liability and financial asset maturity analysis 
            30 June 2010                        Carrying     6 months or  6‐12 months  1‐2 years             2‐5 years     More than 
                                                amount           less                                                       5 years 
            Financial assets liabilities                                                                                  
            due for payment 
            Trade creditors and accruals          227,425        227,425           ‐               ‐             ‐             ‐ 
            Financial assets – cash                                                                                              
            flows realisable 
            Cash and cash equivalents                6,270          6,270          ‐               ‐             ‐             ‐ 
            Trade and other receivables             21,403        21,403           ‐               ‐             ‐             ‐ 
          30 June 2009                         Carrying     6 months or  6‐12 months  1‐2 years                 2‐5 years        More than 
                                               amount          less                                                               5 years 
          Financial assets liabilities                                                                                        
          due for payment 
          Borrowings                             107,985         107,985           ‐                ‐               ‐                ‐ 
          Trade creditors and accruals           146,939         146,939           ‐                ‐               ‐                ‐ 
          Financial assets – cash                                                                                                      
          flows realisable 
          Cash and cash equivalents              155,000         155,000           ‐                ‐               ‐                ‐ 
          Trade and other receivables             30,949          30,949           ‐                ‐               ‐                ‐ 
         (c)   Net fair values 
         The aggregate net fair values of financial assets and financial liabilities at the balance date, are as follows: 
                                                                     Total carrying amount                     Aggregate net 
                                                                      As per balance sheet                      Fair value (i) 
                                                                     2010             2009                2010                2009 
       Financial assets                                                                                                           
       Cash                                                               6,270         155,000                6,270            155,000 
       Receivables ‐ other debtors                                       21,403           30,949              21,403               30,949 
       Total financial assets                                            27,673         185,949               27,673            185,949 
       Financial liabilities                                                                                                              
       Borrowings                                                             ‐         107,985                      ‐          107,985 
       Trade creditors & accruals                                      227,425          146,939             227,425             146,939 
       Total financial liabilities                                     227,425          254,924             227,425             254,924 

                                                                                                                                 Page 28 
                                ONCOLOGY RESEARCH INTERNATIONAL LIMITED 
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                                          AND CONTROLLED ENTITY 
                                      FOR THE YEAR ENDED 30 JUNE 2010 
       The following methods and assumptions are used to determine the net fair values of financial assets and liabilities. 
       Recognised financial instruments 
       Cash:  The carrying amount approximates fair value because of their short‐term to maturity. 
       Trade receivables and payables:  The carrying amount approximates fair value. 
        (c)   Credit risk exposures 
       The consolidated group’s maximum exposures to credit risk at balance date in relation to each class of recognised 
       financial assets, is the carrying amount of those assets as indicated in the balance sheet. 
       The consolidated group operates predominantly in the medical research industry within Australia. 
       ONCOLOGY RESEARCH ASSOCIATES PTY LTD                                                 2010                    2009 
       Country of Incorporation                                                        Australia                Australia 
       Class of Share                                                                  Ordinary                 Ordinary 
       Cost of Parent Company's Investment                                           $2,000,000               $2,000,000 
       Equity Holding                                                                      100%                     100% 
       Contribution to Consolidated Income (Loss) from                                            
       Ordinary activities before income tax                                              ($212)                  ($482) 
       Deed of Cross Guarantee 
       Oncology Research International Ltd and Oncology Research Associates Pty Ltd are parties to a Deed of Cross 
       Guarantee which was lodged with and approved by the Australian Securities and Investments Commission on 8 
       December 1995.  Under the Deed of Cross Guarantee each of the above named companies guarantees the debts of 
       the other company. 
       The aggregate assets and liabilities of the above named entities relieved under the deed, and their aggregate net 
       profit/(loss) after tax for the period then ended (after eliminating intercompany investment and other intercompany 
       transactions) are as follows: 
                                                                                           2010                     2009
                                                                                               $                       $
         Assets                                                                                ‐                        ‐
         Liabilities                                                                           ‐                        ‐
       There was no outstanding commitments or contingent liabilities not provided for in the financial statements of the 
       consolidated group as at 30 June 2010. 

                                                                                                                     Page 29 
                                          ABN 34 067 964 621 
                                        AND CONTROLLED ENTITY 
                                    FOR THE YEAR ENDED 30 JUNE 2010 
       No matters or circumstances have arisen since the end of the financial year which significantly affect or may 
       significantly affect the operations of the consolidated group, the results of those operations or the state of affairs of 
       the consolidated group in subsequent financial years. 
       The registered office of the company is Level 6 256 St Georges Terrace Perth WA 6000. 
       The principal place of business is 6 Zollner Close Connolly WA 6027. 

                                                                                                                        Page 30 
                                      ONCOLOGY RESEARCH INTERNATIONAL LIMITED 
                                                 AND CONTROLLED ENTITY 
                                                    ABN 34 067 964 621 
                                                 AND CONTROLLED ENTITY 
                                                 DIRECTORS’ DECLARATION 
The directors of the company declare that:‐ 
1.     the financial statements and notes, as set out on pages 6 to 29 are in accordance with the Corporations Act 2001 
       (a)     comply with Accounting Standards and the Corporations Regulations 2001; and 
       (b)  give a true and fair view of the financial position as at 30 June 2010 and of the  performance for the year 
               ended on that date of the company and consolidated group; 
2.     in the director’s opinion there are reasonable grounds to believe that the company will be able to pay its debts as 
       and when they become due and payable. 

The company and a wholly owned subsidiary, Oncology Research Associates Pty Ltd, have entered into a deed of cross 
guarantee as described in Note 7 under which the company and its subsidiary guarantee the debts of each other.  
At the date if this declaration there are reasonable grounds to believe that the companies which are party to the deed of 
cross guarantee will be able to meet any obligations or liabilities to which they are, or may become, subject to by virtue of 
the deed. 
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the 
directors by: 
Director              __________________________________ 
                      P A Marshall 
Director              ___________________________________ 
                      K M Wayte 
Dated this 30th day of October 2010 

                                                                                                                      Page 31 
                                                                                                                    10 Kings Park Road
                                                                                                                    West Perth WA 6005
                                                                                                                    PO BOX 570
                                                                                                                    West Perth WA 6872

                                                                                                                    T +61 8 9480 2000
                                                                                                                    F +61 8 9322 7787

Independent Auditor’s Report
To the Members of Oncology Research International Limited

We have audited the accompanying financial report of Oncology Research International
Limited (the “Company”), which comprises the statement of financial position as at 30 June
2010, and the statement of comprehensive income, statement of changes in equity and
statement of cash flows for the year ended on that date, a summary of significant accounting
policies, other explanatory notes to the financial report and the directors’ declaration of the
consolidated entity comprising the Company and the entities it controlled at the year’s end
or from time to time during the financial year.

Directors’ responsibility for the financial report
The directors of the Company are responsible for the preparation and fair presentation of
the financial report in accordance with Australian Accounting Standards (including the
Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility
includes establishing and maintaining internal controls relevant to the preparation and fair
presentation of the financial report that are free from material misstatement, whether due to
fraud or error; selecting and applying appropriate accounting policies; and making
accounting estimates that are reasonable in the circumstances. The directors also state, in the
notes to the financial report, in accordance with Accounting Standard AASB 101
Presentation of Financial Statements, that compliance with the Australian equivalents to
International Financial Reporting Standards ensures that the financial report, comprising the
financial statements and notes, complies with International Financial Reporting Standards.

Auditor’s responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We
conducted our audit in accordance with Australian Auditing Standards which require us to
comply with relevant ethical requirements relating to audit engagements and plan and
perform the audit to obtain reasonable assurance whether the financial report is free from
material misstatement.

                                                                                                                                  Page 32

Grant Thornton Audit Pty Ltd ACN 130 913 594, a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389.

Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member
firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services
independently in Australia.
Liability limited by a scheme approved under Professional Standards Legislation.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial report. The procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material misstatement of the financial
report, whether due to fraud or error.

In making those risk assessments, the auditor considers internal control relevant to the
entity’s preparation and fair presentation of the financial report in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the directors, as well as evaluating the overall presentation of
the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion.

In conducting our audit, we have complied with the independence requirements of the
Corporations Act 2001.

Auditor’s opinion
In our opinion:

a         the financial report of Oncology Research International Limited is in accordance with
          the Corporations Act 2001, including:

             i     giving a true and fair view of the Company’s and consolidated entity’s financial
                   position as at 30 June 2010 and of their performance for the year ended on that
                   date; and

             ii    complying with Australian Accounting Standards (including the Australian
                   Accounting Interpretations) and the Corporations Regulations 2001; and

b         the financial report also complies with International Financial Reporting Standards as
          disclosed in the notes to the financial statements.

                                                                                                                                   Page 33

Grant Thornton Audit Pty Ltd ABN 94 269 609 023, a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389.

Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member
firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services
independently in Australia.
Liability limited by a scheme approved under Professional Standards Legislation.
Material uncertainty regarding continuation as a going concern
Without qualifying our opinion, we draw attention to Note 1(l) in the financial report which
indicates that the company and consolidated entity incurred a net loss of $241,959 during
the year ended 30 June 2010 and, as of that date, the company’s and consolidated entity’s
current liabilities exceeded its total assets by $197,702. These conditions, along with other
matters as set forth in Note 1(1), indicate the existence of a material uncertainty which may
cast significant doubt about the company’s and consolidated entity’s ability to continue as a
going concern and therefore, the company and consolidated entity may be unable to realise
its assets and discharge its liabilities in the normal course of business, and at the amounts
stated in the financial report.

Chartered Accountants

J W Vibert
Director - Audit & Assurance

Perth, 30 October 2010

                                                                                                                                   Page 34

Grant Thornton Audit Pty Ltd ABN 94 269 609 023, a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389.

Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member
firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services
independently in Australia.
Liability limited by a scheme approved under Professional Standards Legislation.
                                       ACN 067 964 621

                                        SHARE APPLICATION FORM
This Application Form is for ordinary shares in Oncology Research International Limited under the terms of the Offer
Information Statement dated 25 November 2010.

The Offer Information Statement contains information relevant to a decision to invest in Oncology Research
International Limited shares and you should read the entire Offer Information Statement carefully before applying for
Oncology Research International Limited shares. This Application form must not be distributed unless it is included
in, or accompanied by, a copy of the Offer Information Statement dated 25 November 2010. Any person who
gives another person access to this Application form must at the same time and by the same means give the other
person access to the Offer Information Statement. No securities will be issued on the basis of the Offer Information
Statement later than 13 months after the date of the Offer Information Statement.

Please complete all sections of the Application Form using BLOCK LETTERS.



 ( )


Subscriptions to 31 December 2010

I/We hereby apply for the issue of _____________________ shares (minimum of 2,000 shares, $1,000 and multiples
of 500) and accompanying one free option for every two shares issued and I/we enclose payment in the sum of
$__________________ (No. of shares x $0.50 per share) and apply for the allotment to me/us of the shares and

Subscriptions post 31 December 2010

I/We hereby apply for the issue of _____________________ shares (minimum of 1,000 shares, $1,000 and multiples
of 500). No options will accompany shares acquired post 31 December 2010 and I/we enclose payment in the sum of
$__________________ (No. of shares x $1.00 per share) and apply for the allotment to me/us of the shares.


By lodging this Application Form:

I/We represent and warrant that I/we have personally received a paper or electronic copy of the Offer Information
Statement accompanying this Application Form and have read it in full.

I/We declare that all details and statements made by me/us are complete and accurate.
I/We agree to be bound by the Constitution of the Company.

I/We authorise the Company to complete and execute any document necessary to effect the issue of Shares to me/



Signed by the Applicant                               Signed by the Joint Applicant


(For companies with a common seal)

THE COMMON SEAL of the Applicant was affixed in accordance
with the Constitution of the Applicant in the presence of:



(For companies without a common seal)

SIGNED in accordance with the Constitution of the
Applicant in the presence of:


                                              INSTRUCTIONS TO APPLICANT
Applications must be made on this Application Form.

Please complete all sections of the Application Form using BLOCK LETTERS.

Please post or deliver the completed Application Form together with your remittance of application monies to:

          The Share Registry                                     The Share Registry
          WHK Horwath                                            WHK Horwath
          Level 6                             or                 GPO Box P1213
          256 St Georges Terrace                                 PERTH WA 6844
          PERTH WA 6000                                          AUSTRALIA

Please provide us with a telephone number (including the person responsible in the case of an application by a
company) so that we can contact you quickly if there is an irregularity in your Application Form.

Application monies must be the full amount in Australian dollars. Cheques must be made payable to Oncology
Research International Limited and crossed "Not Negotiable".

If your Application Form is not completed correctly, or if the accompanying payment is for the wrong amount, it
may still be treated as valid. The Company's decision as to whether to treat your application as valid, and how to
construe, amend or complete it shall be final. You will not, however, be treated as having offered to purchase more
Shares than is indicated in your Application.


This must be either your own name or the name of a company.

 Type of Investor                             Correct Form of Registration            Incorrect Form of Registration
 Individual                                   Mrs Mary Jane Example                   M J Example
 Use given names in full, not initials
 Company                                      Example Family Pty Ltd                  Example P/L or Example Family
 Use company full title, not abbreviations
 Joint Holdings                               Mr John James Example &                 J J & M J Example
 Use full and complete names                  Mrs Mary Jane Example
 Trusts                                       Mrs Mary Jane Sample                    Example Family Trust
 Use the name of the trustees of the Trust    <Example Family Trust A/c>
 (if joint trustees include names of both     OR Example Pty Ltd
 trustees)                                    <Example Family Trust A/c>
 Minor (a person under 18 years)              Mrs Mary Jane Sample                    Mr Jack Example
 Use the name of the responsible adult with   <Jack Example>
 the appropriate designation)
 Partnerships                                 Mr John James Example &                 Example Partners
 Use the partners personal names              Mrs Mary Jane Example
                                              <Example Partners A/c>
 Superannuation Funds                         Mrs Mary Jane Sample                    Example Superannuation Fund
 Use the name of the trustee of the fund      <Example Super Fund A/c>
 (if joint trustees include names of both     OR Example Pty Ltd
 trustees)                                    <Example Super Fund A/c>
 Clubs                                        Mrs Mary Jane Sample                    Example Club
 Use office bearer(s) personal names            <Example Club A/c>
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                                           ACN 067 964 621

                                  TAX FILE NUMBERS (TFN) OR


 Name of Individual

 TFN of Individual

 Name of Joint Holder

 TFN of Joint Holder


 Name of Company, Partnership,
 Trust or Super Fund

 TFN of Company, Partnership, Trust
 or Super Fund


 ABN of Company, Partnership,
 Trust or Super Fund

Type of Entity (please tick)

   Company                          Partnership                           Trust                         Super Fund


Please record your TFN or ABN. For securities held on behalf of other persons or entities such as trusts or
superannuation funds, enter the trust or superannuation fund TFN or ABN.

Collection of Tax File Numbers is authorised and their use and disclosure are strictly regulated by the Tax Laws and
the Privacy Act.

It is not an offence to withhold your TFN or your ABN. However if you do not provide your TFN or ABN, tax may be
deducted from payments of interest and the unfranked portion of dividends and distributions at the highest marginal
tax rate.
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   Principal Place of Business
         6 Zollner Close
      CONNOLLY WA 6027
Mobile & Pager: 0407 425 937
 Facsimile: +61 (0)8 9300 8745

       Registered Office
         WHK Horwath
            Level 6
    256 St Georges Terrace
       PERTH WA 6000
Telephone: +61 (0)8 9481 1448
 Facsimile: +61 (0)8 9481 0152