EDEN INNOVATIONS LTD — Capital/Financing Update 2007

Jul 5, 2007

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT

6 JULY 2007

ISSUE OF ORDINARY FULLY PAID SHARES

The directors are pleased to advise that they have agreed to make placements to the value of between \$12.5 million and \$20 million by the issuing of fully paid ordinary shares at an issue price of \$0.60 per share to various institutions and sophisticated investors in Australia and United Kingdom in accordance with sections $708(1)$ and $708(8)$ of the Corporations Act 2001 ("the Act") and under the 15% placement rule of the Australian Securities Exchange Listing Rules.

The precise number of shares to be issued (and the amount to be raised) will be announced within the next 3 days.

These shares will be issued subject to the passing of the resolutions at the general meeting of shareholders to be held on Wednesday 11 July 2007.

A commission of 5% of the value of the funds raised is payable to licenced stock brokers in Australia and United Kingdom who are arranging the placements.

The funds raised will be used for the purposes to meet the Company's ongoing working capital requirements.

Information Notification - Secondary Trading

For the purposes of Item 5 of Category 1, Schedule C of Class Order 02/1180 referred to below, the Company also notifies the ASX that all of the securities being issued will fall within Category 1 of the Class Order 02/1180 issued by the Australian Securities and Investments Commission on 29 November 2002, which alters the secondary trading provisions of the Act in specified circumstances, and that all information of the kind that would be required to be disclosed under subsection 713(5) of the Act if a prospectus were to be issued in reliance on section 713 of the Act in relation to an offer of securities has been disclosed to the ASX.

They class of the company

Gregory H. Solomon Executive Chairman

Website: www.edenenergy.com.au