EDEN INNOVATIONS LTD — Capital/Financing Update 2007

Mar 19, 2007

FOR IMMEDIATE RELEASE Tuesday 20 March 2007

AUSTRALIAN GREEN ENERGY COMPANY IN SECOND

BREAKTHROUGH IN INDIAN TRANSPORT MARKET

An Australian company behind one of the cleanest fuel technologies in the world has secured its second major breakthrough in the huge Indian transport market.

ASX-listed Eden Energy Ltd (ASX "EDE") today announced that one of its wholly owned subsidiaries had secured an agreement with one of India's largest natural gas groups, Gujarat State Petroleum Corporation Ltd (GSPC) to market Eden's Hythane® fuel technology throughout Gujarat – a heavily industrialised state in northwest India.

The agreement, which now only relies on formal sanction by the GSPC Board, will apply for the next five years.

Hythane®, a mixture of hydrogen and natural gas, is a high efficiency, low emission premium blend of natural gas which reduces emissions of polluting nitrogen oxide by up to 50% compared with just natural gas, and which Eden is increasingly marketing on a global basis.

Gujarat State Petroleum Corporation – which owns oil and gas exploration interests in Western Australia and Victoria - is a major Indian Natural Gas producer, pipeline operator, distributor and marketer.

Today's breakthrough adds to Eden's announcement in December last year that it had secured a 10-year agreement with the large bus and heavy transport group. Chennaibased Ashok Leyland for Eden's patented Hythane® fuel blend to be introduced across tens of thousands of public transport vehicles in India.

Eden Energy's Executive Chairman, Mr Greg Solomon, said today the Gujarat signing was a further major milestone for Eden in its efforts to establish Hythane® as the Natural Gas fuel standard "in the enormous emerging Indian Natural Gas market for vehicles, power generation and locomotives".

"Eden is hopeful that this will be just one of several strategic agreements related to the marketing and rollout of Hythane® in India that Eden and its subsidiaries will enter into over the next six to 12 months with various major companies and organizations that operate in relevant sectors of the Indian Natural Gas market," Mr Solomon said.

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Terms of Guiarat agreement

Under the terms of today's agreement.

• GSPC will collaborate, on a non-exclusive basis, to market Hythane® in Guiarat
• Eden will provide to the GSPC Group and its customers, and thereafter maintain, on commercial terms to be agreed, all necessary equipment to produce all Hythane® required by them
• GSPC will in turn support the marketing of Hythane® and the proposed $\bullet$ Hythane® bus demonstration project planned for Ahmedabad (the capital of Gujarat) planned for later in 2007
• GSPC will support the establishment of all necessary standards and regulations for Hythane ® in India.

Mr Solomon said all carbon credit benefits derived from their joint Hythane® operations would be shared equally between Eden and GSPC.

GSPC Group comprises seven companies and has been playing a pivotal role in energising and mobilising the energy sector of India.

"It has earned the rare distinction in little over 25 years, of becoming a major Indian Natural Gas and oil producer in addition to developing a comprehensive energy infrastructure which includes a 2,500 kilometre high pressure Natural Gas pipeline servicing 20 cities in Gujarat," Mr Solomon said.

"Additionally, GSPC Group has developed, alone and in joint venture, more than 1000MW of gas fired power production in Gujarat as well as establishing an expanding chain of Natural Gas retail outlets which service the bus and automobile markets."

As well as being a major oil and gas producer in India, GSPC has also acquired oil and gas exploration interests in two Western Australian offshore permits as well holding a 20% farm-in interest in an offshore block in the Otway Basin in Victoria.

MEDIA CONTACT:

Greg Solomon Eden Energy Ltd $(08)$ 9282 5889 0402 060 000

Kevin Skinner Field Public Relations $(08)$ 8234 9555 0414 822 631