EDEN INNOVATIONS LTD — Capital/Financing Update 2007

Mar 18, 2007

EDEN ENERGY LTD

ACN 109 200 900

Level 40, Exchange Plaza 2 The Esplanade, Perth, Western Australia, 6000 Telephone: (08) 9282 5889 Facsimile: (08) 9282 5866

Website: www.edenenergy.com.au

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT

19 MARCH 2007

ISSUE OF OPTIONS TO ACOUIRE ORDINARY FULLY PAID SHARES

Eden Energy Ltd ("the Company") announces that as part of the employment package for Mr John Nadeau, who has been appointed West Coast (US) Marketing Manager for Hythane Company LLC the directors have agreed to issue 500,000 options in the Company, free of charge, each to acquire one fully paid ordinary share in the Company ("the Options") on the following terms;

• 1. The options will expire at 5.00pm WST on 5 April 2012 and are exercisable at a price of 58.5 cents each which was calculated as the 5 day weighted average price of the Company's shares over the 5 days prior to commencement of employment..
• 1. The options are exercisable as follows
• 200,000 at any time: $\mathbf{w}$
• 100,000 not before 5 March 2010;
• 100,000 not before 5 March 2011; $\mathbf{w}^{(i)}$
• 100,000 not before 5 March 2012; $\ddot{x}$
• 1. In all other respects the options will be subject to the conditions of the Company's Employee Share Option Plan.

Raymond F Buscall Company Secretary Dated 19 March 2007