EDEN INNOVATIONS LTD — Capital/Financing Update 2007

Mar 1, 2007

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005.

Name of entity

EDEN ENERGY LIMITED

ABN

58 109 200 900

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1	+ Class of + securities issued or to be issued	Ordinary fully paid shares
		Options expiring 30 September 2009 exercisable $\omega$ 20 cents
2	Number of + securities issued or to be issued (if known) or maximum number which may be issued	11,556,429 Ordinary fully paid shares
3	Principal terms of the + securities (eg, if options, exercise price and expiry date; if partly paid + securities, the amount outstanding and due dates for payment; if + convertible securities, the conversion price and dates for conversion)

4	Do the securities rank equally in all respects from the date of allotment with an existing + class of quoted securities?	Yes
	If the additional securities do not rank equally, please state: the date from which they do extent to which the they ٠ participate for the next dividend, (in the case of a trust. distribution) or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment
5	Issue price or consideration	\$0.35 per share
6	Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets)	The funds raised will be used : - to expand and accelerate the marketing of Hythane ® in India and other markets; to fund an expanded drilling program for the coal bed w. methane and Natural Gas in Wales; to provide additional working capital in relation to the exploration on the Company's geothermal and Natural Gas targets in Australia; to provide further funds to meet the Company's ongoing working capital requirements.
7.	Dates of entering *securities into uncertificated holdings or despatch of certificates	9 February 2007
		Number	+ Class
8	Number + class of and all + securities quoted ASX $_{\rm OH}$ (including the securities in clause 2 if applicable)	83,100,584 36,310,109	Ordinary fully paid shares Options expiring 30 September 2009 exercisable $@20$ cents

$\mathbf{Q}$ Number and ⁺class of al ⁺securities not quoted on AS> (including the securities in clause $2$ if applicable)

	Number	*Class
ll X	49,270,338	Ordinary fully paid shares
e	50,433,553	Options expiring 30 September 2009 exercisable $\omega$ 20 cents
	950,000	Employee Share Option Plan Options expiring 30 August 2009 exercisable $@$ 25 cents
	4,000,000	Options expiring 5 June 2009 exercisable $@20$ cents

Dividend policy (in the case 10 of a trust, distribution
policy) on the increased capital (interests)

Part 2 - Bonus issue or pro rata issue

$\mathbf{1}$	holder security approval Ís required?
12	Is the issue renounceable or non- renounceable?
13	Ratio in which the *securities will be offered
14	+ Class of + securities to which the offer relates
15	determine + Record date ÍΩ entitlements
16	Will holdings on different registers (or subregisters) be aggregated for calculating entitlements?
17	Policy for deciding entitlements in relation to fractions
18	Names of countries in which the entity has *security holders who will be sent new not issue documents
	Note: Security holders must be told how their entitlements are to be dealt with.
	Cross reference: rule 7.7.
19	date Closing for receipt οf acceptances or renunciations

20.	Names of any underwriters
21	Amount of any underwriting fee or commission
22	Names of any brokers to the issue
23.	Fee or commission payable to the broker to the issue
24	Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of + security holders
25.	If the issue is contingent on *security holders' approval, the date of the meeting
26	Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled
27	If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders
28	Date rights trading will begin (if applicable)
29	Date rights trading will end (if applicable)
30	How do *security holders sell their in full through entitlements a broker?
31	How do + security holders sell part of their entitlements through a broker and accept for the balance?

• 32 How do *security holders dispose of their entitlements (except by sale through a broker)?
• 33 ⁺Despatch date

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

• 34 Type of securities $(tick one)$
• $(a)$ Securities described in Part 1 ⊠
• $(b)$ All other securities ञि

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

• 35 If the "securities are "equity securities, the names of the 20 largest holders of the additional *securities, and the number and percentage of additional *securities held by those holders
• 36

37

If the *securities are *equity securities, a distribution schedule of the additional *securities setting out the number of holders in the categories $1 - 1,000$ $1,001 - 5,000$ $5,001 - 10,000$ 10,001 - 100,000 100,001 and over

A copy of any trust deed for the additional *securities

Entities that have ticked box 34(b)

38	Number of securities for which +quotation is sought	109,500
39.	Class of + securities for which	Ordinary fully paid shares
	quotation is sought
40	Do the + securities rank equally in all respects from the date of allotment with an existing + class of quoted +securities?	Yes
	If the additional securities do not rank equally, please state: the date from which they do
	the extent to which they participate for the next dividend, the (in- case of irust. a distribution) or interest payment
	the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment
41	Reason for request for quotation now	Conversion οf Options September 2009. Exercised at 20 cents.	30 Expiring
	Example: In the case of restricted securities, end of restriction period
	(if issued upon conversion - of another security, clearly identify that other security)
			+ Class
42	Number and + class of all + securities quoted on ASX (including the securities in clause 38)	Number 83,100,584	Ordinary fully paid Shares
		36,310,109	Options expiring 30 September 2009 exercisable $\omega$ 20
			cents

Quotation agreement

• $\mathbf{f}$ *Quotation of our additional *securities is in ASX's absolute discretion. ASX may quote the *securities on any conditions it decides.
• $\overline{2}$ We warrant the following to ASX.
• The issue of the *securities to be quoted complies with the law and is not for an illegal purpose.
• There is no reason why those "securities should not be granted "quotation. $\blacksquare$
• An offer of the "securities for sale within 12 months after their issue will not require disclosure under section $707(3)$ or section $1012C(6)$ of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any *securities to be quoted and that no-one has any right to return any "securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the *securities be quoted.
• If we are a trust, we warrant that no person has the right to return the $\bullet$ *securities to be quoted under section 1019B of the Corporations Act at the time that we request that the "securities be quoted.
• $\mathfrak{Z}$ We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.
• $\overline{4}$ We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before +quotation of the *securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Print name: RAYMOND FRANCIS BUSCALL Company secretary

Date: 2 March 2007

$=$ $=$ $=$ $=$ $=$ $=$