EDEN INNOVATIONS LTD — Capital/Financing Update 2007

Feb 8, 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 STOCK EXCHANGE ANNOUNCEMENT

9 FEBRUARY 2007

ISSUE OF FULLY PAID ORDINARY SHARES

Eden Energy Ltd ("the Company") confirms that the shares that were agreed to be issued as per the announcements on 23 January 2007 and 29 January 2007 have been issued on 9 February 2007. A total of 11,556,429 fully paid ordinary shares at an issue price of \$0.35 per share raising a total of \$4,044,750.20. These shares have been agreed to be issued to Australian investors 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 Stock Exchange Listing Rules. A commission of 5% is payable to Australian Financial Services Licensees in respect of the funds raised.

These funds will be used for the following purposes:-

• $\mathbf{L}$ to expand and accelerate the marketing of Hythane® in India and other markets;
• to fund an expanded drilling program for coal bed methane and Natural Gas in Wales; $2.$
• $\overline{3}$ . to provide additional capital in relation to the exploration on the Company's geothermal and Natural Gas targets in Australia;
• $4.$ to provide further funds to meet the Company's ongoing working capital requirements.

Gregory H. Solomon Executive Chairman

9 February 2007