EDEN INNOVATIONS LTD — Capital/Financing Update 2008

Dec 23, 2008

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----- Start of picture text ----- ACN 109 200 900----- End of picture text -----

Australian Securities Exchange Announcement 24 December 2008

SALE OF PORTION OF WELSH COAL BED METHANE ASSETS

Highlights;

• Eden expected to relist on ASX Feb/March ’09

• Retains part interest in UK coal seam assets

On the 19 December 2008, Eden entered into a conditional contract to sell a portion of its Welsh Coal Bed Methane and Abandoned Mine Methane assets to a large, publicly listed, UK energy utility (which under the terms of the transaction, did not wish to be named publicly).

The details of the transaction are:

1. Assets Sold: a 45% interest (out of Eden’s original 50% farm in interest) in the Coal Bed Methane (“CBM”) and Abandoned Mine Methane (“AMM”) in the Westphalian Measures in South Wales on Petroleum Exploration and Development Licences (“PEDL”) 100, 148, 149 and 218.

2. Assets Retained: This leaves Eden with a residual 5% interest in the CBM and the AMM on these four PEDLs, plus its full 50% interest over all conventional oil, natural gas and shale gas in the older sequences on these four licences, together with its full 50% interest in both all CBM and AMM plus all conventional oil, natural gas and shale gas on the remaining 14 other PEDLs in South Wales, Bristol and Kent.

3. Sale Price: Approximately A$5.623 million.

4. Additional Benefit: a free carried interest in respect to the next 500,000 pounds (Sterling) of expenditure to be spent on CBM and AMM exploration on PEDL 100 by the purchaser (being equivalent to 25,000 pounds value in relation to Eden’s remaining 5% interest).

5. Conditions: The contract is conditional upon the following conditions precedent being satisfied by 28 February 2009:

• (i) Approval by the relevant UK authority to sale and to creating a separate PEDL in respect to only CBM and AMM on PEDLs 100, 148, 149 and 218;

• (ii) The execution of a Joint Operating Agreement and other associated agreements which have either been executed already or agreed in principle; and

• (iii) Approval by Eden shareholders in EGM, which will be convened as soon as possible.

1. Settlement Date: 7 days after the contract becomes unconditional.

Level 40, Exchange Plaza 2 The Esplanade, Perth, Western Australia 6000 Telephone: (08) 9282 5889 Facsimile: (08) 9282 5866 Email: mailroom@edenenergy.com.au

OVERALL OUTCOME OF THESE TRANSACTIONS

The outcome of this transaction is that Eden will retain a significant part of all of its core UK energy assets plus raise approximately $5.623 million to fund its significantly reduced cash flow requirements, without shareholders suffering any dilution.

REQUOTATION OF EDEN’S SECURITIES ON ASX

Once the two contracts for the (previously flagged) sale of firstly, HyRadix/ Eden Cryogenics and CTS, and secondly, the Welsh CSM/AMM interests are both settled and the financial future of Eden is resolved, Directors will immediately apply to the ASX for re-quotation of the Eden securities. It is anticipated that this will occur some time during February or very early in March 2009.

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Gregory H Solomon

Executive Chairman

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