EDEN INNOVATIONS LTD — Capital/Financing Update 2008

Dec 18, 2008

==> picture [188 x 53] intentionally omitted <==

==> picture [78 x 8] intentionally omitted <==

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

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT

19 December 2008

SALE OF HYRADIX, CRYOGENIC DIVISION AND GENERAL UPDATE

On 27 October 2008 Eden entered into a conditional agreement to sell the businesses of HyRadix, Eden Cryogenics and CTS to a listed Australian public company for listed shares having a value of approximately $2 million. This agreement was conditional upon certain matters which were to be satisfied by 30 November 2008. Subsequently it was been mutually agreed to extend the date by which the certain matters are to be completed by, from 30 November 2008 to 16 December 2008.

This sale is currently being renegotiated and the details of the final agreement will be announced once completed. It is now expected to settle in early January, with the consideration now being paid in cash instead of shares.

Negotiations for the sale of Eden’s interest UK coal seam methane licences located in South Wales and the UK are continuing, and details will be announced as soon as an agreement is executed.

Once these matters are satisfactorily resolved the directors will apply to ASX for re-quotation of the Eden securities.

==> picture [185 x 33] intentionally omitted <==

Gregory H Solomon

Executive Chairman

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