EDEN INNOVATIONS LTD — Capital/Financing Update 2011

Dec 12, 2011

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

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT

13 December 2011

PRO-RATA NON-RENOUNCEABLE RIGHTS ISSUE

The non-renounceable pro-rata rights offer ( Offer ) made to shareholders of Eden Energy Ltd ( Eden ) who were on the register as at 5:00pm WST on 23 November 2011 pursuant to a prospectus dated 14 November 2011 ( Prospectus ) closed on 8 December 2011.

Eden received acceptances under the Offer for a total of 12,955,862 ordinary fully paid shares ( Shares ), together with 12,955,862 accompanying options, each to acquire 1 Share at an exercise price of $0.20 per Share at any time up to and including 30 June 2014 ( Options ), raising a total of $647,793.10. This represented approximately 18.34% of the total number of new Shares (and accompanying Options) offered to eligible shareholders pursuant to the Offer. Eden did not receive valid acceptances under the Offer for 57,659,138 Shares and 57,659,138 accompanying Options ( Shortfall Securities ).

In addition to the acceptances detailed above, the Offer is partially underwritten as to 18,660,000 new Shares (and 18,660,000 accompanying new Options) and Eden therefore expects that, of the Shortfall Securities, 18,660,000 new Shares and 18,660,000 new Options (having a value of $933,000) will be issued to the underwriters in accordance with the underwriting agreements referred to in the Prospectus. Eden reserved the right in the Prospectus to place any Shortfall Securities within three months after the closing date of the Offer at a price which is not less than the price at which the Shares (and accompanying Options) were offered under the Offer. To date additional applications for a further 1,691,736 of the Shortfall Securities, for an issue price of $84,586.80, have been received.

Accordingly upon completion of the issuing of all the Shares, the underwritten securities and the Shortfall Securities that are presently proposed to be issued, the total value raised, including the amount to be offset against outstanding liabilities to the underwriters, will be $1,665,379.90.

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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