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EDEN INNOVATIONS LTD Capital/Financing Update 2011

May 24, 2011

64820_rns_2011-05-24_05cd7cbd-4ddc-4439-ade1-4fff658131a6.pdf

Capital/Financing Update

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

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT

25 May 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 13 April 2011 pursuant to a prospectus dated 14 April 2011 closed on 20 May 2011.

Eden received acceptances under the Offer for a total of 9,678,419 ordinary fully paid shares ( Shares ), together with 9,678,419 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 $1,064,626.09. This represented approximately 44% of the total number of new Shares offered to eligible shareholders pursuant to the Offer. Eden did not receive valid acceptances under the Offer for 12,221,855 Shares and 12,221,855 accompanying Options ( Shortfall Securities ).

Holding statements for the new Shares (and accompanying new Options) subscribed for under the Offer will be despatched on 27 May 2011.

The Offer is fully underwritten and, accordingly, Eden expects all of the Shortfall Securities to be issued to the underwriter (and sub-underwriters) in accordance with the underwriting (and subunderwriting) agreements.

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Aaron Gates Company Secretary

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 Email: [email protected]