EDEN INNOVATIONS LTD — Capital/Financing Update 2011

May 10, 2011

==> picture [187 x 54] intentionally omitted <==

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

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

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT

11 May 2011

OptiBlend® Sales Increase

Highlights

• Five Optiblend® dual fuel kit sales in India since the start of 2011.

• 80% of Optiblend® components now sourced in India.

• Eden Energy India operates profitably over first quarter of 2011.

• Additional sales representatives appointed in India and USA.

• An increasing number of potential orders in US and India are projected to convert to sales over the next three-six months.

Sales and marketing of Eden’s Optiblend® dual fuel system by its Indian and US subsidiaries, Eden Energy India (EEI) and Hythane Co, are continuing to rapidly expand.

INDIA

Since the start of 2011, as natural gas is becoming more readily available in additional Indian cities, Eden has sold five Optiblend® kits in three cites, taking the total number of Indian Optiblend ® sales to nine since 2009 in a total of four Indian cities. These kits are now being manufactured and installed entirely by EEI’s Indian staff, without the need for assistance from USA. Additionally, a number of Indian sales representatives have also been appointed covering a reasonable portion of the target market.

The sales to date cover a variety of makes and sizes of diesel gensets, including Caterpillar, Cummins and MWM, ranging in size from 320kva to 1250kva. In all gensets consistent displacement levels of between 65-70% diesel with natural gas is regularly being achieved, depending upon the load at which it is run. Further, there are a growing number of strong leads from an increasing number of cities that are considered likely to be converted to sales in the near future.

Additionally, EEI has now been able to source over 80% of the Optiblend® kit components in India, which has resulted in a significant reduction in the cost of the kits. As a result, Hythane Co in US is now also procuring some of its parts from EEI in India, and thereby increasing Eden Energy’s overall return from the Optiblend® kit.

The effect of these sales over the past three months is that EEI has operated at a profit for the first time and is budgeting that this will both continue and strengthen as natural gas becomes more widely available in India over the next five years, opening up a potentially very large market for the Optiblend® dual fuel kits.

Page 1 of 2

USA

Hythane Company in the US, is also experiencing a dramatic increase in interest levels in Optiblend® kits. With its sales representation now stretching across the US, Hythane Company has expanded its reach, including markets in Italy, South America, and Canada.

It has also been successful at increasing the density of its US sales coverage, greatly increasing the potential number of sales opportunities and now has a large number of advanced enquiries from a range of industrial customers, power utilities and hospitals in the pipeline, many of which are hoped will convert to sales over the three to six months.

Aside from additional territory coverage, the high price of diesel fuel is also contributing to the increasing interest in displacing diesel fuel with natural gas. In addition to the emissions benefits and nearly a three fold increase in backup capacity, a reduction in overall operating costs, which is especially evident with higher diesel prices and lower natural gas prices, is a main driver for installation of an OptiBlend® kit.

As a result of these factors, Hythane Co is projecting a significant increase in demand for OptiBlend® over the next year. Production of the US OptiBlend® kits has now been optimized at its Denver facility, such that Hythane Co does not anticipate any supply issues that may otherwise be associated with market success.

==> picture [130 x 33] intentionally omitted <==

Gregory H Solomon

Executive Chairman

For further information please contact Greg Solomon (+61 8 9282 5889) or visit our website (www.edenenergy.com.au)

Page 2 of 2