EDEN INNOVATIONS LTD — Capital/Financing Update 2011

Apr 12, 2011

ACN 109 200 900

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AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT 13 April 2011

PLACEMENT AND PRO-RATA NON-RENOUNCEABLE RIGHTS ISSUE

Eden Energy Ltd ( Eden ) has just completed a placement ( Placement ) to sophisticated and professional investors to whom disclosure is not required to be given under s.708 of the Corporations Act 2011 of 5,013,090 fully paid ordinary Eden shares ( Shares ) at a price of $0.11 per Share, together with one (1) free attaching Eden option (each to acquire one Share at an exercise price of $0.20 per Share at any time up to and including 30 June 2014) ( Option ) for every one (1) Share issued under the Placement. The Placement raised $551,440, which will be used for general working capital purposes. A fee of 5% of the value of the funds raised under the placement is payable to licenced stock brokers.

Eden is also undertaking a non-renouncable pro-rata rights offer to Eden shareholders (the Offer ) on the same terms as the Placement. The Offer is open to all Eden shareholders who are on the register as at 5.00pm WST on 5 May 2011 (the Record Date ) and who have a registered address in Australia or New Zealand. Under the Offer, Eden will make an offer to all eligible shareholders of one (1) Share for every ten (10) Shares held as at the Record Date, at a price of $0.11 per Share, together with one (1) free attaching Option for every one (1) Share issued under the Offer. The Offer is conditionally fully underwritten by RM Corporate Finance Pty Ltd on usual terms and conditions of underwriting. As the consideration for RM Corporate Finance Pty Ltd agreeing to underwrite the issue, Eden has agreed to a fee of $144,541.80, being 6% of the total underwritten amount and to issue RM Corporate Finance Pty Ltd 3,180,000 Options. The Offer is also partially sub-underwritten by Tasman Resources Ltd (through its wholly owned subsidiary, Noble Energy Pty Ltd, who is the largest shareholder of Eden) for approximately 22.8% of any Shares (and free attaching Options) offered by Eden under the Offer for which valid applications have not been received by 5:00pm on the closing date for the Offer (representing a maximum subunderwriting (assuming no valid applications are received under the Offer) of 5,000,000 new Shares (and attaching Options) for a total of A$550,000).

The anticipated Timetable for the Offer is as follows:

Offer announcement	13 April 2011
Lodgement of Prospectus and Appendix 3B with ASX	15 April 2011
Notice sent to shareholders	18 April 2011
Ex date	29 April 2011
Record Date for determining entitlements	5 May 2011
Offer document despatched to eligible shareholders	6 May 2011
Closing date of the Offer	20 May 2011
Securities quoted on a deferred settlement basis	23 May 2011
Company notifies ASX of under subscriptions	25 May 2011
Despatch of holding statements	27 May 2011

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Gregory H Solomon 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