EDEN INNOVATIONS LTD — Capital/Financing Update 2012

Aug 22, 2012

A.C.N. 109 200 900

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT

23 August 2012

US OptiBlend[©] Sales Exceed Quarterly Projections

Hythane Company, the wholly owned US subsidiary of Eden Energy, has seen US OptiBlend [©] sales already exceed quarterly projections, due to a combination of both new and repeat orders. Hythane Company recently received an order for 6 OptiBlend [©] units from a new customer for use in landbased shale gas drilling and hydraulic fracking operations. Follow-up orders are anticipated once the initial 6 units are installed. A typical hydraulic fracking site has 4 to 12 pumping units, and each requires 1 OptiBlend [©] unit per pumping unit. Given the thousands of operational and yet-to-bedeployed rigs and fracking pumps in the US shale gas exploration market, Hythane Company is only starting to realize its potential with OptiBlend [©] sales. Most importantly, Hythane Company is well positioned when compared with its competition, to take advantage of this market due to the reported superior performance of the OptiBlend [©] units as compared to the other dual fuel systems.

OptiBlend [©] , developed for Eden Energy by Hythane Company, offers a superior level performance in dual fuel technology. Based on feedback from multiple oilfield and drilling customers, the OptiBlend [©] system out performs competitors’ dual fuel systems by providing faster engine response times. In fact, in recent dedicated performance tests, an OptiBlend [©] unit actually improved the engine response time over that of the engine running 100% diesel.

Engine performance is especially crucial in the oilfields because of the large variances in load demand, as well as the criticality of continuous drilling and pumping. Given the large revenue generated by these companies, high reliability and superior performance are essential from the drilling and pumping equipment. These requirements make oilfield drilling and hydraulic fracking an excellent application for the OptiBlend [© ] units, which is underscored by recent demand. Most importantly, using dual fuel greatly reduces both operating expenses for drilling companies and emissions, adding to the appeal of the OptiBlend [©] system.

With the dramatic increase in shale gas exploration not only the US but also in many other parts of the world, the potential for dual fuel applications in this market segment is seen as significant. Now that the OptiBlend [© ] system has proven itself in the US market, potential is seen for increased OptiBlend [© ] sales both in the US as well as in other emerging shale gas exploration markets around the world.

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Gregory H Solomon Chairman

Level 15, 197 St Georges Terrace, Perth, Western Australia 6000 Telephone: (08) 9282 5889 Facsimile: (08) 9282 5866 Email: mailroom@edenenergy.com.au