EDEN INNOVATIONS LTD — Capital/Financing Update 2012

Mar 13, 2012

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AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT

14 March 2012

Stronger US Sales Quarter for Eden OptiBlend[©]

Hythane Company, a wholly-owned US subsidiary of Eden Energy, is experiencing a surge in demand for dual fuel, as seen by a spike in OptiBlend [© ] sales and interest for the current quarter. This quarter, Hythane Company has sold/delivered OptiBlend [©] kits for use in the oil drilling industry, healthcare facilities, and manufacturing plants. The demand for the product over such a diverse set of industries is very encouraging, and shows the multiple benefits of an OptiBlend [©] installation.

Because of what it considers to be its superior engineering, independent operational experience suggests that OptiBlend [©] provides significant performance advantages over its competition. Based on feedback from multiple customers, the OptiBlend outperforms competitors’ dual fuel systems by providing faster response times to changing power demands. This is critical when the end user is dependent on the generator set for its prime power, which is the case for manufacturing plants, and is especially critical for oilfield operations.

Aside from the likely performance and uptime advantages that the OptiBlend [©] offers, it also provides greater security of operation by significantly extending the operational time of on-site diesel storage. When installed on a backup power system, as is the case in healthcare facilities, the addition of the natural gas as part of the fuel mixture doubles the amount of backup time that the power system provides. This increased amount of backup time is the driving factor for OptiBlend [©] demand at healthcare facilities.

With the dramatic increase in the US domestic supply of natural gas, largely from its huge shale gas deposits, the US price of natural gas has greatly dropped, and it is currently selling at around half the cost of diesel fuel. Consequently, in situations where larger generators are operated for more than 8-10 hours per day, very short payback times, sometimes in the order of 6 months or less, for the OptiBlend [©] investment are able to be achieved.

As more industries experience the advantages of the dual fuel, Eden expects demand to continue to be strong for OptiBlend [©] .

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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