EDEN INNOVATIONS LTD — Capital/Financing Update 2013

Jun 25, 2013

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

CLEANSING NOTICE

This notice is given by Eden Energy Ltd ( Eden or Company ) under section 708AA(2)(f) of the Corporations Act 2001 (the Act ).

Overview

Eden is undertaking a non-renounceable pro-rata rights offer to Eden shareholders (the Offer ). The terms of the Offer are as follows:

1. The Offer is open to all Eden shareholders who are on the register as at 5.00pm WST on 5 July 2013 (the Record Date ) and who have registered addresses in Australia or New Zealand ( Eligible Shareholders ).

2. Eden shareholders with registered addresses outside of Australia and New Zealand ( Non-Resident Shareholders ) are not entitled to participate in the Offer. Eden has determined, in accordance with the Act and Rule 7.7 of the Listing Rules of ASX Limited (the Rules ) that it would be unreasonable to make the Offer to Non-Resident Shareholders having regard to the number of Non-Resident Shareholders in each country other than Australia and New Zealand, the number and value of the shares that would be offered to them and the cost of complying with the legal requirements in countries other than Australia and New Zealand.

3. Under the Offer each Eligible Shareholder will be entitled to be issued with one (1) new fully paid ordinary Eden share ( Share ) for every six (6) Shares held by them as at the Record Date at a price of $0.01 per Share.

4. The rights of Eligible Shareholders under the Offer are non-renounceable.

The Offer, if fully subscribed, will raise approximately $1,041,281 and will result in the issue of 104,128,124 new Shares. The directors of Eden reserve the power of placement of any under subscriptions.

The Offer is being made without disclosure to investors under Part 6D.2 of the Act. The Offer is being made in accordance with section 708AA of the Act, and does not therefore require disclosure under a disclosure document. Eden is satisfied that it is entitled to rely on section 708AA of the Act.

As at the date of this notice, Eden has complied with:

1. the provisions of Chapter 2M of the Act as they apply to Eden; and

2. section 674 of the Act.

As at the date of this notice, there is no excluded information as described in section 708AA(8) and (9) of the Act.

Rights and liabilities attaching to the Shares

The Shares will rank equally with the 624,768,743 Shares already issued by Eden and quoted on the ASX (ASX code: EDE).

Impact on control

The Share capital structure of Eden on completion of the Offer will be as follows*:

Shares currently on issue 624,768,743 Shares offered under the Offer (est.) 104,128,124 Total Shares on issue on completion of the Offer (est)* 728,896,867

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

***** Assuming the Offer is fully subscribed and none of the options of the Company currently on issue are exercised before the Record Date.

** In addition to the Shares currently on issue, there are 69,640,963 listed Company options (ASX Code: EDEO) on issue by the Company (each exercisable at a price of $0.20 per share) ("Listed Options") and 3,631,250 unlisted Company options on issue by the Company under the Company’s Employee Share Option Plan (exercisable at prices ranging between $0.025 to $0.20 per Share).

As the Offer is being made on a 1 for 6 basis, the maximum number of new Shares which may be issued under the Offer represents 16.67% of Eden's current Share capital.

Eligible Shareholders will be able to apply for additional Shares (over and above their entitlement) if all of the Shares under the Offer are not taken up by Eligible Shareholders (the Shares which are not taken up are hereinafter referred to as "the Shortfall"). The Shortfall will be placed at the discretion of the Directors, and the Directors reserve the right to allot to an applicant a lesser number of the Shares comprising the Shortfall than the number for which the applicant applies or to reject an application.

Noble Energy Pty Ltd, the Company’s largest shareholder, has indicated that it presently intends to take up its entitlement under the Offer in full. Noble currently holds 299,418,121 Shares (47.925% of the existing share capital) and 25,839,106 Listed Options (37.103% of the total Listed Options) of Eden.

If all of the Eligible Shareholders take up their entitlements under the Offer in full (i.e. this Offer is fully subscribed), there will be no appreciable change in each Eligible Shareholder’s (including Noble's) voting power in the Company.

If not all of the Eligible Shareholders take up their entitlements under the Offer in full, then the Offer will have an effect on the control of the Company as follows:

(a) Eligible Shareholders who have taken up their entitlement in full, may apply for Shares forming part of the Shortfall (thus increasing their proportionate interest in the Company); and

(b) Noble's voting power in the Company will increase upon it taking up its entitlement under the Offer in full. Assuming Noble is the only Eligible Shareholder who takes up its entitlement under the Offer (and it does so in full), Noble would acquire 49,903,020 new Shares.

This would increase the number of Shares held by Noble to 349,321,141 Shares (there would be no change in the number of Listed Options held by Noble) and would result in Noble's voting power in Eden increasing from 47.925% to 51.776% of the enlarged share capital (the percentage of the Listed Options held by Noble would not increase). If some, but not all, of the Eligible Shareholders take up their entitlement, Noble's voting power in Eden will increase from its current percentage to an amount not exceeding 51.776%, depending on the extent to which Eligible Shareholders take up their rights and acquire any of the Shortfall.

Whilst Noble’s shareholding interest in the Company is likely to have increased at the conclusion of the Offer, in view of Noble’s current shareholding in the Company, it is not considered that the Offer will have a material affect on the control of Eden.

Further, the proportional shareholdings of Non-Resident Shareholders will be diluted by the Offer because those shareholders are not entitled to participate in the Offer.

For further information please contact Greg Solomon, Executive Chairman, on (08) 9282 5889.

Dated: 26 June 2013

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Gregory H Solomon Chairman