EDEN INNOVATIONS LTD — Capital/Financing Update 2015

Nov 9, 2015

ACN 109 200 900

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT

10 November 2015

OptiBlend[TM ] Dual Fuel System Sales Update

Recent Increase in Purchase Orders in USA and India

• US Orders Received for 12 Units - US$490,000

• Indian Order Received for 8 Units - INR 11.47million

• Total Value of Orders exceeds A$935,000

Eden Energy Limited (ASX: EDE) is pleased to announce that following a 12 month severe slowdown in sales of it highly successful OptiBlend[TM ] dual fuel systems, over the past two months Eden’s US and Indian subsidiaries have received orders for an aggregate of 20 OptiBlend[TM] systems, having a total equivalent value in Australian dollars of over A$935,000.

The two orders, for a total of twelve OptiBlend[TM] systems in the US for a combined value of US$490,000, were received in October/ November 2015 from a division of Cummins Inc. and with whom Eden has collaborated over the past several years to adapt the OptiBlend[TM] systems for use in Cummins power modules for the drilling industry ( see ASX:EDE 30 June 2014 ).

The purchase order in India was received from ONGC, the globally significant, Indian Government controlled, oil /natural gas exploration and production company, in September 2015 for 8 OptiBlend[TM] systems, for a total value of 11.47 million Indian Rupees. ONGC is preparing to start a large-scale shale gas exploration programme in India.

All twenty OptiBlend[TM] systems, which are anticipated to be delivered within the next two - three months, are to be fitted to large diesel powered generator sets intended for use in the oil and gas exploration industries, which has proven to be a primary market over the past few years for dual fuel systems around the world.

The global market for dual fuel systems has been at a virtual standstill for the past 12 months as a result of the steep drop in world oil prices, the consequential drastic slowdown in oil and gas exploration in and the greatly reduced difference in price between diesel fuel and natural gas.

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Although the global price of oil remains low, which from market reports appears likely to continue at least for the short to medium term, nevertheless these sales indicate some level of renewed interest from the sector and may signal a slight upturn in the level of exploration activity.

However, whilst it is not possible to reliably predict the future OptiBlend[TM] sales level based on this limited number of sales, Eden is still encouraged at this renewed the level of interest in the market.

Optiblend™ Background

Eden has developed its efficient OptiBlend[TM] dual fuel system that is capable of operating on diesel engines and displacing up to 70% of the diesel fuel with natural gas. The use of the natural gas, when it is cheaper than diesel fuel, reduces fuel costs whilst also reducing greenhouse gas emissions.

If Eden’s Hythane™ fuel (hydrogen enriched natural gas) is used in place of natural gas, the displacement of diesel fuel could be as high as 80%.

Eden’s OptiBlend[TM] dual fuel system has significant market potential particularly in the oil and gas exploration and production industries and also in diesel powered generator set (“genset”) market where gensets are used for both large-scale back-up power applications or for prime power requirements.

As a result of increased shale oil and gas exploration and recovery in USA over recent years and the resulting lower priced natural gas, a large market in USA for the conversion of diesel engines that are used on both drilling rigs and fracking trucks, to operate on a dual-fuel system of both natural gas and diesel, has developed and will continue so long as there is a reasonable price differential between the prices of oil and natural gas.

Depending upon this price differential, the size of the engine and the number of hours per day that the genset operates, payback times for the conversions are mostly a lot less than 12 months, and the cost is minimal compared to the cost of replacement with the a 100% natural gas fuelled generator.

Similarly, India has both a huge diesel powered genset market where hundreds of thousands of gensets are used for both back-up power and prime power supply, and also has significant shale oil and gas exploration and production potential, which the Indian Government has only relatively recently opened up for exploration.

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Gregory H. Solomon Executive Chairman

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