EDEN INNOVATIONS LTD — Capital/Financing Update 2015

May 24, 2015

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AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT

25 May 2015

EDEN ENERGY CONTINUES TO PROGRESS TOWARDS ESTABLISHING COMMERCIAL PRODUCTION AND MARKETING OF EDENCRETE[TM] IN USA

Australian technologist, Perth-based Eden Energy Limited (ASX: EDE) is pleased to announce that it is continuing to make progress in the United States of America towards establishing large scale commercial production and marketing of the Company’s carbon-strengthened concrete additive known as EdenCrete[TM] .

Since the Company’s earlier ASX announcements related to the progress of the testing and trialling of EdenCrete[TM] and the initial steps towards establishing large-scale production facilities for EdenCrete[TM] in the US, the following encouraging progress has been made:

Ongoing and Proposed Trials

• A large national US concrete company (the second company in Colorado to trial EdenCrete[TM] ) that is focusing its trials on longer term benefits, has indicated that it is happy with the preliminary observations and wishes to initiate further optimisation tests on its use of EdenCrete[TM ] .

• This now means that all three independent concrete companies (two in Colorado and one in Australia) that are currently trialling EdenCrete[TM ] have all been sufficiently encouraged by the initial results (see Eden’s ASX announcements dated 27 March 2015, 7 April 2015 and 1 May 2015) for them all to be proceeding with further trials of EdenCrete[TM ] and/or initial commercialisation.

• The trials into extending the shelf life of the EdenCrete[TM ] admixtures are continuing, with a current six-months shelf life, considered sufficient to meet market expectations, having so far been achieved.

• Metro Mix, the Colorado based company to first trial EdenCrete[TM ] in the US, that commenced commercial trials (see Eden’s ASX announcement dated 13 May 2015), has arranged for two further commercial trials that are anticipated to take place within the next two weeks. This would bring to four the total number of commercial US trials of EdenCrete[TM] , including the initial trial at the Metro Mix batching plant (see Eden’s ASX announcement dated 23 February 2015).

• Once completed and the results from all four commercial trials are documented, Eden can then apply to the Department of Transport (DOT) in Colorado (and any other States where their DOT may be interested), for a field trial to be conducted by the relevant DOT, which is the prerequisite to being added to the pre-approved product list of DOT. Of relevance, it may

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

be possible for the approval by one State’s DOT to be easily adopted by the DOT in another State.

• Initial discussions with the DOT from two States outside of Colorado have commenced and the results to date from the EdenCrete[TM] trials have been well received. These discussions and others that are planned could potentially see more than one State undertake field trials at the same time.

• Initial discussions with a number of other US concrete companies are also planned in the immediate future with a view to securing further trials and tests by these companies in order to broaden the market interest and acceptance of EdenCrete[TM ] .

Ongoing US Discussions

• Further encouraging preliminary discussions with various relevant parties related to both the possible location and financing in the US of Eden’s first proposed large scale EdenCrete[TM] production facility have commenced. The Company is in the process of assembling a number of possible alternatives with a final decision on the chosen location and method of financing expected within the next two-three months.

Proposed Timetable

• Subject to any unforeseen delays and these steps having been successfully completed, Eden has formulated a targeted 18 -24 months timetable for completion of:

  • the selection of a suitable site location,

  • the securing of the necessary finance, and

  • the construction of the factory and the equipment for the first stage capable of producing up to 250 tonnes of carbon nanotubes (CNT) per annum, which would produce enough EdenCrete[ TM] to supply up to 1% of the total annual US concrete market.

• The proposed factory is intended to have the capacity to accommodate expanded production of up to a total of 1000 tonnes per annum of CNT, and subject to sufficient future market demand in the US or elsewhere, this expansion is presently targeted to occur progressively over the next 4 years.

New US Subsidiary Company Established

• Whilst the successful outcome of these initial steps and the targeted timetables are not yet certain, in anticipation of a successful result Eden is currently establishing a new, wholly owned US subsidiary to be named EdenCrete Industries Inc., that will be used as the vehicle to undertake the production and marketing of EdenCrete[TM ] in the US.

Summary

Although no agreement with any third parties related to these matters has yet been reached, the overall progress is encouraging and the directors remain hopeful of a successful outcome in this complex process.

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Gregory H. Solomon Executive Chairman

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