EDEN INNOVATIONS LTD — Capital/Financing Update 2016

Jun 22, 2016

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ACN 109 200 900

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT

23 June 2016

EDEN’S CNT IN PLASTICS

RESEARCH SHOWS ENCOURAGING PRELIMINARY RESULTS

The 2014 collaborative research project, partially funded by the Australian Research Council (“ARC”) (to the extent of A$255,000), that Eden Energy Ltd (‘Eden”) (ASX:EDE) and the University of Queensland have been undertaking into carbon nanotubes in plastics, has achieved very encouraging preliminary results.

The following conclusions, along with full details of the actual results achieved to date with Eden’s new product ( EdenPlast[TM] ), including comparisons with the published performance of other commercial Nylon 6 products, are shown in Figure 1 below.

• Excellent combination of high modulus (stiffness) and outstanding ductility (elongation-at-break) achieved for Nylon containing <1% Eden’s CNTs compared to commercial grades of nano Nylon 6 .

• Superior ductility with comparable tensile strength (> 75 MPa, 50% Relative Humidity (“RH”) conditions) compared to super-tough commercial Nylons containing higher levels (4wt%) of nanoclays.

• Higher tensile strength than comparable Nylon based materials with similar ductility.

• Excellent dispersion of the Eden’s CNTs in EdenPlast[TM] (see the two TEM micrographs in Figure 2 below) .

• Visual clarity and transparency suggests suitability for a super-tough-film grade.

• The relatively low-cost processing method of EdenPlast[TM] could potentially result in production of cost-effective, high-stiffness and/or high-toughness grades of nano Nylon 6.

• Possible suitable future markets for EdenPlast[TM] , indicated by the results to date, are the automotive and packaging markets.

• Whilst fundamental studies (XRD, rheology, thermal and electrical analysis) and further standard characterization (ASTM, ISO) need to be carried out (impact, flexural, tensile, dynamical, fatigue) before possible commercialisation, these preliminary results from extruded filaments are considered very encouraging.

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

						Cresset
					Cresset	NE6040-ST,
	EdenPlast	UNITIKA	ARDLON	Hybrid
					NE2740, 4	4 wt%
	High	M1030DH	NE2740M5	Plastics
					wt%	nanoclay,
	Toughness			MS0825
					nanoclay	Super tough
	¥	(Ref#1)	(Ref#2)	(Ref#3)
					(Ref#4)	grade
						(Ref#4)
Tensile Modulus
	5090 ± 638	4300
(DAM*), MPa
Tensile Modulus
	1463 ± 289	2600
(50 % RH ), MPa
Flexural Modulus
			4070		4500
(DAM*), MPa
Flexural Modulus
			3600		3700
(50 % RH), MPa
Tensile Strength
	82 ± 6	95	78	61	103	47
(DAM*), MPa
Tensile Strength
	75 ± 5	63	74		96	45
(50 %RH), MPa
Yield Stress (DAM*),
	76 ± 8			45	103
MPa
Yield Stress
	40 ± 2				96
(50 %RH), MPa
Elongation-at-break
	184 ± 43	3.4	3.5	230	1.4	71
(DAM*), %
Elongation-at-break
	205 ± 18	4.0	4.0		2.4	182
(50 %RH), %

Figure 1. Comparative EdenPlast[TM] Test Performance Results vs Other Published Performance Results

*DAM: Dried as moulded

¥ EdenPlast[TM] - Conditioned at 55-60 % Relative Humidity (RH) values instead at 50%RH, and mechanical characterization of extruded composite filaments of 1.5-2.0 mm in diameter at 25 mm/min, instead of ASTM D638. Ref#1 - https://www.unitika.co.jp/plastics/e/nylon/nano-nylon6/index.html Ref#2- http://www.nylon.com.tw/detail_b6.html Ref#3 - http://3q5kmr43xszjufrhq2afw9w1.wpengine.netdna-cdn.com/wp-content/uploads/sites/57/2015/04/ms0825nylon.pdf Ref#4-http://www.matweb.com/search/GetMatlsByManufacturer.aspx?navletter=C&manID=482&manname=Cresset

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Figure 2. Excellent dispersion levels of both the CNT and other nanoparticles achieved with no significant agglomeration found in several TEM micrograph images.

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Gregory H. Solomon Executive Chairman

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