EDEN INNOVATIONS LTD — Capital/Financing Update 2016

Jun 15, 2016

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ACN 109 200 900

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT

16 June 2016

EDENCRETE[TM] UPDATE

Expansion of Colorado EdenCrete[TM] Production Capability

Eden Energy Limited (“Eden”) (ASX: EDE) is pleased to announce that the expansion of its Colorado based production capability for its EdenCrete[TM] concrete admixture is well underway.

The expansion is intended to increase the annual production capability of the Colorado plant from its present level of approximately 108,000 gallons of EdenCrete[TM ] to a target of between approximately 2million -2.4 million gallons (7.6-9.1 million litres) per annum.

To achieve this scale-up and handle the throughput of product, the entire plant is being up-scaled. The design of almost all items is completed, and most of the items have either been ordered or are currently under construction. These include the following:

• The equipment to produce the quantity of catalyst required for production of the necessary carbon nanotubes;

• Two new reactors to manufacture the carbon nanotubes; and

• All the necessary processing, mixing, storage, and dispensing equipment.

Additionally alterations to the layout within the building and its surrounds are underway to accommodate the new equipment. This includes disposing of now redundant equipment such as the original gen-set that was first used in the development of Eden’s OptiBlend dual fuel system ( see Figure 1 below ) to create sufficient area for the EdenCrete[TM] expansion.

The entire up-scaling is scheduled to be completed by the early in 2017, and at present the project is progressing on-time but is approximately 20% above the initial budget, as a result in part to changes in the equipment required for the storage and delivery to road tankers of the 40,000 gallons (151,000 litres) of finished product per week that is to be despatched from the relatively small site.

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

Eden recently completed a A$10 million (US$7million) capital raising which will fully pay for this expansion, and leave approximately US$4million available to fund both the initial designs and earthworks for the future production facility in Georgia and a major marketing study that is now underway, and also to augment working capital as may be required.

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Figure 1. Disposing of redundant gen-set to create space for EdenCrete[TM] expansion

BACKGROUND

EdenCrete[TM] is Eden’s 100% owned, proprietary carbon-strengthened concrete additive, one of the primary target markets for which is improving the performance of concrete used in the construction and maintenance of concrete roads, bridges and other infrastructure. Additionally, it has potential for use in a range of other applications including high-rise building construction, marine and coastal applications, highly abrasive and hard wearing applications, water storage and pipelines, and prefabricated concrete structures and products.

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Gregory H. Solomon Executive Chairman

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