EDEN INNOVATIONS LTD — Capital/Financing Update 2016

Apr 13, 2016

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MEDIA RELEASE 14 APRIL 2016

U.S. IN A$32m BACKING FOR AUSTRALIA’s EDEN TO BUILD GLOBAL HUB

TO MANUFACTURE CARBON-STRENGTHENING ADDITIVE FOR CONCRETE

The American state of Georgia is backing an Australian company, Perth’s Eden Energy, to establish through its new wholly owned US subsidiary, EdenCrete Industries Inc., the world’s first global export centre to manufacture a carbon-based additive which strengthens concrete while vastly reducing the volumes of concrete used in commercial and infrastructure applications.

The financial assistance and incentive package is worth US$24.76 million (A$32.3 million) and will help underpin a proposed US$67 million first phase production plant in Georgia to produce the Australian technologist’s EdenCrete[TM ] additive.

Output will be exported domestically to the US concrete industry including the massive tens of billions of dollars a year US concrete infrastructure and highway repair sector as well as global exports through the nearby Port of Savannah, America’s third busiest coastal gateway.

EdenCrete[TM] is Eden’s 100% owned, proprietary carbon-strengthened concrete additive developed by Eden’s Colorado-based US subsidiary. The additive significantly increases the strength and improves a wide range of other performance characteristics of concrete, making it suitable for use in a wide range of applications including the construction and maintenance of concrete roads, bridges and other infrastructure.

Additionally, it has potential for use in a range of other concrete applications including high wear and abrasion applications, high-rise building construction, marine and coastal applications, water storage and pipelines, and pre-fabricated concrete structures and products.

It has been successfully trialled by Georgian Department of Transportation producing a 45.8% increase in compressive strength and a 56% reduction in the rate of abrasion leading to the approval of its use on the highways for both its 24 hour repair mix and its class B concrete. A number of other end users and major concrete producers have also successfully trialled the product and earlier this year, EdenCrete secured its first commercial sale in Georgia.

Backing Eden to establish the plant, infrastructure and export hub – expected to create 251 jobs over four to six years - is the Georgia Economic Development Authority (GEDA) and the Augusta Economic Development Authority (AEDA). The package includes a grant valued at US$13.17m of 45 hectares of

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

serviced land (with an option for a further 12.75 ha) in the Augusta Industrial Park – an area sufficient to accommodate up to nine mooted future expansions of the plant.

The State of Georgia is chipping in US$11.59 million in contributions.

The plant’s first phase will be developed in four stages to an estimated total output of 189 million litres a year.

“The backing from the Georgia Government is the milestone in Eden’s efforts to break into the huge US concrete market with EdenCrete[TM] ,” Eden’s Executive Chairman, Mr Greg Solomon, said today from Georgia.

“The five year product development of EdenCrete[TM] has been shown by the recent successful in-situ trials on Georgia’s highway to have delivered a revolutionary carbon nanotube enriched liquid admixture that greatly improves the strength and performance of concrete,” Mr Solomon said.

“The American financial and grant support follows nearly 12 months of discussions and analysis with various government officials and shows the significant level of support that the State of Georgia has for Eden’s project aspirations.

“We can now move forward as market momentum grows to establish the new plant with a view to commissioning a large scale operation by late in 2018 to early in 2019.

“This generous assistance package will significantly reduce both the up-front capital costs and the operational set-up costs associated with establishing this large scale manufacturing operation in Georgia, and also help significantly defray operating costs for up to 20 years.

“The incentive package, announced overnight by Georgia’s Governor Deal, will also greatly enhance the overall attractiveness of the project to future investors and lenders for fund raising purposes.”

EdenCrete[TM] production facility

Eden proposes a staged process to build and establish the global EdenCrete[TM] production facility in Augusta, Georgia. The total site of over 57ha is large enough to accommodate a very significant sized operation potentially up to ten times the size of the first phase. The first four-six year phase over four stages has an estimated cost of US$67 million. The site has convenient road and rail access to the entire North American market.

It also has easy access to the Port of Savannah, 160 kilometres away from the plant site by both road and rail, providing efficient shipping access via the Atlantic to South America, Europe, Africa and the Middle East, and also via the Panama Canal to the rest of the global market.

In February 2015, Eden completed a rights issue of one Eden share and one EDEO (3 cent September 2018) option at a total cost of 1 cent and today that package was trading on the ASX at a value of over 41 cents.

MEDIA CONTACT:

Gregory Solomon Executive Chairman Eden Energy (0402 060 000) Kevin Skinner Field Public Relations 0414 822 631

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