EDEN INNOVATIONS LTD — Director's Dealing 2009

Nov 23, 2009

ASX PERTH

ACN 109 200 900

Tuesday, 24 November 2009

Australian Securities Exchange Limited Level 8 Exchange Plaza 2 The Esplanade PERTH WA

Attention: Greg Coulson

By facsimile - (08) 9221 2020

Dear Greg

Further to your letter of 23 November 2009 re Appendix 3Y - Change of Director's Interest Notices Iodged with ASX Limited ("ASX") on 23 November 2009, we respond as follows;

• 1 The Appendix 3Y's were lodged late due to the Company's incorrect interpretation of the listing rules. The change in the director's interests was due to the lapse of EDEO options which was publically available information. The directors did not acquire or dispose of any interests.
• 2 The Company's policy is for directors to inform the Company Secretary of any trading of shares in the Company immediately once the transactions have occurred. The Appendix 3Y forms are then prepared and lodged.
• 3 It is considered that the current arrangements are normally satisfactory and this was a once off error.

Yours faithfully

Aaron P Gates Company Secretary

23 November 2009

Mr Aaron Gates Eden Energy Limited Level 40, Exchange Plaza 2 The Esplanade PERTH WA 6000

By Facsimile: 9282 5866

Dear Aaron

Eden Energy Limited (the "Company") Appendix 3Y - Change of Director's Interest Notices.

We refer to the following:

The Appendix 3Y's lodged by the Company with ASX Limited ("ASX") on 23 November 2009 for Gregory Solomon, Douglas Solomon and Guy Le Page and

• Listing rule 3.19A which requires an entity to tell ASX the following: $\mathbf{1}$ .
• 3.19A.2 The notifiable interests of a director of the entity (or in the case of a trust, a director of the responsible entity of the trust) change the entity must complete Appendix 3Y and give it to ASX no more than 5 business days after the change occurs.
• $2.$ Listing rule 3.19B which states as follows.

An entity must make such arrangements as are necessary with a director of the entity (or in the case of a trust, a director of the responsible entity of the trust) to ensure that the director discloses to the entity all the information required by the entity to give ASX completed Appendices 3X, 3Y and 3Z within the time period allowed by listing rule 3.19.A. The entity must enforce the arrangements with the director.

1. The Companies Update dated 27 June 2008, reminding listed entities of their obligation to notify ASX within 5 business days of the notifiable interests in securities held by each director and outlining the action that ASX would take in relation to breaches of listings rules 3.19A and 3.19B.

As the Appendix 3Y's indicate that a change in the aforementioned director's notifiable interests occurred on 30 September 2009, it appears that the Appendix 3Y's should have been lodged with ASX by 7 October 2009. Consequently, the Company may be in breach of listing rules 3.19A and/or 3.19B.

ASX Markets Supervision Pty Ltd ABN 26 087 780 489 Level 8, Exchange Plaza 2 the Esplanade Perth WA 6000

PO Box D187 Perth WA 6840

Telephone 61 8 9224 0000 Facsimile 61 8 9221 2020 www.asx.com.au

Please note that ASX is required to record details of breaches of the listing rules by listed companies for its reporting requirements.

ASX reminds the Company of its contract with ASX to comply with the listing rules. In the circumstances ASX considers that it is appropriate that the Company make necessary arrangements to ensure there is not a reoccurrence of a breach of the listing rules.

Having regard to listing rules 3.19A and 3.19B and Guidance Note 22: "Director Disclosure of Interests and Transactions in Securities - Obligations of Listed Entities", we ask that you answer each of the following questions.

• 1. Please explain why the Appendix 3Y's were lodged late.
• $2.$ What arrangements does the Company have in place with its directors to ensure that it is able to meet its disclosure obligations under listing rule 3.19A?
• 3 If the current arrangements are inadequate or not being enforced, what additional steps does the Company intend to take to ensure compliance with listing rule 3.19B?

Your response should be sent to me by facsimile on facsimile number (08) 9221 2020. It should not be sent to the Company Announcements Office.

A response is requested as soon as possible and, in any event, not later than 5:00pm W.S.T on Wednesday, 25 November 2009.

Under listing rule 18.7A, a copy of this query and your response will be released to the market, so your response should be in a form suitable for release and must separately address each of the questions asked. If you have any queries or concerns, please contact me immediately

Yours sincerely

Greg Coulson Senior Adviser, Issuers (Perth)