EDEN INNOVATIONS LTD — Interim / Quarterly Report 2011

Jan 30, 2012

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ACN 109 200 900

ASX Quarterly Report

For the Period Ended 31 December 2011

HIGHLIGHTS

Pyrolysis Project - Carbon Nanotubes/ Carbon Fibres/ Hydrogen

• High-quality multi wall carbon nanotubes produced

• New method developed to help disperse carbon nanotubes and carbon fibres in mortar

• Further encouraging test results of carbon nanotubes mixed with certain cement formulations showing increases in both compressive strength and flexural strength of up to 20%.

• Further testing of nano-carbon enriched mortar/concrete mixtures is underway.

Optiblend® Dual Fuel Project

• Validation testing commence on the OptiBlend© system for commercial use with both hydrogen-rich renewable biogas and syngas fuel feedstocks

• Hythane Company was advised in December 2011 by an international drilling company that operates a large fleet of drill rigs in a number of counties including Australia, that it should receive an initial order for 12 OptiBlend© dual fuel units. To date this order has not yet been received, but Hythane Company remains hopeful that the order will be received in the near future.

Dedicated Syngas Generator Sets

• Hythane Co commenced development of a new dedicated hydrogen / syngas genset control system that will target the range from 200kw to 2,000kw.

Hythane®

• Negotiations are continuing for Indian Hythane bus projects with both GAIL and GSPC Gas.

UK Gas Assets

• Eden is seeking cornerstone investors for a proposed spin-out of its significant UK gas assets

Corporate

• Eden completed a non-renounceable, pro-rata rights issue raising, A$1.66 million.

• Eden entered in a funding agreement pursuant to which the Company has agreed to issue, up to 3 convertible notes (Notes), each with an issue price (or face value) of US $1,000,000.

• The claim made against Eden by Omni Laboratories Inc ("Omni") and Eden's counterclaim was settled.

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CARBON, HYDROGEN, DUAL FUEL and HYTHANE®

1 Pyrolysis Project (Eden 100%)

Full Scale Commercial Production of High Quality Nano-Carbon Targeted for 2012

During the quarter, Hythane Company, Eden’s wholly owned US subsidiary, developed a process to produce higher quality nano-carbon products in its reactor and is currently working to convert this capability to a large scale and repeatable process.

Additionally, with the first two prototype commercial scale production units having been installed and successfully trialled at Hythane Company, Eden is now able to undertake the development of a full scale commercial production unit to produce high quality nano-carbon products (carbon nanotubes (CNT) or carbon nanofibres (CNF)) and hydrogen. This further scale-up will be subject to Eden being able to find suitable bulk markets for the quantity of carbon that it will be able to produce.

After commencement, this further development will be likely to take in the order of 6-9 months, after which time it is hoped to be able to commence the commercial deployment of these units.

Market progress

Initial progress has been made in establishing suitable markets for the carbon products. Eden’s objective is to develop bulk scale markets that can utilise the very large quantities of the nano-carbon products that Eden anticipates that it will be able to produce. Eden’s efforts are presently primarily focussed on exploring and developing uses of the carbon as additives in concrete, plastics and other composite materials and in rubber. In each case the objective will be aimed at exploiting the enhanced mechanical properties, and/or electrical or thermal conductivity that the carbon nanotubes or nanofibres can deliver. The primary difficulty in each case is being able to achieve a uniform dispersion of the carbon throughout the host material.

Concrete – New Dispersion Technique

During the quarter, Eden achieved encouraging initial results in US trials, with the addition of small quantities of CNT or CNF increasing compressive strength by up to 19% without affecting the flexural strength of the concrete. This potential improvement in compressive strength would be relevant to all grades of concrete. Subsequent tests also produced increases of up to 20% in the flexural strength in certain cement mixes suitable for ultra-high strength concrete.

Hythane Company has been able to refine its techniques to evenly disperse the carbon and has developed a technique which significantly enhances the even dispersion of carbon nano-materials in concrete and/or mortar composites.

Sufficiently dispersed carbon nanofibres (CNF) and carbon nanotubes (CNT) have been shown in various published studies to be highly beneficial when added to concrete/mortar. Nano-carbon can increase various orientations of concrete strength by bridging the gaps across micro-cracks which occur from initial set of cement. These micro-cracks gradually grow to form much larger macrocracks, which expose reinforcement and allow severe damage to the integrity of a structure or structural member.

Even and adequate dispersion of the carbon nano-materials is difficult. The Vander Waals forces holding the fibres/tubes together are incredibly strong, requiring a form of mechanical disturbance to achieve dispersion. Further investigation into the method of dispersing the nano-carbon has yielded an improved technique, which is anticipated, will help to significantly increase strength when incorporated into the mixing methodology of concrete and/or mortar.

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The recent flexural strength results for one promising high strength mortar mix with added CNT are shown below in Figure 1.

Figure 1

Eden is highly encouraged by these preliminary results and is continuing with this nano-carbon enriched concrete/mortar development and testing programme. If this further work produces repeatable results, it is anticipated they significantly extend the market potential of Eden’s nanocarbon carbon products as an additive to concrete/mortar relevant to specific applications such as:

• High strength concrete used in the construction of bridges, flyovers and high rise buildings, and

• Ultra-hard concrete for use in high impact applications.

Further results from this on-going test work are expected during the March 2012 quarter.

Additionally, both a major international concrete company and an Australian university are also testing Eden's CNF and MWCNT in concrete applications.

Several leading Indian concrete manufacturers have also expressed preliminary interest in testing the Company’s nanocarbon products as an additive to concrete which is hoped in due course to open up a significant opportunity for Eden’s nano-carbon products in the enormous Indian concrete market.

Plastics and Epoxies

Eden in conjunction with several commercial operators has continued to test the effects of compounding Eden’s CNT and CNF with various forms of plastics and epoxy materials (epoxy resin, polyester resin, etc) with a view to testing the effect of the addition of CNT and CNF to plastic on the strength, electrical and thermal conductivity of plastic. This work produced highly encouraging preliminary encouraging results.

Eden was able to achieve a volume resistivity in these materials of approximately 10^5 to 10^7 Ohm*m, which puts these materials well within the range of use for electrostatic discharge (ESD) applications. This opens up growing markets for the compound such as for use as a coating on a range of electrical products and components.

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Eden is now working on methods to optimise the compounding and dispersion process, as well as the carbon loading amount, to maximise electrical conductivity of these normally insulating materials while maintaining the physical properties as closely as possible to that of the neat resins.

Several companies are trialling Eden's carbon products in plastics, epoxies and coatings for various applications.

Subject to being able to achieve similar results on a repeatable basis, Eden anticipates a significant market potential for its nano-carbon products for these applications.

Batteries and Electrical Applications

Further preliminary test work is being carried out by a number of companies for use of Eden’s nanocarbon in batteries and other electrical applications.

The nanomaterials provide increased capacity for charge and increased power output for the batteries. Battery companies are reporting substantial benefits using the Eden nanomaterials.

Rubber

During the last quarter, the Company arranged for the external testing of the effect that the substitution of CNT and CNF for carbon black in rubber, will have on the tensile strength and strain density of the rubber (and its potential to result in lighter, longer life tyres). Carbon black, or amorphous carbon, comprises up to 33% of the weight of rubber tyres and adds strength and aids in the dissipation of heat. CNT and CNF were anticipated to increase the durability of the rubber, increase the heat dissipation and at the same time significantly reduce the weight of the tyres.

The preliminary test results, however, were not encouraging and the mixing and dispersion techniques that were used are now being reviewed.

Summary

Eden is well on the way to completing the development of an efficient, commercially competitive production process that should enable Eden to produce significant quantities of high quality nanocarbon and to participate in a rapidly growing global nano-carbon market.

Additionally, the only other major by-product from Eden’s pyrolysis process is hydrogen, the real cost of which will be dependent upon the value of the carbon produced. The quantity of hydrogen produced will be 33.33% (by weight) of the quantity of carbon produced.

This hydrogen can be either captured and fed into the various hydrogen/Hythane® applications that Eden has been developing around the world, with the intention of accelerating the commercial rollout of these downstream hydrogen applications based on the prospect of relatively low cost hydrogen, or else it can be used to help fuel the pyrolysis reactor.

The current cost of hydrogen is one of the major limiting factors holding back a broader rollout of hydrogen and Hythane® technology. Of further interest, the hydrogen produced using the Eden pyrolysis process will generate only a relatively very small amount of greenhouse gas as a byproduct of the production process compared with most other currently available methods of hydrogen production, and in consequence it is projected that the hydrogen will be both commercially competitive and environmentally preferable.

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Pyrolysis Background

Through the pyrolysis process, developed by Eden with the University of Queensland (UQ) and which Eden now owns 100%, methane (natural gas) is broken down into its constituents of hydrogen gas and carbon, without the production of carbon dioxide. The carbon is produced as a solid as either carbon nanofibres or carbon nanotubes that each are many times stronger, in certain applications, than steel, whilst each also has a great a capacity to conduct both electricity and heat.

The new process:

• Appears, from information available, to be relatively efficient when compared with other methods of production of carbon nanotubes and fibres, requiring only a relatively low level of energy and lower cost capital equipment compared with most other published methods;

• employs relatively low cost catalysts (no precious metals are used in the catalysts);

• has a low carbon footprint; and

• produces only hydrogen together with either carbon nanotubes or solid carbon fibres from natural gas, opening up the possibility of:

• i. reasonably low-cost, super strong, highly conductive, ultra-light carbon nanotubes/fibres with possible application in carbon composite materials for industries such as the automobile industry and as carbon-enriched concrete suitable the construction industry;

• ii. use in batteries and electrical storage; and

• iii. low-cost hydrogen production without the production of carbon dioxide as a by-product that could help facilitate the more rapid spread of both hydrogen as a vehicle fuel and also Eden’s Hythane® technology as an ultra-clean, highly efficient premium blend of hydrogen and natural gas that it is marketing in India and USA.

If successful on a commercial scale, the process could have important implications for the widespread commercialisation of these forms of carbon whilst also producing relatively low cost hydrogen with an extremely low carbon footprint as the only by-product.

2 Optiblend® Dual Fuel System (Eden 100%)

First large US Optiblend Order Anticipated

Hythane Company, following a highly successful demonstration of the Optiblend system at the Hythane Company’s premises in Colorado, was advised in December 2011, by an international drilling company, that operates a large fleet of drill rigs in a number of counties including Australia, that Hythane Company should receive an initial order for 12 OptiBlend [©] dual fuel units for use in land-based drilling operations, particularly in the oil and gas industry and including the large US shale gas market.

As at the date of this report, Hythane Company understands that it has now satisfied the required vendor qualification process but to date the order has not yet been received. However, after recent discussions with the potential customer, Eden remains hopeful of receiving the order in the near future, despite an emerging slowdown in the US shale gas drilling market, which has resulted from a great increase in the available supply of US shale gas and a corresponding decrease in the price of the gas. Follow-up orders are also anticipated after the initial 12 units are successfully installed.

This order, which if it is received, will be worth approximately US$300,000, will be the first order for multiple units to be received by Hythane Company, although Eden India has previously received multiple-unit orders. A typical drilling rig has 4 engines, and therefore requires 4 OptiBlend [©] units per drilling rig. Given the thousands of operational and yet-to-be-deployed rigs, Hythane Company is only now starting to realise its potential in this market. Most importantly, Hythane Company

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considers it to be better positioned than the competition to take advantage of this market due to the superior performance of the OptiBlend [©] as compared to the other dual fuel systems.

Other US Optiblend® Sales

During the quarter, another unit was installed and invoiced. Representatives supporting various engine manufacturers have quoted numerous Optiblend® kits and have received a growing number of encouraging enquiries for the kit. Sales representatives have been appointed in most US states, and also in several South American countries.

Indian Optiblend® Sales

During the quarter, Eden sold a further two Optiblend® kits in India, commissioned a further two from previous orders.

Quotes have been provided to many other potential customers in various cities across northern and western India. The sales price of an installed OptiBlend® kit varies according to the configuration of the engine, but is often in the range of US$25,000 - $40,000.

Eden Energy India has now found suitable Indian manufacturers for many of the dual fuel kit components, which will help reduce the cost of the production of future units.

The major limiting factors in India for OptiBlend® are the limited availability of natural gas in many parts of India due to both a limited gas grid and also limited supply, and also the increasing price of natural gas, compared to the price of diesel fuel that is Government regulated and heavily subsidised in the Indian market. However, as the natural gas production from existing fields and future fields grows and the rapidly expanding gas grid spreads across the country, these problems are expected to progressively reduce, opening up a potentially very significant market throughout much of India.

Optiblend® expands into Biogas Market

The OptiBlend® system is currently being validated for commercial use with both hydrogen-rich renewable biogas and syngas fuel feedstocks. Recently, several projects in the US have been proposed that would use biogas produced on-site to displace as much as 70% of high-cost diesel fuel at electrical power plants using engine-driven generator sets (“gensets”). An OptiBlend© kit has been purchased by a biogas equipment supplier for validation testing on their in-house genset. After successful performance testing and integration activities, the OptiBlend© system will be included as the default genset conversion kit for these projects.

Early research produced impressive results and demonstrated the ability of hydrogen-rich gaseous fuels to displace diesel and improve the efficiency and exhaust emissions of diesel engines in distributed electrical power generation applications. The broad availability and low cost of pipeline natural gas became the primary focus for sales of the production OptiBlend© system.

OptiBlend© sales are now hoped to expand to include renewable biogas from landfills, digesters and waste water treatment facilities, as well as syngas made from sawdust, wood chips or similar carbonneutral agricultural waste in gasification equipment. These biogas mixtures have similar composition to the natural gas/syngas/hydrogen feedstocks used in the OptiBlend© development.

In addition to the obvious economic benefits resulting from the replacement of expensive diesel fuel with renewable methane produced from waste, these OptiBlend© applications will result in a significant reduction in the amount of Greenhouse gases that result from the power generation.

Optiblend® Background

Eden has completed the development of an efficient dual fuel kit that is capable of operating on diesel engines and displacing up to 70% of the diesel fuel with natural gas. If Hythane® is used in

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place of natural gas, the displacement of diesel fuel could be as high as 80%. The use of the natural gas will greatly reduce greenhouse gas emissions and, in places where natural gas is cheaper than diesel, will also reduce fuel costs. In various parts of India, available natural gas is already significantly cheaper than diesel, and accordingly Eden has been targeting a diversified market for this technology, starting with stationary power generators and then locomotives.

Many millions of diesel generators are installed throughout India in industrial, commercial, and residential applications, to provide either base load power or backup power generation, largely due to the unreliability of the Indian power grid in many parts of the country. As natural gas, which is both much cleaner and cheaper than diesel, becomes more widely available, a large market is emerging for the conversion of these diesel engines to operate on a dual-fuel system of both natural gas and diesel. Depending upon the size of the engine and the number of hours per day that it operates, payback times for the conversions are often less than 12 months, so the cost is minimal compared to the replacement cost of a natural gas generator.

3 Syngas Generator Sets

Following requests from major potential US customers, Eden Energy’s US subsidiary, Hythane Company, has begun development of a spark-ignited engine conversion system to allow operation on hydrogen-rich renewable biogas.

Many sources of biogas can contain large percentages of methane and hydrogen, along with inert components like nitrogen or carbon dioxide, and these gaseous fuel blends generally allow operation in conventional spark-ignited engine generator sets (gensets) intended for natural gas fuel, with a few simple modifications. However, new gasification equipment technology developed for cellulosic or wood-based biomass has the capability to produce a syngas composition with over 60% hydrogen. Syngas can also be produced from fossil fuels.

This syngas fuel requires careful, precise fuel handling and control, with control strategies and systems similar to dedicated pure-hydrogen engines. Extensive knowledge and experience with hydrogen-fuelled internal combustion engines makes Hythane Company uniquely qualified to develop and market these engine conversion systems for large stationary generator sets used for distributed electrical systems or combined heat and power (CHP) production.

Large volumes of mixed syngas and air must be avoided in the engine intake system with such a large hydrogen concentration in the syngas fuel, because hydrogen has a very wide flammability range and low ignition energy, making pre-ignition and intake backfires a significant risk. The possibility of abnormal engine operation, or even mechanical damage, precludes the use of conventional air mixer/carburetion systems on most large industrial natural gas engines. Over the years, Hythane Company and its predecessor, Hydrogen Components, Inc., have developed fuel systems for many internal combustion engine projects, and this in-depth understanding of hydrogen engine combustion and control was patented in June 2010.

Hydrogen engine projects from the early 1990s to present include a 1.5L Honda engine for an unmanned Navy submersible, four 2.5L Ford Ranger pickups (one turbocharged, three supercharged) for Xerox in California, a 70kW generator set in a Bluebird hybrid electric bus for the 1996 Olympics in Atlanta, six 2.3L Mercedes Sprinter vans in Germany, and two 125kW Cummins genset engines in 2002. The new dedicated hydrogen/syngas genset control system under development will target the range from 200kW to 2,000kW.

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4 Hythane®

Indian Hythane® Project

Mumbai and Gujarat Hythane® Bus Demonstration Projects

During the quarter, discussions occurred in relation to this project with GAIL and MGL, Eden’s proposed joint venture partners, and as a result it is now anticipated that this planned demonstration project may be moved from Mumbai to Delhi.

If so, it would involve essentially the same concept as was proposed for Mumbai with Eden establishing a Hythane® refuelling station at a suitable bus depot to fuel buses. The exact scope of the project will be reviewed and if it proceeds, is anticipated to possibly involve firstly a two bus trial of Hythane® fuel, with the initial hydrogen planned to be supplied from bottled hydrogen, followed by a second stage, of possibly up to 10 buses, with the hydrogen planned to be supplied by Eden from one of its new pyrolysis reformers. This reformer is planned to be installed on site, and will produce both the required hydrogen, and also carbon products that Eden hopes to be able to sell into the Indian market.

If commercial scale hydrogen production, using Eden’s new pyrolysis process is available, it may well increase the chances of developing a large Hythane® market in India where the hydrogen is effectively produced as a by-product to the production of higher value carbon fibres and nanotubes, underpinned by a very low carbon footprint.

Discussions also took place during the quarter with GSPC Gas in relation to the second proposed Indian Hythane® bus demonstration project in Gujarat (which will be similar in scale and timetable to the proposed Delhi demonstration detailed above) and these talks have re-invigorated this project which had slowed down considerably, and it is now hoped to be operational sometime during 2012.

Whilst these Indian Hythane® projects remain very slow, there are definite signs of increased level of interest from the Indian Government to proceed with its proposed HCNG programme, and Eden remains hopeful that these projects will proceed during the next 6-12 months.

Background - Hythane® in India

In 2006, India adopted a Hydrogen Roadmap that proposes to have 20% of all vehicles running on a hydrogen based fuel by 2020, and plans to use hydrogen enriched natural gas (Hythane®) as the transitional fuel. At present, there are approximately 12 Indian cities that have established natural gas distribution networks, in which expanding numbers of natural gas fuelled vehicles, particularly buses, are operating. The Indian Government has announced a new target to expand such networks to 200 cities by 2015 – opening up a potentially huge Hythane® market across the country.

During the past two years, various vehicle manufacturers, with funding from the national Indian Ministry of New and Renewable Energy (“MNRE”) and assistance from the Society of Indian Automobile Manufacturers ("SIAM") and IOC, have developed the following seven types of vehicles to run on HCNG fuel:

• two different models of three-wheel auto rickshaws;

• one SUV;

• one passenger car; and

• three different models of mini-buses.

The MNRE is now funding an extended field trial of these seven HCNG vehicles in Delhi, with refuelling at either the Dwarka public Hythane station or at IOC’s research and design facility near Delhi. SIAM will also participate by testing at regular intervals, the vehicles’ emissions and efficiency.

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This field trial will add significant national momentum to the overall Indian HCNG programme and Eden is encouraged that its considerable efforts to date to develop Hythane® fuelled buses and to build HCNG refuelling stations will be rewarded in due course as a significant Hythane® vehicle market develops in India. This will see the supply of natural gas spread from the 30 cities where it is currently available, to the more than 300 cities over the next 5-10 years.

As part of this development, Eden plans to promote its pyrolysis technology, by which hydrogen and CNT and CNF are produced from natural gas, as a cost effective means to produce the hydrogen necessary for the rollout of HCNG across India.

5 Energy Projects

UK Gas Project

Eden holds a 50% interest in 17 PEDLs in South Wales, Bristol/Somerset and Kent and a 100% interest in 3 other licences, covering a total area of more than 2,100 square kilometres (approximately 510,000 acres) and taking in very large portions of the coal fields and surrounding basins in these three areas of the UK, all of which have significant potential for both coal seam methane and shale gas.

Eden plans to spin-out its UK energy assets into a separate self-funded company when market conditions are suitable, and is presently seeking cornerstone investors. Discussions occurred with a number of parties during the quarter related to this. To date no definite timetable or terms of such a spin-out have been resolved.

As with the US shale gas market, the UK shale gas market is currently being reviewed by the UK government. Whilst Eden has two fully permitted drill sites in South Wales on licences in which Eden holds 100% and at which it can drill and core for both coal seam gas and shale gas potential, it is unlikely that any hydraulic fracturing or other stimulation will be permitted until the governmental review is complete and any necessary regulations put in place. However, the drilling and coring would help to significantly firm up the potential gas in place on the Eden licences.

UK Shale Gas

An independent expert, RPS, has reported the Unrisked (P90) Resource Volumes of Shale Gas in the Numurian Measures on 7 Petroleum Exploration and Development Licences (PEDLs) in South Wales in which Eden holds a 50% interest (covering a prospective area of 806 square kilometres) are:

• Volume of Gas Initially in Place (GIIP) – 34.198 TCF (Eden’s share -17.099 TCF

• Recoverable Volume – 12.799 TCF of gas (Eden’s share – 6.349 TCF )

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UK Coal Seam Methane

Independent expert, RISC, reports that estimated Gross Contingent Resources of Coal Seam Methane contained in the 10 PEDLs in South Wales (covering a prospective area of 247 square kilometres) in which Eden holds an interest, are:

• A 1C to 3C range of 687-1,363 BCF with a 2C estimate of 980 BCF

RISC reports that the estimated Gross Unrisked Prospective Resource of Coal Seam Methane contained in the 17 PEDLs in South Wales, Kent and Bristol Somerset (covering a prospective area of 1068 square kilometres) in which Eden holds an interest is:

A low to high estimate of 1,903-4,990 BCF with a best estimate of 3,088 BCF

RISC compiled these resource estimates based on the SPE PRMS definitions and guidelines.

Eden’s calculation of its share, based on percentage interests in each PEDL, in the total Coal Seam Methane resources detailed in the RISC report is:

• Gross Contingent Resource, with a 2C estimate - 332 BCF

• Gross Unrisked Prospective Resource - a low to high estimate of 848-2,271 BCF with a best estimate of 1,382 BCF.

These shale gas and coal seam methane resource numbers do not include any similar potential gas resources on any of Eden’s other licences in South Wales, Bristol/Somerset or Kent.

South Australian Geothermal and Gas Projects

There was no activity undertaken during the quarter on Eden’s South Australian geothermal or gas project. Work on these projects was suspended last year until a more positive environment for geothermal energy emerged. Eden will continue to periodically review this project. If Eden is unable to secure funding for these projects it anticipates relinquishing the exploration licences that it holds in South Australia.

6 Corporate

During the quarter, Eden completed a partially underwritten, pro-rata, non-renounceable rights issue that raised $1.66 million.

In addition, during the quarter, Eden and La Jolla Cove Investors Inc. (“La Jolla”), a US-based private investment company, entered into the Eden Energy Funding Agreement pursuant to which the Company has agreed to issue, and La Jolla has agreed to acquire, up to 3 convertible notes (“Notes”), each with an issue price (or face value) of US $1,000,000.00 (“Purchase Price”). Interest is payable on the principal amount actually advanced by La Jolla under a Note (to the extent not converted into ordinary fully paid shares in the Company) at the rate of 4.75% per annum.

The purpose of this facility is to provide a flexible backstop funding agreement to the Company which can be used as required to supplement the funds raised under the pro-rata Non-renounceable Rights Issue.

Eden’s proceedings against Engenco Ltd are continuing for the recovery of the balance of the monies owed (A$0.9 million plus interest) in relation to the sale of HyRadix, Eden Cryogenics and CTS that occurred in 2009. The Directors remain confident the proceedings will be successful.

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A claim made against Eden by Omni Laboratories Inc. (‘Omni”), the company that carried out permeability and desorption testing for Eden in 2007-8 in the UK, for the unpaid portion of its bill for this testing plus costs, and Eden’s counterclaim were settled during the quarter for payment by Eden of US$1.2 million. Even though Eden’s lawyers had advised that Eden had good prospects of success, if the case had gone to trial Eden faced the risk if it did lose, of paying legal costs that far exceeded the total amount of the claim. Accordingly Eden agreed to the settlement of the US$1.2 million, US$0.5 million of which was paid in October 2011 and the balance of US$0.7 million was paid in December 2011. It is noted that the directors had provided $1.5 million in Eden’s 30 June 2011 accounts in relation to this matter.

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Gregory H Solomon

Executive Chairman

For further information, please contact Greg Solomon (+61 8 9282 5889) or visit our website (www.edenenergy.com.au).

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