EDEN INNOVATIONS LTD — Interim / Quarterly Report 2022

Oct 27, 2021

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ASX Quarterly Report

For the Quarter Ended 30 September 2021

SALES Q1 FY2022

	Sales	Sales	Sales
	30 September	30 September	%
	2021	2020	Change
	A$000’s	A$000’s
EdenCrete®	470	405	+16%
OptiBlend®	998	348	+187%
Total forQ1	1,468	753	+95%

HIGHLIGHTS

• Growing interest in Eden’s low CO2 emissions technologies and products.

• Encouraging sales growth across all products.

EdenCrete®

EDENCRETE® SALES

• EdenCrete® US Sales -Q1 FY22 - A$469,513 (US$345,103)- an increase of 16% year on year

• EdenCrete® US Sales - Q1 FY22- in 7 States (Initial orders - Arizona, Florida and Wisconsin):

• Georgia - A$320,852 ($US$235,834)

• Colorado - A$118,930 (US$87,417)

• North Carolina - A$20,577 (US$15,125)

• Utah- A$ 8,419 (US$6,188)

US EDENCRETE®MARKET

• GDOT I-675 highway repair project - A$735,000 (US$535,000) of EdenCrete®, commenced.

• GDOT Project Sales for Q1 FY22 - A$310,750 (US$ 228,409)

• Total GDOT sales for FY 2022 estimated to exceed US$1million (A$1.36 million).

• 7 GDOT projects underway /in pipeline require A$945,768 (US$695,163) of EdenCrete®.

Eden Innovations Ltd | Telephone +61 8 9282 5889 Level 15, 197 St George’s Terrace, Perth, Western Australia 6000, Australia | edeninnovations.com

• Transfer Stations – positive review of the performance of EdenCrete® concrete at Atlantic Transfer Station after 8 months use; EdenCrete® being considered for at least 1 new project.

• Shotcrete – positive impact of EdenCrete® shotcrete marketing video-

• Customers in 5 States - Colorado, Georgia, South Carolina, North Carolina, Tennessee.

• o Trials with potential customers in 2 new States – Mississippi and Texas.

• Airports- further repair project planned for Denver International Airport.

• Marketing video focused on more durable, longer lasting EdenCrete® concrete planned.

• Fly Ash - high fly ash concrete mixes under development with EdenCrete® Pz and Pz7.

• US$1 trillion bipartisan infrastructure bill - After the US Senate passed the bill on 24 August 2021, US House of Representatives has not yet passed it .

INTERNATIONAL EDENCRETE® MARKET

• India - Godrej Construction- New EdenCrete® high fly ash mix designs being developed for two further cities

• Indonesia - Encouraging trials of high fly ash concrete - Agent’s agreement under discussion

• Australia – significant progress being achieved by Parchem Construction Supplies Pty Ltd, the Australian distributor

OptiBlend®

Total OptiBlend® Sales for Q1 FY22 – A$998,358 – a 187% increase year-on-year.

USA OPTIBLEND® SALES

• Q1 FY22 Sales – A$ 801,995 (US$589,485)

• To service increased demand, Eden appointed two new sales representatives: o Missouri-based Power Source Midwest, Inc that operates across 10 US States and o Florida based Davidson Sales Company that operates across south east US.

INDIA OPTIBLEND® SALES

• Q1 FY22 Sales – A$196,363 (INR 10,695,183)

• Indian OptiBlend® sales for FY21 - Total A$989,749

EdenPlast®

• Japanese trials of EdenPlast® polymer master batch continued.

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Hydrogen and Hythane

Interest in Eden’s hydrogen / Hythane® products and technologies

• India – an approach received from an Indian renewable energy company interested in Eden’s hydrogen and Hythane® technologies and capabilities.

• New Zealand – an approach received from a New Zealand group interested in reviewing the suitability of Eden’s pyrolysis process as a means of producing hydrogen.

Corporate

• The non-renounceable pro-rata rights offer (Offer) made to shareholders pursuant to a prospectus dated 1 September 2021 (Offer Document) raised A$2,316,436 before costs.

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DETAILS

EdenCrete®

GEORGIA

GDOT - Interstate Highway I-675 - Highway Repair Project

The Georgia Department of Transportation (GDOT) I-675 concrete highway repair project, requiring US$535,000 (A$735,000) worth of EdenCrete®, commenced on or about 23 September 2021.

This major repair project, which is jointly funded by the US Federal Highway Administration (FHWA) and GDOT, is initially estimated to require approximately 21,400 gallons (approx. 80,950 litres) of EdenCrete®. It will be incorporated into 10,700 cubic yards (8,181 m[3] ) of concrete to be produced on site, and used to repair damaged concrete sections along many miles of the I-675 highway in Georgia. The project is likely to take 12 months to complete and if it follows the two earlier large FHWA/ GDOT funded projects, the size of this project could well be increased.

Eden installed a 6,100-gallon (23,091 litres) EdenCrete® storage tank, the largest supplied so far, in Georgia and delivered the first 5,000 gallons of EdenCrete® during the Quarter ( see Figure 1 ).

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Figure 1 – First 5,000 gallons of EdenCrete® being pumped into on-site I-675 storage tank in Georgia

Over the past 4 years GDOT has become a major user of EdenCrete® in its highway full depth concrete slab replacement projects, with EdenCrete®, since January 2017, having been specified by name in GDOT’s regulations, to be used in all these projects that are funded solely by GDOT.

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The first major FHWA/GDOT jointly funded repair project that used EdenCrete®, was awarded in September 2018. The forthcoming I-675 project is the third such major FHWA/GDOT funded project. In the FHWA/GDOT projects, EdenCrete® is not specified by name. EdenCrete® has been selected on each occasion based upon its ability to meet the stricter performance standards that they are now requiring. For each of these jointly funded FHWA/GDOT projects, since EdenCrete® is not specified by name (as it is with GDOT funded projects), contractors have the opportunity to achieve the specified performance with other concrete mix designs and constituent materials. To date, no contractor has attempted to achieve the specified performance with anything other than EdenCrete®.

The scope of each earlier FHWA/GDOT projects was extended during the construction phase by approximately 30-40%, and it is anticipated that this may well also occur with the I-675 project, which could considerably increase sales revenue.

At the date of this report, a total of 7 GDOT projects are underway or waiting to start, that are likely to require A$945,768 (US$695,163) worth of EdenCrete®, are underway or waiting to commence. When added to the sales during Q1 of A$328,715 (US$ 239,269), the estimated revenue for the full FY 2022 revenue from GDOT repair projects, estimated to exceed US$1million (A$1.36 million) is looking achievable, with more than 8 months of the financial year remaining.

Possible GDOT Bridge Projects

Relevant to the potential scope of other forthcoming GDOT infrastructure projects, the 2019 GDOT trial of EdenCrete® in concrete used in a bridge application (see Eden’s ASX announcement 26 November 2019) will soon be completed and assessed. If a positive outcome is achieved and EdenCrete® is started to be used in GDOT bridge projects, this could well generate a significant increase in the number, size and value of GDOT projects that would include EdenCrete®.

WASTE TRANSFER STATIONS

The first ever waste transfer station project using EdenCrete® in the concrete tipping slab that is exposed to extreme wear, was built in Savannah, Georgia for Atlantic Waste Services earlier this year (see Eden’s ASX announcement of 12 February 2021) .

The order for this project came after a review of the increased abrasion resistance and reduced permeability that EdenCrete® delivers to concrete. The dosage rate used was 4 gallons/cubic yard of concrete, and this still delivered a very cost-effective alternative to a more expensive, epoxy coating treatment that it replaced and which had previously been applied to concrete tipping slabs in other waste transfer stations.

After 8 months of use under very harsh, acidic and abrasive conditions (see Figures 2-4), a positive review of the performance of the EdenCrete® enhanced concrete at Atlantic Waste Transfer

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Station has resulted in EdenCrete® now being considered for inclusion in similar concrete for at least one proposed new transfer station project.

Figures 2-4 show the consistent, high performance delivered by the EdenCrete® across the whole slab without the need for a high cost, labour intensive epoxy coating being required.

Figure 2. Truck dumping waste on dumping floor at Atlantic Waste Transfer Station

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Figure 3. Front end loader moving waste on dumping floor at Atlantic Waste Transfer Station

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Figure 4. Concrete apron at entrance to dumping floor at Atlantic Waste Transfer Station

Shotcrete Market Growth

There has been a very positive impact from the recently completed shotcrete marketing video. During Q1, following the release of Eden’s new shotcrete promotional video in June 2021, new shotcrete customers in 4 US States - North Carolina, Tennessee, Mississippi and Georgia – were added to the already existing shotcrete customer base that now spreads across 5 States (Colorado, Georgia, South Carolina, North Carolina and Tennessee,) and trials with new potential customers are planned in two new States being Mississippi and Texas.

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Airports - Further EdenCrete®project planned for Denver International Airport.

Following earlier success in a number of repair projects in the concrete apron outside the United Airlines maintenance hangar (see Eden’s ASX announcement 7 September 2021) Eden has been advised that a further repair project that will include the use of EdenCrete® is scheduled for the coming months.

Eden is presently opening discussion with other US agencies in relation to potentially undertaking trials and/or projects at other US airports .

Marketing video on more durable, longer lasting EdenCrete® concrete planned. Following the success with the shotcrete marketing video during the Quarter, Eden is planning a further EdenCrete® marketing video focusing on the significant durability benefits delivered by EdenCrete® to concrete, resulting in stronger, longer lasting, more durable, lower cost concrete.

Fly Ash - high fly ash concrete mixes being developed with EdenCrete® Pz and Pz7.

During the quarter, Eden commenced developing a number of low CO2 footprint concrete mixes, using high fly ash content and EdenCrete® Pz or Pz7, and reduced quantities of high CO2 footprint Ordinary Portland Cement (OPC). The fly ash is being supplied by a company that markets US fly ash and is interested in promoting low CO2 footprint concrete.

US Federal $1 trillion bipartisan Infrastructure Bill

After the US Senate passed the $1 trillion bill, on 24 August 2021 US House of Representatives advanced the bill and committed to vote on it by 27 September 2021 and House Speaker Nancy Pelosi committed to pass the bipartisan infrastructure bill but whilst to date the House of Representatives has not yet passed it, there remains a reasonable level of optimism that the bill will be passed but perhaps with some amendments.

The original Bill as passed by the Senate includes the following allocations:

• Roads and bridges : US$110 billion , including $40 billion for bridge repair and replacement, and $17.5 billion for unspecified “major projects.” This allocation is in addition to the current annual funding that is already approved, and will enable a significant increase in both the value and number of infrastructure projects that can be undertaken. The bill also includes the reauthorisation of the existing bipartisan surface transportation program for the next five years;

• Airports, ports and waterways: US$42 billion , comprising US$17 billion is allocated for port infrastructure and US$25 billion toward airports;

• Passenger and freight railway infrastructure- US$66 billion;

• Water infrastructure: US$50 billion , for investment in weatherisation and protection against climate-change fuelled disasters like droughts and floods.

With the Federal Highway Administration (FHWA) having approved the use of EdenCrete® in federally funded road repair projects by GDOT in Georgia, EdenCrete® ‘s successful 3-year shotcrete project on the Interstate Highway I-70 in Denver, its success at the Denver International

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Airport and also at the Port of Savannah, Eden is well placed to gain additional opportunities to sell its EdenCrete® product range into the US infrastructure market should this Bill be passed.

INTERNATIONAL EDENCRETE® SUMMARY

India - Godrej Construction- New high fly ash concrete mix designs being developed for two new cities

Immediately prior to the start of the COVID pandemic and a long period with extended lockdowns, Godrej Construction had great success developing three standard concrete mix designs, for use around Mumbai, that incorporate EdenCrete® Pz and far higher levels of cheaper fly ash (with a zero Greenhouse Gas footprint) and less Ordinary Portland Cement (OPC).

During the Quarter, Godrej focused on developing similar concrete mix designs for use in two other cities in western Maharashtra that will substantially expand the Godrej market footprint for EdenCrete® enriched concrete.

India has a huge accumulated stockpile of fly ash that is very cheap, and with much of its power production coming from coal fired power stations that currently produce over 150 million tonnes of fly ash per year, the market potential for EdenCrete® Pz in India is significant, and once international travel opens more, Eden intends to widely promote across India the combined solution of lower cost and lower CO2 footprint concrete delivered, with the assistance of EdenCrete® Pz, by high fly ash concrete mixes.

Australia – Marketing Progress

Parchem Construction Supplies Pty Ltd, the Australian and New Zealand distributor of the EdenCrete® range of products has been making progress in the marketing of these products across Australia and also in New Zealand.

Parchem (and its subsidiary, Fosroc ANZ) is focusing on securing trials with a range of companies for many applications, and using different cementitious materials, in most States of Australia and New Zealand, including:

• Precast and shotcrete applications in underground mines in Australia

• Precast applications including blocks, tanks, pipes, pavers in Australia

• Port and marine applications in Australia and New Zealand

• Construction and cast-in-place applications in Australia and New Zealand

• Ready-mix suppliers in New Zealand.

The opportunities in Australia and New Zealand for EdenCrete® products are both significant and similar to those in the US, and the experience and results of trials and market progress in the US is likely to assist in the rollout in Australia and New Zealand.

Additionally, during the Quarter the Australian Society for Concrete Pavements awarded Fosroc ANZ’s Tasha Eagle and Eden Innovations LLC’s Robert Cavaliero the 2021 Ed Haber Award for their co-authored research paper which was judged to be the best contribution of knowledge and advancement of pavement concrete technology.

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Trials us EdenCrete® to strengthen Australian precast and ready-mix concretes are frequently yielding increases of up to 20 MPa, the equivalent of up to a 30% gain in compressive strength compared to the reference mix. Additionally, one Australian field trial also recorded a 50% reduction in concrete permeability.

Indonesia - trials of high fly ash concrete - Agent’s agreement under discussion

During the Quarter, Eden was approached by a group in Indonesia that arranged trials of EdenCrete® Pz with an Indonesian concrete manufacturer, in high fly ash, low cost, low CO2 footprint concrete that produced some highly encouraging results. Further trials are underway and a possible agency agreement with the Indonesian group is being discussed.

The potential offered by the Indonesian concrete market is smaller but similar in many ways to what India offers, and presents a great opportunity for EdenCrete® products in a rapidly growing country with a significant fly ash resource, and a large population.

Relevantly, the Indonesian government is now imposing a carbon tax on CO2 emissions which should also help to accelerate the swing to low CO2 footprint concrete.

EDENCRETE® BACKGROUND

EdenCrete[®] products are Eden’s 100% owned, proprietary carbon-strengthened concrete additives that enhance a wide range of performance characteristics of the concrete including compressive strength, flexural strength, tensile strength, abrasion resistance, reduced permeability, increased modulus of elasticity, reduced shrinkage and that collectively deliver stronger, tougher, more durable and longer lasting concrete.

EdenCrete[® ] is generally used in concrete that incorporates a high percentage of Ordinary Portland Cement (OPC or Portland cement) whilst EdenCrete[®] Pz is mostly used in concrete that incorporates a high percentage of pozzolans as an alternative cementitious material (including fly-ash and blast furnace slag which are each waste by-products from coal fired power stations and metal smelting respectively, thereby each being treated, as a waste by-product, as having a zero Greenhouse Gas footprint from its production process).

As a result, EdenCrete[®] Pz in particular has repeatedly shown it is capable of enabling the proportion of the Portland cement in the concrete to be replaced by a percentage of pozzolans with far lower Greenhouse Gas footprints, resulting in a reduction in the Greenhouse Gas footprint generated in the production of the various cementitious components used in the manufacturing of the concrete.

Both products have been repeatedly shown to be suitable for use in ready-mix concrete, pre-cast and pre-stressed concrete, shotcrete, pumped concrete and volumetric concrete.

One of the primary target markets for EdenCrete[®] products is improving the performance of concrete used in the construction and maintenance of concrete roads, bridges, ports, airports,

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and other infrastructure, particularly where it is subject to heavy wear, freeze/thaw weather conditions, heavy snow falls, and/or high levels of added salt or de-icing chemicals.

Since 2015, EdenCrete[®] products have been sold in the USA and more recently also in Australia and a growing number of other countries. They have successfully and repeatedly delivered a wide range of benefits when incorporated into concrete that is used in many different applications, including roads and bridges, ports/marine/coastal applications, bus stations, carparks, water pipes, hardstand areas, waste transfer stations, warehouses, low-rise, medium-rise and high-rise building construction, shotcrete applications, stadiums, and pre-stressed and pre-cast concrete products.

OPTIBLEND®

OptiBlend® Sales for the Quarter (Q1 FY22)

	SALES Q1 FY 22 (A$000s)	SALES Q4 FY 21 (A$000s)	% Change
USA	802	71	+1,130%
INDIA	196	277	- 29%
Q1 TOTAL	998	348	+187%

OptiBlend® Sales Summary

The total quarterly OptiBlend® sales were 287% higher than in the corresponding quarter in 2021 and total annual sales rose by 287%. These significant increases were achieved in spite of the ongoing impact of COVID-19 in both USA and India.

Indian OptiBlend® Sales during Q1 FY 22

Indian OptiBlend® sales for Q1 of FY22 reached a total of approximately AUD $196,000.

Market Drivers for Increased Sales

The primary driver at present, being outside of the winter months, is the significantly lower price of Natural Gas for industrial and commercial customers averaging approximately Rs 40 (plus or minus Rs5) for the same quantity of energy delivered by diesel fuel that would cost approximately Rs 90 (plus or minus Rs5).

The secondary driver of this sales growth is Government regulations aimed at reducing air pollution.

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As previously announced ( see Eden’s announcement 13 October 2020), on 8th of October 2020, the Environment Pollution (Prevention and Control) Authority (EPCA), a body mandated by the Indian Supreme Court, banned the use of non-essential diesel generator sets, with effect from 15 October 2020, in Delhi (the National Capital Territory), Ghaziabad, Noida, Faridabad and Gurugram, that collectively comprise the National Capital Region (NCR region) during the winter period.

The NCR region encompasses an area of 30,242 sq. km and has a total population of over 47 million people. Delhi alone, now has a population of over 20 million people. The total population of the NCR region, Haryana, Maharashtra and Tamil Nadu alone is approximately 276 million people, representing an estimated 20% of the Indian population.

This ban supported similar policies to reduce the air pollution that were earlier detailed in the National Clean Air Programme (NCAP), which, to date, State governments in Haryana, Maharashtra and Tamil Nadu have already adopted and are considered likely to be adopted in further States.

Importantly, NCAP expressly approved the retrofitting of diesel-powered generator sets for partial Natural Gas usage (using a fuel mixture of diesel and Natural Gas) as a cost-effective way to convert the huge number of existing diesel generator sets across India to a Natural Gas operation, opening this major market opportunity for the OptiBlend® dual fuel system.

These various regulations and bans followed an important national decision of the National Green Tribunal handed down in Delhi dated 6 August 2019 (Original Application No. 681/2018 ) that noted reports in 2018 that there were 102 Indian cities that were identified as “NonAttainment Cities” based upon monitoring ambient air quality. This decision went on to state that by 30 April 2019, 92 of these Non- Attainment Cities had had their action plans related to management of this issue approved by the Indian Central Pollution Control Board, and the remaining 10 cities that had not, would have to pay financial compensation to the Central Pollution Control Board.

The decision of the National Green Tribunal goes on to expressly approved the retro-fitted dual fuel systems in the following portion of the decision (in Paragraph 20):

“For DG Sets already operational, ensure usage of either of the two options: (a) use of retrofitted emission control equipment having a minimum specified PM capturing efficiency of at least 70%, type approved by one of the 5 CPCB recognized labs; or (b) shifting to gas-based generators by employing new gas-based generators or retrofitting the existing DG sets for partial gas usage.”

As a result of all these developments, it is considered highly likely that these various decisions and regulations will significantly extend the geographical footprint of Indian OptiBlend markets, as piped Natural Gas supplies are progressively rolled out across India.

One possible short-term hurdle, however, may be that Eden India has recently experienced longer than usual delivery times for the importation of one component for the OptiBlend® systems, due to growing demand in other countries that is exceeding the supplier’s production capacity. Whilst it has not yet impacted upon Eden India’s sales, should this extended delivery time continue beyond when its current supplies of the part run out, it may slow the projected

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growth in OptiBlend® sales that is otherwise anticipated to occur, until this supply delay is resolved.

Outlook

Eden India believes the growth in demand for its OptiBlend® systems in India, that it has experienced over the past year, is likely to continue for the longer term and spread to other regions of India apart from greater Delhi, as the rollout of Natural Gas pipelines extends to new areas, driven by the compelling market drivers of the far lower cost Natural Gas and the various Government regulations and decisions detailed above.

US OptiBlend® Sales during Q1 FY22

US OptiBlend® sales for Q1 of FY22 reached a total of approximately A$ 801,995 (US$589,485)

The recent increase in the number and value of Purchase Orders (and in the rate of enquiries) is thought to be driven by various factors including:

• Post- COVID-19 market growth as US companies return to full operation;

• The relatively lower price of Natural Gas in the US compared to diesel fuel;

• The need to extend available on-site back-up power generation capacity across all sectors (including hospitals, industrial and government facilities) where continuous power supply is essential, by reducing the consumption rate of on-site diesel fuel from 100%, to as low as to 30% of the fuel consumed (with the added Natural Gas providing up to 70%);

• Concern about more frequent and longer power outages resulting from an increase in extreme weather and other related events; and

• A significant upturn in oil and gas exploration and production drilling resulting from higher oil and Natural Gas prices.

Following the extended power crisis in Texas last northern winter, the significant upturn in interest continues in Eden’s OptiBlend® dual fuel system, which extends the operating time of back-up diesel powered generators up to 70% , by substituting cheaper natural gas, for up to 70% of the diesel fuel.

To service the increased demand, Eden appointed two new OptiBlend® sales representatives to extend its marketing reach, Missouri-based Power Source Midwest, Inc, a group that operates across 11 US States (see Figure 5) and Davidson Sales Company , a Florida based company that was founded in 1987 which operates across a number of States of the US, particularly in the south east, as well as in Puerto Rico and the Caribbean.

Power Source Midwest, Inc . represents products in the following industries: Data Centres, Hospital & Health Care, Power Generation, Diesel & Gas Engine Market ,Irrigation Market, and Fire Pump Market.

The territory Power Source Midwest, Inc services covers the following 10 States : Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, South Dakota and Wisconsin.

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Figure 5 Territory Serviced by Power Source Midwest, Inc.

Davidson Sales Company operates across a number of States of the US, particularly in the south east, as well as in Puerto Rico and the Caribbean. Its appointment extends Eden’s OptiBlend® sales representation to another 7 new US States, focused largely in the south-east of the USA, enabling customers in these States to access OptiBlend®, a lower cost and environmentally better way to operate diesel powered generator sets on a mixture of natural gas and diesel fuel.

This appointment of Davidson Sales Company further extends Eden’s recently expanded OptiBlend® sales representatives footprint. The combined expanded sales representation from these two appointments now covers 17 new States ( see Figure 6.- shown in blue ) including all 10 States covered by Power Source Midwest, plus the additional 7 States of Ohio, West Virginia, North Carolina, South Carolina, Georgia, Alabama and Florida covered by Davidson Sales Company

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Figure 6. The combined 17 US States serviced by Davidson Sales Group and Power Source Midwest Inc.

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Since the end of the Quarter Davidson Sales Company also invited Eden to display an OptiBlend® banner in their booth at the Electrical Generating Systems Associated (EGSA) Fall conference in Orlando Florida, from October 3[rd] - 5[th] 2021 (https://egsa.org/). Matt Pochocki, Eden’s OptiBlend® Sales Specialist, was in attendance and supported booth operations, as needed.

The recent appointments of these two specialist sales companies as OptiBlend® sales representatives are anticipated to significantly expand Eden’s OptiBlend® sales over the coming years as a result of an increase in market interest, particularly from major government institutions and private companies that use diesel generator sets for their back-up power supplies in the event of a power grid failure.

This increased market interest in the OptiBlend® dual fuel system has been growing over the past few years, driven by both the increasing number, and intensity, of natural disasters.

However, this interest has dramatically intensified following the Texas power grid failure in February 2021, when Texas suffered a major power crisis, as a result of three severe winter storms sweeping across the United States over a 10-day period. The storms caused a massive electricity generation failure in Texas leading to deaths and shortages of water, food, and heat in that state.

As a result, many US institutions and companies have been re-assessing their back-up power generating capacity. Apart from natural gas being cheaper and producing far lower levels of Greenhouse Gas emissions, operating on mixtures of as low as 30% diesel fuel and up to 70% natural gas, it also extends the back-up power generating capability that is delivered by the onsite stored diesel fuel (supplemented by the natural gas) by up to 230%, providing a far longer period of protection against the consequences of a major grid failure and an extended power outage.

OPTIBLEND® BACKGROUND

OptiBlend, designed and developed by Eden US more than 12 years ago, is 100% owned by Eden. It is a custom fitted hardware technology designed and produced by Eden in the US and India that allows conventional diesel engines to run on natural gas as its primary fuel without modifying the engine or the diesel fuel system.

Key features and statistics are that it:

• Works by displacing up to 70% of diesel fuel with natural gas;

• Lowers fuel costs, lower emissions and increased runtime;

• Is a highly efficient, cost effective system that reduces fuel cost and emissions;

• Is used by Cummins on its oil/gas drilling power module using 3 Tier II gensets;

• •Is suitable for most makes of diesel engines; installed on most major global brands;

• •Has been marketed in US and India for over 10 years – long proven highly reliable and durable;

• Over 200 systems sold and installed across USA, India, Middle East, Africa and East Asia;

• Has a significant market in India).

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EdenPlast®

During the quarter, after completing initial trials of an EdenPlast® polymer master batch, the Japanese company requested additional material to trial which was supplied and will be trialled during Q2 FY22.

EDENPLAST® BACKGROUND

EdenPlast® is Eden’s second CNT- enriched product and represents a huge step forward for Eden in its longer-term strategic plan to produce and sell a number of CNT- enriched products, in addition to

the existing EdenCrete® range of products.

It opens up access to the huge global plastics market, that was reported to have an annual value of US$568.9 billion in 2019. Further, it was projected to grow at a compound annual growth rate (CAGR)of 3.2% from 2020 to 2027, with increasing plastics consumption expected in the construction, automotive and electrical and electronics industries[1] . These are all relevant markets for EdenPlast®.

Further, and importantly, as Eden:

• produces low- cost CNT and hydrogen (without producing CO2) using its proprietary process;

• has developed a process to add the CNT to, and disperse them in, polymers;

• has developed its own master batch production methods; and

• holds a number of relevant patents and pending patent applications;

Eden anticipates that it should in time be able to produce, either on its own or in conjunction with one or more third parties, a range of competitively priced, high concentration, CNT- enriched master

batches of a range of different polymers, that could be marketed to plastics companies around the world for use in a wide range of plastic products for a diverse range of applications.

• 1.. https://www.grandviewresearch.com/industry-analysis/global-plastics-market

Hydrogen and Hythane®

Interest growing in Eden’s hydrogen and Hythane® products and technologies

Indian Hydrogen and Hythane®

An approach was recently received from an Indian renewable energy company that currently has in excess of 10GW of existing renewable energy production capacity, part of which is to be focused on hydrogen production. This company has recently won a government tender to

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establish a Hythane® pilot project, and wished to discuss using Eden’s hydrogen and Hythane® technologies and capabilities, to help it design and oversee the establishment of a number of Hythane production and vehicle fuelling stations, similar to what Eden built for Indian Oil in 2010 near Delhi, as a first step towards it establishing a substantial green hydrogen base in India. Positive initial discussions have been held and a more detailed follow-up is underway.

New Zealand Hydrogen and Hythane®

An approach was received from a New Zealand group that was interested in reviewing the suitability of Eden’s pyrolysis as a means of producing hydrogen in New Zealand. Whilst the review that occurred confirmed there was interest, as there is not presently a market in New Zealand for the carbon nanotubes that would also be produced, the discussions are not proceeding further.

CORPORATE

The non-renounceable pro-rata rights offer (Offer) made to shareholders pursuant to a prospectus dated 1 September 2021 (Offer Document) raised $2,316,436 before costs by the issue of 105,292,551 EDE shares at $0.022 and 52,646,486 free attaching EDEO options.

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Gregory H Solomon Executive Chairman

This report was authorised by the above signatory. For further information please contact Aaron Gates on +61 8 9282 5889.

Description of Payments to related parties of the entity and their associates (LR 5.3.5)

Payments to related parties during the quarter related to:

1. Directors Fees and superannuation

2. Management Fees, as per agreement, were paid during the quarter to a company of which Mr. GH Solomon and Mr. DH Solomon are directors; and

3. Legal Fees were paid during the quarter to a firm of which Mr. GH Solomon and Mr. DH Solomon are partners.

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Rule 4.7B

Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

Eden Innovations Ltd

ABN		Quarter ended (“current quarter”)	Quarter ended (“current quarter”)
58 109 200 900		30 September 2021
Consolidated statement of cash flows		Current quarter	Year to date (3
		$A’000	months)
			$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers	1,176	1,176
1.2	Payments for
	(a) research and development	(304)	(304)
	(b) product manufacturing and operating	(783)	(783)
	costs
	(c) advertising and marketing	(111)	(111)
	(d) leased assets	-	-
	(e) staff costs	(1,035)	(1,035)
	(f) administration and corporate costs	(262)	(262)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	-	-
1.5	Interest and other costs of finance paid	(118)	(118)
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	-
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operating	(1,437)	(1,437)
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(a) entities	-	-
	(b) businesses	-	-
	(c) property, plant and equipment	(32)	(32)
	(d) investments	-	-
	(e) intellectual property	-	-
	(f) other non-current assets	-	-

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date (3
		$A’000	months)
			$A’000
2.2	Proceeds from disposal of:
	(a) entities	-	-
	(b) businesses	-	-
	(c) property, plant and equipment	-	-
	(d) investments	-	-
	(e) intellectual property	-	-
	(f) other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6	Net cash from / (used in) investing	(32)	(32)
	activities
3.	Cash flows from financing activities
3.1	Proceeds from issues of equity securities
	(excluding convertible debt securities)	1,158	1,158
3.2	Proceeds from issue of convertible debt	-	-
	securities
3.3	Proceeds from exercise of options	-	-
3.4	Transaction costs related to issues of	(17)	(17)
	equity securities or convertible debt
	securities
3.5	Proceeds from borrowings	671	671
3.6	Repayment of borrowings	(550)	(550)
3.7	Transaction costs related to loans and	-	-
	borrowings
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financing	1,261	1,261
	activities
4.	Net increase / (decrease) in cash and
	cash equivalents for the period
4.1	Cash and cash equivalents at beginning of
	period	2,175	2,175
4.2	Net cash from / (used in) operating	(1,437)	(1,437)
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	(32)	(32)
	(item 2.6 above)

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Current quarter	Year to date (3
		$A’000		months)
				$A’000
4.4	Net cash from / (used in) financing activities		1,261	1,261
	(item 3.10 above)
4.5	Effect of movement in exchange rates on		68	68
	cash held
4.6	Cash and cash equivalents at end of		2,035	2,035
	period
5.	Reconciliation of cash and cash	Current quarter		Previous quarter
	equivalents	$A’000		$A’000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances		2,035	2,175
5.2	Call deposits		-	-
5.3	Bank overdrafts		-	-
5.4	Other (provide details)		-	-
5.5	Cash and cash equivalents at end of		2,035	2,175
	quarter (should equal item 4.6 above)
6.	Payments to related parties of the entity and their			Current quarter
	associates			$A'000
6.1	Aggregate amount of payments to related parties and their			211
	associates included in item 1
6.2	Aggregate amount of payments to related parties and their
	associates included in item 2
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly		activity report must include a description of, and an
explanation for, such payments.
Directors Fees were paid during the quarter.
Management Fees, as per agreement, were paid during the quarter			to a company of which Mr GH
Solomon and Mr DH Solomon are directors.
Legal Fees were paid during the quarter to a firm of which Mr GH Solomon and Mr DH Solomon are
partners.

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

7.	Financing facilities Total facility Amount drawn at
	Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. amount at quarter end $A’000 quarter end $A’000
7.1	Loan facilities 5,674 5,674
7.2	Credit standby arrangements
7.3	Other (please specify)
7.4	Total financing facilities 5,674 5,674
7.5	Unused financing facilities available at quarter end -
7.6	Include in the box below a description of each facility above, including the lender, interest
	rate, maturity date and whether it is secured or unsecured. If any additional financing
	facilities have been entered into or are proposed to be entered into after quarter end,
	include a note providing details of those facilities as well.
	Loan for the sum of US$3.00 million from Snowpoint Northeast LLC. Interest at 11% pa,
	and 6 months remaining. For full further details please refer to the ASX announcement date
	28 April 2020.
	Eden US received a U.S. CARES Act SBA loan for US$634,300.
	Dumont Way property purchase loan, US$364,000 remaining (2nd mortgage over the
	Dumont Way property, 6% interest rate, denominated in USD and 1 year remaining).

8.	Estimated cash available for future operating activities	$A’000
8.1	Net cash from / (used in) operating activities (item 1.9)	1,437
8.2	Cash and cash equivalents at quarter end (item 4.6)	2,035
8.3	Unused finance facilities available at quarter end (item 7.5)	-
8.4	Total available funding (item 8.2 + item 8.3)	2,035
8.5	Estimated quarters of funding available (item 8.4 divided by item 8.1)	1.4
	Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as “N/A”. Otherwise, a
	figure for the estimated quarters of funding available must be included in item 8.5.

• 8.6 If item 8.5 is less than 2 quarters, please provide answers to the following questions:

8.6.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

Answer: The entity expects the current monthly deficit in net operating cash flows to progressively decrease in the upcoming quarters, due to increased sales and increased sales receipts, as evidenced in this current quarterly cash flow report.

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

• 8.6.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

• Answer: On 23 August 2021 Eden announced a Pro-Rata Non-Renounceable Rights Issue which closed subsequent to the end of the quarter raising $2,316,436 before issue costs. $1,158,000 of this was received during the quarter and included in 3.1 above, Proceeds from issues of equity securities.

• 8.6.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

• Answer: Yes, the entity expects to be able to continue its operations and to meet its business objectives based on diminishing net operating cash deficits and the receipt of the balance of the Pro-Rata Non-Renounceable Rights Issue funds as detailed in answers 8.6.1 and 8.6.2.

Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered.

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Date: 28 October 2021

Authorised by: Aaron P Gates

(Name of body or officer authorising release – see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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