EDEN INNOVATIONS LTD — Share Issue/Capital Change 2007

Jan 28, 2007

EDEN ENERGY LTD

ACN 109 200 900

Level 40, Exchange Plaza, 2 The Esplanade, Perth, Western Australia, 6000 Telephone: (08) 9282 5889 Facsimile: (08) 9282 5866

Website: www.edenenergy.com.au

AUSTRALIAN STOCK EXCHANGE ANNOUNCEMENT

29 JANUARY 2007

ISSUE OF FULLY PAID ORDINARY SHARES

Eden Energy Ltd ("the Company") announces that it has agreed to issue 3,742,857 fully paid ordinary shares at an issue price of \$0.35 per share raising a total of a further $$1,310,000.00$ . These shares have been agreed to be issued to Australian investors in accordance with sections 708(1) and 708(8) of the Corporations Act 2001 ("the Act") and under the 15% placement rule of the Australian Stock Exchange Listing Rules. A commission of 5% is payable to Australian Financial Services Licensees in respect of the funds raised. This now completes an aggregate capital raising of approximately \$4 million (see the announcement of 23 January 2007).

These funds will be used for the following purposes:-

• to expand and accelerate the marketing of Hythane® in India and other markets; ĺ.
• $2.$ to fund an expanded drilling program for coal bed methane and Natural Gas in Wales;
• $\overline{3}$ . to provide additional capital in relation to the exploration on the Company's geothermal and Natural Gas targets in Australia:
• $4.$ to provide further funds to meet the Company's ongoing working capital requirements.

Information Notification - Secondary Trading

For the purposes of Item 5 of Category 1, Schedule C of Class Order 02/1180 referred to below, the Company also notifies the ASX that all of the securities being issued will fall within Category 1 of the Class Order 02/1180 issued by the Australian Securities and Investments Commission on 29 November 2002, which alters the secondary trading provisions of the Act in specified circumstances, and that all information of the kind that would be required to be disclosed under subsection 713(5) of the Act if a prospectus were to be issued in reliance on section 713 of the Act in relation to an offer of securities has been disclosed to the ASX.

Gregory H. Solomon Executive Chairman

29 January 2007