IMEXHS LIMITED — Capital/Financing Update 2008

Oct 28, 2008

Australian Biodiesel Group Ltd

C OMPA NY U PDATE O CTOBER 08

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ABG Achieves Positive 3[rd] Quarter Results

ABG is pleased to announce that it has turned both EBITDA and operational cash flow positive in the 3[rd] quarter. This is in line with the objectives put forward at the AGM in May of this year and represents a major milestone in the transformation of the company. The strategy of expanding our recycling operations through the Scanline subsidiary, perusing technology sales and concentrating on business fundamentals have all contributed to this turnaround.

ABG continues to pursue other opportunities in order to diversify risk and bring short to medium term value back to shareholders. In line with our September market update ABG is pursuing several opportunities including

•  The expansion of the used cooking oil recycling business

•  Other recycling projects

•  Diesel / Biodiesel Blending and distribution in order to gain access to higher margins

•  Next generation sustainable fuels technology that are more able to compete in the fuels market.

The board is confident that it will be in a position in the near future to give the market a positive update on all the key objectives stated above. It believes that the carefully balanced growth strategy in these areas will continue to improve its bottom line on an annual basis and bring value back to shareholders. It should be noted, however, that the seasonal nature of the UCO business and commodities market may affect quarter by quarter results in the near term until these core strategies are fully implemented; once this is achieved they will aid to balance off these seasonal fluctuations.

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For further information

Australian Biodiesel Group Ph: (07) 3817 7400 Bevan Dooley 0404 467 024 www.abgbiodiesel.com

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