TALIUS GROUP LIMITED — Capital/Financing Update 2006

Dec 20, 2006

www.advanceenergyltd.com.au Suite 4, 16 Ord Street | tel: 08 9486 1122 West Perth, Australia | fax: 08 9486 1011 PO Box 1779, ACN 111 823 762 West Perth 6872 I

ASX Announcement 21 December 2006

Agreement with Southern Producer Services L.L.C.

Advance Energy Limited (AVD) is pleased to announce that the Company has entered into an agreement with Mr Carl Carter III of Southern Producer Services, L.L.C. and its affiliates (collectively referred to as "SPS") based in Texas, USA. In terms of this agreement SPS will seek, source, and finance oil and gas producing properties and exploration projects in Texas. In addition to the responsibilities outlined above, the Company has engaged SPS as its in country financial advisor for providing capital formation, acquisition/divestiture services and other strategic financial advisory services to the Company related to the Company's overall acquisition strategy, debt structure and/or strategic financial alternatives. SPS will also advise the Company on sources of capital for potential transactions involving the assets, acquisition targets and/or projects of the Company.

The agreement is effective 1 January 2007 and may be terminated by either party with one months notice.

In exchange for these services, SPS will be paid a success fee as and when services are rendered. SPS will have the option to convert these fees into working interest positions in the acquisitions. In recognition of the agreement, 250,000 three year options are to be issued to SPS at a strike price of AU\$0.65 cents.

The directors are confident that the association with SPS will provide significant value to Advance Energy Limited through increased access to transactions and capital and alternative debt structures which will increase the overall capability of the Company to grow aggressively.

For further information contact:

Mr Anthony Short Managing Director Telephone: 08 9486 1122 Facsimile: 08 9486 1011

Advance Energy Limited is focused on the acquisition and development of oil and gas producing assets in Texas USA. The company aims to acquire assets with a combination of debt and equity that have current production and cash flow and to enhance production and cash flow through the further development of these assets. Once a property has reached its full productive potential and/or has achieved economic payout to Advance Energy, the Company would look to on sell all or part of its interest. It is the aim of the Company to develop a portfolio of assets which will be developed and traded to maximize returns on funds invested.