TALIUS GROUP LIMITED — Capital/Financing Update 2006

Nov 1, 2006

www.advanceenergyltd.com.au Suite 4, 16 Ord Street 1 tel: 08 9486 1122 West Perth, Australia | fax: 08 9486 1011 PO Box 1779, ACN 111 823 762 West Perth 6872

ASX Announcement 2 November 2006

Palo Pinto - Lone Camp Project Seismic Agreement

Advance Energy Limited ("AVD") has been notified by its operators, North American Energy Inc. ("NAE") that an agreement has been executed with EOG Resources (www.eogresources.com) whereby 3-D seismic will be shot over Advance Energy's 1,200 acre Palo Pinto Lone Camp project. EOG is one of the largest independent non integrated oil and gas companies in the USA. EOG is doing this as part of a 16,000 acre project to prospect for the western extension of the Barnett Shale Field, now the largest onshore gas field in the United States. EOG has recently commenced drilling their first horizontal Barnett Shale well in the program. The well is located only two miles north of the Company's producing acreage and will be a significant test of the productive nature of the shales in Palo Pinto County.

The terms of the agreement allow EOG to have access to the surface in order to acquire and record the seismic responses. Once this is done, EOG will process the data in their Fort Worth, Texas office and NAE will have the rights to the data across the 1,200 acres that the Company owns. The Company is "carried" in this project and will not have to pay their pro-rata share (approximately US\$100,000).

Advance Energy has elected to delay the drilling of the Kramer 5 and 6 Conglomerate wells until the seismic data has been analyzed. It is anticipated these wells will be delayed for 2-3 months from the spud dates previously announced. This will allow NAE to have a better subsurface view of the Conglomerate reservoir (enhance the location of the PUD wells) and allow for a full assessment of the Barnett Shale.

Should the Barnett Shale be deemed productive in this area, AVD will drill up to three horizontal wells that will have estimated reserves of 2.0 BCF of gas each. If the Barnett Shale is not productive, the Company will still complete the two Conglomerate wells and have the advantage of locating those wells in a manner which penetrates the optimum point of the reservoir due to the seismic picture.

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.