TALIUS GROUP LIMITED — Capital/Financing Update 2007

Aug 28, 2007

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ASX Announcement 29 August 2007

Martin County Activity Update

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Project Motherlode Phase II Prospect Key East Well Type Oil and Associated Gas Location Martin County Texas Depth 11,000 feet Working interest 12.5 % Operator North American Energy and Endeavor Energy Resources Status Producing

The well has been producing at rates as high of 200 BOEPD over the past month. Due to weather issues the well has been shut in intermittently as oil transport trucks have not been able to access the well site to haul the oil. It is estimated that this well will stabilize at a producing rate 100 BOPD and 150 MCFPD from all zones combined. Three offsets to this well are planned for 2008.

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Project Motherlode Phase II Prospect Key East Well Type Oil and Associated Gas Location Martin County Texas Depth 11,250 feet Working interest 12.5 % Operator North American Energy and Endeavor Energy Resources Status Well on production and stabilizing (Flowing)

The well, acquired as of May 1, 2007 , has been flowing at increasing rates and pressure since February 1, 2007. Currently the well is flowing 60 BOPD, 90 MCFPD and 30 BLWPD. Once the well is put on pump and the remaining load water is produced, the well should continue to increase in rate before re-stabilizing. Three offsets to this well are planned for the 4[th] quarter 2007 and the first half of 2008.

Advance Energy Limited ASX Code: AVD Website: www.advanceenergyltd.com.au

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Strain 16-4 Project Motherlode Phase II Prospect Totem Well Type Oil and Associated Gas Location Martin County Texas Depth 10,750 feet Working interest 12.5 % Operator North American Energy and Endeavor Energy Resources Status Drilled & Cased; Waiting on Frac

The well, successfully cased on July 27, 2007, well will be perforated and stimulated in nine different productive horizons later this month. Offset wells have peaked in excess of 150 BOEPD.

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.

Advance Energy Limited ASX Code: AVD Website: www.advanceenergyltd.com.au

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