TALIUS GROUP LIMITED — Capital/Financing Update 2007

Apr 22, 2007

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

ASX Announcement 23 April 2007

Acquisition of Additional Assets in Motherlode Phase IIIa Martin County, Texas

Advance Energy Limited ("AVD") is pleased to announce that it has entered into a purchase and sale agreement to acquire a 12.5% working interest in additional producing assets and developable acreage in the Phase II portion of the Motherlode Project. A brief summary of this \$900,000 acquisition is as follows:

• Three wells currently producing 185 Boe/d; $\bullet$
• 960 total acres that is prospective 12 producing horizons: $\bullet$
• Eight developmental drilling locations that will be drilled over the next 18 months; and $\bullet$
• Average per well reserves of 110,000 BOE. $\bullet$

Once these assets are fully developed, they will add an estimated \$1,000,000 per year to the company's cash flow. This type of "add on" acquisition is very consistent with the company's business model for developing high grade oil and gas assets in proven basins in Texas.

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.