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

Joint Venture to Co-Develop the Motherlode Phase III Project Martin County, Texas

Advance Energy Limited ("AVD") is pleased to announce that it has entered into a joint venture agreement with its Operations Manager, North American Energy, Inc. ("NAE") to acquire and develop high grade acreage in Martin and Dawson Counties, Texas. This project, Motherlode Phase III, is further described as follows:

• 75 square miles (48,000 acres) of 3-D seismic data that has been shot and interpreted;
• 20 prospects already identified that would require 60 wells to develop; $\bullet$
• Developmental drilling within one of the largest fields in Texas; $\bullet$
• 8 prospective deep reservoirs analogous to offset fields that have per well recoveries in excess of 1,000,000 BOE:
• Technical, land and management team with 20 year average experience in the area and have $\bullet$ drilled and completed 17 of 18 wells to date for a success rate of 94% on a similar project;
• Anticipated first drilling in early 2008; $\bullet$
• Net reserve potential to AVD in excess of 6,000,000 BOE; and $\bullet$
• Fully developed estimated value of \$US80-90Million $\bullet$

This project will allow AVD to become a major developer of proven reserves in one of the world's most prolific producing basins. Further, by utilizing current technologies, Motherlode Phase III will position AVD to discover new reserves that could substantially increase the reserve estimates for the project.

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.