TALIUS GROUP LIMITED — Capital/Financing Update 2007

Apr 17, 2007

Suite 4, 16 Ord Street | tel: 08 9486 1122 West Perth, Australia | fax: 08 9486 1011 PO Box 1779 ÅCN 111 823 762 West Perth 6872

ASX Announcement 18 April 2007

Barnett Shale at Palo Pinto County

Further to our announcement of 2^nd November 2006, Advance Energy Limited ("AVD") has been advised by its operator, North American Energy, Inc ("NAE") that the 3-D Seismic shot over the Palo Pinto Lone Camp properties has been completed and interpreted. NAE, at the request of AVD, has retained a highly experienced Barnett Shale geologist and geophysicist to evaluate the data.

In the period from the shooting of the seismic to now, EOG Resources ("EOG") has drilled, completed and is flow testing a new Barnett Shale discovery well two miles north of AVD's acreage. Further, EOG has recently permitted a second well to be drilled less than two miles to the west of the AVD existing assets. These developments confirm that the Palo Pinto properties are very strategically placed in the highly prospective Barnett Shale field, now the largest onshore gas field in the United States.

Upon completion of the interpretation of the seismic data and verification of the flow rates on the EOG wells, AVD will include the reserves from the Barnett Shale within this property into its proven undeveloped reserve category (PUD). AVD's 70% working interest in the 1,200 acres (approximately) that contain the Barnett Shale would be able to accommodate up to three horizontal Barnett Shale wells. Based on historical results in the area, it is anticipated that the Barnett Shale contained in AVD's 1,200 acres will add approximately 6 bcf of gas to AVD's reserve position. Gas in ground in Palo Pinto County has historically traded for US\$2 per MCF or US\$2million per bcf. Combined with AVD's current reserve position this represents a major increase in the value of the property.

It is anticipated that after further negotiation with EOG on potential farm-in terms, AVD will commit to the drilling of the three Barnett Shale wells in the last quarter of 2007. AVD is continuing to accumulate property and production in the Fort Worth basin to add to its current production base and reserve position.

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.