TALIUS GROUP LIMITED — Capital/Financing Update 2007

Jan 3, 2007

www.advanceenergyltd.com.au 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

4 January 2007

Martin County Well Update Report $C$ omplation

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Strain 16-2

Project	Motherlode
Prospect	Totem
Well Type	Oil and Associated Gas
Location	Martin County Texas
Depth	10,230 feet
Working interest	12.5%
Operator	North American Energy and Endeavor Energy Resources
Status	Well on Production

Advance Energy Limited ("AVD") has been informed by its Operations Manager, North American Energy Inc ("NAE") that the Strain 16-2 well has been put on production and is currently producing 50 BOPD and 120 MCFPD. The oil and gas production continues to increase as the 13,000 bbls of stimulation load fluid is recovered.

The Strain 16-2 is a direct offset from the Strain 16-1 which came on production with an initial potential of 150 BOPD and 200 MCFPD. The Strain 16-1 was the discovery well for the Totem Prospect, which was identified by NAE by utilizing the Motherlode 3-D.

Prudie Brown 10-1

Project	Motherlode
Prospect	Key East
Well Type	Oil and Associated Gas
Location	Martin County Texas
Depth	11,025 feet
Working interest	12.5%
Operator	North American Energy and Endeavor Energy Resources
Status	Well on Production

Advance Energy Limited ("AVD") has been informed by its Operations Manager, North American Energy Inc ("NAE") that the Prudie Brown 10-1 well has been put on production and is currently producing 50 BOPD and 80 MCFPD. The oil and gas production continues to increase as the 18,000 bbls of stimulation load fluid is recovered.

The Prudie Brown 10-1 is a direct offset from the EER Brown Lease that has produced in excess of 73,000 BO and 100 MMCF in less then three years of production. This completion is a step out well on the Key East Prospect that was identified and discovered by NAE by utilizing the Motherlode 3-D seismic data.

Martin County Well Update Report (cont)

Status
Strain 16-3
Project	Motherlode
Prospect	Totem
Well Type	Oil and Associated Gas
Location	Martin County Texas
Depth	10,230 feet
Working interest	12.5 %
Operator	North American Energy and Endeavor Energy Resources
Status	Drilling ahead at 3,700 ft

Advance Energy Limited ("AVD") has been informed by its Operations Manager, North American Energy Inc ("NAE") that the Strain 16-3 well has been spudded. NAE, in conjunction with Endeavor Energy Resources ("EER" the well operator) are in the process of drilling the well to a target depth of 10,750 ft. This well is being drilled to test and develop eight different productive horizons and it is estimated the well will reach total depth in 15 days.

The Strain 16-3 is a direct offset from the Strain 16-1 which came on production with an initial potential of 150 BOPD and 200 MCFPD. The Strain 16-1 was the discovery well for the Totem Prospect, which was identified by NAE by utilizing the Motherlode 3-D seismic data.

Hull No. 1
Project	Motherlode
Prospect	Homestake
Well Type	Oil and Associated Gas
Location	Martin County Texas
Depth	10,600 feet
Working interest	22.5 %
Operator	North American Energy and Huntington Energy
Status	Well on Pump

Advance Energy Limited ("AVD") has been informed by its Operations Manager, North American Energy Inc ("NAE") that the Hull No. 1 well has been put on pump and is currently producing 45 BOPD and 150 MCFPD. The well had flowed since it was completed in 2002 and finally quit flowing in October of 2006.

For further information contact:

Mr Lance Camacho Company Secretary 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.