THORNEY TECHNOLOGIES LTD — Capital/Financing Update 2007

May 2, 2007

AUSINALIAN RENEWABLE FUELS LUMBER

AUSTRALIAN RENEWABLE FUELS LIMITED

ABN 65 096 782 188

SUITE 1B, LEVEL 5 SOUTH SHORE PIAZZA 85 SOUTH PERTH ESPLANADE SOUTH PERTH WA 6151

P.O. BOX 837 SOUTH PERTH WA 6951

TEL $+61893633500$ $FAX$ +61893633571 E-MAIL info@arfuels.com.du WEB www.arfuels.com.au

Thursday 3 May 2007

ASX Release

Company Announcements Office Australian Stock Exchange Limited 10th Floor, 20 Bond Street SYDNEY NSW 2000

Dear Sir/Madam,

Australian Renewable Fuels Limited - Commonwealth Biofuels Capital Infrastructure Grant

Australian Renewable Fuels Limited (ASX Code ARW) ("ARF") is pleased to announce that Payments 2 and 3 under the Federal Government's Biofuels Capital Grants Program have been approved for payment to ARF by the Commonwealth Government. Receipt of the grant funds amounting to \$5.4 million is expected this month.

ARF's qualification for the Grant is attributable to the concerted team effort and focus of the Company's Executive with the full support of the Board. It also is confirmation of the technology platform used in the Company's operations.

For further information, please contact:

Australian Renewable Fuels Limited John Lillywhite CEO - Australia T: 08 9363 3500 E: info@arfuels.com.au

ENDS