THORNEY TECHNOLOGIES LTD — Capital/Financing Update 2007

Mar 11, 2007

AUSTRALIAN RENEWAB. FUELS LIMITED

AUSTRALIAN RENEWABLE FUELS LIMITED

ARN 66 096 782 188

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

P.O. BOX 837 SOUTH PERTH WA 6951

TEL. $+61893633500$ 161893633511 $FAX$ E-MAIL Info@arfuels.com.au WEB. www.arhiels.com.au

Monday 12 March 2007

ASX Release

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

Dear Sir/Madam,

Placement, Non-Renounceable Rights Issue and General Meeting

Australian Renewable Fuels Limited ("ARF" or "Company" - ASX Code: ARW) advises that it has agreed to undertake a placement ("Placement") of 9,000,000 fully paid ordinary shares in the Company ("Shares") at an issue price of 35 cents each to institutional and other sophisticated investors, together with the right to apply for 9,000,000 free attaching Options ("Placement Options"), each to acquire one Share at 60 cents each on or before 24 April 2009. The Placement will raise \$3,150,000 before costs.

Shareholders (including participants in the Placement) will also be given the opportunity to subscribe for Shares on the same terms as the terms of the Shares offered under the Placement pursuant to a non-renounceable rights issue ("Rights Issue") of 33,300,000 Shares to raise \$11,655,000 on the basis of 1 Share for every 4 Shares held on the record date at an issue price of 35 cents each, together with 33,300,000 free attaching Options, each to acquire one Share at 60 cents each on or before 24 April 2009.

The record date for the Rights Issue is 23 March 2007.

The Placement and the Rights Issue are fully underwritten by Shaw Corporate Finance Pty Ltd.

The funds raised from the Placement and the Rights Issue will be used for infrastructure development associated with the Company's two production facilities at Largs Bay and Picton, for general working capital and to retire debt.

The Prospectus for the Rights Issue and offer of the Placement Options has been lodged with ASIC and ASX and is available on the ASX website at www.asx.com.au for inspection.

The Company will also be seeking Shareholder approval at a General Meeting of the Company to be held on 20 April 2007 to issue 5,714,286 Shares and 5,714,286 free attaching Options to Mr Darryl Butcher in lieu of the repayment of an amount of \$2,000,000 payable to Mr Darryl Butcher as deferred consideration for the acquisition of shares in Shelly Nominees Pty Ltd pursuant to a Share Sale Agreement dated 19 January 2005 (as varied by deeds dated 3 and 9 March 2005 and 7 March 2007). A summary of this Share Sale Agreement was included in the Company's IPO Prospectus dated 21 March 2005. The terms of issue of these securities are the same as the terms offered under the Placement and the Rights Issue.

Shareholder approval will also be sought at the General Meeting to ratify the issue of Shares under the Placement and to approve the issue of the free attaching Placement Options.

Summary of Important Dates

The proposed timetable for the Placement, Rights Issue and General Meeting is as follows:

Announcement of Rights Issue, Placement and General Meeting	12 March 2007
Lodge Prospectus with ASIC	12 March 2007
Issue of Shares under Placement	15 March 2007
Shares quoted ex-rights	19 March 2007
Dispatch of Notice of General Meeting	20 March 2007
Record Date to determine Entitlements	23 March 2007
Opening Date and dispatch of Prospectus	29 March 2007
Closing Date*	16 April 2007
Notification to ASX of under-subscriptions and Underwriter notified of number of New Securities to be subscribed for by Underwriter and Sub-Underwriters	19 April 2007
General Meeting	20 April 2007
Allotment of Placement Options, New Securities and dispatch of holding statements*	24 April 2007
*These dates are indicative only. The Directors reserve the right to vary the key dates, without prior notice and subject to compliance with the ASX Listing Rules.

Directors' Recommendation

The Directors encourage you to support the Rights Issue.

An Appendix 3B is attached.

For further information, please contact:

Australian Renewable Fuels Limited Max Ger Finance Director/Company Secretary T: 08 9363 3500 E: info@arfuels.com.au

ENDS

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005.

Name of entity

AUSTRALIAN RENEWABLE FUELS LIMITED

ARN
66 096 782 188

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

	+ Class of + securities issued or to be issued	Fully paid Ordinary Shares Options for fully paid Ordinary Shares
2	Number of $\dagger$ securities issued or to be issued (if known) or maximum number which may be issued	42,300,000 Ordinary Shares 42,300,000 Options for Ordinary Shares
3	Principal terms of the securities (eg, if options, exercise price and expiry date; if partly paid securities, the amount outstanding and due dates for payment; if *convertible securities, the conversion price and dates for conversion)	Fully paid Ordinary Shares Options are exercisable at 60 cents each on or before 24 April 2009.

Do the *securities rank equally in all	The additional Shares rank equally with
respects from the date of allotment with an existing class of quoted securities? If the additional securities do not rank equally, please state: the date from which they do which the extent $\mathbf{t}$ they participate for the next dividend, case οf ā $\dim$ the. trust. distribution) or interest payment the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment	Ordinary Shares.
Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets)	The funds raised from the issue of Shares under the Placement and the Rights Issue will be used for infrastructure development associated with the Company's two production facilities at Largs Bay and Picton, for general working capital and to retire debt.
Dates of entering *securities into uncertificated holdings or despatch of certificates
		+ Class
		Fully paid Ordinary
*securities quoted on ASX. (including the securities in clause 2 if applicable)	42,300,000	Shares. Options expiring 24 April 2009.
	Issue price or consideration Number and + class of all	existing fully paid Ordinary Shares. Shares issued pursuant to the Options will rank equally with all other existing fully paid Shares $-35$ cents per share. Free Options exercisable at 60 cents each. The date for the issue of Shares under the Placement is 15 March 2007 and 24 April 2007 for the securities issued under the Rights Issue and the Options issued under the Placement. Number 110,500,001

	Number	+ Class
Number *class οf aIl and	56,000,000	Ordinary Fully Paid
*securities not quoted on ASX		Restricted Shares
(including the securities in clause	225,000	Options expiring
2 if applicable)		18 October 2009 at
		various prices
	1,230,000	Options expiring
		30 June 2010 at
		various prices
	200,000	Options expiring 24
		March 2011 at various
		prices
	300,000	Options expiring 17 March 2011 at
		various prices
	210,000	Options expiring
		6 November 2011 at
		various prices [Note;
		Options approved for
		issue but not allotted].
	90,000	Options expiring
		11 November 2011 at
		various prices
	3,000,000	Options expiring
		2 January 2012 at
		various prices

Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests) $10₁$

$\overline{9}$

-

Part 2 - Bonus issue or pro rata issue

$\mathbf{1}$	holder approval security Is. required?	No.
12	Is the issue renounceable or non- Non-renounceable- renounceable?
13	Ratio in which the *securities will be offered	1 for every 4 Ordinary Shares held at Record Date
14	+ Class of + securities to which the offer relates	Ordinary Shares Options for Ordinary Shares
15	determine + Record date to. entitlements	23 March 2007

16	Will holdings on different registers (or subregisters) be aggregated for calculating entitlements?	Yes
17.	Policy for deciding entitlements in relation to fractions	Rounded up to the nearest whole number
18	Names of countries in which the entity has *security holders who will not be new sent issue documents Note: Security holders must be told how their eatitlements are to be dealt with. Cross reference: rule 7.7.	United States of America United Kingdom Hong Kong Japan Papua New Guinea Canada Switzerland Mexico Netherlands
19	Closing date for receipt οf acceptances or renunciations	16 April 2007
20	Names of any underwriters	Shaw Corporate Finance Pty Ltd
21	Amount of any underwriting fee or commission	\$765,275
22	Names of any brokers to the issue	Shaw Stockbroking Limited
23	Fee or commission payable to the broker to the issue
24	of any handling fee Amount payable to brokers who lodge acceptances or renunciations on behalf of *security holders
25	If the issue is contingent on *security holders' approval, the date of the meeting
26	Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled
27	If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders

• 28 Date rights trading will begin (if applicable)
• 29 Date rights trading will end (if applicable)

$\overline{a}$

• 30 How do *security holders sell their entitlements in full through a broker?
• 31 How do *security holders sell part of their entitlements through $a$ broker and accept for the balance?
• $32²$ How do *security holders dispose of their entitlements (except by sale through a broker)?

33 ⁺Despatch date

L.

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

• 34 Type of securities (tick one)
• $(a)$ Securities described in Part 1 ☑
• $(b)$

35

All other securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

If the *securities are *equity securities, the names of the 20 largest holders of the ⋈ additional *securities, and the number and percentage of additional *securities held by those holders

36	If the "securities are "equity securities, a distribution schedule of the additional *securities setting out the number of holders in the categories
	$1 - 1,000$ $1,001 - 5,000$
	$5,001 - 10,000$
	$10,001 - 100,000$
	$100,001$ and over
-37	A copy of any trust deed for the additional *securities

Entities that have ticked box 34(b)

38 Number of securities for which ⁺quotation is sought 39 Class of *securities for which quotation is sought 40 Do the *securities rank equally in all $\overline{a}$ respects from the date of allotment with an existing *class of quoted *securities? If the additional securities do not rank equally, please state: • the date from which they do • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 41 Reason for request for quotation $\overline{a}$ now Example: In the case of restricted securities, end of restriction period (if issued upon conversion of another security, clearly identify that other security) *Class Number 42 Number and *class of all *securities quoted on ASX (including the

securities in clause 38)

Ouotation agreement

• $\mathbf{I}$ *Quotation of our additional *securities is in ASX's absolute discretion. ASX may quote the *securities on any conditions it decides.
• $\overline{2}$ We warrant the following to ASX.
• The issue of the *securities to be quoted complies with the law and is not for an illegal purpose.
• There is no reason why those "securities should not be granted "quotation.
• An offer of the "securities for sale within 12 months after their issue will not require disclosure under section $707(3)$ or section $1012C(6)$ of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any *securities to be quoted and that no-one has any right to return any *securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the *securities be quoted.
• If we are a trust, we warrant that no person has the right to return the $\bullet$ *securities to be quoted under section 1019B of the Corporations Act at the time that we request that the *securities be quoted.
• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.
• $\overline{4}$ We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before "quotation of the 'securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Arm L Com

(Director/Company Secretary)

Date: 12 March 2007

Sign here:

Print name:

Max Ger

$= 1.42$

	CRP/COMPUTERSHARE INVESTOR SERVICES PTY LTD *** TOP AUSTRALIAN RENEWABLE FUELS LIMITED/ARW	20 RUN NUMBER 0483	HOLDERS 09/03/2007	***		(RSP520:15.04:120307) A.C.N. 096 782 188 PAGE: 1
HOLDER NO	CLASS GROUP: *G1/ORDINARY SHARES (GROUPED) NAME AND ADDRESS		UNITS & I/C		RANK
	AMADEUS ENERGY LIMITED Li1 255 ST GEORGE'S TERRACE PERTH WA 6000		34, 266, 667 27.59 1
	MR DARRYL BUTCHER PO BOX 110 BURSWOOD WA 6100		12,600,000	10.14	$\overline{2}$
	LOCAL GOVERNMENT LEVEL 2 157 GRENFELL STREET ADELAIDE SA 5000		11, 133, 333 8.96		3
	M F CUSTODIANS LTD LEVEL 18 8 EXHIBITION STREET MELBOURNE VIC 3000		9,835,944	7.92	4
	EQUITY TRUSTEES LIMITED PREMIUM CLIENT GPO BOX 2307 MELBOURNE VIC 3001		6,625,815	5.33	5
	HSBC CUSTODY NOMINEES $(AUSTRALIA)$ LIMITED - A/C 2 GPO BOX 5302 SYDNEY NSW 2001		3,807,991	3.07	6
GRPJPMOR	JP MORGAN NOMINEES AUSTRALIA LIMITED, LEVEL 37 259 GEORGE STREET SYDNEY NSW 2000		1,785,000	1.44	-7
GRPNATIO	NATIONAL NOMINEES LIMITED, GPO BOX 1406M MELBOURNE VIC 3001		1,651,977	1.33	8
	CITICORP NOMINEES PTY LIMITED GPO BOX 764G MELBOURNE VIC 3001		1,476,000	1.19	9
	UBS NOMINEES PTY LTD LEVEL 16 CHIFLEY TOWER 2 CHIFLEY SQUARE SYDNEY NSW 2000		1,411,276	1.14	10
	MARMULLA HOLDINGS PTY LTD		1,356,990 1.09		11

	$\texttt{CRP/COMPUTERSHARE INVESTOR SERVICES PTY LTD} \texttt{} \texttt{TOP} 20 HOL D E R S \texttt{} \texttt{A.C.N. 096 782 188} \tag{RSP520}$					(RSP520:15.04:120307) PAGE :	2
HOLDER NO	CLASS GROUP: *G1/ORDINARY SHARES (GROUPED) NAME AND ADDRESS		UNITS & I/C		RANK
	77 PROMONTORY WAY NORTH ARM COVE NSW 2324
	ASHABIA PTY LTD 16 ALEXANDER STREET PADDINGTON NSW 2021		1,000,000 0.81		12 1
	BUSHELL NOMINEES PTY LTD LEVEL 3 685 PITTWATER ROAD DEE WHY NSW 2099		960,865	0.77	13
	UBS WEALTH MANAGEMENT AUSTRALIA NOMINEES PTY LTD GPO BOX 1257L MELBOURNE VIC 3001		683,327	0.55	14
	ANZ NOMINEES LIMITED GPO BOX 2842AA MELBOURNE VIC 3001		408,100	0.33	15
	SUVALE NOMINEES PTY LTD 9 GLENBERVIE ROAD TOORAK VIC 3142		400,000	0.32	16
	DAHELE PTY LTD SUITE 801 46-56 KIPPAX STREET SURRY HILLS NSW 2010		382,820	0.31	17
	HSBC CUSTODY NOMINEES <australia limited,GPO BOX 5302 SYDNEY NSW 2001		366,500	0.30	18
	MR KENNETH JOHN BEER 16 BARAMBA ROAD CITY BEACH WA 6015		338,650	0.27	19
	MR WARWICK JOHN WILLIAMS & MRS SUSAN CHRISTINE WILLIAMS $\langle$ W J WILLIAMS NO 3 SUPER A/C> 8 ALEXANDRA STREET DRUMMOYNE NSW 2047		315,000	0.25	20

CRP/COMPUTERSHARE INVESTOR SERVICES PTY LTD ***		20 тор	HOLDERS	***			(RSP520:15.04:120307)
AUSTRALIAN RENEWABLE FUELS LIMITED/ARW		RUN NUMBER 0483	09/03/2007		A.C.N. 096 782 188		PAGE :	3
CLASS GROUP: *G1/ORDINARY SHARES (GROUPED) HOLDER NO NAME AND ADDRESS			UNTTS	8 I/C	RANK
REPORT TOTAL			90,806,255	-73.11
REMAINDER			33,393,746	26.89
TOTAL GRAND			124,200,001	100.00
			The the the the the the the the the the t

TOTAL CURRENT HOLDERS MEETING CRITERIA FOR THIS REPORT:	-2745
	--------------------------------------- *********
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	CRP/COMPUTERSHARE INVESTOR SERVICES PTY LTD		$ * $		Range Of Units Summary		$+ + +$		(RSP510:15.05:120307)
	AUSTRALIAN RENEWABLE FUELS LIMITED/ARW			RUN NUMBER 0483		09/03/2007		A.C.N. 096 782 188	PAGE : -1.
	1	1001	5001	10001	100001			$$ TOTAL $$	Less Than
	to.	to	to	to	to.				M/Parcel of
	1000	5000	10000	100000	(MAX)				1250
*G1/ORDINARY SHARES	(GROUPED)
Holders
Tssuer	41	137	48	54	11			291	45
Chess	299	1020	454	634	47			2454	345
Total	340	1157	502	688	58			2745	390
Units
Tssuer	28139	407830	389490	1289505	70348854			72463818	32648
Chess	223692	3103870	3760728	18191096	26456797			51736183	275876
Total	251831	3511700	4150218	19480601	96805651			124200001	308524
	TOTAL HOLDERS FOR CLASSES SELECTED			2745
TOTAL INTTS	$\blacksquare$ $\mathbf{h}$			124200001
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