THORNEY TECHNOLOGIES LTD — Capital/Financing Update 2008

Sep 29, 2008

AUSTRALIAN RENEWABLE

FUELS LIMITED ABN 66 026 782 198

SUITE 3
EE ANGOVE 5T
NORTH PEETH WA 6006 PO 80X 119
NORTH FEETH WA 6906 TEL + 61 8 9227 7688

FAX + 61 8 9227 0101 EMAIL into@ortusts.com av

WEB www.artuels.com.nu

Tuesday 30 September 2008

Company Announcements Office ASX Limited 10^th Floor, 20 Bond Street SYDNEY, NSW, 2000

Dear Sir/Madam

Appendix 3B

Further to the announcement lodged 26 September 2008, Australian Renewable Fuels Limited (ASX Code: "ARW") wishes to lodge the corresponding Appendix 3B for the allocation of 1.5 million Employee Share Options.

Yours faithfully Australian Renewable Fuels Limited

Tania Oosterhof Company Secretary T: 08 9227 7688 E: info@arfuels.com.au

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

ABN 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).

$\mathbf{1}$ ⁺Class of ⁺securities issued or to be issued

Employee Share Options

• $\overline{2}$ Number of ⁺securities issued or to be issued (if known) or maximum number which may be issued
• 3 Principal terms of the ⁺securities (eg, All these options are exercisable at 10 cents if options, exercise price and expiry each and have an earliest exercise date of 30 date; if partly paid ⁺securities, the June 2009. The expiry date of all the options amount outstanding and due dates covered by this issue is 21 September 2013. for payment; if ⁺convertible The options are subject to the rules of the securities, the conversion price and Company's Employee Share Option Plan. dates for conversion)

1,500,000

$\overline{4}$ Do the ⁺securities rank equally in all 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
• $\overline{5}$ Issue price or consideration
• 6 Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets)

The options are awarded to certain Eligible employees of the Company at no cost to the employee. The exercise price of the options is 10 cents each.

Not Applicable

The issue of Employee Share Options to key employees of the Company is to incentivise those employees to achieve the long term objectives of the Company and improve the overall performance of the Company for the benefit of shareholders.

The issue is also intended to promote loyalty between the Company and its key employees.

$\overline{7}$ Dates of entering ⁺securities into uncertificated holdings or despatch of certificates

22 September 2008

Number and ⁺class of all 8 ⁺securities quoted on ASX (including the securities in clause 2 if applicable)

Number	+ Class
295,232,445	Fully paid Ordinary shares
48,009,647	Options to acquire Ordinary shares in the Company

• Number ⁺Class $\overline{9}$ Number and ⁺class of all Employee Share 7,640,000 ⁺securities not quoted on ASX Options (including the securities in clause 2 if applicable)
• 10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)

۰,

Part 2 - Bonus issue or pro rata issue - Not Applicable

11	Is security holder approval required?
12	Is the issue renounceable or non- renounceable?
13	Ratio in which the + securities will be offered
14	+ Class of + securities to which the offer relates
15	+ Record date determine to entitlements
16	Will holdings on different registers (or subregisters) be aggregated for calculating entitlements?
17	Policy for deciding entitlements in relation to fractions
18	Names of countries in which the entity has + security holders who will not be sent new issue documents Note: Security holders must be told how their entitlements are to be dealt with.
	Cross reference: rule 7.7.
19	Closing date for of receipt

acceptances or renunciations

20 Names of any underwriters 21 Amount of any underwriting fee or commission 22 Names of any brokers to the issue $23$ Fee or commission payable to the broker to the issue 24 Amount of any handling fee 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) 30 How do ⁺security holders sell their entitlements in full through a broker? How do ⁺security holders sell part $31$ of their entitlements through a broker and accept for the balance?

r

$32$ How do ⁺security holders dispose of their entitlements (except by sale through a broker)?

33 ⁺Despatch date

				.
				1989 - Johann John Stone, mars and de final de final de final de final de final de final de final de final d
				1990 - Jan James Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan

Part 3 - Quotation of securities - Not Applicable

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
• All other securities

$(b)$

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

• 35 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
• If the ⁺securities are ⁺equity securities, a distribution schedule of the additional 36 *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 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 $\bullet$
• 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 now

Example: In the case of restricted securities, end of restriction period

(if issued upon conversion of another security, clearly identify that other security)

42 Number and ⁺class of all ⁺securities quoted on ASX (including the securities in clause 38)

Number	+Class

Quotation agreement

• $\mathbf{1}$ +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 *securities to be quoted under section 1019B of the Corporations Act at the time that we request that the ⁺securities be quoted.
• $\overline{3}$ 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.

Sign here:

(Company Secretary)

Date: 30 September 2008

Print name:

Tania Oosterhof