THORNEY TECHNOLOGIES LTD — Capital/Financing Update 2011

Jan 31, 2011

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AUSTRALIAN RENEWABLE FUELS LIMITED

ABN 66 096 782 188 Level 9, 175 Collins Street Melbourne VIC 3065 TEL: +61 (3) 9663 8222 FAX: +61 (3) 9650 0070

1 February 2011.

Global Biofuels Trading Inc. Update

Australian Renewable Fuels (ASX:ARW) has reached an agreement with Global Biofuels Trading Inc (GBTI - A Moore Stephens associated company) with regard to the supply of feed stock to the business through the Picton plant. The supply, based on a minimal of 30 million litres per year, will be used for the conversion into Biodiesel, with the same to be exported through a take or pay arrangement with a period of not less than three years

ARF will have a strong benefit from the lower cost feed stock, enabling the business to continue on the product distribution ramp up as has been seen over the recent months. The use of the recycled mill effluent will allow for a very rapid product conversion, with the final product to be exported through the distribution channels of GBTI as well as other third parties, as well as using some of the same in the local market.

“With the support of GB TI, we have been able to build a solid overall model, inclusive of the overall agreements with regard to funding of the same, in a manner which will assist the overall ARF group”, said Tom Engelsman, CEO of ARF. “With the implementation of the feed stock logistics planned to commence in April of this year, we are focused on optimizing all aspects of this feed stock supply opportunity as soon as possible”

ARF recently announced that it had reached agreement with Biodiesel Producers Ltd on the terms for the acquisition of the same, and that process is continuing on schedule, with all necessary documentation to be sent to the relevant shareholders and other parties during the next month.

Tom Engelsman CEO

Australian Renewable Fuels Limited