THORNEY TECHNOLOGIES LTD — Capital/Financing Update 2011

Jan 3, 2011

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AUSTRALIAN RENEWABLE FUELS LIMITED

4 January 2011.

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

Investor Update

Given the substantial activity within the company during the recent period, this update with regard to the company position is offered to allow investors to be fully aware of the relevant details.

During the recent months, the company has successfully completed the following;

• A complete refinancing scheme for the business, raising approximately $6 million (before costs), allowing the company to retire all longer term debt facilities, with the main line being the $2.7 million owed to Wasabi Energy. This process has left the company debt free, with funds to cover working capital needs to raise the overall production levels.

• The signing and initial implementation of agreements with regard to the supply of a very competitive feed stock supply line, based on an initial three year “take or pay” export model for the biodiesel. This agreement is based on a minimum of 30 million litres per year, and will have a positive EBITDA impact (based on the full volume) of in excess of $ 6 million per year.

• Successful conversion of a series of trials and product tests, mainly for the transport and mining industry. This has resulted in very positive supply arrangements with majors such as Wesfarmers, Caltex, IMX Resources, and many other environmentally sensitive services such as SeaLink Ferries in South Australia. All of this work in the market area has created a solid base for the use of the fully certified Biodiesel supplied by the company.

• Participation in the Federal Anti-dumping action against the imported (and subsidized) biodiesel, and hence eliminating the substantial importation of this improperly subsidized product. This very positive result was further aided by the Federal Government rulings with regard to the excise applicable on Biodiesel, thereby creating a 19.2 cents per litre advantage with regard to the excise on mineral diesel.

• Continued focus with regard to the overall cost base of the company, such that the positive Gross Margin achieved during the year continues to increase with the increasing cost of imported mineral diesel. This benefit will be even further accelerated if there is a weakening of the Australian Dollar (due to the impact on local mineral diesel costs)

The above actions leave the company well positioned with regard to 2011, and allow for the assets of the business to generate an acceptable return on investment.

Tom Engelsman Managing Director