THORNEY TECHNOLOGIES LTD — Capital/Financing Update 2014

Jul 6, 2014

ARfuels ASX Announcement

7 July 2014

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- Update 2014 Federal Budget Proposed Changes to Taxation of Biodiesel

In our previous announcement regarding the proposed changes to the taxation of biodiesel, we noted that we would continue to make strong and urgent representations to the Federal Government on all issues related to the proposed taxation changes.

At this time, we remain in ongoing discussions with the Government regarding the taxation of biodiesel and related matters.

We restate that we are disappointed with the Government’s Federal Budget announcement on the proposed changes to taxation of biodiesel. These changes are a distinct and significant departure from the 2011 Cleaner Fuels legislation that was passed with bi-partisan support approximately 3 years ago. The Cleaner Fuels legislation was passed to create 10 years of stability and certainty for the industry until 2021. The legislation was designed to support and develop an emerging industry and does not resemble corporate welfare that supports established industries and companies.

At this stage whilst we are still in discussions with the Government on the unintended consequences of the proposed arrangements for the taxation of biodiesel, we are not in a position to finalise the strategic review of the business and forward plans.

We have already moved to materially curtail expenditure with cost reductions across our Largs Bay and Picton plants as well as at the corporate level where expenses have been reduced. On a stand alone basis the Barnawartha plant continues to operate profitably and we continue to work on improving sales volumes at all plants.

When appropriate we will provide shareholders with a further update on our progress.

Any queries in relation to the above should be directed to Andrew White, Chief Executive Officer on 03 9981 0011 or info@arfuels.com.au.