THORNEY TECHNOLOGIES LTD — Earnings Release 2005

Jul 27, 2005

KANAN KANAN ZA ZA ZA ZA ZA ZA ZA ZA ZA ZA ZA ZA 1998 - Jan James Andrews, Amerikaanse konst

AUSTRALIAN RENEWABLE FUELS LUMTER

AUSTRALIAN RENEWABLE FUELS LIMITED

ABN 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

+61893633500 $T\mathbb{Z}I$ $\mathcal{F}AX$ 161893633511 E-MAIL Info@arfuels.com.au MEER www.arbeis.com.au

Thursday, 28 July 2005

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

Dear Sir/Madam,

RE: YEAR ENDED 30 JUNE, 2005 FINANCIAL PERFORMANCE (UNAUDITED)

The Directors of Australian Renewable Fuels Limited wish to announce the unaudited results of financial performance of the consolidated entity for the year ended 30 June 2005.

In the Company's recent prospectus dated 21 March 2005, a loss of \$1.47m was forecast for the year: however the actual loss is expected to be in the range \$0.497m to \$0.515m, representing an improvement in the Company's position of over \$950k.

The reduced loss is due in most part to substantially reduced operating expenditure and also higher than forecast interest income. The Board believes it is a reflection of the Company's prudent budgeting process and conservative operational management. This result bodes well for the future performance of the Company as it progresses towards operational status at both its Adelaide and Picton biodiesel facilities.

The construction of these two facilities is proceeding well and the Company still expects to achieve the performance forecast in the abovementioned prospectus for the current year.

Yours faithfully,

$Q_{\text{max}}$ , k, $Q_{\text{max}}$

Max L Ger Finance Director/Company Secretary

ENDS