THORNEY TECHNOLOGIES LTD — Interim / Quarterly Report 2010

Jan 30, 2011

Appendix 4C report for entities admitted on the basis of commitments

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Rule 4.7B

Appendices 4C

31 January 2011

The company is pleased to submit the 4C Appendices for the month and quarter ended December 2010.

During the last six months, substantial progress has been made with regard to the development of the feed stock logistics for the plants, specifically with regard to the imported product for the Picton (and other) plants. The main component of the operating costs during the period has been the growth in the feed stock inventory lines, given that the company pays in advance for most of the same. Recent sharp increases in feed stock prices (such as the standard tallow products) can be noted in the increased cost of operations, although the margins for the business have been retained due to the parallel increase in the oil (and hence diesel) prices as reflected in TGP.

All costs associated with the conversion of the Picton plant to the new feed stock have been included in the costs to date, and the company is confident of being able to maintain the product introduction schedule as outlined in prior announcements.

Tom Engelsman

CEO

Australian Renewable Fuels Limited

Appendix 4C Monthly Report 31 December 2010

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Appendix 4C report for entities admitted on the basis of commitments

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Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Name of entity
Australian Renewable Fuels	Limited
ABN 66 096 782 188	Quarter ended
66 096 782 188	31 December 2010

Consolidated statement of cash flows

	Cash flows related to operating activities 1.1 Receipts from customers 1.2 Payments for: (a) staff costs (b) advertising and marketing (c) research and development (d) other operating costs 1.3 Dividends received 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 R&D Tax Concession Rebate Received 1.7 Income taxes paid Net operating cash flows	Current quarter $A’000 1,623 (474) - - (2,994) - 28 (159) - -	Year to date 6 months $A’000 2,787 (929) - - (4,979) - 33 (159) 358 -
		(1,976)	(2,889)

Appendix 4C Monthly Report 31 December 2010

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Appendix 4C report for entities admitted on the basis of commitments

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	Current quarter $A’000	Year to date 6 months $A’000
Net operating cash flows (brought forward)	(1,976)	(2,889)
Cash flows related to investing activities 1.8 Payment for acquisition of: (a) businesses (item 5) (b) equity investments (c) group expansion (d) intellectual property (e) physical non-current assets 1.9 Proceeds from disposal of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets 1.10 Loans to other entities 1.11 Net cash outflow on disposal of subsidiary Net investing cash flows 1.12 Total operating and investing cash flows	- - - - (44) - - - - - (17) -	- - - - (49) - - - - - (17) -
	(61)	(66)
	(2,037)	(2,955)
Cash flows related to financing activities 1.13 Net proceeds from issues of shares, options, etc. 1.14 Reduction in finance lease liabilities 1.15 Proceeds from borrowings – External Shareholder loans (U.S) 1.16 Repayment of borrowings - External 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Loans received Net financing cash flows	3,523 (3) - - (1,350) - -	4,421 (3) - - (1,350) - -
	2,170	3,068
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year 1.21 Exchange rate adjustments 1.22 Cash at end of quarter/year	133 759 -	113 779 -
	892	892

Appendix 4C Monthly Report 31 December 2010

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Appendix 4C report for entities admitted on the basis of commitments

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Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

	Current quarter $A'000
1.23 Aggregate amount of payments to the parties included in item 1.2	124
1.24 Aggregate amount of loans to the parties included in item 1.10	17
1.25 Explanation necessary for an understanding of the transactions	Directors fees and salaries Loan to KE Engineering

Non-cash financing and investing activities

Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows	Amount $A'000
	-

Details of outlays made by other entities to establish or increase their share in businesses in which 2.2 the reporting entity has an interest.

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

	Amount available $A’000	Amount used $A’000
3.1 Working Capital Loan Facility	-	-
3.2 Inventory and Receivables financing facility	-	-
3.3 Bank guarantees provided to third parties	735	-
Total financing facilities available at end of **quarter **	735	-

Appendix 4C Monthly Report 31 December 2010

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Appendix 4C report for entities admitted on the basis of commitments

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Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
4.1 Cash on hand and at bank	892	759
4.2 Deposits at call	-	-
4.3 Bank overdraft	-	-
4.4 Other Bank Facilities	-	-
Total: cash at end of quarter	892	759

Acquisitions and disposals of business entities

	Acquisitions (Item 1.9(a))	Disposals (Item 1.10(a))
5.1 Name of entity
5.2 Place of incorporation or registration
5.3 Consideration for acquisition or disposal
5.4 Total net assets
5.5 Nature of business

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.

• 2 This statement does give a true and fair view of the matters disclosed.

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Sign here Date: 31 Jan 2011 Managing Director

Print name: Tom Engelsman

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Appendix 4C Monthly Report 31 December 2010

Appendix 4C report for entities admitted on the basis of commitments

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Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2. The definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to this report except for the paragraphs of the Standard set out below.

3. 6.2 - reconciliation of cash flows arising from operating activities to operating profit or loss

4. 9.2 - itemised disclosure relating to acquisitions

5. 9.4 - itemised disclosure relating to disposals

6. 12.1(a) - policy for classification of cash items

7. 12.3 - disclosure of restrictions on use of cash  13.1 - comparative information

8. Accounting Standards. ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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Appendix 4C Monthly Report 31 December 2010

Appendix 4C report for entities admitted on the basis of commitments

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Appendix 4C

Monthly report for entities admitted on the basis of commitments

Name of entity
Australian Renewable Fuels	Limited
ABN 66 096 782 188	Month ended
66 096 782 188	31 December 2010

Consolidated statement of cash flows

	Cash flows related to operating activities 1.1 Receipts from customers 1.2 Payments for: (a) staff costs (b) advertising and marketing (c) research and development (d) other operating costs 1.3 Dividends received 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 R&D Tax Concession Rebate Received 1.7 Income taxes paid Net operating cash flows	Current month $A’000 598 (164) - - (1,024) - 6 - - -	Year to date 6 months $A’000 2,787 (929) - - (4,979) - 33 (159) 358 -
		(584)	(2,889)

Appendix 4C Monthly Report 31 December 2010

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Appendix 4C report for entities admitted on the basis of commitments

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	Current month $A’000	Year to date 6 months $A’000
1.8 Net operating cash flows (brought forward)	(584)	(2,889)
Cash flows related to investing activities 1.9 Payment for acquisition of: (a) businesses (item 5) (b) equity investments (f) group expansion (g) intellectual property (h) physical non-current assets 1.10 Proceeds from disposal of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets 1.11 Loans to other entities 1.12 Net cash outflow on disposal of subsidiary Net investing cash flows 1.13 Total operating and investing cash flows	- - - - (6) - - - - - - -	- - - - (49) - - - - - (17) -
	(6)	(66)
	(590)	(2,955)
Cash flows related to financing activities 1.14 Net proceeds from issues of shares, options, etc. 1.15 Reduction in finance lease liabilities 1.16 Proceeds from borrowings – External 1.17 Repayment of borrowing 1.18 Dividends paid 1.19 Loans received Net financing cash flows	(16) (1) - - - -	4,421 (3) - (1,350) - -
	(17)	3,068
Net increase (decrease) in cash held 1.20 Cash at beginning of month/year 1.21 Exchange rate adjustments 1.22 Cash at end of month/year	(607) 1,499 -	113 779 -
	892	892

Appendix 4C Monthly Report 31 December 2010

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Appendix 4C report for entities admitted on the basis of commitments

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Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

	Current month $A'000
1.23 Aggregate amount of payments to the parties included in item 1.2	20
1.24 Aggregate amount of loans to the parties included in item 1.10	-
1.25 Explanation necessary for an understanding of the transactions	Directors fees and salaries

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows	Amount $A'000
	-
2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reportingentityhas an interest.
-

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

	Amount available $A’000	Amount used $A’000
3.1 Working Capital Loan Facility
3.2 Inventory and Receivables financing facility	-	-
3.3 Bank guarantees provided to third parties	735	-
Total financing facilities available at end of **month **	735	-

Appendix 4C Monthly Report 31 December 2010

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Appendix 4C report for entities admitted on the basis of commitments

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Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the month (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current month $A’000	Previous month $A’000
4.1 Cash on hand and at bank	892	1,499
4.2 Deposits at call	-	-
4.3 Bank overdraft	-	-
4.4 Other Bank Facilities	-	-
Total: cash at end of month/year	892	1,499

Acquisitions and disposals of business entities

	Acquisitions (Item 1.9(a))	Disposals (Item 1.10(a))
5.1 Name of entity	-	-
5.2 Place of incorporation or registration	-	-
5.3 Consideration for acquisition or disposal	-	-
5.4 Total net assets	-	-
5.5 Nature of business	-	-

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.

• 2 This statement does give a true and fair view of the matters disclosed.

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Sign here Date: 31 January 2011 Managing Director

Print name: Tom Engelsman

Appendix 4C Monthly Report 31 December 2010

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Appendix 4C report for entities admitted on the basis of commitments

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Notes

1. The monthly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2. The definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to this report except for the paragraphs of the Standard set out below.

3. 6.2 - reconciliation of cash flows arising from operating activities to operating profit or loss

4. 9.2 - itemised disclosure relating to acquisitions

5. 9.4 - itemised disclosure relating to disposals

6. 12.1(a) - policy for classification of cash items

7. 12.3 - disclosure of restrictions on use of cash  13.1 - comparative information

8. Accounting Standards. ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

Appendix 4C Monthly Report 31 December 2010

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