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AN EMERGING GLOBAL CLEAN ENERGY COMPANY 19 October 2011 Greg Solomon Chairman.

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Presentation on theme: "AN EMERGING GLOBAL CLEAN ENERGY COMPANY 19 October 2011 Greg Solomon Chairman."— Presentation transcript:

1 AN EMERGING GLOBAL CLEAN ENERGY COMPANY 19 October 2011 Greg Solomon Chairman

2 January 2011 Corporate Structure June 152 Eden Energy India Pvt Ltd (India) 100% Pyrolysis and Gas to Liquids Technology 100% Eden Energy Ltd (AUSTRALIA) Clean Energy Energy Production Coal Bed Methane/Shale Gas (Wales, UK) 50%/100% (IPO planned) Natural Gas South Australia (AUS) 100% (Suspended) Terratherma ( Geothermal) South Australia (AUS) 100% (Suspended) Hythane Company LLC (USA) 100%

3 January 2011 Current Clean Energy Products Pyrolysis Project - Solid Carbon and Hydrogen Production without CO 2 - Single Walled Carbon Nanotubes (SWCNT) - Multi Walled Carbon Nanotubes (MWCNT) - Carbon Nanofibres (CNF) Hythane ®- India and US OptiBlend® Dual Fuel - India and US

4 January 2011 Current Energy Projects UK- CBM - Coal Bed Methane JV-50% (2100km2) UK- Shale/ - Shale Gas/Conventional Gas JV-50% (2100km2) Conventional SA Natural Gas - Untested natural gas target (100km x 10km) - 100% -Obligations suspended for 12 months SA Geothermal - 100% -Obligations suspended 12 months

5 January 2011 Low Cost Production of Carbon Fibres/Nanotubes and H 2 from CH 4 New process developed with UQ Patent applications lodged -over 50 countries No CO 2 – H 2 becomes a high value byproduct Produces hydrogen and single /multi-walled carbon nanotubes and carbon fibres - tensile strength up to 200-300 times steel - approx 17% the weight of steel - structural /electrical/ thermal qualities Scale -up by Eden in US - encouraging results Commercial prototype is operational in US Pyrolysis Project – Eden 100%

6 Eden Energy CNT/ CNF Production Hydrogen Carbon Inert Gas Natural Gas Supply Catalyst Feed Reactor Hydrogen Product CNT’s Carbon Product CH 4

7 New Cost Competitive Technology being developed in US - Catalyst Formulae and production of MWCNT and CNF - Commercial scale reactor operational in US - Provisional patent applications lodged Products – (from natural gas with catalyst) - MWCNT – super-strong/ electrical/thermal conductivity - CNF – compressive strength/ electrical/thermal conductivity - Hydrogen Pyrolysis Project Summary January 2011

8 Production of H 2 and Carbon Nanotubes from CH 4 June 15 TEM image of MWCNT produced at Hythane Co in Denver January 2011

9 Commercial Scale Reactor Operational January 2011

10 Commercial Scale Reactor Operational January 2011

11 Commercial Scale Reactor Operational January 2011

12 Eden MWNT Catalyst Yield Eden MWNT Catalyst Yield (Shown in grams carbon per grams catalyst) January 2011

13 Current- estimated at approx 2000 tpa - Largest producer- 500tpa - 3 producers – 200 tpa each - Rapidly expanding market Many new emerging applications - Structural (composite materials/ concrete/ tyres) - Electrical ( conduction and storage) Compounding growth estimated at more than 11%pa CNT Market Projected Growth January 2011

14 30 tpa unit operational August 2011 Full scale commercial unit (100-250tpa) by Oct 2011 Produces MWCNT/ CNF for following target markets: - Concrete / Composite plastics - compressive/tensile strength/electrical and thermal qualities - Electrical Applications - batteries, electronic paper, conductive paint and coatings - Tyre manufacturing - to extend life of tyres and reduce weight Eden's Targets for 2011 January 2011

15 MWNT Current US Market Prices MWNT Current US Market Prices (20-30nm diameter, >85% wt. purity) Prices are anticipated to drop with increasing order size and increasing supply January 2011

16 Existing Sales of CNF and MWCNT achieved - for batteries and electronic paper Distributors marketing Eden's MWCNT in bulk quantities Development of additional applications being undertaken: - Concrete / Composite plastics - for compressive strength and electrical and thermal qualities - Tyre manufacturing - to extend life of tyres and reduce weight Commercialisation of Nano-carbon fibres January 2011

17 Hythane ® - the transitional fuel Premium blend of Natural Gas - 5-7% H 2 (by energy); 20% H 2 (by volume) Ultra-low emissions – 50% NOx /CO - Euro V emission standards High efficiency - 10-15% increase in efficiency with suitable engines Low engine cost -only software changes to suitable engines Anticipated Hythane® sale price ≈ 10% more than natural gas Tested over 15 years – adopted in Indian Hydrogen Roadmap June 1517 H 2 + CH 4  Hythane Significantly lower pollution / Higher efficiency

18 January 2011 Denver Hythane® Emissions Results June 1518 THC CO NO x 0 0.5 1 1.5 2 2.5 3 NGHYNGHYNGHY HOT 505 EMISSIONS, GRAMS/MI. Output of pollutants (grams per mile) of Natural Gas versus Hythane®. Source: Colorado Department of Health

19 January 2011 Extreme air pollution – Govt push to reduce pollution 2006 Indian hydrogen roadmap - proposes HCNG as transitional fuel Cost of natural gas – <60% cheaper (per GGE) than diesel Increasing supply – 5Mtpa to 25Mtpa over 5 years National rollout of pipelines and Gas distribution networks 2009 First Public Hythane ® station – Delhi - built by Eden June 1519 History of Hythane® in India History of Hythane® in India

20 January 2011 First Indian Hythane® Station First Indian Hythane® Station Delhi January 2009 June 1520

21 January 2011 LNG Existing Transmission Pipelines Existing Upcoming GAIL’s Planned Pipeline RIL’s East West Pipeline RIL’s Planned Pipeline GSPC’s Planned Pipeline City Gas/ CNG Existing Planned LNG Terminal INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET JAGDISHPUR PHOOLPUR BHATINDA BAREILLY DISPUR DELHI AGARTALA BARODA LUCKNOW PATNA AHMEDABAD RAJKOT KOTA MATHANIA GWALIOR UJJAIN AGRA KOLKATA GAYA BOKARO VARANASI JHANSI DAHEJ I & II 10 mmtpa* HAZIRA 2.5 mmtpa COIMBTORE MANGLORE MUMBAI BHUBANESHWAR KRISHNAPATNAM NELLORE CHENNAI TUTICORIN TIRUCHCHIRAPALLI HASAN BANGLORE KOLHAPUR SOLAPUR KAKINADA VIJAYAWADA DAMRA DABHOL 5 mmtpa KANJIKKOD AURAIYA Iran-Pak-India Pipeline Turk-Afg-Pak-India Pipeline GOA CUTTACK VIJAYPUR KANPUR NANGAL GURGAUN PUNE BHARUCH SURAT HYDERABAD RAJAMUNDRY BHOPAL KOCHI 5 mmtpa ENNORE 2.5 mmtpa BARMER MANGALORE 2.5 mmtpa INDIAN GAS INFRASTRUCTURE CURRENT & FUTURE Courtesy of Gas Authority of India

22 January 2011 2011 Hythane® demonstration planned – Mumbai or Gujarat - some delay but project still looks likely Objective- to establish economics of a commercial Hythane® Agreements signed with GSPC and GAIL, MGL Initially 2 buses planned and expanding to 70-90 buses Duration- 18-24 months – then planned commercial rollout Potential - up to 500,000 buses over 5-10 years Total Market - Buses, trucks, cars, auto rickshaws, locomotives - June 1522 Future of Hythane® in India

23 Hythane® Economics and Revenue Model Economics Hythane® production costs- approx 4-6% more than natural gas Increased efficiency in Hythane® engines ( 6.5%-15% targeted) Marginal increase in cost of vehicles- software change only New pyrolysis process -cheaper hydrogen and Hythane® possible Eden's projected revenue sources Sale or lease of stations and/or equipment Sale of fuel from station (solely owned or JV Engine conversions and royalties Possible carbon credits – approx 15 tonnes/year CO2 savings per bus January 2011

24 OptiBlend Dual Fuel System Displaces up to 70% of diesel with natural gas in diesel engines Indian market – hundreds of thousands of gensets / locomotives Huge cost savings Dramatic cost savings in full and part time applications Payback period less than 12 months for larger gensets First sales of Indian and US kits – expanding with gas supplies Eden India cash flow positive Target to make Eden cash flow positive within 18 months June 15January 2011

25 OptiBlend- Indian Installation June 15January 2011

26 OptiBlend-Typical Power Production Costs Assumptions: Diesel = $1.25/liter, Natural Gas = $10 mmbtu, Cummins K19 Genset June 15January 2011

27 Energy Assets 50% Joint venture (with Coastal Oil and Gas) -17 Licences - 100% - 3 licences June 1527 COAL BED METHANE/ CONVENTIONAL/ SHALE GAS (WALES, UK)

28 January 2011 UK Gas Asset Overview Spinout underway – ASX IPO - Adamo Energy Ltd – proposed $11m raising when appropriate Large UK landholding – 50% interest in 17 licences/ 100% in 3 Licences – 2,100km2 (510,000 acres) gross approx-– South Wales, Bristol and Kent Shale Gas Resource (Source: RPS Dallas independent expert report) – GIIP P50 = 49.8 tcf (Gross) : Eden 24.9 tcf (Net) – Prospective Recoverable Resource P50 = 18.3 tcf (Gross) : Eden 9.2 tcf (net) CBM Resource (Source: RISC independent expert report) – Prospective Resource P50 = 3.1 tcf (Gross) : Eden 1.4 tcf (net) – Contingent Resource South Wales 2C = 980 bcf (Gross) : Adamo 332 bcf (net) June 1528 Tcf (net Eden)GIIP (P50) 2C3CProspective Resource (P50) CBM3.20.30.51.4 Shale Gas24.99.2

29 Board & Management Team Simon Gorringe – Technical Director (UK) Chemical engineer with 30+ years in upstream and downstream oil & gas industry Senior technical and management roles including BG Group, BHP Petroleum, Conoco etc Current Exec director CH+ (UK) Christopher Newport – Commercial Director Chartered Accountant with25 years experience in oil and gas projects Senior commercial and management roles including Santos, BHP Petroleum, Delhi petroleum Current commercial director CH+ (UK) Greg Solomon – Executive Director (Australia) Solicitor with 30+ years experience in a wide range of areas including mining and energy law, commercial negotiation and corporate law He has held numerous directorships of various Australian public companies since 1984 including several resources and technology companies Other Technical Support- CH+ Dr Tim Dibb - Geology/ Geophysics Manager Trevor Ridley - Petroleum Engineering Darrell Girgent i- Drilling Manager Dr Scott McKelvie - OHS/ Environmental Aaron Gates – Chief Financial Officer Chartered Accountant and Chartered Secretary CFO of a number of listed ASX companies Manager at Grant Thornton working in audit and corporate finance [Non-executive Chairman] To be appointed

30 June 1530 UK Gas Market Major customers situated on gas licences in South Wales (steel mill, paper mill, insulation factory) Milford Haven LNG terminal and major pipeline and energy network nearby June 2011 National Balancing Point (NBP) gas price of ₤0.59/therm (US$9.50 / mmbtu; A$9.50 / GJ) Price volatility strongly tied to seasonal demand shifts, supply fluctuations and storage capacity constraints North Sea in decline UK is net importer of petroleum with growing dependence on imported gas (Qatar & Russia

31 Dart Energy’s view on UK market Dart acquired Composite Energy in Feb 2011 & has a portfolio of 14 licences in the UK

32 June 1532 Capital Structure 19 October 2011 ASX Code: EDE Total Shares: 240m Share Price: $0.062 Market Capitalisation $14.88m Cash and Receivables $1.1m

33 Greg Solomon Executive Chairman Level 40, Exchange Plaza, 2 The Esplanade, Perth, Western Australia, Australia. 6000 Telephone +618 9282 5889 Mobile +614 0206 0000 Fax +618 9282 5866 Email gsolomon@edenenergy.com.augsolomon@edenenergy.com.au Website: www.edenenergy.com.au

34 January 2011 Disclaimer – Forward-looking Statements and Projections Whilst reasonable care has been taken in compiling the forward projections in this presentation, they necessarily are based on many assumptions and factors that are beyond the control of the company and accordingly there is no representation or warranty given that these projections will be achieved. There are many uncertain market and exploration risk factors on all the projects, particularly related to new markets and products such as carbon nanotubes and fibres and energy projects including the coal bed methane, shale gas, natural gas and geothermal projects, all of which are at very early stages of development. On the technology projects, the risks are varied, including risk that patent applications will not be granted, or another party may claim priority or that other methods of producing better and cheaper alternative products will be developed and that projected prices will not be achievable. In the Indian market, there are many risks which are beyond the control of the company and which could significantly impact on both the prices that are achieved, the sales turnover and the production and operating costs. These risks include delays in the availability of the Natural Gas in India, increases in the price of Natural Gas, reduction in the price of alternate fuels such as diesel, changes in Indian Government or Indian Supreme Court policies and rulings, market competition, shortages and cost increases in raw materials and labour, political or economic instability, problems with reliability of equipment produced and sold, warranty claims, currency fluctuations, restrictions on foreign investment, disputes with potential joint venturers, market resistance to the products or services offered, lack of available capital or finance, restrictions on international travel and similar factors beyond the control of the company. For these reasons, all potential investors and others must satisfy themselves on the reliability of these forward looking projections before acting upon any information provided to them in relation to forward looking projections, and neither the company nor any of its officers make any representations, warranties or commitments that these or any other forward projections will necessarily be achieved. June 1534


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