ACN 109 200 900

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT

16 June 2016

EDENCRETETM UPDATE

Commencement of Key Marketing Study and Establishment of Specialist EdenCreteTM Sales Force

Eden Energy Limited ("Eden") (ASX: EDE) is pleased to announce that it has commissioned a major marketing study and also engaged the first key member of a planned specialised US concrete admixture sales team to generate sales of its expanding EdenCreteTM production.

Key Marketing Study Commenced

Eden has commissioned one of the world's top management companies to undertake a detailed marketing study of both the US and the global concrete markets and to assist Eden in the preparation of a comprehensive EdenCreteTM marketing plan.

The global concrete market is a huge, multi-faceted industry, the structure and key players of which vary from country to country. In order to develop a cohesive marketing plan, detailed market knowledge is necessary, including details of the size, market sectors and structure of the market in each country, together with the details of the key admixture suppliers in each market.

The two stage marketing study has commenced and is anticipated to be completed within the next 8-10 weeks.

Level 15, 197 St Georges Terrace, Perth, Western Australia 6000 Telephone: (08) 9282 5889 Facsimile: (08) 9282 5866

Email: [email protected]

Establishment of Specialist US EdenCreteTM Sales Force

Eden has commenced building a specialist US EdenCreteTM sales force. This sales team will comprise a team of people who each have at least 10 years' experience in successfully selling concrete admixtures in the US with top admixture suppliers. A considerable number of applications for positions have been received and the selection process is underway.

Before the ASTM C494 trials of EdenCreteTM, that are currently being undertaken to enable the performance of EdenCreteTM to be compared with other concrete admixtures and additives, had reached the 180 day stage, it was considered premature to start building this sales team. With that milestone having recently been successfully completed and excellent results having been obtained and announced (see ASX: EDE 3 June 2016), Eden has commenced establishing the sales team.

Western Region Sales

Eden is very pleased to announce that it has engaged its first key sales person, the western region sales manager, who is based in California where he has commenced marketing and selling EdenCreteTM to potential customers. Having had a successful career as sales manager with a major admixture supplier, responsible for more than 10 states in the western region of the US, he has been appointed by Eden as the sales manager for the western region of the US.

Eastern Region Sales

Negotiations with candidates for the sales manager position for the eastern region of the US are also underway and it is hoped that a suitable, similarly qualified candidate will be engaged in the near future.

Longer Term Plans

The intention is to progressively build the sales team to a total of approximately 8- 10 sales people whose collective task will be to cover the US market, with the intention of selling all the EdenCreteTM that Eden will produce in 2017 from its expanded Colorado production facility, which is targeted at approximately 2-2.4 million gallons of EdenCreteTM per year.

In the longer term, it is intended to further expand the sales team both in the US and also into the global arena as the market expands to absorb the production increases that are planned to result from the establishment of Eden's proposed large scale, global production facility in Augusta, Georgia (see ASX: EDE 14 April 2016. This plant is intended to initially produce in the order of 12.5 million gallons of EdenCreteTM per year and expanding first to 50 million gallons per year and thereafter as market demand requires.

The proposed Georgia production facility will have easy access not only to the entire US Interstate Highway network, but also to the whole North American railway network as well as to the global export market through the Port of Savannah, the third largest US port for containerised cargo, which is 130 miles away and accessible by both Interstate Highway and rail.

BACKGROUND

EdenCreteTM is Eden's 100% owned, proprietary carbon-strengthened concrete additive, one of the primary target markets for which is improving the performance of concrete used in the construction and maintenance of concrete roads, bridges and other infrastructure. Additionally, it has potential for use in a range of other applications including high-rise building construction, marine and coastal applications, highly abrasive and hardwearing applications, water storage and pipelines, and pre-fabricated concrete structures and products.

Gregory H. Solomon

Executive Chairman