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ASX Quarterly Report

For the Quarter Ended 30 June 2021

SALES Q4 FY2021

Sales

30 June 2020

A$000’s

Sales

30 June 2021

A$000’s

Sales

% Change

EdenCrete® 377 294* -22%*

OptiBlend® 233 635** +173%**

Total for Q4 610 930 +52%

TOTAL SALES DURING FY2021

Sales

FY 2020

A$000’s

Sales

FY 2021

A$000’s

Sales

% Change

EdenCrete® 1,495 1,755* +17%*

OptiBlend® 924 1,528** +65%**

Annual Total 2,419 3,283 +36%

* EdenCrete® sales for the quarter fell, when compared with the corresponding quarter in FY 2020, as

a result of a delay, since April 2021, in a major Georgia highway repair project (requiring US$535,000

worth of EdenCrete®) due to a cement shortage in Georgia. In July 2021, Eden US received the purchase

order and this project is now planned to commence in August 2021 (Q1 FY 2022).

** US OptiBlend sales in the first 4 weeks of July 2021 are already approx. A$1,061,005 (US$781,640),

exceeding the annual US OptiBlend sales during each of Financial years 2020 and 2021.

COVID- 19 IMPACT

Apart from major disruptions in the US for most of the past year, India and France are good examples,

where two major companies, one in each country, had incorporated EdenCrete® products into a number

of their standard concrete mix designs shortly before each country was locked down, and both

companies were effectively closed for over 12 months, preventing any sales being achieved since then.

Encouragingly, increases in annual sales of all products were achieved during a very difficult period, in

spite of all of Eden’s markets having been significantly impacted by the COVID-19 pandemic, and as

restrictions ease and normal activity returns, considerable sales growth is expected across all products.

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HIGHLIGHTS EdenCrete®

US EDENCRETE® MARKET

SALES

o Total US EdenCrete® sales for Q4 FY 2021 fell from A$377,420 in Q4 FY2020 to

A$294,383 in Q4 FY2021, a year-on-year decrease of 22% (when reported in AUD), largely

caused by a delay in the commencement of the I-675/75 Highway Repair Project*.

* I-675/75 Highway Repair Project- Georgia

Project awarded to the lowest tenderer in April 2021, butwas delayed due to

cement shortage

The successful tenderer has now secured a ready-mix supplier and the project

is likely to start towards the end of August 2021.

A purchase order for the required EdenCrete® was received in July 2021.

The project is calculated to require 10,700 cubic yards of concrete that will

utilize 21,400 gallons of EdenCrete® with an aggregate value of US$535,000.

The scope of each of the two earlier, similar sized major highway repair

projects was expanded during the construction phase, resulting in a greater

quantity of concrete (and hence also EdenCrete®) being required than was

originally projected.

GEORGIA- SUMMARY OF ACTIVITIES o Total EdenCrete® sales in Georgia for the quarter were US$153,125, spread across seven

different repeat customers. These sales covered a range of different applications.

o Georgia Department Of Transportation (GDOT)

o GDOT Highway Repair Projects

Four GDOT highway repair projects were undertaken during the quarter that

generated EdenCrete® sales worth US$112,625.

o Shotcrete Applications

Use of EdenCrete® in shotcrete applications in Georgia is growing, particularly

for the concrete swimming pool market.

COLORADO- SUMMARY OF ACTIVITIES o Total EdenCrete® sales in Colorado for the quarter were US$37,499 These sales were

spread across seven different repeat customers for various applications.

o Colorado DOT Projects

EdenCrete® still being used on Central 70 shotcrete project , enabling replacement

of 21% of the Ordinary Portland Cement (OPC) with additional fly ash

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EdenCrete® specified in Restoration of East Portal of Moffat Tunnel

EdenCrete® trialled on I-70 in Vail Pass Paving Project Trial

o Denver International Airport

EdenCrete® used for first time in replacement concrete panels in United Airlines

Maintenance Hangar Apron at Denver International Airport

Since then EdenCrete® again used in concrete for similar, further small repair

project.

NORTH CAROLINA - SUMMARY OF ACTIVITIES o EdenCrete® sales in North Carolina for quarter-US$13,750 for shotcrete

applications.

INTERNATIONAL EDENCRETE® MARKET

AUSTRALIA o Sales and marketing programme accelerating

INDIA o First EdenCrete Pz trial in India in the last 15 months took place early July 2021

o Huge market potential in India forEdenCrete® Pz, which Eden is actively

pursuing.

INDONESIA

o Successful compatibility studies with Indonesian cementitious materials.

ISRAEL o Distributor agreement with Israeli group being discussed

o Shotcrete and Precast trials completedFocus on marine, high salt concentration

locations including the Dead Sea.

OptiBlend® Significant sales and market growth in both US and India. During the 2021 finacial year, Indian

OptiBlend® sales increased by an exceptional 508% and total global OptiBlend® sales by an

impressive 65%.

INDIA

o Q4 Fy2021 Sales – 19,189,552 INR (A$337,725)

o FY 2021 Sales – 65,227,835 INR (A$1,033,239)

USA

o Q4 FY2021 Sales – US$229,185 (A$297,527)

o FY 2021 Sales – US$375,541 (A$494,662)

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EdenPlast® Master Batch Trials in Japan are still ongoing.

Hydrogen

During the quarter Eden undertook preliminary discussions with three groups in

Australia relating to possible collaborations for various hydrogen related projects

but to date no progress has been made on any possible commercial project

DETAILS

EdenCrete® USA- SALES

Total US EdenCrete® sales for Q4 FY 2021 fell from A$377,420 in Q4 FY2020 to

A$294,383in Q4 FY2021, a year-on-year decrease of 22% (when reported in AUD), in

large part caused by a delay since April in the commencement of the I-675/75 Highway

Repair Project* .

For the full year (FY2021) however, the EdenCrete® sales still grew by 16% on a year

on year basis, inspite of the significant global impact of the COVID-19 pandemic.

*The I-675/75 Highway Repair Project -Georgia- is a major highway repair project that is

projected to require approximately 10,700 cubic yards of concrete that will incorporate 21,400

gallons of EdenCrete® with an aggregate value of US$535,000.

The contract for the project was awarded to the lowest tenderer in April 2021, but the start of

the project delayed due to a shortage of cement. The successful tenderer has recently secured

a ready-mix supplier and the project is now anticipated to start during the current (September)

quarter. A purchase order for the required EdenCrete® was received in during August 2021.

The scope of each of the two earlier, similar sized major highway repair projects was expanded

during the construction phase, resulting in a greater quantity of concrete (and hence also

EdenCrete®) being required than was originally projected.

GEORGIA- SUMMARY OF ACTIVITIES During the quarter:

o EdenCrete® sales in Georgia for the quarter totalled US$153,125, spread across seven

different repeat customers. These sales covered a range of different applications.

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o GDOT highway repair projects were undertaken during the quarter that generated

EdenCrete® sales worth US$112,625, with the remainedr being used for a range of other

projects.

o Shotcrete - use of shotcrete that incorporates EdenCrete® for a range of applications in

Georgia is growing, particularly for the concrete swimming pool market. There is a growing

number of companies in Georgia and spreading along the eastern seaboard that are

incorporating EdenCrete® into their standard shotcrete mix designs because of the

performance and cost savings benefits that the EdenCrete® delivers.

COLORADO- SUMMARY OF MAJOR ACTIVITIES During the quarter:

o Total EdenCrete® Sales in Colorado were US$37,499. These sales were spread across seven

different repeat customers for various applications.

o Colorado DOT Projects

Central 70 shotcrete Project

Since 2018 EdenCrete® has continuously been used on Central 70 shotcrete project in

Denver. Importantly, it has enabled replacement of 21% of the Ordinary Portland

Cement (OPC) with additional fly ash, reducing the cost but most importantly

significantly reducing the Greenhouse Gas Footprint of the project.

Restoration of East Portal of Moffat Tunnel - EdenCrete® specified

I-70-Vail Pass Paving Project Trial -- EdenCrete® being trialled.

o Denver International Airport

EdenCrete® used for first time in replacement concrete panels in United Airlines

Maintenance Hangar Apron at Denver International Airport

Since then EdenCrete® again used in concrete for similar, further small repair project.

COLORADO DETAILS

CDOT- CENTRAL 70 SHOTCRETE PROJECT

TDuring the quarter, the use of EdenCrete® in the shotcrete concrete mix on the major Colorado

Department of Transportation (“CDOT”) Central 70 project continued (see Eden’s ASX announcement

(ASX:EDE) 15 November 2018).

This project involves the reconstruction of 10 miles of the I-70 Interstate Highway through central Denver,

including sinking it in part, and establishing of a park above it. Construction commenced in mid-2018 and

is anticipated to run into the end of the first quarter of 2022.

The Central 70 Project was estimated, at commencement, to require in total somewhere between 6,000

-10,000 cubic yards of the new shotcrete mix used, which would result in:

a reduction in the total amount of cement required for the shotcrete of between 912,000 lbs

(413 metric tonnes) and 1,520,000lbs (689 tonnes);

The estimated aggregate additional fly ash required will be between 204,000lbs (93 tonnes)

and 340,000lbs (154 tonnes).

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An additional small increase of 2% in the mass of aggregate is also added into the new mix.

Eden has not been informed what is the total quantity of shotcrete that has been applied to date on this

project, but from the amount of work done (see Figures 1-4 for photos of work on some of the various

stages), it is anticipated it may well require more than the 6,000 cubic yards original lower estimate.

Central 70 is the first major CDOT infrastructure project involving EdenCrete®. The shotcrete, using a

shotcrete concrete mix developed jointly with Eden is supplied by a Denver based ready-mix and shotcrete

concrete supplier that has used EdenCrete® products since 2015.In this project EdenCrete® is added at

0.25 US gallons /cubic yard of concrete, and produces sufficient compressive strength (6390psi at 28 days)

to exceed CDOT’s project performance requirement of 5,000psi.

Fly ash, a waste product from coal fired power stations, has a zero Greenhouse Gas Footprint, and

currently sells in the Colorado for approximately 50% of the cost of cement. Importantly, producing one

tonne of cement generates approximately 0.927 tonnes of CO 1.

In this major CDOT project that is still ongoing, EdenCrete® is delivering the following:

Less Cement Required - The addition of EdenCrete® facilitated the replacement of 152 lbs (69 kgs)

of cement with 34 lbs (15 kg) of additional fly ash in each cubic yard of the concrete, compared

with supplier’s previous standard shotcrete mix. The result was a lower percentage of cement and

a higher percentage of cheaper fly ash was required;

Lower Greenhouse Gas Footprint - An estimated reduction of between approximately 382

tonnes and 630 tonnes in the total CO2 footprint directly due to the reduction of cement in the

estimated 6,000 -10,000 cubic yards of shotcrete mix for the project;

Cheaper Shotcrete – the net cost saving of more than $3 /cubic yard of concrete (after including

the costs of the EdenCrete® and additional fly ash and aggregate) is achieved with the reduced

cost of replacing cement with fly ash; and

Strong shotcrete – the EdenCrete® mix achieved a compressive strength of 6,390psi at 28 days,

or 27% more the minimum strength required by CDOT of 5,000psi.

Figure 1. Shotcrete section along Central 70 Project

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Figure 2. Shotcrete being applied on Central 70 Project

Figure 3. Shotcrete being applied on Central 70 Project

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Figure 4. Section where shotcrete is being applied on Central 70 Project

The significant benefits delivered by the EdenCrete®-enhanced shotcrete that is being installed on the

Central 70 project, a major CDOT infrastructure project, are likely to open many new shotcrete markets

for EdenCrete®, both in the USA and around the world, and not only for infrastructure projects, but also

for almost all potential shotcrete applications.

As a result, Eden anticipates that these significant benefits, being:

potentially significant cost savings from cheaper materials and less waste,

potentially significant reductions in the direct Greenhouse Gas footprint, and

potentially significant increases in performance of the shotcrete,

are expected to accelerate the existing expansion rate of the EdenCrete® market footprint in the US and

overseas shotcrete markets over the coming months and years, for use in a wide range of shotcrete

applications. These benefits are anticipated to also be relevant to a range of other applications,

particularly where the delivery of concrete is by means of pumping, such as pumping concrete for high

rise construction or for 3-D concrete printing of structures.

This market growth is likely to be further assisted if the recent commencement in the easing of COVID-19

restrictions, both in the US as well as in a growing number of other countries, gains momentum.

1. https://www.greenconcrete.info/downloads/11_ConcreteCO2.pdf

Moffat Tunnel Restoration

EdenCrete® has been specified in shotcrete that is to be used in the restoration of the East Portal of the

Moffat Tunnel, an operational tunnel that passes under the Rocky Mountains in Colorado, connecting

Denver with the West Coast of the USA.

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The concrete of the East Portal has deteriorated badly, particularly the face of the portal, the arch, and

some the interior tunnel lining. EdenCrete® has been specified in the shotcrete to improve durability and

resistance to abrasion, ultimately extending the life cycle. All placards, lettering, and numerals will be

removed and re-used, retaining the portal’s original and traditional design.

For almost 100 years the Moffat Tunnel has serviced Denver, providing a train route through the Rocky

Mountains and continental divide to San Francisco. In addition, the original pilot tunnel continues to

provide fresh water from the mountains to the City of Denver. The tunnel was first opened in 1928. The

East Portal has been subjected to the rigors of a high mountain environment for many years and the East

Portal Repair and Restoration Project that is set to begin mid-July 2021 will renew this historic landmark

entrance for many years to come.

Connecting the eastern and western slopes of the Rocky Mountains at an elevation of 9,200 feet and 2,800

feet below the surface, the Moffat Tunnel is an important rail (and water) connection in Colorado, with

the East Portal located approximately 50 miles west of Denver.

The existing concrete in the East Portal has deteriorated badly, particularly the face of the portal, the arch,

and some the interior tunnel lining. EdenCrete® has been specified in the shotcrete to improve durability

and resistance to abrasion, ultimately extending the life cycle. All placards, lettering, and numerals will be

removed and re-used, retaining the portal’s original design and appearance (see Figure 5)The project is

set to begin mid-July 2021.

The State of Colorado and the Union Pacific Railroad have contracted with Thorcon Shotcrete and Shoring

to provide the demolition and shotcrete. Aggregate Industries will provide the shotcrete mix required.

Although only a small contract, it represents a significant milestone, being the first such contract for use

in Colorado infrastructure, follows success in several extended trials in harsh Colorado conditions.

Figure 5. The East Portal of the Moffat Tunnel

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I-70 - Vail Pass Paving Project Trial Following several years of planning, design and preparation, the Colorado Department of Transportation

(CDOT) recently commenced a major concrete paving trial in the Rocky Mountains on the I-70 Interstate

Highway at Vail Pass, Summit County, Colorado.

For this trial, CDOT collaborated with Peak Materials, the American Concrete Pavement Association

(ACPA), Eden Innovations, and IHC Scott to plan and execute the trial to evaluate the performance of three

different concrete mix designs in the harsh and challenging conditions experienced at approximately

10,000 feet (approx. 3050 meters) elevation.

Historically, CDOT’s high-altitude designs require asphalt pavement due to its flexibility, the ease of

placement and repair, as well as the cost. Their arguments against concrete pavement have been

increased cost, long construction cycles, and extended lane closures creating unsafe traffic conditions.

Further, the soil in the mountains is notorious for movement under load, and a more flexible material

such as asphalt pavement has been assumed to perform better than concrete with regards to cracking.

Typically, high mountain passes like Vail expose pavements to severe winter weather and freeze thaw

cycles that require the application of harsh de-icer chemicals.

Coupled with this, semi-trailers using snow chains and passenger vehicles with studded snow tires for

driving safely in icy conditions create pavement rutting, a dangerous safety hazard for the motoring public.

Relevantly, EdenCrete® in the last seven months has announced two long term, highly successful trials in

similar conditions in Colorado, each of which involved the extreme use of de-icer chemicals and heavy

traffic that together produce extreme chemical and abrasive wear.

The first of these trials, successfully completed in 2020, involved a 3-year long trial on several roads in

Denver, undertaken with the Denver Department of Transport and Infrastructure (formerly called the

Denver Public Works Department) (see Eden’s ASX announcement dated 26 November 2020) and the

second trial, a 15 month trial at the United Airline’s maintenance hangar apron at the Denver International

Airport, was completed in 2021 (see Eden’s ASX announcement dated 3 May 2021).

The argument presented to support this current I-70 trial is that CDOT should use concrete pavement

instead of asphalt, as the service life from placement, until repair or replacement is required, will be

greatly extended, and the life-cycle costs greatly reduced. The economic benefits of the extended service

life is anticipated to more than offset the increased upfront cost of concrete construction, allowing it to

become a highly competitively priced alternative to asphalt. CDOT is evaluating EdenCrete® as one of the

options to achieve this outcome.This is the first time CDOT has placed concrete on Interstate 70 (I-70)

near Vail in such a trial.

Evaluation

The three mixes that CDOT is evaluating are:

a control mix,

a silica fume mix, and

a mix dosed with EdenCrete®.

A 4500 psi (31 MPa) exterior paving mix was specified as the base design for the control. Their second

mix used the same control mix but replaced 7% of the cement with silica fume. The third mix included

EdenCrete® at 2 gal/yd3 (9.9 l/m3) without silica fume.

The concrete pavement sections will be evaluated over time, likely to include at least two winters, for

surface wear, cracking, scaling, and rutting.

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Placement Details

The general contractor, provided the milling and paving. Peak Materials was the concrete supplier. IHC

Scott placed approximately 600 yd3 (460 m3) of concrete at a thickness of 6 inches (15 cm) in the drive

lane at Mile Marker 184 on eastbound I-70. Each of the three mixes were placed in approximately 200 yd3

(153 m3) increments (see Figures 6 and 7).

Figure 6- Vail Pass Trial on I-70

Figure 7- Vail Pass Trial on I-70

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High-altitude highway pavement has always been challenged by the environment. With the first concrete

placement now completed on Vail Pass, successful performance by the EdenCrete® pavement will support

the case for the future use of concrete pavement in both Colorado for other mountainous states. Using

concrete in place of asphalt will not only help to minimize rutting and provide ancillary benefits to public

safety, it is considered highly likely to significantly extend the service life of the pavement and thus also

potentially reducing the life-cycles costs of the pavement, potentially save millions of dollars for DOTs in

mountainous regions of the USA and elsewhere.

Denver International Airport United Airlines Maintenance Hangar Apron Repair Project

With the COVID-19 pandemic beginning to subside, United Airlines has commenced to remove and

replace a number of 26-year-old concrete panels on the apron of their maintenance hangar at Denver

International airport that have deteriorated over time and cracked due to alkali silica reactivity, scaling

due to chemical attack from de-icer chemicals, and that are exhibiting wear and tear from the abrasion

produced by the aeroplane tyres.

In February 2020, several small sections of concrete on the United Apron in front of the maintenance

hangar were removed and replaced with EdenCrete®. After being used for a year, these sections have

shown no deterioration and, as a result, EdenCrete® was specified for use in the replacement of the first

five adjacent panels as part of an ongoing renovation project.

Repair Project Details

The dimensions of each of the first five replacement panels was 7.62 metres x 7.62 metres , each with a

254 mm thickness (see Figures 8 - 11).

Figure 8. Replacement of first concrete panel on United Airlines maintenance hangar apron.

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Figure 9. Pouring the replacement concrete panel on United Airlines maintenance hangar apron

Figure 10. Pouring the replacement concrete panel on United Airlines maintenance hangar apron

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The General Contractor, Maynard Construction, specified the use of EdenCrete® at 1 gallon (3.78lites) per

cubic yard for the first five panels and the Contractor, Maximum Civil Construction placed approximately

93 cubic yards of concrete in a 38.1m long continuous pour (see Figure 13). The concrete was supplied by

Martin Marietta Materials’ Piccadilly plant in Aurora, Colorado and a total of less than US$2,400 worth of

EdenCrete® was required.

Maximum Civil reported that the concrete pumped, placed, and finished exceptionally well. The mix is

designed to achieve 4500psi compressive strength at 28 days with no fibre, no welded wire mesh, and no

steel reinforcement.

Future Opportunities

Both the General Contractor and the Contractor have shared that they are very happy with the

performance of EdenCrete® to date and the benefits it provides. There are several more of these panels

that will be replaced this year and in the future. Currently the General Contractor has said that there is a

high probability, that EdenCrete® will be specified in the remaining placements at Denver International

Airport , however the timing and total yardage is unknown at this time. With this pending success, there

are additional opportunities that could be available with other airlines and Denver International Airport

itself, as well as other airports.

Since this first repair project at Denver international Airport (DIA), EdenCrete® has already been used in

at least one further similar project, re-affirming the positive response from the General Contractor

and the Contractor after the intial project.

Figure 11. Finishing the 5-panel concrete replacement on United Airlines maintenance hangar apron

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EdenCrete® used in extreme abrasion trial at us drag strip

EdenCrete® is being trialled at the Bandimere Speedway, a nationally recognized US drag racing strip

near Denver, Colorado, in the concrete “Burn Out Boxes” at the start of the quarter mile long drag strip,

where the dragsters spin their tyres to make them sticky before the race, subjecting the concrete to

extreme levels of abrasion (see Figures 12 and 13)

For most of the year, the Bandimere Speedway is used by local racers driving average street-legal

dragsters, but once a year the venue hosts the national competition involving up to 11,000 horsepower,

Nitro -fueled dragsters that can reach 300mph or more and which tear up the concrete surface in the

“Burn Out Boxes” as they “light up” their tyres before each race. This single annual national event

generates more wear to the track than the aggregated wear generated by the weekly races that take place

during the remainder of the year.

The trial, which involved the replacement of the concrete in both “Burn Out Boxes” after only 2 years use,

included EdenCrete® that was added at 2 gallons per cubic yard of concrete. Whilst this is obviously only

a small niche market it is a very important trial for EdenCrete® for a number of reasons. Drag racing is a

global sport and speedways are always trying to improve their facilities.

Figure 12. EdenCrete® concrete being placed in Burn Out Boxes

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Figure 13. The Bandimere Speedway near Denver, Colorado, USA

Motor racing is a major global sport. This trial at Bandimere Speedway provides EdenCrete® an

exceptional, high-profile opportunity to both demonstrate and promote the significant performance

benefits that it can deliver under extreme conditions with other facilities around the world.

This trial is relevant to concrete used not only at drag racing facilities but also for a wide range of motor

racing and other facilities where extreme abrasion occurs (including airport runways where significant

wear from abrasion occurs during take-off and landing) in USA and around the world.

NORTH CAROLINA - SUMMARY OF ACTIVITIES During the quarter:

o Total EdenCrete® sales in North Carolina for the quarter were US$13,750 to one customer

for use in shotcrete applications.

o These initial sales in North Carolina are strong evidence the expanding EdenCrete®

footprint in the USA and in particular along the eastern seaboard.

INTERNATIONAL EDENCRETE® SUMMARY

INDIA o First EdenCrete Pz trials in India in the last 15 months re-started in July 2021. As India

emerges from he COVID-19 pandemic the frequency of trials should increase rapidly.

o The Indian market potential of EdenCrete® Pz is extremely large, considering the technical

attributes of EdenCrete® Pz and the availability of hundreds of millions of tonnes of

suitable Indian fly ash, and Eden is actively exploring this compelling market opportunity.

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AUSTRALIA o Parchem is stepping up its Australian and New Zealand marketing activities.

ISRAEL o Eden is currently discussing a distributorship agreement with an Israeli group.

o Shotcrete and precast trials using EdenCrete® have been conducted.

o Focus on marine and high salt concentration locations including around the Dead Sea.

INDONESIA o Successful chemical compatibility studies have been undertaken with Indonesian

cementitious materials in our Littleton laboratory. Batch trials in Indonesia are planned.

o Eden is discussing with an Indonesian based group a possible distribution agreement®.

o Initial trials are delayed due to COVID-19 difficulties but may end reasonably soon.

OPTIBLEND®

OptiBlend® Sales for the Quarter (Q4 FY21)

SALES Q4 FY 20 (A$000s)

SALES Q4 FY 21 (A$000s)

% Change

USA 233 298* +23.6%*

INDIA - 338

Q4 TOTAL 233 636 +174%

Total OptiBlend® Sales During FY2021

Sales FY 2020

(A$000’s)

Sales FY 2021

(A$000’s)

% Change

USA 754 495* -34%*

INDIA 170 1,033 +508%

Annual Total 924 1,528 +65%

* US OptiBlend sales in the first 4 weeks of July 2021 are already approx. A$1,061,005 (US$781,640 )

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OptiBlend® Sales Summary The total quarterly OptiBlend® sales were 174% higher than in the corresponding quarter

in 2020 and total annual sales rose by 65%. These significant increases were achieved in

spite of the ongoing impact of COVID-19 in both USA and India.

Indian OptiBlend® Sales during Fourth Quarter of FY 2021 and Whole of FY2021

Indian OptiBlend® sales for Q4 of FY21 reached a total of approximately AUD $338,000.

Further, this significant increase, particularly in Indian sales in Q4 of FY 21, took the total Indian

OptiBlend® sales for the 2021 Financial Year to a very impressive total of approximately AUD

$1,033,000, a year on year increase of an exceptional 508%.

This resulted from the sale of 13 units (plus a number of installations of units sold in previous quarters

that had not yet been installed) to two Indian subsidiaries of large international companies and three large

Indian companies, comprising:

o Whirlpool of India Ltd (6 units),

o ABB India Ltd (2 Units),

o Sudhir Power Projects Ltd, a distributor in northern India of Cummins diesel generator sets (2

Units),

o Bikano Foods Pvt. Ltd, a large Indian processed food manufacturer that has a significant export

market (2 Units delivered in the June Quarter with a further three Units scheduled to be

invoiced and delivered in the September Quarter), and

o Haldiram Snacks Pvt. Ltd, a large Indian savoury food and snack manufacturer that supplies

both the Indian and a large export market (1 Unit).

Indian Market Drivers for Increased Sales

The primary driver at present, being outside of the winter months, is the significantly lower price of

Natural Gas for industrial and commercial customers averaging approximately Rs 40 (plus or minus Rs5)

for the same quantity of energy delivered by diesel fuel that would cost approximately Rs 90 (plus or

minus Rs5).

The secondary driver of this sales growth is Government regulations aimed at reducing air pollution.

As previously announced ( see Eden’s announcement 13 October 2020), on 8th of October 2020, the

Environment Pollution (Prevention and Control) Authority (EPCA), a body mandated by the Indian

Supreme Court, banned the use of non-essential diesel generator sets, with effect from 15 October 2020,

in Delhi (the National Capital Territory), Ghaziabad, Noida, Faridabad and Gurugram, that collectively

comprise the National Capital Region (NCR region) during the winter period.

The NCR region encompasses an area of 30,242 sq. km and has a total population of over 47 million

people. Delhi alone, now has a population of over 20 million people. The total population of the NCR

region, Haryana, Maharashtra and Tamil Nadu alone is approximately 276 million people, representing an

estimated 20% of the Indian population.

This ban supported similar policies to reduce the air pollution that were earlier detailed in the National

Clean Air Programme (NCAP), which, to date, State governments in Haryana, Maharashtra and Tamil Nadu

have already adopted and are considered likely to be adopted in further States.

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Importantly, NCAP expressly approved the retrofitting of diesel-powered generator sets for partial Natural

Gas usage (using a fuel mixture of diesel and Natural Gas) as a cost-effective way to convert the huge

number of existing diesel generator sets across India to a Natural Gas operation, opening this major

market opportunity for the OptiBlend® dual fuel system.

As a result of all these developments, it is considered highly likely that these various decisions and

regulations will significantly extend the geographical footprint of OptiBlend®’s Indian markets, as piped

Natural Gas supplies are progressively rolled out across India.

Eden India believes the growth in demand for its OptiBlend® systems in India, that it has experienced

over the past year, is likely to continue for the longer term and spread to other regions of India apart

from greater Delhi, as the rollout of Natural Gas pipelines extends to new areas, driven by the compelling

market drivers of the far lower cost Natural Gas and the various Government regulations and decisions

detailed above.

US OptiBlend® Sales during Fourth Quarter of FY 2021 and Whole of FY2021 Following an increase in interest from a range of utilities and public institutions emerged after the Texas

Power Crisis in February 2021, the anticipated material increase in US OptiBlend sales in coming

quarters started to emerge, and orders received during the quarter increased on a year on year basis

by 23.6% from A$233,000 in Q4 2020 to A$298,000 in Q4 2021.

The US orders received during whole of FY 2021 however decreased by 34% on a year on year basis

from A$754,000 in Q4 2020 to A$495,000 in Q4 2021 (in part due to changes in the currency exchange

rates). However, this drop in US OptiBlend sales during the quarter was very quickly reversed in the

current quarter (Q1 FY 2022), with the sales in the first 4 weeks of July already reaching approx.

A$1,061,005 (US$781,640), exceeding the total annual US OptiBlend sales levels during each of Financial

Years 2020 and 2021.

OPTIBLEND® BACKGROUND

OptiBlend, designed and developed by Eden US more than 12 years ago, is 100% owned by Eden. It is

a custom fitted hardware technology designed and produced by Eden in the US and India that allows

conventional diesel engines to run on natural gas as its primary fuel without modifying the engine or

the diesel fuel system.

Key features and statistics are that it:

• Works by displacing up to 70% of diesel fuel with natural gas;

• Lowers fuel costs, lower emissions and increased runtime;

• Is a highly efficient, cost effective system that reduces fuel cost and emissions;

• Is used by Cummins on its oil/gas drilling power module using 3 Tier II gensets;

•Is suitable for most makes of diesel engines; installed on most major global brands;

•Has been marketed in US and India for over 10 years – long proven highly reliable and durable;

• Over 200 systems sold and installed across USA, India, Middle East, Africa and East Asia;

• Has a significant market in India).

20

EdenPlast®

JAPAN

Master batch trials of Eden’s CNT-enriched polymer master batch in Japan, are still ongoing.

CNT Applications

Eden is regularly exploring a range of other possible uses and applications for incorporation of its carbon

nanotubes into a range of other materials and for a wide range of possible applications.

Whilst possible new applications will probably take time to fully develop, the increasing level of interest

from a wider market is confirmation of the significant untapped market potential of Eden’s CNT.

Hydrogen

During the quarter Eden was approached by further companies relating to possible collaborations

involving Eden’s hydrogen capabilities. Preliminary talks occurred but have not been progressed.

However, Eden remains open to considering such a collaboration, provided that it will not compromise

Eden’s existing technologies or other operations in any way.

Eden’s Hydrogen Background Whilst focusing heavily on hydrogen related activities between 2004 and 2012, Eden built, and still retains,

a strong hydrogen technology base (comprising significant know how, techniques, designs and eight

relevant patents).

This includes Eden’s patented pyrolysis process for production of hydrogen and carbon nanotubes/carbon

nanofibres from natural gas (without producing carbon dioxide as a by-product), a patented blender for

blending hydrogen and natural gas to create a highly efficient, low emission blend called Hythane® which

Eden promoted for a number of years, particularly in India, and a patented hydrogen fuelled, internal

combustion engine.

During this period, Eden built a hydrogen electrolyser and an operating Hythane® station for Indian Oil

near the Delhi airport (and which was still operating until 2018), and developed Hythane® bus engines with

Ashok Leyland, the largest Indian bus manufacturer. Eden was also at that time working on joint ventures

with various Indian natural gas suppliers to establish a number of Hythane® bus trials in various parts of

India, but interest in hydrogen as a fuel started to wane after 2008, when US policy moved away from

21

hydrogen as a vehicle fuel to electric vehicles. As a result, none of these early developments in India

progressed beyond the development and planning stages.

Over the past couple of years however, around the world there has been a growing increase in the level of

interest in hydrogen as a fuel, in large part being driven by concern about climate change, which in turn

has resulted in increased interest in Eden’s hydrogen technologies. Additionally, in India, extreme air

pollution in Delhi and other cities is causing great concern, which has resulted in the Indian Supreme Court

having mandated that the 10,000 strong, natural gas fuelled bus fleet in Delhi, be converted to run on a

hydrogen-based fuel, that in the short term is focusing on converting these buses to operate on Hythane®.

This has again resulted in enquiries being received in relation to Eden’s various hydrogen capabilities.

Similarly, in Australia, the Federal Government and various State governments have allocated funds for

research into the production of “clean hydrogen”, opening a further area of possible interest for Eden for

its now commercialised, pyrolysis process that produces, with a very low Greenhouse Gas footprint, both

relatively low-cost hydrogen and high value carbon nanotubes or carbon nanofibres.

Gregory H Solomon

Executive Chairman

This report was authorised by the above signatory.

For further information please contact Aaron Gates on +61 8 9282 5889.

Description of Payments to related parties of the entity and their associates (LR 5.3.5)

Payments to related parties during the quarter related to:

1. Directors Fees and superannuation

2. Management Fees, as per agreement, were paid during the quarter to a company of which Mr. GH

Solomon and Mr. DH Solomon are directors; and

3. Legal Fees and disbursements were paid during the quarter to a firm of which Mr. GH Solomon and Mr.

DH Solomon are partners.

Rule 4.7B

ASX Listing Rules Appendix 4C (17/07/20) Page 1 + See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

Eden Innovations Ltd

ABN Quarter ended (“current quarter”)

58 109 200 900 30 June 2021

Consolidated statement of cash flows Current quarter $A’000

Year to date (12 months) $A’000

1. Cash flows from operating activities

1,105 3,184 1.1 Receipts from customers

1.2 Payments for

(345) (1,449) (a) research and development

(b) product manufacturing and operating costs

(757) (2,172)

(c) advertising and marketing (88) (321)

(d) leased assets - -

(e) staff costs (1,099) (4,658)

(f) administration and corporate costs (300) (1,141)

1.3 Dividends received (see note 3) - -

1.4 Interest received - 5

1.5 Interest and other costs of finance paid (108) (444)

1.6 Income taxes paid - -

1.7 Government grants and tax incentives - -

1.8 Other (provide details if material) - -

1.9 Net cash from / (used in) operating activities

(1,592) (6,996)

2. Cash flows from investing activities

- -

2.1 Payments to acquire or for:

(a) entities

(b) businesses - -

(c) property, plant and equipment (43) (460)

(d) investments - -

(e) intellectual property - -

(f) other non-current assets - -

Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

ASX Listing Rules Appendix 4C (17/07/20) Page 2 + See chapter 19 of the ASX Listing Rules for defined terms.

Consolidated statement of cash flows Current quarter $A’000

Year to date (12 months) $A’000

2.2 Proceeds from disposal of:

- - (a) entities

(b) businesses - -

(c) property, plant and equipment - -

(d) investments - -

(e) intellectual property - -

(f) other non-current assets - -

2.3 Cash flows from loans to other entities - -

2.4 Dividends received (see note 3) - -

2.5 Other (provide details if material) - -

2.6 Net cash from / (used in) investing activities

(43) (460)

3. Cash flows from financing activities

- 9,245 3.1 Proceeds from issues of equity securities

(excluding convertible debt securities)

3.2 Proceeds from issue of convertible debt securities

- -

3.3 Proceeds from exercise of options - 12

3.4 Transaction costs related to issues of equity securities or convertible debt securities

- (434)

3.5 Proceeds from borrowings - -

3.6 Repayment of borrowings (14) (372)

3.7 Transaction costs related to loans and borrowings

- -

3.8 Dividends paid - -

3.9 Other (provide details if material) - -

3.10 Net cash from / (used in) financing activities

(14) 8,451

4. Net increase / (decrease) in cash and cash equivalents for the period

3,818 1,389 4.1 Cash and cash equivalents at beginning of

period

4.2 Net cash from / (used in) operating activities (item 1.9 above)

(1,592) (6,996)

4.3 Net cash from / (used in) investing activities (item 2.6 above)

(43) (460)

Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

ASX Listing Rules Appendix 4C (17/07/20) Page 3 + See chapter 19 of the ASX Listing Rules for defined terms.

Consolidated statement of cash flows Current quarter $A’000

Year to date (12 months) $A’000

4.4 Net cash from / (used in) financing activities (item 3.10 above)

(14) 8,451

4.5 Effect of movement in exchange rates on cash held

6 (209)

4.6 Cash and cash equivalents at end of period

2,175 2,175

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

Current quarter $A’000

Previous quarter $A’000

5.1 Bank balances 2,175 3,818

5.2 Call deposits - -

5.3 Bank overdrafts - -

5.4 Other (provide details) - -

5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)

2,175 3,818

6. Payments to related parties of the entity and their associates

Current quarter $A'000

6.1 Aggregate amount of payments to related parties and their associates included in item 1

200

6.2 Aggregate amount of payments to related parties and their associates included in item 2

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.

Directors Fees were paid during the quarter. Management Fees, as per agreement, were paid during the quarter to a company of which Mr GH Solomon and Mr DH Solomon are directors. Legal Fees were paid during the quarter to a firm of which Mr GH Solomon and Mr DH Solomon are partners.

Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

ASX Listing Rules Appendix 4C (17/07/20) Page 4 + See chapter 19 of the ASX Listing Rules for defined terms.

7. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity.

Add notes as necessary for an understanding of the sources of finance available to the entity.

Total facility amount at quarter

end $A’000

Amount drawn at quarter end

$A’000

7.1 Loan facilities 5,320 5,320

7.2 Credit standby arrangements

7.3 Other (please specify)

7.4 Total financing facilities 5,320 5,320

7.5 Unused financing facilities available at quarter end -

7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.

Loan for the sum of US$3.00 million from Snowpoint Northeast LLC. Interest at 11% pa, term of 18 months with option to extend for a further 6 months. For full further details please refer to the ASX announcement date 28 April 2020.

Eden US received a U.S. CARES Act SBA loan for US$634,300.

Dumont Way property purchase loan, US$364,000 remaining (2nd mortgage over the Dumont Way property, 6% interest rate, denominated in USD and 1.3 years remaining).

8. Estimated cash available for future operating activities $A’000

8.1 Net cash from / (used in) operating activities (item 1.9) 1,592

8.2 Cash and cash equivalents at quarter end (item 4.6) 2,175

8.3 Unused finance facilities available at quarter end (item 7.5) -

8.4 Total available funding (item 8.2 + item 8.3) 2,175

8.5 Estimated quarters of funding available (item 8.4 divided by item 8.1)

1.4

Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5.

8.6 If item 8.5 is less than 2 quarters, please provide answers to the following questions:

8.6.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

Answer: The entity expects the current monthly deficit in net operating cash flows to progressively decrease in the upcoming quarters, due to increased sales and increased sales receipts, as evidenced in this current quarterly cash flow report.

Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

ASX Listing Rules Appendix 4C (17/07/20) Page 5 + See chapter 19 of the ASX Listing Rules for defined terms.

8.6.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Answer: The entity is currently in discussions with a number of potential strategic and/or industry related investors. If these discussions are unsuccessful or do not progress in a timely manner, the directors are proposing to undertake a pro-rata rights issue to existing shareholders, which will be supported by the largest shareholder and a number of other major shareholders.

8.6.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: Yes, the entity expects to be able to continue its operations and to meet its business objectives based on diminishing net operating cash deficits and raising further funds as detailed in answers 8.6.1 and 8.6.2.

Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered.

Compliance statement

1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2 This statement gives a true and fair view of the matters disclosed.

Date: 28 July 2021

Authorised by: Aaron P Gates (Name of body or officer authorising release – see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.