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AAE Activities Update

Agri Energy Ltd (AAE or Company) advised that it intended to review, evaluate and develop its Australian Ethanol Business. Consequently AAE commissioned the Biofuels Association of Australia to provide a report on the current status and future prospects of the evolving biofuels industry in Australia. Having analysed the contents of the report and engaged in further industry consultations, the Board of AAE is particularly encouraged by the possibilities presented by second generation biofuel production technologies such as Cellulosic Ethanol technology and Biomass to Liquid fuels technology (Second Generation Technologies). While the Company’s ethanol projects in Condobolin, Oaklands and Coleambally in New South Wales and Murtoa in Victoria were initially created within the confines of conventional biofuel production technology, the Second Generation Technologies have the potential to dramatically lower production costs and are now commercially available. To this end, the board of AAE is pleased to advise that that it has commissioned the services of an independent consultant familiar with the biofuels industry, BDIC Pty Ltd, to review AAE’s ethanol projects in the light of the possibilities offered by Second Generation Technologies. The review will cover the following: Current status of the Second Generation Technologies; Capital cost of the Second Generation Technologies; Input requirements for the Second Generation Technologies; Product placement within the parameters of the Australian market; and Regulatory framework with respect to the Second Generation Technologies. AAE will provide progress reports to ASX with respect to the findings of the review. In addition to developing its Australian Ethanol Business, AAE continues to pursue new projects in the energy and resources sectors by way of acquisition or investment. The Company has reviewed a number of potential projects in both the energy and resources sectors since relisting on 1 February 2010. No decision to acquire or invest has been made and the process is continuing as opportunities arise.