VANCOUVER, August 31, 2005 -- Eden Energy Corp. (OTCBB:EDNE) is pleased to announce that effective August 25, 2005, it closed a convertible note and warrant financing with gross proceeds of $9,075,000. The Company issued $9,075,000 of 6% convertible promissory notes that may be converted into shares of common stock on the basis of one share of common stock for every $5 in value of notes for a period of three years from closing. The Company also issued 907,500 warrants exercisable into shares of common stock at an exercise price of $6 per share for a period of three years from closing. Each investor also received an option to make an additional investment of up to 30% of their original investment for 180 days from closing on the same terms. The Company issued 72,600 brokers' warrants, issued on the same terms as the investors' warrants, representing 4% of the aggregate number of shares of common stock under the offering and a cash placement fee of 6% of the gross proceeds of the offering for brokerage services in the transaction. The proceeds of the financing will be used to further the development of the Company's projects in Nevada and for working capital.

General:
Eden Energy Corp. focuses on large scale exploration projects with significant resource potential. Its Noah project in eastern Nevada contains exceptionally rich source rocks, large thrusted rollover structures, and an excellent potential reservoir rock. The area is similar to thrust belts and basins throughout the world, which contain approximately one quarter of the world's proven reserves of oil and gas.



Notice Regarding Forward Looking Statements

This news release contains "forward-looking statements", as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the prospective nature of the Noah Project and its geology as described above, and our efforts to prepare the Noah Project for a drilling program.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with oil and gas exploration; changes in reserve estimates if any; the potential productivity of our properties; changes in the operating costs and changes in economic conditions and conditions in oil and gas exploration. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the 2004 fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

Eden Energy Corp.

Regarding the company and the Noah project, please contact Eden Energy Corp. at 1-866-693-1100 or email: info@edenenergycorp.com

DISCLAIMER FOR HISTORICAL PRESS RELEASES:

This section contains historical and archived press releases for Eden Energy Corp. and its subsidiaries. The information in these press releases is historical in nature, and has not been updated, and is current only to the date indicated in the particular press release. This information may no longer be accurate and therefore you should not rely on the information contained in these press releases. To the extent permitted by law, Eden Energy Corp. and its employees, agents and consultants exclude all liability for any loss or damage arising from the use of, or reliance on, any such information, whether or not caused by any negligent act or omission.