ASX ANNOUNCEMENTDATE 11 January 2006REF NO. NFL-0007SUBJECT...

ASX ANNOUNCEMENT
DATE 11 January 2006
REF NO. NFL-0007
SUBJECT Natural Fuel Limited ASX Update
Natural Fuel Limited (NFL) wishes to update the market as follows.
Darwin, Australia
Natural Fuels Australia Limited (NFAL), the equal Joint Venture project between
Natural Fuel Limited (ASX:NFL) and Bab. & Brown Environmental
Investments Limited (ASX:BEI), has mechanically completed its Darwin Plant
with commissioning underway since 23 November 2006.
Despite delays over the Christmas period, the commissioning of the Plant
continues to progress. Under the construction contract entered into with Lurgi
Pacific, the Plant is deemed to be fully commissioned when it has operated at 95% nameplate
capacity for 72 hours producing biodiesel meeting required specification. To date, the Darwin
Plant has produced biodiesel and glycerine to desired specifications. Glycerine has been refined
to BSP99.85% and samples have been sent to various customers. The first consignment will be
shipped within the next week.
Biodiesel has been produced and meets all of the Australian Biodiesel Specifications and when
blended with Ultra Low Sulphur Diesel (ULSD) at B5 and B20 meets the Australian Mineral
Diesel Standard., The Plant has not yet achieved the necessary throughput to complete the
commissioning process. Biodiesel has been ordered for supply to Australian customers. As
stated in our Prospectus 82% has been contracted and the balance reserved for spot sales.
NFAL and Lurgi are currently undertaking minor modifications which have been successfully
implemented in other Lurgi Plants. It is expected that the plant will reach capacity and be fully
commissioned by late February 2007.
Singapore
Contracts have been issued to JJ-Lurgi and Rotary Engineering for the construction of the three
200 000 ton per annum plants (600 000 ton per annum in total upon completion) in Singapore as
previously announced. We remain on schedule for completion in late 2007 as stated in the
Company’s Prospectus. Natural Fuel Pte Limited (NFPL) is 100% owned subsidiary of NFL.
Houston, Texas USA
Natural Fuel & Energy Inc. (NFE), 100% owned subsidiary of NFL, have received all of the
necessary permits to build a Biodiesel Plant at the Stolt-Haven site on the Houston shipping
channel and is currently digging a series of drill holes to test the site for piling. Revenues from
the Houston project have not been included in the Company’s Prospectus forecasts.
In summary, the Company is on track to meet it’s projected business objectives as outlined in the
Company Prospectus dated 17 November 2006.
A copy of the Natural Fuel Prospectus is available to view at www.naturalfuel.com