interesting but caution

Fellow Shareholder,
A meeting of Shareholders has been called for Thursday, 27 April 2006 to consider a number of
important matters concerning the growth and development of your Company.
The principle resolution for shareholders consideration is support for raising $12.45 million by the
placement of 41.5 million shares to key institutional investors who are committed to the long term
success of Australian Ethanol Limited. Strong and committed institutional support is essential for
Australian Ethanol Limited in the development of a biofuels business encompassing ethanol in
Australia and biodiesel in the United States.

.2.3 Resolution 3 – Approval to Issue of Shares
The Company proposes to issue up to 41,500,000 Shares at an exercise price of 30 cents to raise up to A$12,450,000 by a placement to clients of SHAW Stockbroking Limited who satisfy the requirements of section 708 of the Corporations Act 2001.