quarterly report, page-2

The 30 June 08 Quarterly report has been announced today. The report says there is still a possibility of finance to be provided but there is no certainty about this prospect. Comment expressed in the report is that the best prospect for stakeholders is for continuation of the company if finance can be arranged but foreclosure by lenders is still a possibility. The following is a quote from the quarterly report.

"Agri Energy Limited (AAE) continues to vigorously pursue raising additional funding to support the continued operations of the business. During the past six weeks the Company has entered into conditional agreements with a significant financier and investor to inject funds into the group to pursue the business plan including the payment of creditors, funding the start up and working capital requirements for the Beatrice Biodiesel
Project in Nebraska. Management remains optimistic of closing the transaction over the next month. Further information on the funding will be released as various milestones are achieved."