ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — AGM Information 2006

Nov 29, 2006

Environmental Solutions International Limited

Pilot Plant Project Update

Danny Mills, CEO AGM 30^th November 2006

Objectives

• To have the Coldry plant upgraded to increase pellet production and recover water from the process, through a enhanced drying system

• To test the Matmor steel making process concept to enable the next phase of commercialisation to be realised.

Progress

Coldry Plant

• Project team established and operational, including Project Director. $\bullet$
• Detailed project program and budget developed, approved and implemented.
• Feed and extruder system modified ready for recommissioning.
• Design of revised drying and water recovery system finalised. $\bullet$
• Orders placed for major plant components.
• Sub-contractors identified and pricing being organised. ۰
• Surplus equipment at Bacchus Marsh site being removed from structures.
• Safety & security audits undertaken, action plan being implemented.
• JSA, operational and other interfacing arrangements being organised. ۰

Original extruder being removed in preparation for change over.

Progress

Matmor Plant

• Project team operational (subset of Coldry team) ۰
• Induction furnace procured and has arrived in Melbourne (NZ item)
• Designs of new plant items being finalised, including structural steel.
• Removal of current Matmor plant from the Altona facility and transfer to Bacchus Marsh site is planned.
• Removal of obsolete plant at the Bacchus Marsh site has $\bullet$ commenced to house the Matmor plant.
• JSA and operational procedures being developed.
• Composite Coldry pellets for plant commissioning and steel test pours produced and in storage.

Induction furnace for Matmor plant

Target

Coldry Plant

Upgraded plant 24x7 operation will recommence around mid March 2007

Matmor Plant

Two 600kg conceptual testing pours will occur late Jan or early Feb.

Outcome

• A plant reliably producing Coldry pellets and recovering water
• A "showcase plant" for coal drying.
• Conceptual proof of the Matmor steel manufacturing process.
• An R&D or test facility for other coal sources on a local and international basis.
• Increased and wider market acceptance of the technologies.
• A stronger platform for commercialisation and scale up.

Questions?

CEO, Board Members and Chief Scientist are available over a coffee or tea.