ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — AGM Information 2006

May 11, 2006

SOLUTIONS INTERNATIONAL ENVIRONMENTAL ITD

ABN 28 009 120 405

Chairman's Address to Extraordinary General Meeting $12^{th}$ May 2006

Ladies and Gentleman,

Welcome to the $3^rd$ General Meeting in six months of ESI. We are delighted to put in front of you the five resolutions which we believe will have far reaching potential for your company if approved.

Firstly I would like to thank Faldi Ismail who is here with us today and is retiring from the Board upon settlement of the APCS acquisition. He has played a significant steering role in getting us to this point and graciously hands over to those with a different role in the new phase of the company.

The acquisition of Asia Pacific Coal and Steel ("APCS") and its licensed technology gives your company an opportunity almost without parallel in Australia. The patented dewatering process allows economic value to be achieved in previously low value commodities. Some of these are:

• a) Semi treated sewage waste: Currently paid to be collected from sewage plants and in many instances damped in environmentally unfriendly ways. Payment for collection can continue but additional solids, oils, water and gas can be harvested as additional revenue. We have already announced our strategic alliance with Australian Native Landscapes ("ANL")
• b) One step steel production: The process allows for a low cost patented method of Mixing brown coal and un-marketable low grade (30%) iron ore to produce high quality rust free new steel at extremely high margins. The fact that the lowest cost steel producers in the world in China are showing interest in contracting with your company recognizes the potential. (China anticipates a steel production surplus of over 100 million tons in the current year -so why are they interested in sourcing from us?). The ability to make steel at the coal source means that raw coking coal and iron ore do not need to be shipped to the steel mill overseas. The result is that one third of the tonnage is shipped producing significant savings.
• c) Brown Coal for energy: The process converts wet brown coal to transportable pellets transforming the calorific value from 8Mj/Kg to 24+Mj/Kg. Typical black coal is 21.3Mj/Kg. Export contracts have been announced to the market previously but suffice to say the demand, particularly in energy hungry Asia, is far greater than supply. The pellets are is cleaner but improvement is restricted by existing power station boilers to approximately 10%. Your company's mission is to work with other power station technology providers and together reduce the CO2 emissions by 60%.

Current burning of brown coal has been identified as causing up to 30% of Australia's CO2 emissions.

• d) Fertiliser : We have identified a patented technology which mixes 75% coal of any type with sand and other basic ingredients to provide an organic fertilizer able to match high grade NPK (19-19-19) and requiring only one application instead of the traditional two annually. The current price of this product in the United States is in excess of US\$200 per ton.
• e) Water: Because the brown coal dewatering process recovers as much water as dry material we have been investigating the restructuring and subsequent uses of water.

Environmental Solutions International Limited

C/- FJH Solutions Pty Ltd, 21 Teddington Road, Burswood WA 6100 PO Box 6918, East Perth WA 6892 T: (08) 9486 2333 F: (08) 9355 4580

ENVIRONMENTAL SOLUTIONS INTERNATIONAL LTD

In relation to the Company's access to brown coal resource it is estimated that APCS current agreement with the Calleja Group has access to a brown coal resource with a 15 year useful life. In addition, the Company is at an advanced stage of discussions which will lead to access of a very significant source of brown coal.

Discussions are also in progress to address the needs of this emerging business. These are issues of infrastructure support such as rail links and ports, logistics, production facilities and of course capital.

Sachlan Fraval Chairman

ABN 28 009 120 405