ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — AGM Information 2006

Mar 6, 2006

SOLUTIONS ENVIRONMENTAL INTERNATIONAL ITD

ABN 28 009 120 405

7 March 2006

Company Announcements Office Australian Stock Exchange Limited

Dear Sir /Madam

By e-Lodgement 3 pages

ANNUAL GENERAL MEETING 2005 CHAIRMAN'S ADDRESS

In our short life since relisting we have achieved a number of things to identify opportunities and increase shareholder value.

We have investigated the Enersludge technology, traveled to Europe and are developing an alternative model than that previously used by the company. The model is based on transportable units able to move from plant to plant removing the waste output, processing it on site and moving on to the next.

We have made an alliance with Australian Native Landscapes and are developing a business plan where we share the value added from the processing of the treated sewage and the savings in transport in reducing the water content from 80% to 10%. ANL operate contracts out of 26 plants in NSW for the removal of treated sewage waste.

We have appointed Securities International Limited as our investment banking advisors and with their experience at addressing the large global capital markets we expect a significant development of this relationship.

We have announced a mandate for SIL to secure hundred million US\$ for off balance sheet asset finance of US\$75m together with US\$20 million (A\$26 million) which will be provided to major waste processors in the Philippines and Malaysia to license the Enersludge technology. In this package is a potential US\$5 million equity placement.

We have reached agreement with all the shareholders of Asia Pacific Coal and Steel to acquire the company with its world beating dewatering technology. This will be put to you shareholders at an EGM to be held next month.

This exciting technology opens new dimensions to your company's business. It will firstly enable the dewatering of sewage waste from 80% to 10% enabling a far more economic solution particularly in some overseas environments where sewage simply gets tipped into the sea.

SOLUTIONS ENVIRONMENTAL INTERNATIONAL ITD

ABN 28 009 120 405 The dewatering of brown coal from 62% to 10% enables the Victorian Brown coal resource to be treated in a different way. Victoria has 200 billion tonnes of brown coal, about 25% of the world's reserves. It causes 30% of Australia's CO2 emissions. This low temperature (35 degrees) process allows:

• a) Brown coal to be exported whereas previously it was not transportable as it was liable to janite as the water subsided to the bottom and the top became tinder fine and dry:
• b) The process is capable of reducing the greenhouse gas emissions by up to 30% (the equivalent of taking 2m cars off the road). Later on, by integrating into emerging gasification technology held by a major international company, where the pellets are used as the feedstock, we believe that 60% and higher can be achieved. In financial terms the process turns a \$3 per tonne product into a \$60 a tonne product at gross profit margin estimated to be 75%; and
• c) An added benefit of the process is to enable the one step production of steel from composite pellets of brown coal and iron ore. This is because the calorific value is increased from 5 MGJ/Ka to 24-28 MGJ/Ka, (Black coal averages 21 MGJ/Ka) Wet brown coal burns at 600-700 degrees C whilst processed pellets burn at 1400-1500 degrees C. The process enables the mixing of brown coal with either recycled iron or alternatively low grade iron or alternatively to make a composite pellet for smelting to steel. With this pellet the added value product can be exported from Australia and smelter plants be established globally under license with further benefit to your company.

The steel process producing both recycled and new steel is estimated to achieve gross profit margins exceeding 80%. The capital cost is 66% less than traditional blast or electric arc furnaces.

Last week we announced that we had negotiated a bankable contract for 3m tonnes of dewatered brown coal with commodity trading house, Green Power Resources. This contract is expected to come on stream in late 2007. We are anticipating a 50:50 mix of the 3m tonne order between energy transportable product and steel making pellets, the former at Newcastle Global coal price and the latter based for its brown coal element on the world negotiated and published contract prices for coking coal (Currently US\$ 115/tonne) We anticipate that if the current price continues the value of this order would be \$280m.

In conclusion, I would like to say that we as a board are committed to a policy of minimum dilution whilst aiming for maximum shareholder value to the company. We particularly recognize the support and pain felt by the shareholders prior to going into administration and we sincerely hope that you will be well rewarded for that as we look forward to a very briaht future for the company.

We have come a long way in a short time, and I would like to acknowledge the contribution made by my fellow directors, Grea Fendis and Faldi Ismail. ESI has also benefited from the experience and hard work of Sean Henbury as Company Secretary.

Thank you for your attendance today and for your continued support, and we will now continue with the meeting.

INTERNATIONAL ENVIRONMENTAL SOLUTIONS LTD

Ends.

For further information, please contact:

MR SACHLAN FRAVAL

Chairman

Contact: 0408 574 252

ABN 28 009 120 405