ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — AGM Information 2013

Nov 28, 2013

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Chairman’s Address 2013 Annual General Meeting

Friday, 29 November 2013: The year behind us represents a watershed achievement for the company with the completion of the detailed designs for Coldry. This vital step in the commercialisation process delivers ECT’s largest investment in an asset since the purchase of the Coldry IP in 2009.

The Coldry demonstration plant in Victoria is now construction-ready .

We also experienced a number of frustrations over 2013, which sadly took the shine off management’s delivery of the designs. These included delays to the expected decision on the ALDP grant, unresolved conclusion to the Monash funding and difficult capital markets conditions making financing a challenge and further adding downward pressure to the share price. Both ALDP and Monash were necessary pursuits, and one’s, I might add, that may still provide ECT with very significant benefits, but they have also highlighted the risks of initiatives that are largely out of the control of the company. Given the investment of time and money made into these pursuits and the continued prospects for their potential to be of great benefit to the company, ECT will continue to work towards both opportunities until a certainty of outcome is determined. The difference now is that they will be a part of portfolio of opportunities that intends to tip the balance of control in favour of ECT. Parallel contingency planning is now front of mind for the company and management has shown great flexibility and execution in their pursuit of those opportunities which ensure that ECT do not have “all their eggs in one basket”.

Over the last four months, I am pleased to say that the board has been actively listening to feedback from shareholders and the market. This has led to a number of significant policy changes in the company underpinned by a growing culture of “passionate commitment via frugal means” or what we like to call, the “frugal innovation” approach.

The board is committed to driving improved productivity without increasing costs. We are also striving to improve diversity and expand skill sets on the board with the aim of ensuring that the innovative and dynamic culture required of a successful technology company is represented at all levels of the business.

Our capital management planning now extends past 12 months; we have greater transparency on NED remuneration, more effective rewards, performance and incentive structures, and our operational expenditure is now budgeted to be the lowest it’s been in over 4 years.

This is but the start of an ongoing process of continual review and improvement.

Over the last 12 months, we have also noticed an emerging misnomer in the market about Coldry. The idea that Coldry is simply a thermal coal equivalent processing plant is but one option for commercial deployment but by no means is the sole option or even the best option. ECT has spent many years, through the process of design and engineering improvements, becoming an expert at dewatering high moisture content lignites. As a result, we are acutely aware of the project opportunities which reinforce that Coldry is a “gateway solution” to other beneficiation solutions like pyrolysis, gasification and CTL, to name a few. This belief has been reinforced in practice by ongoing collaboration with other technology providers for Coldry to act as the front-end drying process for their downstream beneficiation. This, in our view, allows Coldry to act as an important de-risking solution for the large Government and private investment needed to support this emerging industry in the Latrobe Valley.

We also can’t forget that Coldry is the gateway to Matmor, our own downstream beneficiation technology for producing iron and ferro-alloys.

Level 7, 530 Little Collins Street, Melbourne Vic, 3000 Australia | Phone +613 9909 7684 | www.ectltd.com.au | ABN 28 009 120 405 Listed on the Australian Stock Exchange (ASX:ESI)

Our company’s strategy for the next 12 months is based on three platforms of focus:

1. To continue to pursue demonstration opportunities in Victoria

2. To execute on the Indian strategy including:

3. Establishing demonstration projects

4. Establishing plant manufacturing partners

5. To initiate the next development phase of Matmor toward pilot scale.

I have confidence that with this management focus, we will do these few things well, and when done well, will set the company up for attaining future cashflows. It must be noted, however, that many great challenges still exist along this intended pathway, however, I am also confident that the board and management is in good shape to meet and overcome these challenges.

Managed well, the future of this company is bright. And with that, I intend to hand you over to our Managing Director, Ashley Moore.

For further information contact: Ashley Moore – Managing Director

+61 3 9909 7684 or info@ectltd.com.au

About ECT

ECT is in the business of commercialising leading-edge coal and iron making technologies, which are capable of delivering financial and environmental benefits.

We are focused on advancing a portfolio of technologies, which have significant market potential globally.

ECT’s business plan is to pragmatically commercialise these technologies and secure sustainable, profitable income streams through licencing and other commercial mechanisms.

About Coldry

When applied to lignite and some sub-bituminous coals, the relatively simple Coldry beneficiation process produces a black coal equivalent (BCE) in the form of pellets. Coldry pellets have equal or superior energy value to many black coals and produce lower CO2 emissions than raw lignite.

About MATMOR

The MATMOR process has the potential to revolutionise primary iron making.

MATMOR is a simple, low cost, low emission, production technology, utilising the patented MATMOR retort, which enables the use of cheaper feedstocks to produce primary iron.