ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — Capital/Financing Update 2006

Jan 17, 2006

ENVIRONMENTAL SOLUTIONS INTERNATIONAL LIMITED REINSTATEMENT TO OFFICIAL QUOTATION

The securities of Environmental Solutions International Limited (the "Company") were suspended from official quotation on 17 November 2004, following the appointment of voluntary Administrators to the Company.

Following the termination of the Administrators on 15 December 2005 and the completion of a capital raising, the Company's securities will be reinstated to official quotation from the commencement of trading on Thursday 19 January 2006.

Upon reinstatement, the Company will have the following securities:

ASX PERTH

Quoted Securities:	227,434,974 ordinary shares
ASX Code:	ESI
Time:	10am E.D.S.T
Date:	Thursday 19 January 2006
SEAT Abbreviation:	ENVIRON
ISIN:	AU000000ESI0
Home Branch:	Perth
Industry Classification:	Commercial Services & Supplies
Registered Office:	c/- FJH Solutions Pty Ltd 21 Teddington Road BURSWOOD WA 6100 Telephone: (08) 9486 2333 Facsimile: (08) 9355 4580
Company Secretary:	Mr Faldi Ismail
Share Registry:	Security Transfer Registrars Pty Ltd 770 Canning Highway - APPLECROSS WA 6153
	Telephone: (08) 9315 0933 Facsimile: (08) 9315 2233

S-\Perth Companies\PER-Code E-G\ESI\esi2006.01.17cspbc-jh.doc No responsibility is accepted for any inaccuracies in the matter published.

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Brokers to the issue:	N/A
Balance Date:	30 June
CHESS:	Participating. The Company will also operate an issuer sponsored subregister.
State of Incorporation:	Western Australia
ASX restricted securities:	N/A
Dividend Policy:	N/A
Activities:	Water and waste water treatment processes and services.
Securities not quoted:	196,500 options exercisable at \$3.25 each on or before 19 March 2007
	196,500 options exercisable at \$3.75 each on or before 20 March 2007;
	30,000,000 options exercisable at 1 cent each on or before 30 November 2008.

ASX Contact:	Jill Hewitt
Business Unit	Issuers (Perth)
Ext No:	6013
Date:	18 January 2006

J,

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ABN 28 009 120 405

17 January 2006

Jill Hewitt Adviser Issuers Australian Stock Exchange Level 3 Exchange Plaza 2 The Esplanade PERTH WA 6000

Dear Jill

Environmental Solutions International Limited

LTD

In reply to your letter dated 17 January 2006 regarding the accordance with ASX reinstatement to official quotation of Environmental Solutions International Limited, please find answers as follows:

• 1. We confirm the completion of the allotment and issue of 212,000,000 ordinary shares per Resolutions 1 and 6 of the notice of meeting. This was announced to the market via the lodgement of an Appendix 3B on 19 December 2005.
• 1. We confirm that the company has a net cash position after all liabilities of at least \$1,000,000 following the completion of the Placements.
• 1. We enclose the following documents for your information;
• a. A proforma balance sheet, updated for the actual amounts raised;
• b. An updated statement of the use of funds based on actual funds raised under the Placements.
• 1. We confirm that all outstanding reports have been lodged as required by listing rule 17.5.
• 1. We confirm that the Company is in compliance with the listing rules, and in particular listing rule 3.1, being the immediate notice of material information to the ASX.
• 1. A direct transfer totaling \$23,193.26 has been made to the ASX for outstanding fees. A copy of the transfer form will be emailed to you shortly.

Should you have any further queries or requirements, please contact me.

Yours faithfully

FALDI ISMAIL Director

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

18.JAN.2006

$7:26$

ASX PERTH

ENVIRONMENTAL SOLUTIONS INTERNATIONAL LIMITED

NO.872

$P.4/5$

Historical and Proforma Financial Information Based on Actual Funds Raised

Statement of Financial Position (Based on \$2,390,000 Capital Raising)

	Audited 2005	Proforma Unaudited 2005
	\$ '000	\$ '000
CURRENT ASSETS
Cash	9	1,129
TOTAL CURRENT ASSETS	9	1,129
TOTAL ASSETS	9	1,129
CURRENT LIABILITES
Payables	947
Interest Bearing Liabilities	118
TOTAL CURRENT LIABILITIES	1,065
TOTAL LIABILITIES	1,065
NET ASSETS	(1,056)	1,129
EQUITY
Contributed equity	23,254	25,644
Accumulated losses	(24,310)	(24, 515)
TOTAL EQUITY	(1,056)	1,129

ENVIRONMENTAL SOLUTIONS INTERNATIONAL LIMITED

Use of Funds Based on Actual Funds Raised

The source of the Company's funds are set out below:

.
FUNDING SOURCE
Existing cash
Capital raising	2,390,000
. Total available	2,399,000

Based on current information and circumstances, the funds raised from the Capital Raising together with estimated cash on hand at listing will be used as follows:

USE OF FUNDS	Year 1 S'000	Year 2 \$'000
Review and development of Enersludge assets	380	250
Review of new projects	100	100
General working capital	154	14 5
Payment to Creditors /Trustee	1,150
Expenses of the Recapitalisation Proposal	120	$\blacksquare$
Total funds used	1,904	495

The above table represents a statement of the intended use of the funds raised by the Company as at date of this statement.