ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — Capital/Financing Update 2007

Aug 12, 2007

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ENVIRONMENTAL Clean Technologies LTD

ABN 28 009 120 405

2.5M Capital Raising completed successfully

The Directors of Environmental Clean Technologies Limited are pleased to announce that they have secured $2.5M funding via a private placement to Tricom Equities private clients and sophisticated investors. These funds will be sufficient for the company’s operations for at least 2 years. The due diligence process is continuing for the Equity Credit Line facility announced last week.

The Placement Shares were issued at A$0.12 and include two free attaching options, providing the subscriber with the right to subscribe to fully paid ordinary shares at A$0.12 expiring on 10 August 2010. The options are subject to shareholder approval which will be sought at an Extraordinary General Meeting (EGM) due to take place within the next five weeks.

A notice of meeting setting out full details regarding the Placement will be sent to all shareholders shortly and published to the ASX.

Commenting on the Placement, Managing Director Con Galtos said:

“We are particularly pleased with the strong support and the continuing confidence displayed in our team and our technologies by our cornerstone investors and major shareholders during this turbulent period in the market place.

The funds raised place the company in a secure position allowing it to focus on delivering on its business objectives and milestones indicated in earlier announcements. This placement, combined with the restructuring that has taken place, will provide a solid platform for the company to continue with the commercialisation stage of its technologies and production of a comprehensive bankable valuation.

The pilot plant at Bacchus Marsh is now fully operational and has been running on a 24/5 basis since July 10, 2007 demonstrating the capability of the Coldry Process to deliver immediate benefits to the energy producing plants around the world that use “Brown Coal”. This operational run is due to be completed on September 7, 2007.”

For further information kindly contact Con Galtos on 0413 747 077 or cgaltos@cleancoal.com.au