ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — Capital/Financing Update 2008

Dec 21, 2008

ABN 28 009 120 405

Environmental Clean Technologies Limited

Pacific Capital Value Fund Issue of Convertible Notes

Monday, 22 December 2008 : Environmental Clean Technologies Limited ( ASX:ESI ) confirms that it issued the first tranche of convertible notes to Pacific Value Capital Fund (‘PCVF’) today, with a value of $500,000. The funds have placed in escrow with PVCF’s Australian solicitors.

The PCVF facility is underpinned by the loan of 5,000,000 shares each from Romfal Sifat Pty Ltd and Caracob Pty Ltd, both major shareholders in Environmental Clean Technologies Limited. The shares have transferred to PCVF’s nominee and the ECT has provided guarantees to the shareholders concerned.

“The company appreciates the demonstrated confidence in it that has been shown by these major shareholders in lending their shares to facilitate this convertible note facility. Now that the first tranche of funds has been received into escrow there is a clear process established for the remaining tranches of Convertible Notes to be issued”, ECT Chief Executive Kos Galtos said.

“The company’s receipt of funds from the second tranche in January 2009 will provide operating expenses and ongoing funding underpinning the finalisation of its design and construction for the 150,000 t.p.a. Coldry production facility.

.

For further information contact ECT Chief Executive Kos Galtos on +61 3 9684 0888.

Level 13, 222 Kingsway � South Melbourne � Victoria 3205 � Australia � +61(0)3 96840888 � www. ectltd.com.au