ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — Capital/Financing Update 2009

Jul 2, 2009

ABN 28 009 120 405

Environmental Clean Technologies Limited

Cleansing Statement - Notice under section 708A(5)(e) of the Corporations Act 2001

Friday, 3 July 2009: On 29 June and 1 July 2009, Environmental Clean Technologies Limited (ASX : ESI) ( Company ) announced its intention to make placements of ordinary shares and options:

• as part of the consideration for the acquisition of the Coldry intellectual property pursuant to a sale agreement dated 29 June 2009 ( Coldry IP Acquisition );

• to applicants who were inadvertently omitted from the shortfall placement under the Prospectus offer ( Additional Shortfall );

• in consideration of extension of the milestones in relation to development and construction of the first Matmor plant ( Matmor Extension ); and

• in consideration for the appointment of Intersuisse Limited to provide an option conversion facility and an analyst’s report ( Intersuisse Facility ). .

Together the placements with respect to the Coldry IP Acquisition, Additional Shortfall, Matmor Extension and Intersuisse Facility were for a total of 70,597,015 shares and 117,127,660 options, which were issued between 29 June and 1 July 2009.

The Company gives notice under section 708A(5)(e) of the Corporations Act 2001 (Corporations Act) that:

1. the Company issued the shares and options without disclosure to investors under Part 6D.2 of the Corporations Act;

2. as at the date of this notice, the Company has complied with:

   • (1) the provisions of Chapter 2M of the Corporations Act as they apply to the Company; and

   • (2) section 674 of the Corporations Act; and

3. as at the date of this notice, there is no excluded information (as that term is defined in section 708A(7) of the Corporations Act).

For further information contact:

Chief Executive Kos Galtos +61 3 9684 0888.

Coldry Process

The world’s first economic method for dewatering brown coal, creating a high energy pellet with significantly reduced CO2 emissions compared to brown coal, while being suitable for export as a black coal substitute.

Matmor Process

A one-step method for producing low-carbon iron from inexpensive, abundant brown coals and metal bearing media such as mill scale, nickel tailings and low grade iron ore.

Level 1, 530 Little Collins Street  Melbourne  Victoria 3000  Australia  +61(0)3 96840888  www. ectltd.com.au