ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — Capital/Financing Update 2009

Jan 22, 2009

ABN 28 009 120 405

Environmental Clean Technologies Limited

Acquisition of Coldry technology

Friday, 23 January 2009: Environmental Clean Technologies Limited (ASX:ESI) advises that it has signed a non-binding Term Sheet for the acquisition of full ownership of the intellectual property rights for the Coldry technology, and that it is intended that binding agreements for the acquisition will be reached by 27 February 2009. This acquisition is a strategic milestone event for the Company that significantly enhances its intellectual property rights and control, and its ability to develop the technology.

Under these agreements the Company will purchase all of the units in the Coldry Unit Trust, which currently owns and licences the Coldry technology rights to the Company. The purchase price will comprise $1 million in cash, 55 million shares in the Company and 110 million options exercisable at 2 cents. The purchase price will be increased at the time the intellectual property is successfully commercialised.

The Company previously foreshadowed a capital raising comprising a share purchase plan (SPP) which will provide the cash required for the acquisition and to further progress development of the Coldry demonstration plant, as well as permitting shareholders to participate in the capital raising on the same terms as the placement to Fiori Pty Ltd announced on 16 January 2009. Philip Capital and Fiori Pty Ltd will partially underwrite the SPP.

A General Meeting of shareholders will be held shortly to consider and if thought fit approve the SPP, the placement, the issue of shares and options in connection with the acquisition of the Coldry technology and associated transactions. The target date for the meeting is 27 February 2009.

Full details of the resolutions and the reasons for them being proposed will be set out in a Notice of Meeting and Explanatory Memorandum to be sent to shareholders shortly.

Chairman Dave Woodall said “These are exciting developments for the Company. The Chief Executive, Kos Galtos will give a detailed presentation at the forthcoming general meeting on the Coldry acquisition and the Company’s plans for its commercialisation, including steps being taken towards construction of the Coldry demonstration plant.”

For further information contact;

Chief Executive Kos Galtos +61 (0)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