ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — Capital/Financing Update 2011

Aug 21, 2011

Notice under section 708A(5)(e) of the Corporations Act

Monday, 22 August 2011 : On 17 August 2011, Environmental Clean Technologies Limited ( ECT or Company ) (ASX:ESI) announced that to support ongoing operations ECT accepted an offer from Menzies Securities Pty Ltd to place approximately 43.8 million fully paid ordinary shares (ESI) at $0.006 per share to raise $262,500 from sophisticated investors. With each 2 new shares subscribed for, the investors received one new listed option (ASX:ESIO) being a total of approximately 21.9 million new options.

Full details of the new shares and options are shown in the Appendix 3B lodged on 18 August 2011. The Company gives notice under section 708A(5)(e) of the Corporations Act 2001 (Cth) ( Corporations Act ) that:

1. Issue of New Ordinary Shares and Options

(1) Effect of the issue of the Ordinary Shares and Options on the Company

The issue of the new shares and options will result in an increase in cash held by the Company by $250,000.

(2) Rights and liabilities attaching the Ordinary Shares

Each new ordinary share issued in the placement is fully paid and will rank equally with, and have the same rights and liabilities as, existing ordinary shares in the Company in all respects.

The rights attaching to ordinary shares in the Company are set out in the Company’s Constitution and are affected by the Corporations Act, the ASX Listing Rules and statute and general law.

(3) Rights and liabilities attaching the Options

Each new option issued in the placement is exercisable at 2.0¢ on or before 16 January 2014 and will rank equally with, and have the same rights and liabilities as, existing listed options in the Company in all respects.

The rights attaching to options in the Company are set out in the Company’s Constitution and are affected by the Corporations Act, the ASX Listing Rules and statute and general law.

(4) No disclosure under Part 6D.2

The issue of the new shares and options was done without disclosure under Part 6D.2 of the Corporations Act.

Level 8, 530 Little Collins Street, Melbourne Vic, 3000 Australia | Phone +613 9684 0888 | www.ectltd.com.au | ABN 28 009 120 405 Listed on the Australian Stock Exchange (ASX:ESI)

2. Compliance with financial reporting

As at the date of this notice, the Company has complied with the provisions of Chapter 2M of the Corporations Act as they apply to the Company.

3. Compliance with continuous disclosure obligations

ECT is a disclosing entity for the purposes of the Corporations Act and, as such, is subject to regular reporting and disclosure obligations. These obligations include compliance with the requirements of the ASX Listing Rules and the Corporations Act concerning notification of information to ASX. Copies of documents lodged at the Australian Securities and Investments Commission ( ASIC ) in relation to ECT may be obtained from, or inspected at, an office of ASIC. Copies of announcements made to ASX by ECT may be viewed at ASX’s website.

ECT has complied with section 674 of the Corporations Act as at the date of this notice.

ECT will provide a person who requests it a copy of:

• the most recent annual financial report lodged with ASIC;

• any half-year financial report lodged with ASIC after the lodgement of annual financial report referred to above and before lodgement of this notice with ASX; and

• any continuous disclosure notice given by the Company after the lodgement of that annual financial report referred to above and before lodgement of this notice with ASX.

All requests for copies of the above documents should be emailed to John Osborne, Company Secretary, ECT at info@ectltd.com.au

4. Information excluded from continuous disclosure notices

• As at the date of this notice, there is no information that is “excluded information” within the meaning of sections 708A(7) and 708A(8) of the Corporations Act, that is required to be disclosed for the purpose of section 708A(6)(e).

For Further Information Contact:

Mike Davies - Managing Director +61 3 9684 0888 or info@ectltd.com.au

About ECT

ECT is in the business of commercialising and selling disruptive, leading-edge technologies that have gamechanging potential within the energy and resources sector that are capable of delivering environmental and commercial benefits.

We are focused on advancing a portfolio of such technologies that have attractive market potential. This potential is largely informed by global markets that exhibit significant potential for growth and enable us to secure sustainable profits through licensing royalties or other commercial mechanisms.

About Coldry

When applied to lignite and some sub-bituminous coals, the mechanically simple Coldry process produces a black coal equivalent (BCE) in the form of pellets that are stable, easily stored, can be transported and which can be of equal or better energy value than many black coals, whilst significantly reducing CO2 emissions.

About Matmor

The Matmor process is positioned to revolutionise primary iron making thanks to the design of our simple, low cost, low emission, patented Matmor retort using cheaper, alternative raw materials.