ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — Capital/Financing Update 2011

Jan 20, 2011

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005.

Name of entity

Environmental Clean Technologies Limited

ABN

28 009 120 405

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1	+Class of+securities issued or to be issued	+Class of+securities issued or to be issued		Ordinary Share	Ordinary Share
2	Number of+securities issued or to be issued (if			10,767,285Ordinary Share
	known) or maximum number which may be
	issued
	3	Principal terms of the+securities (eg, if options,			Fully Paid Ordinary Shares
		exercise price and expiry date; if partly		paid
		+securities, the amount outstanding and due		dates
		for payment; if +convertible securities,		the
		conversion price and dates for conversion)
4	Do	the+securities rank equally in all respects from		The	new ordinary shares will rank equally
	the	date of allotment with an existing+class of		with	current ASX listed ordinary shares
	quoted+securities?			(ESI) from the date of allotment.
	If	the additional securities do not rank equally,
	please state:
		the date from which they do
		the extent to which they participate for the next
		dividend, (in the case of a trust, distribution) or
		interest payment
		the extent to which they do not rank equally,
		other than in relation to the next dividend,
		distribution or interest payment

• See chapter 19 for defined terms.

24/10/2005 Appendix 3B Page 1

• 5 Issue price or consideration

A$192,734.41 ($0.0179 per share)

6 Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets)

• Being part conversion of the Convertible Note issued on 4 November 2010.

• 7 Dates of entering[+] securities into uncertificated holdings or despatch of certificates

21 January 2011

• 8 Number and[+] class of all[+] securities quoted on ASX ( including the securities in clause 2 if applicable)

Number +Class 807,157,048 Ordinary shares (ESI) 497,264,535 Listed options (ESIO)

9 Number and[+] class of all[+] securities not quoted on ASX ( including the securities in clause 2 if applicable)

Number +Class es he ) 807,157,048 497,264,535 Ordinary shares (ESI) Listed options (ESIO)	Number	+Class
	807,157,048 497,264,535	Ordinary shares (ESI) Listed options (ESIO)
Number +Class
2 Convertible Noteswith a total face value of USD650,000 (AUD643,252.36) convertible into ordinary shares based on the average of the three lowest Volume Weighted Average Prices during the 15 trading days prior to the date of conversion of part or all of the Convertible Note in accordance with the terms and conditions as previously advised. 1,000,000 Unlisted options exercisable at 20C and expiring on 14th February 2011. 1,539,145 Options exercisable at 11.3 cents each and expiring on 2 June 2011 708,306 Options exercisable at 5.59 cents each and expiring on 25 Sept 2011 794,806 Options exercisable at 4.04 cents each and expiring on 8 Oct 2011 962,106 Options exercisable at 3.795 cents each and expiring on 17 November 2011 360,999 Options exercisable at 3.12 cents each and expiring on 23 December 2011

10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)

None

Part 2 - Bonus issue or pro rata issue

NOT A BONUS ISSUE OR PRO RATA ISSUE SO QUESTIONS 11 to 33 NOT APPLICABLE

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

• 34 Type of securities ( tick one )

• (a)[Securities described in Part 1 ]

• (b)[All other securities ]

• Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

NOT A NEW CLASS OF SECURITIES TO BE LISTED AND BOX 34(b) NOT TICKED SO QUESTIONS 35 to 42 NOT APPLICABLE

• See chapter 19 for defined terms.

24/10/2005 Appendix 3B Page 3

Quotation agreement

• 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the[+] securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the[+] securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those[+] securities should not be granted[+] quotation.

• An offer of the[+] securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any[+] securities to be quoted and that no-one has any right to return any[+] securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the[+] securities be quoted.

• If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the[+] securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before[+] quotation of the[+] securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Signed: John Osborne (Company secretary)

Date: 21 January 2011