ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — Capital/Financing Update 2012

Nov 27, 2012

==> picture [180 x 47] intentionally omitted <==

K-Coal commits to equity participation in the Coldry Commercial Demonstration Plant (CDP)

Wednesday 28 November 2012: Environmental Clean Technologies Limited (ASX: ESI) (ECT or Company) is pleased to announce the signing of a Letter of Intent (LOI) with K-Coal Co., Ltd of Korea (K-Coal) in respect of equity participation in ECT’s Coldry Commercial Demonstration Plant (CDP).

Key Points

• K-Coal signs Letter of Intent (LOI) to provide 5% equity in CDP

• LOI obliges equity participation in subsequent Commercial Scale Plant (CSP) subject to certain conditions

K-Coal, ECT’s agent for the Asian market, has agreed to take a 5% equity position in the CDP and has signed a conditional Letter of Intent (LOI) in regard to this equity investment. The LOI will become binding upon the securing of a defined level of success in regard to the governments Advanced Lignite Demonstration Program (ALDP) funding for the CDP project. The LOI obliges K- Coal to contribute 5% of the equity required for the subsequent 2 million tonnes per annum (mtpa) Commercial Scale Plant (CSP) on proving of the feasibility of Coldry production at commercial scale through the successful operation of the CDP.

ECT Executive Chairman Mike Davies commented “this is a very significant development which we have been working on for some months and it augers well for other equity participation in the CDP. Whilst K-Coal’s equity interest is relatively modest, we believe it will have significant influence on other Asian resources companies, including several Korean companies, whom we are in negotiations with, regarding equity participation in the CDP. We hope to announce the outcomes of these negotiations during the first quarter, after we re-engage with these parties once the status of ALDP shortlisting has been announced by government in mid December”.

For Further Information Contact:

Mike Davies – Managing Director +61 3 9909 7684 or info@ectltd.com.au

About ECT

ECT is in the business of commercialising leading-edge coal and iron making technologies, which are capable of delivering financial and environmental benefits.

We are focused on advancing a portfolio of technologies, which have significant market potential globally.

ECT’s business plan is to pragmatically commercialise these technologies and secure sustainable, profitable income streams through licencing and other commercial mechanisms.

About Coldry

When applied to lignite and some sub-bituminous coals, the relatively simple Coldry beneficiation process produces a black coal equivalent (BCE) in the form of pellets. Coldry pellets have equal or superior energy value to many black coals and produce lower CO2 emissions than raw lignite.

About MATMOR

The MATMOR process has the potential to revolutionise primary iron making.

MATMOR is a simple, low cost, low emission, production technology, utilising the patented MATMOR retort, which enables the use of cheaper feedstocks to produce primary iron.

Level 7, 530 Little Collins Street, Melbourne Vic, 3000 Australia | Phone +613 9909 7684 | www.ectltd.com.au | ABN 28 009 120 405 Listed on the Australian Stock Exchange (ASX:ESI)