ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — Capital/Financing Update 2012

Oct 7, 2012

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Shareholder Update: Patent Status and Capital Raising

Monday, 8 October 2012: Environmental Clean Technologies Limited (ASX:ESI) (ECT or Company) is please to provide the following update to shareholders on recent patent and capital raising activity.

European Patent Granted

Following on from the successful granting of Patent coverage for our Coldry technology in the United States and Australia, we are in receipt today of notification that our European Patent application has now been issued as a formal patent, no. 1680637.

This is the culmination of over two years of consistent effort in addressing and satisfying various aspects raised by the EU examiners. ECT greatly appreciates the able assistance of their Patent attorneys, Davies Collison Cave.

With the patent now granted, commercial deployment into key EU countries can take place with increased confidence, following commercial demonstration here in Australia.

Chief Operating Officer Ashley Moore commented, “Europe is the world’s highest lignite utilising region, with the top five lignite using countries in the EU accounting for an annual consumption of 395 million tonnes according to the European Association for Coal & Lignite. This highlights the magnitude of the EU market when compared with Australia’s 65-70 million tonnes a year usage. Our progress with the Design for Tender program, the Commercial Demonstration Plant program, and the newly announced Federal & State Government Advanced Lignite Demonstration Program dovetails nicely with EU market conditions.”

Extension of FAST Finance Facility

As advised on 19 July 2012, Environmental Clean Technologies accepted a “FAST Finance” loan through Greenard Willing, against the anticipated $1 million from the R&D tax concession due in October – November 2012.

As a result of the extensive work completed on the Design for Tender, the R&D tax concession has been lodged with a value of $1.3 million. Accordingly, Directors have exercised an option to “top up” the “FAST Finance” by receiving an additional $300,000, on matching terms to the original facility.

The terms of the addition funds are as follows

Term	6 months
Repayment	Cash in full from the R&D tax rebate refund
Interest Rate	15% p.a. payable upfront
Distribution Fee	5%

Further announcements in relation to capital raising activities will be made in due course.

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.

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)

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.