ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — Capital/Financing Update 2014

May 18, 2014

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ECT Appoints Thermax as EPC partner for Coldry development

Monday 19 May 2014: Environmental Clean Technologies Limited (ECT or Company) (ASX:ESI) is pleased to announce that it has signed a Heads of Agreement with Indian power station builder and energy engineering firm, Thermax (BSE:500411 and NSE:Thermax).

Thermax will provide engineering, procurement and construction (EPC) services for the planned Coldry commercial-scale demonstration project in India, and subsequent commercial rollout and development globally.

This Agreement is the culmination of the company’s previously announced vendor selection program commenced last November, targeted at advancing the Coldry demonstration strategy in India. YES BANK acted as ECT’s strategic advisor in this program. Their Sustainable Investment Banking team is also advising the company to develop and deliver upon ECT’s India strategy.

Under the terms of the Agreement the companies aim to deliver on the following objectives:

1) Coldry Demonstration:

Utilising the core Coldry plant designs provided by ECT the companies will work to deliver technical and financial validation of the process at commercial scale in India.

This involves the localisation of the core Coldry design by Thermax followed by fabrication, and construction.

2) High-efficiency, integrated drying and power generation solutions:

Longer term, the companies will develop solutions entailing deeper integration of the Coldry technology into Thermax's existing product portfolio to develop a new and innovative offering which combines pre-drying of low rank coals with high efficiency combustion and conversion into power and steam.

Thermax's experience and expertise in waste heat recovery systems will be of particular advantage in developing this combined offering.

3) Development of next generation, high value solutions:

Joint Research and Development, aimed at expansion of the Coldry process beyond simple thermal use into high value coal conversion processes such as coal to gas, oil and other ‘downstream’ chemicals provides opportunities to lever the technology into key energy and resource markets.

Integrating the Coldry process with such upgrading processes provides the opportunity to improve their costs, environmental performance, as well as energy and water efficiencies.

4) Strategic investment:

The companies have agreed to consider strategic investment options in Coldry equipment manufacturing capability, as well as in each other, providing options to support mutually beneficial projects.

ECT's Managing Director Ashley Moore stated "We are extremely pleased to be able to announce our association with Thermax today. Their skill and capability is impressive, and they’re strongly aligned with ECT's requirements for the commercialisation of Coldry technology. With a culture of innovation and a commitment to sustainable solutions for energy and environment they are an ideal partner. We look forward to delivering on both short and long term objectives with our new partners at Thermax."

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)

M.S. Unnikrishnan, Thermax’s Managing Director and CEO added, "We are happy to partner with ECT, whose credentials and technology focus are quite impressive. ECT’s Coldry technology has the potential to help India utilise its lignite reserves effectively for power generation, with better environmental safeguards. Together, we are confident of delivering the first demonstration plant, and move on to a mutually rewarding business partnership."

Aditya Sanghi, Senior MD, Investment Banking, YES BANK stated, “YES BANK’s Sustainable Investment Banking team is pleased to be associated with ECT as the strategic advisor for commercialization of their clean coal technology in India. ECT’s Coldry technology offers sustainable and long term solution to meet the growing energy demands of India while mitigating the daunting issues of climate change. YES BANK has a strong commitment to mainstreaming sustainability within the industry and this association is a natural extension of its efforts to foster sustainable development of India.”

Next Steps

As previously announced, the company is engaged with Neyveli Lignite Corporation (NLC) with the aim of developing the Coldry demonstration project on their site in Tamil Nadu.

NLC gave the go-ahead last month for ECT to prepare a detailed project Feasibility Study, including bankable cost estimates.

ECT and YES BANK have largely progressed the Feasibility Study and Thermax will now ramp-up their design localisation activities, providing the remaining cost estimation data needed prior to submission to NLC.

For further information contact: Ashley Moore – Managing Director - info@ectltd.com.au

About Thermax Limited

Thermax is listed on the Bombay Stock Exchange (BSE) as well as the National Stock Exchange of India (NSE) with a market value in excess of $A1.5 billion.

Thermax, a leading energy and environment solutions provider, is one of the few companies in the world that offers integrated innovative solutions in the areas of heating, cooling, power, water and waste management, air pollution control and chemicals. Thermax has manufacturing facilities in India, China and Europe. The sustainable solutions Thermax develops for client companies are environment-friendly and enable efficient deployment of energy and water resources.

For more information visit: www.thermaxindia.com

About YES BANK

YES BANK, India’s fourth largest private sector Bank, is the outcome of the professional & entrepreneurial commitment of its Founder Rana Kapoor and his top management team, to establish a high quality, customer centric, service driven, private Indian Bank catering to the Future Businesses of India.

YES BANK has adopted international best practices, the highest standards of service quality and operational excellence, and offers comprehensive banking and financial solutions to all its valued customers. YES BANK has a knowledge driven approach to banking, and a superior customer experience for its retail, corporate and emerging corporate banking clients. YES BANK is steadily evolving as the Professionals’ Bank of India with the vision of “Building the Best Quality Bank of the World in India”.

For more information visit: www.yesbank.in

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.