ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — Capital/Financing Update 2014

Apr 7, 2014

Appendix 3B New issue announcement

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 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12, 04/03/13

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 2 Number of+securities issued or to be issued (if known) or maximum number which may be issued 3 Principal terms of the+securities (e.g. if options, 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)	Ordinary Shares (ASX code: ESI)
	37,037,038
	Fully Paid Ordinary Shares ranking equally with existing Ordinary Shares

• See chapter 19 for defined terms.

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Appendix 3B New issue announcement

4 Do the+securities rank equally in all respects from the+issue date with an existing+class of quoted +securities? 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 5 Issue price or consideration 6 Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets)	Yes, the new shares will rank equally with existing ESI securities
	$100,000 - Conversion Notice received in relation to the Strategic Deliverable Bond as outlined in item 6.
	� On 21 November 2012 the Company advised it would be issuing Strategic Deliverable Bonds with a face value of up to $2,500,000. � On 5 July 2013 the Company advised it would extend the SDB by up to $1,400,000. � On 19 February 2013 the Company received a conversion notice for part of the Bond, being $750,000. � On 21 May 2013 the Company received a 2ndconversion notice for part of the Bond, being $150,000. � On 7 June 2013 the Company has received a 3rd Conversion Notice for part of the Bond, being $200,000. � On 26 June 2013 the Company has received a 4rd Conversion Notice for part of the Bond, being $150,000. � As at 11 July 2013 the Company has received a 5th Conversion Notice for part of the Bond, being $100,000. � As at 17thJuly 2013 the Company has received a 6th Conversion Notice for part of the Bond, being $150,000 � As at 19thJuly 2013 the Company has received a 7th Conversion Notice for part of the Bond, being $150,000. � As at 15thAugust 2013 the Company has received an 8th Conversion Notice for part of the Bond, being $150,000. � As at 20thAugust 2013 the Company has received a 9th Conversion Notice for part of the Bond, being $300,000. � As at 21stAugust 2013 the Company has received a 10th Conversion Notice for part of the Bond, being $254,000. � As at 21stAugust 2013 the Company has received an 11thConversion Notice for part of the Bond being $71,000. � As at 12thSeptember 2013 the Company has received a 12thConversion Notice for part of the Bond being $450,000.

• See chapter 19 for defined terms.

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	Appendix 3B New issue announcement
6a Is the entity an+eligible entity that has obtained security holder approval under rule 7.1A? If Yes, complete sections 6b – 6h in relation to the+securities the subject of this Appendix 3B, and comply with section 6i 6b The date the security holder resolution under rule 7.1A was passed 6c Number of +securities issued without security holder approval under rule 7.1 6d Number of+securities issued with security holder approval under rule 7.1A 6e Number of+securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting) 6f Number of +securities issued under an exception in rule 7.2
	� As at 25~~th~~October 2013 the Company has received a 13~~th~~ Conversion Notice for part of the Bond being $300,000. � As at 25thMarch 2014 the Company has received a 14th Conversion Notice for part of the Bond being $50,000. Note:This conversion notice relates to a Convertible Note issued under the Bond for cash payments made to Arup for the DFT during 2013. � As at 8thApril 2014 the Company has received a 15th Conversion Notice for part of the Bond being $100,000. Note:This conversion notice relates to a Convertible Note issued under the Bond for cash payments made to Arup for the DFT during 2013. � The conversion is upon the terms of the Bonds as shown in the announcement of 21 November 2012. The Bond issued to date has been in consideration for the work being undertaken by Arup to deliver design and engineering works associated with the development and delivery of the Coldry technology.
	Yes.
	29 November 2013
	Nil
	Nil
	Nil
	Nil

• See chapter 19 for defined terms.

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Appendix 3B New issue announcement
6g If+securities issued under rule 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the +issue date and both values. Include the source of the VWAP calculation. 6h If+securities were issued under rule 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements 6i Calculate the entity’s remaining issue capacity under rule 7.1 and rule 7.1A – complete Annexure 1 and release to ASX Market Announcements 7 +Issue dates Note: The issue date may be prescribed by ASX (refer to the definition of issue date in rule 19.12). For example, the issue date for a pro rata entitlement issue must comply with the applicable timetable in Appendix 7A. Cross reference: item 33 of Appendix 3B. 8 Number and+class of all+securities quoted on ASX (_including_the +securities in section 2 if applicable 9 Number and+class of all+securities not quoted on ASX (_including_the +securities in section 2 if applicable) 10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)	Yes, the issue price is greater than 75% of the 15 day VWAP. � Issue price: 0.027¢ � Issue date: 8 April 2014 � 15 day VWAP: 0.03023¢. � 75% of 15 day VWAP: 0.0227¢
	N/A
	7.1 remaining capacity is 155,707,063.	316,893,930 and 7.1A capacity is
	8 April 2014
		~~+~~Class Ordinary Shares (ESI) ~~+~~Class Unlisted options exercisable at 5.0 cents each and expiring on 14 December 2014 The balance of the strategic deliverable bond and convertible into fully paid ordinary shares ranking equally with existing Ordinary Shares, consisting of: 1. $350,000 Bond unpaid and available to the Company (ref ASX announcement 22/11/13) 2. $225,000 paid and convertible into shares. Refer ASX Announcements of 21 November 2012 and 5 July 2013 in relation to Bond details.
	Number	~~+~~Class
	2,168,181,754	Ordinary Shares (ESI)
	Number	~~+~~Class
	20,000,000 $575,000	Unlisted options exercisable at 5.0 cents each and expiring on 14 December 2014 The balance of the strategic deliverable bond and convertible into fully paid ordinary shares ranking equally with existing Ordinary Shares, consisting of: 1. $350,000 Bond unpaid and available to the Company (ref ASX announcement 22/11/13) 2. $225,000 paid and convertible into shares. Refer ASX Announcements of 21 November 2012 and 5 July 2013 in relation to Bond details.
	None

• See chapter 19 for defined terms.

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Appendix 3B New issue announcement

Part 2 - Pro rata issue

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 applicable

Entities that have ticked box 34(b)

Not applicable

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.

• See chapter 19 for defined terms.

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Appendix 3B New issue announcement

• 4 We give ASX the information and documents required by this form. If any information or document is not available now, we 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.

Sign here:

............................................................ Company secretary

Date: 8 April 2014

Print name: Adam Giles

== == == == ==

• See chapter 19 for defined terms.

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Appendix 3B New issue announcement

Appendix 3B – Annexure 1

Calculation of placement capacity under rule 7.1 and rule 7.1A for eligible entities

Introduced 01/08/12 Amended 04/03/13

Part 1

Rule 7.1 – Issues exceeding 15% of capital

Step 1: Calculate “A”, the base figure from which the placement capacity is calculated

==> picture [484 x 357] intentionally omitted <==

----- Start of picture text -----

Insert number of fully paid [+] ordinary securities on 1,756,635,001
issue 12 months before the [+] issue date or date of
agreement to issue
Add the following:
• Number of fully paid [+] ordinary securities issued Nil
in that 12 month period under an exception in
rule 7.2
• Number of fully paid [+] ordinary securities issued 355,991,196
in that 12 month period with shareholder
approval
• Number of partly paid [+] ordinary securities that Nil
became fully paid in that 12 month period
Note:
• Include only ordinary securities here – other
classes of equity securities cannot be added
• Include here (if applicable) the securities the
subject of the Appendix 3B to which this form is
annexed
• It may be useful to set out issues of securities
on different dates as separate line items
Subtract the number of fully paid [+] ordinary Nil
securities cancelled during that 12 month period
“A” 2,112,626,197
----- End of picture text -----

• See chapter 19 for defined terms.

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Step 2: Calculate 15% of “A”

Step 2: Calculate 15% of “A”	Step 2: Calculate 15% of “A”
“B”	0.15 [Note: this value cannot be changed]
Multiply“A” by 0.15	316,893,930
Step 3: Calculate “C”, the amount of placement capacity under rule 7.1 that has already been used
Insertnumber of+equity securities issued or agreed to be issued in that 12 month period_not_ counting_those issued: • Under an exception in rule 7.2 • Under rule 7.1A • With security holder approval under rule 7.1 or rule 7.4 _Note: • This applies to equity securities, unless specifically excluded – not just ordinary securities • Include here (if applicable) the securities the subject of the Appendix 3B to which this form is annexed • It may be useful to set out issues of securities on different dates as separate line items	Nil
“C”	Nil
Step 4: Subtract “C” from [“A” x “B”] to calculate remaining placement capacity under rule 7.1
“A” x 0.15 Note: number must be same as shown in Step 2	2,112,626,197 x 0.15 = 316,893,930
Subtract“C” Note: number must be same as shown in Step 3	Nil
Total[“A” x 0.15] – “C”	316,893,930 [Note: this is the remaining placement capacity under rule 7.1]

• See chapter 19 for defined terms.

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Appendix 3B New issue announcement

Part 2

Rule 7.1A – Additional placement capacity for eligible entities

Step 1: Calculate “A”, the base figure from which the placement capacity is calculated

“A” 2,112,626,197

Note: number must be same as shown in Step 1 of Part 1

Step 2: Calculate 10% of “A”

Part 2	Part 2
Rule 7.1A – Additional placement capacity for eligible entities
Step 1: Calculate “A”, the base figure from which the placement capacity is calculated
“A” Note: number must be same as shown in Step 1 of Part 1	2,112,626,197
Step 2: Calculate 10% of “A”
“D”	0.10 Note: this value cannot be changed
Multiply“A” by 0.10	211,262,620
Step 3: Calculate “E”, the amount of placement capacity under rule 7.1A that has already been used
Insertnumber of+equity securities issued or agreed to be issued in that 12 month period under rule 7.1A Notes: • This applies to equity securities – not just ordinary securities • Include here – if applicable – the securities the subject of the Appendix 3B to which this form is annexed • Do not include equity securities issued under rule 7.1 (they must be dealt with in Part 1), or for which specific security holder approval has been obtained • It may be useful to set out issues of securities on different dates as separate line items	26/3/14 - 18,518,519 8/4/14 - 37,037,038
“E”	55,555,557

Step 4: Subtract “E” from [“A” x “D”] to calculate remaining placement capacity under rule 7.1A
“A” x 0.10 Note: number must be same as shown in Step 2	211,262,620
Subtract“E” Note: number must be same as shown in Step 3	55,555,557
Total[“A” x 0.10] – “E”	155,707,063 Note: this is the remaining placement capacity under rule 7.1A

• See chapter 19 for defined terms.

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