ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — Capital/Financing Update 2019

Aug 1, 2019

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ECT Finance Limited – Equity Lending Facility Interest

2 August 2019: Fully owned subsidiary of Environmental Clean Technologies Limited (ASX: ECT), ECT Finance Limited (ECTF or Company) would like to inform the market that the next anniversary of calculated interest for the Equity Lending Facility (ELF) loans was effective as at 30 July 2019.

Key points:

• Interest letters to be sent to ELF holders from week starting 5 August

• Interest to be paid (where applicable) before Saturday 17 August 2019.

• Capitalised interest to be calculated Monday 19 August for the period 31 January 2019 through to 30 July 2019.

• Interest free holiday for the 6-month period 31 July 2019 to 30 January 2020

• ECT Chairman, Glenn Fozard to direct 100% of his ECT Limited executive contract to repayment of his ELF loans through to the next anniversary date of 30 January 2020.

The scheduled 6-monthly anniversary date for ELF loans was 30 July 2019 (the “Interest Period”).

In accordance with past practice, ELF holders will be sent interest letters advising them of the timeframe required to either pay the interest component or allow it to be capitalised to the loan balance.

Letters for this Interest Period will be sent to ELF holders in the week starting 5 August 2019 and will allow until 19 August 2019 to pay the interest calculated for the period of 31 January 2019 through to 30 July 2019.

ELF holders wishing to capitalise their interest for that period need not do anything as in the absence of any action the interest method will automatically be changed to ‘capitalised’.

The board of ECT Finance has also agreed to an interest rate holiday for the entire next Interest Period from the 31 July 2019 to 30 January 2020. This will mean ELF holders will incur zero interest against the loan balance for that period.

ECTF Chairman Jim Blackburn commented, “All ELF holders are currently ‘underwater’ on their position and it’s not sensible to add interest to this position when no equity currently exists. Whilst we are clear in our position that value can be returned, the Company does not wish reduce the prospects of ELF holders returning to an equity position by adding further interest to their loans.”

ECT Chairman, Glenn Fozard, has also agreed to contribute 100% of his ECT Limited executive remuneration towards the repayment of his ELF loans, from 1 August 2019 through to 31 January 2020.

Glenn Fozard commented further, “I am very mindful of the disappointment that a lot of our shareholders have with regards to recent outcomes in India. This has led to a significant loss in market value which has caused real losses of shareholder value. In contributing my ECT executive remuneration to repaying my ELF loans, the Company receives this cash back and I am effectively buying stock at 0.9c plus accrued interest. This is as clear a statement as I can make about what I see as the prospects for the Company whilst also backing the initiative to reduce the Company’s operating cash requirements.”

For further information, contact:

Glenn Fozard – Chairman info@ectltd.com.au

388 Punt Road, South Yarra, VIC 3141 Australia | Phone +613 9849 6203| www.ectltd.com.au | ABN 28 009 120 405 Listed on the Australian Stock Exchange (ASX: ECT)

About ECT

ECT is in the business of commercialising leading-edge energy and resource 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 licensing and other commercial mechanisms.

About Coldry

When applied to lignite and some sub-bituminous coals, the 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.

About COHgen

The COHgen process is a low temperature, low pressure catalytic process for the generation of hydrogen from lignite. COHgen has a unique feature of retaining most of the carbon in solid form, lowering potential CO2 emissions and supporting lower cost carbon capture and storage (CCS) requirements.

Areas covered in this announcement:

ECT(ASX:ECT)	ECTFinanceECT IndiaIndiaProjectAust.ProjectsR&DHVTFBusinessDevelop.	Sales

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