ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — Capital/Financing Update 2021

Mar 3, 2021

Proposed issue of securities

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Announcement Summary

Entity name

ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED.

Announcement Type

New announcement

Date of this announcement

Thursday March 4, 2021

The Proposed issue is:

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A placement or other type of issue

Total number of +securities proposed to be issued for a placement or other type of issue

		Maximum Number of
ASX +security code	+Security description	+securities to be issued
ECTOE	OPTION EXPIRING 17-FEB-2023	520,000,000
ECT	ORDINARY FULLY PAID	483,592,166

Proposed +issue date

Thursday March 4, 2021

Refer to next page for full details of the announcement

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Part 1 - Entity and announcement details

1.1 Name of +Entity

ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED.

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2 Registered Number Type

ACN

Registration Number

009120405

1.3 ASX issuer code

ECT

1.4 The announcement is

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New announcement

1.5 Date of this announcement

Thursday March 4, 2021

1.6 The Proposed issue is:

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A placement or other type of issue

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Part 7 - Details of proposed placement or other issue

Part 7A - Conditions

7A.1 - Are any of the following approvals required for the placement or other type of issue? +Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval Another approval/condition external to the entity Yes

7A.1a Conditions

Approval/Condition Date for determination Is the date estimated or ** Approval actual? received/condition met? +Security holder approval Friday January 15, 2021 Actual Yes

Comments

Resolutions 5, 6 & 7, approved by members at the 2020 Annual General Meeting held on 15 January 2021.

Part 7B - Issue details

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)? Existing class

Will the proposed issue of this +security include an offer of attaching +securities? Yes

Details of +securities proposed to be issued

ASX +security code and description

ECT : ORDINARY FULLY PAID

Number of +securities proposed to be issued

483,592,166

Offer price details

Are the +securities proposed to be issued being issued for a cash consideration? Yes

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In what currency is the cash What is the issue price per consideration being paid? +security? AUD - Australian Dollar AUD 0.00100

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes

Attaching +Security

Is the proposed attaching security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional +securities in a class that is already quoted or recorded by ASX)? Existing class

Attaching +Security - Existing class (additional +securities in a class that is already quoted or recorded by ASX)

Details of attaching +securities proposed to be issued

ASX +security code and description

ECTOE : OPTION EXPIRING 17-FEB-2023

Number of +securities proposed to be issued

520,000,000 Offer price details

Are the +securities proposed to be issued being issued for a cash consideration? No

Please describe the consideration being provided for the +securities

Nil Please provide an estimate of the AUD equivalent of the consideration being provided for the +securities

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes

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Part 7C - Timetable

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7C.1 Proposed +issue date

Thursday March 4, 2021

Part 7D - Listing Rule requirements

7D.1 Has the entity obtained, or is it obtaining, +security holder approval for the entire issue under listing rule 7.1? Yes

7D.1a Date of meeting or proposed meeting to approve the issue under listing rule 7.1

Friday January 15, 2021

7D.2 Is a party referred to in listing rule 10.11 participating in the proposed issue? Yes

7D.3 Will any of the +securities to be issued be +restricted securities for the purposes of the listing rules? No

7D.4 Will any of the +securities to be issued be subject to +voluntary escrow? Yes

7D.4a Please enter the number and +class of the +securities subject to +voluntary escrow and the date from which they will cease to be subject to +voluntary escrow

In relation to resolution 5 approved at the 2020 AGM; 100,000,000 shares issued to directors, partially in lieu of cash, shares will be escrowed and released on a pro-rata basis, quarterly in arrears, with the final release by 28/02/2022. In relation to resolutions 5&6 approved at the 2020 AGM; the shares and options issued are subject to an equity lending facility. As such 483,592,166 fully paid ordinary shares (ECT) and 520,000,000 options (ECTOE), will be escrowed until loan settlement, being no later than 15 January 2023. Earlier loan settlement would result in an earlier release from escrow.

Part 7E - Fees and expenses

7E.1 Will there be a lead manager or broker to the proposed issue? No

7E.2 Is the proposed issue to be underwritten? No

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7E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed issue NA

Part 7F - Further Information

7F.01 The purpose(s) for which the entity is issuing the securities

Partial satisfaction of directors fees in lieu of cash and satisfaction of contractual obligations to participants in the Company's 2019 NRRI.

7F.1 Will the entity be changing its dividend/distribution policy if the proposed issue proceeds? No

7F.2 Any other information the entity wishes to provide about the proposed issue

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