ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — Capital/Financing Update 2022

Feb 22, 2022

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COMPLETION OF YALLOURN PROPERTY ACQUISITION & HYDROMOR PATENT UPDATE

23 February 2022: Environmental Clean Technologies Limited (ASX: ECT) (“ ECT ” or “ Company ”) is pleased to announce the settlement of the recently announced property purchase[1] adjacent to the Yallourn power station and mine complex and the acceptance of its HydroMOR patent application in the European Union.

Yallourn Property Acquisition

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Above : Overview of the Yallourn power station, with the recently purchased property highlighted (site) in proximity to the current lignite terminal upgrade (T15/16).

The site has been acquired to host the deployment of the Company’s proposed headline hydrogen refinery project in Victoria’s Latrobe Valley (the Project )[2] , which aims to deliver:

• Net-zero emission hydrogen: supporting the energy transition

• Critical minerals: supplying the crucial battery storage market

• Agricultural char: supporting soil health and productivity

• Other valuable products.

1 See announcement 23 November 2021: “Site Purchased for Proposed Hydrogen Refinery Project”

2 See announcement 15 November 2021: “ECT commences full feasibility for its headline project”

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)

The Company signed a binding purchase agreement with the vendor in late November 2021. With the final cash and share payments made today, completing the settlement of the land acquisition. The Company notes that the 25,000,000 shares transferred are subject to voluntary escrow for six months (to 22 August 2022). Refer to the ASX announcement entitled ‘Site Purchased for Proposed Hydrogen Refinery Project’ dated 23 November 2021 for transaction details.

Covering an area of 4.2Ha, the property (shown below) will allow the Company to progress its full feasibility study with the confidence that work may start on this site at ECT’s discretion, as and when feasibility results drive activities. The property is strategically located adjacent to the T15/16 upgrade project that is being codeveloped by ECT and the owner of the Yallourn mine and power station, Energy Australia[3] .

The site's suitability is reinforced by the fact that a previous lignite de-watering and briquetting project underwent significant site feasibility and planning approvals in 2013. Although that project did not proceed, the vendor has shared planning documents with ECT. The site also includes the formerly named “Powerhouse Hotel” building, leveraging existing infrastructure to provide office space, training and laboratory facilities for the Project.

HydroMOR Patent Accepted in European Union

Further to the acceptance of the Company’s first HydroMOR patent in the jurisdiction of Russia[4] , notification has been received confirming the acceptance of the patent in the European Union.

The HydroMOR process offers an alternative to conventional CO2-intensive blast furnace steelmaking, enabling the use of lower-cost, abundant lignite in place of higher-cost coking coal, delivering a lower emission, lower cost, metal production process. The Company remains excited about the potential industrial applications for this technology.

The table below outlines the status of the various international patent applications for HydroMOR.

International Patent Application Status - HydroMOR

Case Ref.	Country	Case Status
35519103	India	Response to Exam Report Filed
35526602	Australia	Exam requested
35526603	Canada	Application filed
35526604	China	Response to Exam Report Filed
35526605	European Patent Office	Accepted
35526606	Russian Federation	Accepted
35526607	United States of America	Examination report received
35527133	Indonesia	Response to Exam Report Filed
35540529	Hong Kong	Application filed

This announcement is authorised for release to the ASX by the Board of ECT.

3 See announcement 3 June 2021: “Coal Supply Agreement Signed with EnergyAustralia”

4 See announcement 31 January 2022: “Quarterly Update & Appendix 4C”

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For further information, please contact:

INVESTORS MEDIA Glenn Fozard Adam Giles Managing Director Marketing & Communications Manager info@ectltd.com.au / +613 9849 6203 media@ectltd.com.au / +613 9849 6203

About ECT

ECT has been developing net-zero emission and hydrogen technologies for over 15 years.

Our solutions aim to transition today’s use of resources to tomorrow’s zero-emission future, delivering immediate financial and environmental benefits.

We are focused on advancing a portfolio of technologies with significant market potential globally.

ECT’s business plan is currently focusing on two major projects:

• 1. Zero-Net Emission COLDry Commercial Demonstration at Bacchus Marsh, Victoria, Australia
• 1. Zero-Net Emission Hydrogen Refinery Project at the Latrobe Valley, Victoria, Australia

About our Technology Suite

COLDry

COLDry is the gateway enabler of higher-value applications for waste biomass and lignite.

These streams are a rich source of valuable hydrocarbons. However, they suffer from high moisture content that must be reduced to enable higher value upgrading and conversion to solid fuels, liquid or gaseous hydrocarbons.

Drying is easy. However, drying efficiently, cost-effectively and with a low emissions footprint has been the challenge. COLDry meets this challenge through a combination of ‘substrate densification’ and waste heat utilisation, delivering the world’s first low temperature, low pressure, low cost, zero CO2 emissions drying process.

HydroMOR

The HydroMOR process has the potential to revolutionise primary iron making.

HydroMOR is a simple, low cost, low emission, hydrogen-driven technology that enables ‘low value’ feedstocks to produce primary iron. HydroMOR is the transition solution to a “green steel” future.

COHgen

The COHgen process has the potential to deliver a lower cost, lower emission method for hydrogen production from lignite and other waste biomass streams.

COHgen is currently advancing through fundamental laboratory development intended to form the basis for a patent application ahead of scale-up and commercialisation.

COHgen aims to decouple hydrogen production from CCS, accelerating the race towards <$2kg production costs with little to no emissions.

CDP-WTE

The catalytic depolymerisation-based waste-to-energy process converts low-value resources into higher-value diesel and other valuable by-products.

CDP-WTE can be deployed as a standalone solution or integrated with the COLDry process to deliver higher-value, lower-emission energy solutions to lignite resource owners.

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Forward-Looking Statements

Statements contained in this release, particularly those regarding possible or assumed future performance, revenue, costs, dividends, production levels or rates, prices or potential growth of ECT, are or may be, forward-looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. Therefore, actual results and developments may differ materially from those expressed or implied by these forward-looking statements depending on a variety of factors.

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