ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — Capital/Financing Update 2024

Sep 19, 2024

20 September 2024

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ASX Announcement

Project Update

COLDry Commercialisation Project

Dear Shareholders,

Thank you for your continued patience and support. We have been diligently working on several key initiatives to drive value for our business and shareholders. As part of our commitment to keep you informed, I am pleased to provide this update on our recent progress and current direction, as reflected in our latest annual report.

Global Landscape and Opportunities

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----- Start of picture text ----- Sam Rizzo - ECT Managing Director----- End of picture text -----

The global landscape is rapidly evolving due to geopolitical tensions, rising energy costs, supply constraints, and climate change. Our innovative solutions are positioned to deliver net-zero outcomes across agriculture, industry, and energy sectors, creating significant opportunities for ECT.

COLDry Agriculture Application

The Bacchus Marsh COLDry-Fertiliser project is central to our strategy to commercialise net-zero technologies.

Urea accounts for 55% of the global nitrogen fertiliser market in the agriculture sector, with an annual consumption of over 200 million tonnes. However, rising natural gas costs have caused urea prices to soar by 183% between June 2020 and February 2024, putting pressure on farmers who rely on it for crop nutrition.

Our partnership with ESG Agriculture uses ECT's COLDry technology to produce lignite granulated fertiliser, which enhances nutrient retention, improves soil structure, restores soil carbon for sustainability, and reduces emissions by 50%, offering a cost-effective solution for agriculture.

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Suite 37/209 Toorak Road South Yarra VIC 3141 Australia

www.ectltd.com.au T: +613 9849 6203 E: info@ectltd.com.au

Environmental Clean Technologies Limited ASX: ECT ABN 28 009 120 405

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Key progress includes:

• MoU with ESG Agriculture : Signed on 4 April 2024, this establishes a joint venture to produce up to 30,000 tonnes of lignite-nitrogen fertiliser annually.

• Independent Testing : Testing confirmed the successful blending and drying of lignite and nitrogen, overcoming a major technical barrier.

• Heads of Agreement (HoA) : Following successful MoU activities, we signed an HoA to finalise a detailed Joint Venture Agreement with ESG Agriculture by Q3 CY2024.

• EPA & Local Council Permits: Applications have been submitted, with approval expected Q3 CY2024.

Project Pathway

• Stage 1 : Process demonstration completed in December 2022.

• Stage 2: R&D for lignite-nitrogen fertiliser:

  • Blending Success : Using our COLDry technology, we overcame a significant blending challenge to produce a uniform mixture of lignite-nitrogen fertiliser with almost zero nitrogen loss.

  • Granulation and Testing : The plant can now produce lignite-nitrogen fertiliser for field trials. Large-scale trials will begin shortly across South Australia, Victoria, NSW, and Queensland, converting these trials into bankable off-take agreements.

COLD ry Fertiliser commercialisation pathway to 2026

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----- Start of picture text ----- Race to Revenue Bacchus Marsh ProjectStage 3 Stage 4Q3 CY24 Q4 CY24 Q2 CY25 Q1 CY26Final Selection Investment Demonstration Plant Commercial sales target start.COLDry Fertiliser Decision (FID) Construction & Optimised Plant & ramp up toGranulation Process commissioning 50,000tpa.CompleteCommercial PlantFinalise Supply Q3 CY24 Approvals Target Q3 CY24 Demonstration PlantConstruction start Q4 CY24 Ramp up to Steady State30,000tpa Q3 - Q4 CY25 Optimised Plant Product Sales50,000 Steady state Q2 CY26----- End of picture text -----

Latrobe Q3 CY25 Valley Full feasibility Project planning.

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Project Financing

We are finalising a comprehensive finance strategy that includes a preferred position for non-dilutive measures to fund construction and operations, protecting shareholder value. This financing will cover key milestones, including construction, field trials, and commercial production, while supporting operational expenses until the project generates cashflow.

We are committed to maintaining a strong financial foundation and are confident that these efforts will drive growth opportunities domestically and internationally.

Thank you for your ongoing support and trust in our mission.

Sincerely,

Sam Rizzo

Managing Director

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

For further information, please contact:

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

Forward-looking Statement

This announcement may contain forward-looking statements regarding future events or performance, including but not limited to projections of financial results, anticipated growth, and business strategies. These forward-looking statements are based on current expectations, assumptions, and projections that involve inherent risks and uncertainties. Actual results may differ materially from those anticipated due to various factors, including market conditions, regulatory changes, technological advancements, and economic conditions.

Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this announcement. The Company undertakes no obligation to update or revise any forwardlooking statements, whether as a result of new information, future events, or otherwise, except as required by applicable securities laws.

Investors should carefully consider the risks and uncertainties disclosed in the Company's periodic reports filed with the Australian Securities Exchange (ASX) and other regulatory authorities. Forward-looking statements are provided as of the date of this announcement, and the Company disclaims any obligation to update them, except as required by law.

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