ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — Capital/Financing Update 2024

Mar 26, 2024

27 March 2024

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ASX Announcement

SUCCESSFUL COMPLETION OF $1.5 MILLION PLACEMENT TO STRATEGIC INVESTORS

Highlights:

• Binding commitments received for a $1.5 million placement at $0.005 per share, representing a 25% premium to the last traded price of $0.004, indicating strong investor confidence.

• Strong backing from ECT’s major shareholder and strategic new investors aligned with ECT's commercialisation strategy.

• Proceeds will be applied to advance the Bacchus Marsh project and explore newly identified commercial opportunities.

Environmental Clean Technologies Limited (ASX: ECT) (“ECT” or the “Company”) is pleased to announce it has received binding commitments from sophisticated investors for a placement to raise $1.5 million at $0.005 per share (Placement). The capital infusion, achieved through the issue of 300,000,000 fully paid ordinary shares (New Shares), will primarily support development works at the Bacchus Marsh production facility and facilitate the evaluation of several emerging commercialisation opportunities.

ECT’s Managing Director, Sam Rizzo, said:

“The strong backing from both existing and new shareholders, especially in challenging market conditions, underscores the significant progress made by ECT and the growing investor interest in our net zero and carbon negative process.

“ECT remains focused on executing its ‘race to revenue’ strategy, aiming to establish a revenue stream from the Bacchus Marsh plant. Additionally, this project presents an opportunity for ECT to conduct a Syngas pilot project, validating net zero, carbon-negative energy feedstock. We’re committed to advancing our three pillars: agriculture products, net zero and carbon-negative energy feedstock, and industrial applications.

“With the successful Placement, the Company is well positioned to finalise plans for the Bacchus Marsh production facility, secure supply and offtake agreements and confidently pursue partnership opportunities for our net zero carbon negative technology suite and range of high-value, in-demand products.”

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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Placement Details

The 300,000,000 New Shares issued pursuant to the Placement are being issued under the Company’s allowable placement capacity pursuant to Listing Rules 7.1 and 7.1A and will rank equally with existing fully paid ordinary shares at an issue price of $0.005 per share. Accordingly, shareholder approval will not be required.

The offer price of $0.005 per New Share represents:

• 25% premium to the last trade price of $0.004 on 22 March 2024

• 12.2% premium to the 10-day volume weighted average market price* (“VWAP”) of $0.0045[1] on 22 March 2024

• 4.8% premium to the 15-day VWAP of $0.0048[1] on 22 March 2024

• 1.7% premium to the 20-day VWAP of $0.0049[1] on 22 March 2024

A fee of 5% has been agreed on $100,000 portion of the placement, which will be paid as Shares at the Placement price. These securities will be issued under the Company’s ASX Listing Rule 7.1 capacity; accordingly, shareholder approval will not be required.

Please refer to the Company’s Appendix 3B for further details.

Use of Funds

Proceeds from the Placement will be allocated towards:

• advancing development at the Bacchus Marsh plant;

• securing supply and offtake agreements;

• exploring additional market opportunities for ECT’s products and;

• providing additional working capital.

The Board has authorised the release of this announcement to the ASX.

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

1 Volume weighted average market prices (“VWAPs”) have been rounded to 4 decimal places.

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