ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — Investor Presentation 2016

Nov 10, 2016

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Corporate Presentation

Friday 11 November 2016: Environmental Clean Technologies Limited (ECT or Company) (ASX:ESI) is pleased to provide its updated corporate information brochure.

This brochure is intended to act as a basis for future presentations and marketing collateral, with content subsequently tailored to each audience, such as brokers or potential customers and amended over time to reflect material developments and progress.

Managing Director, Ashley Moore commented, “As we advance our efforts in India we expect to attract attention from a range of stakeholder’s keen to learn more about our company. We’ll be stepping up activity around marketing and corporate communications over the next few months to build the awareness of our activities and their tremendous potential.”

For further information, contact:

Ashley Moore – Managing Director info@ectltd.com.au

Suite 502, Level P5, 9 Yarra Street, Melbourne Vic, 3000 Australia | Phone +613 9939 4595 | www.ectltd.com.au | ABN 28 009 120 405 Listed on the Australian Stock Exchange (ASX:ESI)

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Corporate Presentation

November 2016

“Bridging the gap between today’s use of resources and tomorrow’s zero-emissions future”

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Disclaimer

Environmental Clean Technologies Limited (“ECT” or “the Company” ) has taken all reasonable care in compiling and producing the information contained in this presentation. The Company will not be responsible for any loss or damage arising from the use of the information contained in this presentation. The information provided should not be used as a substitute for seeking independent professional advice in making an investment decision involving Environmental Clean Technologies Limited. Environmental Clean Technologies Limited makes no representation or warranty, express or implied, as to the accuracy, reliability, or completeness of the information provided. Environmental Clean Technologies Limited and its respective directors, employees, agents and consultants shall have no liability (including liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information, or matters, express or implied arising out of, contained in or derived from, or any omissions from this presentation.

This presentation contains "forward looking statements" which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of ECT, industry results or general economic conditions, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. In particular, certain forward looking statements contained in this material reflect the current expectations of management of the Company regarding among other things: (i) our future growth, results of operations, performance and business prospects and opportunities; (ii) expectations regarding the size of the market and installed capacity of our Coldry and Matmor plants; (iii) expectations regarding market prices and costs; and (iv) expectations regarding market trends in relation to certain relevant commodities, including benchmark thermal coal and metallurgical coal prices and foreign currency exchange rates.

Forward looking statements are only predictions and are not guarantees of performance. Wherever possible, words such as "may," "would," "could," "will," "anticipate," "believe," "plan," "expect," "intend," "estimate," "aim," "endeavour" and similar expressions have been used to identify these forward looking statements. These statements reflect the Corporation's current expectations regarding future events and operating performance, and speak only as of the date of this material. Forward looking statements involve significant known and unknown risks, uncertainties, assumptions and other factors that could cause our actual results, performance or achievements to be materially different from any future trends, results, performance or achievements that may be expressed or implied by the forward looking statements, including, without limitation, changes in commodity prices and costs of materials, changes in interest and currency exchange rates, inaccurate geological and coal quality assumptions (including with respect to size, physical and chemical characteristics, and recoverability of reserves and resources), unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, delays in the receipt of government and other required approvals, and environmental matters), political risk and social unrest, and changes in general economic conditions or conditions in the financial markets or the world coal, iron and steel industries.

The materiality of these risks and uncertainties may increase correspondingly as a forward looking statement speaks to expectations further in time. Although the forward looking statements contained in this material are based upon what the Company believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward looking statements. These forward looking statements are made as of the date of this material and are expressly qualified in their entirety by this cautionary statement. We do not intend, and do not assume any obligation, to update or revise these forward looking statements, unless otherwise required by law. Prospective purchasers are cautioned not to place undue reliance on forward looking statements. This presentation is for information purposes only and does not constitute an offer to sell or a solicitation to buy the securities referred to herein.

2

Contents

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Section Section Section Section Section 1 2 3 4 5 Page 4 Page 19 Page 32 Page 45 Page 50 Corporate Information Coldry Technology Matmor Technology Commercialisation Projects Strategy

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• ˃ Corporate Overview ˃ Board and Management ˃ Corporate Structure ˃ Purpose, Mission, Vision ˃ Values ˃ Business Model ˃ Projects ˃ Milestones ˃ Partners

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Corporate Overview

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Share price chart (A¢ per share)
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Issued Capital (as at 30 June 2016)
ASX Code	ESI
Shares (pre-issue)	2,738 M
Options ESIOA	1,211 M
Options ESIOB	858 M
Market Capitalisation	~$54 M
Share Price	2.0¢
2015-16 Trading Range	1.0¢ - 3.5¢
Cash & Debt (as at 30 June, 2016)
Cash (as at 31 August 2016)	$684 k
Current Assets (total incl cash)	$2.38 M
Short term Debt	$1.00 M
Current Liabilities (total incl debt)	$1.58 M
Liquidity Ratio	1.51
Shareholders (as at 9 Nov, 2016)
Total shareholders	4,015
Top 20	~30%
Top 40	~40%
Top 100	~52%

Corporate Presentation November 2016 | 5

Board and Management

	Director	Fozard	Moore	Smith	Richards
	Exec	●	●
	Non-Exec			●	●
	Audit & Risk		●	●
	HR & Gov	●			●
	Finance Engineering Legal Industrial Plant Ops	●	● ●	●	● ●	Non-Executive & Independent

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Glenn Fozard

Executive Chairman

Glenn has a strong commercial background and over 16 years experience in finance and capital markets at both board and executive level. With a deep understanding of tailored financial solutions for SMEs in the R&D, Cleantech and Agricultural sectors, he supports the company with valuable guidance in the technology development, risk management and capital raising areas. Glenn has worked with ECT for over seven years and continues to support the business in the executive role of Business Development and Corporate Finance.

Ashley Moore

Managing Director

Ashley is a Chartered Professional Engineer, with extensive experience in all facets of manufacturing, plant operations, supply chain management, sales and marketing and major project delivery from 30 years in industry. Ashley joined the company in October 2009 as Business Manager, Coldry. Ashley was appointed to the role of Chief Operating Officer of the company in August 2011, and then to Managing Director in 2013.

David Smith

Non-executive Director - Chair of Audit and Risk Committee

David has a strong legal and commercial background, having practiced commercial law for over 25 years including nearly 18 years as a partner in national firms. He is currently a partner in the intellectual property and technology group at Gadens Lawyers. He has assisted many companies with protecting their intellectual property, IP commercialisation agreements, collaborative research agreements and international negotiations. This year David was recognised as a 'Best Lawyer - Intellectual Property' for the third year running.

Barry Richards

Non-executive Director – Chair of HR & Governance Committee

Barry has a strong industry and commercial background of over 30 years including his role as Managing Director of Mecrus Pty Ltd since its formation over 16 years ago, contract and business development roles with Siemens / Silcar, and operations and maintenance management experience with the State Electricity Commission of Victoria (SECV). He provides extensive experience in business management, major project development and delivery, coal plant operations and maintenance and has a broad understanding of technology and process development.

Corporate Presentation November 2016 | 6

Board & Management cont.

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Adam Giles

Corporate Communications & Company Secretary

Adam has over 25 years business and management experience across both private and public sectors. His long-term involvement with the development of the Coldry and Matmor technologies and as a founding shareholder of the Company provides valuable background, helping inform strategic direction. Key responsibility areas include Corporate Communications and Governance.

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James Blackburn

Chief Operating Officer

James has a strong executive background as a corporate development practitioner with over 18 years experience in governance, operational, and technical roles across research, investment and corporate services disciplines. James has core responsibility for ECT Corporate Services and plays a key role in the company's commercialisation programs.

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Keith Henley-Smith

Chief Scientist – Metallurgy

Keith is a chemical engineer, metallurgist and inventor with over 40 years experience. Mr Henley-Smith leads the fundamental research and development efforts for Matmor.

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Warrick Boyle

Chief Engineer – Coldry

Warrick is a Manufacturing and Chemical Engineer with 20 years experience across diverse manufacturing roles in medical, chemical, industrial, pharmaceutical and consumer goods. Warrick’s core responsibility is the fundamental process development of the Coldry technology and the operations of the High Volume Test Facility.

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Lachlan Bartsch

Chief Engineer – Matmor

Lachlan is a project manager with strong operational background and engineering design experience with a focus on metallurgical applications and design consulting. Lachlan’s experience with the multidisciplinary management of feasibility and prefeasibility studies as a Project Engineer and Area Manager, combined with his metallurgical, operational and commissioning experience provides an ideal skillset to drive the Matmor development and commercialisation program.

Corporate Presentation November 2016 | 7

Corporate Structure

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Board of Directors

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Key Responsibility Areas
• Strategy & Planning Executive Non-Executive
• Audit & Risk Committee
• HR & Governance
Committee
• Company Secretariat
• Expert support and
oversight to operations
Chair MD Company
Secretary
Functional Structure
MD
Corporate Services Projects and Business Development
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Engineering & Technology
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• R&D administration

• Finance

• Sales/Marketing

• Communications

• Risk Management

• IT

• Legal / Accounting

• Project Pipeline

• Project Management

• • Capital Management

• Detailed Design

• OEM / EPC / O&M Vendor Development

• Domestic commercial contracts

• R&D program implementation

  • & management

• Data collection

• IP development

• Plant operations & maintenance

• HRM

Corporate Presentation November 2016 | 8

Corporate Strategy

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We bridge the gap between today’s use of resources and tomorrow’s zero-emissions future

Purpose

Mission Vision

The company commercialises innovative technologies to increase the economic and environmental benefits derived from low grade, low rank and waste resources (Targeted Resources)

We are recognised as a leader in the commercialisation of innovative technologies, providing increased economic and environmental benefits from the utilisation of Targeted Resources

Corporate Presentation November 2016 | 9

Corporate Values

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ECT has developed a set of corporate values which are as important as the technologies to our company.

These values are at the heart of how we conduct our business.

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Bridging the Gap:

We are focused on technology as an enabler to a zero-emissions future

Frugal Innovation:

We strive to deliver innovative outcomes, through reducing complexity, cost conscious execution and fit-for-purpose engineering

Collaboration:

We work collaboratively to yield the best possible outcomes

Integrity:

When we say we will do something, we do it – and we do it responsibly

Sustainability:

We consider the safety, quality and environmental outcomes of our decisions

Corporate Presentation November 2016 | 10 Corporate Presentation November 2016 | 10

Business Model

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ECT takes technologies, consistent with our Purpose, through the entire commercialisation process and into industrialisation.

Each stage is supported by our three departments which specialise across the commercialisation chain:

• ˃ Engineering & Technology

• ˃ Projects and Business Development

• ˃ Corporate Services

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Technical Proof Monetisation
& IP Control & Bankability
Technology Fundamental Scale Market Commercial
Applied R&D Market Pull
Push R&D Demonstration Development Application
Projects & Business Development
Engineering & Technology
Corporate Services
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Corporate Presentation November 2016 | 11

Solving Problems

The world is transitioning from a heavy industrialisation phase, where access to lower cost inputs was the priority, toward a technology driven paradigm that aims to reduce the impact of that industrialisation in the continued pursuit of economic growth.

This transition creates great tension between the old and the new, with the principles of the debate often overshadowing practical solutions.

CO 2 emissions are progressively being priced and access to valuable inputs is becoming a strategic, commercial and political imperative.

Utilisation of lower cost resources and the mitigation of CO2 intensive processes represent an abundance of opportunity.

Economic security is the primary policy objective of nations.

Energy and resource security underpins economic security allowing nations to afford the cost of environmentally cleaner pathways.

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Economic
Security
E [3]
Energy &
Environmental
Resource
Security
Security
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Corporate Presentation November 2016 | 12

Core Technology Solution

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H O
2
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Innovative resource upgrading and conversion technologies

Minerals processing technologies focused on transforming low-value resource streams into higher grade, valuable products delivering positive economic, energy, resource and environmental security outcomes.

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Fe
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Unique low rank coal drying technology - Coldry

• ˃ IP owned 100% by ECT and protected in all major markets

• ˃ World’s most efficient pre-drying process for high moisture content coals

• ˃ Enables low-rank coal use in downstream conversion process for high value products and applications

• ˃ Outstanding environmental credentials including a zero net CO2 footprint from the process

• ˃ Construction-ready designs for first commercial scale plant ready to go

Primary iron processing technology – Matmor

• ˃ Intellectual property owned 100% by ECT

• ˃ Integrates with Coldry which acts as the feedstock preparation stage

• ˃ Reduces manufacturing costs by ~65% through use of low cost, abundant raw materials

• ˃ Reduces energy costs through innovative thermo-chemical pathway (impact embedded in manufacturing costs above)

• ˃ CO 2 emissions reduction helps deliver lower emissions intensity

Corporate Presentation November 2016 | 13

Emerging Technology Solutions

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H
2
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“Frugality drives innovation, just like other constraints do. One of the only ways to get out of a tight box is to invent your way out.”

Jeff Bezos.

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Ni
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ECT’s pursuit of the “why” and “how” of our core technology has led the company to make new discoveries which promise to open up new markets and turn waste into value.

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Zero
CO
2
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Hydrogen

• ˃ ECT is developing world leading know-how of hydrogen chemistry in low grade coals

• ˃ Targeting the lowest cost means of extracting hydrogen from low rank coals

• ˃ Potential applications of this know-how include purpose built hydrogen production

High-value metal products

• ˃ ECT is expanding the Matmor footprint to include alloys and high value upgraded materials, e.g.

• ˃ Fe Mn Alloys

• ˃ Fe Ni Alloys

• ˃ Synthetic Rutile

Carbon-neutral steel plants

• ˃ Lower capital cost plant and lower CO2 emissions results in cleaner iron and steel making

• ˃ Savings on plant cost can be used to purchase CO2 credits, offsetting the remaining process emissions

Corporate Presentation November 2016 | 14

Current Company Projects

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Bacchus Marsh High Volume Test Facility (HVTF)

• ˃ Facility to support continuous improvement, further R&D, with capacity targeting up to 25,000 tpa Coldry pellet output for enhanced R&D program data collection at large pilot scale

• ˃ Output may find a market consistent with R&D Tax Incentive feedstock rules

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India integrated Demonstration Plant

• ˃ Large Government of India owned partners, NMDC and NLC for up to 25,000 tpa (metal) integrated Coldry & Matmor plant

• ˃ Completion of Techno-Economic Feasibility study June 2016 triggers advance to commercial discussions

• ˃ Draft Project Framework Agreement under negotiation (Oct 2016)

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India Industrial Plant

• ˃ Partnerships with NLC and NMDC for a 500,000 tpa billet steel plant utilising Coldry & Matmor technologies

• ˃ Flow on from completion of the integrated Coldry+Matmor demonstration-pilot plant

• ˃ In-principle agreement on pathway to commercialisation

Corporate Presentation November 2016 | 15

Future Company Projects

Australian Plant Opportunities

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• ˃ Scoping study to start FY2017 for Australian based plants which may include:

• ˃ Vic and SA Integrated Demonstration Plant

• ˃ Vic Coldry plant integrated with pyrolysis or gasification

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Indonesia Integrated Industrial Plant

• ˃ Large lignite reserves and demand for steel

• ˃ Economic plant construction and operations

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• ˃ Completion of Techno-Economic Feasibility study FY2019

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European Integrated Industrial Plant

• ˃ Large lignite reserves and demand for steel

• ˃ Economic plant construction and operations

• ˃ Completion of Techno-Economic Feasibility study FY2020

Corporate Presentation November 2016 | 16

Corporate Milestones

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2016
2013
2007 Coldry Pilot 2014
Matmor plant Ver. 3 Coldry
Test Plant Detailed Commercial- 2019
Semi- commercial- Demo scale Industrial
2017
2006 continuous scale design design Demo Plant Plant Project
ASX Listing Production completed Construction Start
2007 Tri-partite
2009 2014 India 2018
Coldry Pilot Demo Plant
Coldry Pilot Matmor Agreement
plant Ver. 1
plant Ver. 2 acquisition Operation &
Continuous
evaluation
Production Water recovery 2015 Project
Matmor test Agreements
plant
Coldry
upgrade
(HVTF)
commenced
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Corporate Presentation November 2016 | 17

Our Partners

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Projects & Engineering
Corporate
Business &
Services
Development Technology
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Corporate Presentation November 2016 | 18

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˃ Value Proposition

• ˃ Thermal Coal Market

• ˃ Technology Introduction

˃ The Low Rank Coal Challenge

• ˃ The Drying Challenge

• ˃ The Coldry Process

• ˃ Value Transformation

• ˃ Market Opportunity

˃ Competing Technology

• ˃ Coldry Business Model

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Coldry Value Proposition

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˃ Opens new markets Matmor Iron & Steel Market
˃ Establishes new revenue
streams
˃
Diversifies energy and • Natural Gas Market
Conversion
• Liquid Fuels
resource options Processes • Chars, PCI & Oils
˃ Upward revaluation of
stranded or low value low
High
rank coal assets High Value Efficiency
Electricity Market
Applications Power
˃ Enhanced efficiencies Generation
˃ Mitigate CO2 emissions
Coldry Thermal
Thermal Coal Market
Product Applications
Cost effective low rank
Coldry Start Fuel or
coal drying is the ‘gateway’ Process Blend Fuel
enabler.
Traditional utilisation
Low rank
Low rank Coal Fired
pathway is ‘low value’.
Electricity Market
coal Power
station
High value
Medium value
Low value
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Moving up the value chain
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Corporate Presentation November 2016 | 20

Coldry Value Proposition:

Spotlight on the thermal coal market

• ˃ Incremental income from sales of upgraded product enabled by low marginal upgrade cost

• ˃ Competition – Seaborne Thermal coal trade

• ˃ To gain competitive space, you must be able to displace others on the supply curve

• ˃ With current pricing, less than half of supply generates profitable sales for traditional suppliers (horizontal dashed line). Via Coldry (blue line), ample margin is available even at lower pricing levels.

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FOB Cash Costs*

Adjusted to 6300kCal/kg energy Content

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120
This ‘gap’ between market price and cost
100 of production is the opportunity for low
rank coal asset owners
Current market price
80
60
40
Coldry Marginal Cost per tonne
20
0
Cumulative tonnes per annum (million)
$US/t
0 40 80 120 160 200 240 280 320 360 400 440 480 520 560 600 640 680 720 760 800 840 880
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Energy Transition Advisors stated:

“… Current spot prices to be below the “cash costs” of production for nearly one-half of total capacity and to be below the “breakeven coal price” (which includes capital costs and economic returns) for two-thirds of total capacity. Over half of China’s coal producers have cash costs in excess of domestic Chinese spot prices….”

October 2014

*Source: Metalytics – Thermal Coal Cost curve 2015

Corporate Presentation November 2016 | 21

Coldry technology introduction

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Low-rank coal drying

• ˃ Enhanced efficiency

• ˃ Greater energy security

• ˃ High value applications

• ˃ Low emissions

Process Features	Benefits
Low temperature, low pressure	Lower opex cost per tonne
Simple, patented mechanical design	Lower capital intensity, robust, reliable, lower operating & maintenance cost
Unique ‘Densification’ & waste heat utilisation approach	Enables low temperature, low pressure removal of moisture resulting in net energy uplift, low opex and zero CO2
Modular	Scalable, cost effective

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Corporate Presentation November 2016 | 22

Coldry technology introduction

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Gateway

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Domestic
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Product Features	Benefits
Low moisture, high energy value	Higher price, broader market applications
Stable	Won’t permanently reabsorb moisture, low spontaneous combusting risk, storable, transportable
Retained volatile matter	Ideal for coal conversion technologies, yielding more gas and oil than black coal
Variable product output (pictured left)	Fit for purpose product format tailors hardness to customer needs: ˃ ‘Gateway’ is ECT’s ‘fast dry’ product, producing a lower cost but more friable product, ideal as a cost-effective front end feedstock for conversion processes. ˃ ‘Domestic’ grade is the ‘standard’ Coldry product, robust enough to withstand handling and transport in local markets with minimal fines generation. ˃ ‘Export’ grade is designed to withstand the rigours of multiple bulk handing points over long distances with minimal fines generation.

Coldry Product 'Toughness' Indicators

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160
Export
140
120
100
Domestic
80
60
‘Gateway’
40
0.9 1 1.1 1.2 1.3 1.4 1.5
Relative Density
Compressive Strength (kg)
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Export

Corporate Presentation November 2016 | 23

The low rank coal challenge

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To enable low rank coal use in higher value applications, it needs to be dried.

• ˃ High moisture content

• ˃ Low energy content

• ˃ Not suitable for use in black coal applications or further upgrading

• ˃ CO 2 intensive power

• generation

• ˃ Significant risk of spontaneous combustion compared to bituminous coal

• ˃ Limits storage volume and duration

• ˃ Increased transport cost

• ˃ Inefficient transportation cost due to carting mostly water

Moisture Content Range

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70
60
50
The challenge is
40 to get the
moisture down
30
from here…
20
10 … to there…
0
Low Rank Coal High Rank Coal
Moisture content (%)
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Energy Content Range
6000
5000
4000
3000
2000
1000
0
Low Rank Coal High Rank Coal
Energy Content (Net Calorific Value/kg)
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… and increase energy content up from there…

Corporate Presentation November 2016 | 24

The Drying Challenge

Drying is easy.

Drying efficiently and costeffectively is the challenge.

Coldry meets the challenge.

Achieving a net energy uplift and zero CO emissions at the 2 lowest possible marginal cost, is the goal.

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“It is difficult to dry low rank coal with high efficiency. For hard coals, the majority of the moisture is present on the surface of coal particles. Energy required to remove free moisture is simply the latent heat of evaporation (~2.27MJ/kg). In contrast a

considerable portion of the moisture is held by hydrogen bonds in the capillary pores or interstices of low rank coal particles. Hydrogen bonding increases the strength of moisture holding and more energy is needed to remove a certain amount of moisture from low rank coal. Another severe problem with drying low rank coal is the ease of reabsorption of moisture. To achieve deep drying of low rank coal, the number of hydrogen bonds has to be reduced by destroying them either using thermal or mechanical methods, which is the key to any effective drying process.”

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Dr Nigel S Dong, IEA Clean Coal Centre
Low
Rank
Internal
Coal
Pores
Surface
pores
Surface
Structurally
Water
Trapped
Water
Low rank ‘coal particle’
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Corporate Presentation November 2016 | 25

Coldry Process

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“One distinct advantage of Coldry is the relative low heat requirements in the drying process, allowing for the opportunity to make use of waste heat from an industrial facility or power plant.”

Dr Victor Der Former Assistant Secretary for Fossil Energy, US Dept. of Energy General Manager, North America, Global CCS Institute

Mine

Waste Heat

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1 2 3 4 5 6 7 Screening & Shear & Extrude Conditioning Continuous Water Coldry Pellets feed control attrition Packed Pad recovery Drying (optional)

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Coldry Value Transformation

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“Given India’s large demandsupply mismatch of thermal coal, the Coldry technology offers an efficient and costeffective solution to utilize the 43 BT (est.) lignite reserves of India efficiently to bolster the energy security of the country while mitigating any adverse impact on the climate.”

YES Bank Ltd, India

• 55% moisture content lignite via ‘gateway’ product used as an example

The marginal upgrading cost supports substantial value add through allowing low-rank coal to service higher value coal markets, with significant margin.

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1.84 tonnes raw coal 1 tonne Coldry
Moisture
~53%
Moisture <15%
Dry Matter Dry Matter
~47% >85%
Processing cost and Margin
80.0
60.0
40.0
20.0
0.0
Corporate Presentation November 2016 | 27
Raw Lignite Feed systems Shear & Extrude Conditioning Packed Bed Drying Finance & Deprecn. Indicative Margin Sales Price
USD/tonne
----- End of picture text -----*

Market Opportunity

Coldry enables enhanced utilisation of low-rank coal resources by allowing them to service higherrank coal applications

The market for coal currently exceeds 7 billion tonnes per year, with the majority of consumption for energy generation and steel production.

Electricity generation is dominated by high rank coal. Upgrading via the Coldry process allows low rank coal to access this market.

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World Recoverable Coal Reserves & consumption

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----- Start of picture text -----

Content Carbon / Energy Content
of Coal Moisture content
% of 55% Low rank coal 45% High rank coal
World Reserves 23% Lignite 32% Sub-bituminous Bituminous
% of 14% 13% Sub-
73% Bituminous
Consumption Lignite bituminous
----- End of picture text -----

Coal Use (bn tonnes per year)

Electricity Generation (GW)

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----- Start of picture text -----

0.2 100
1.2
6.5
1100
Energy Steel Other Low Rank High Rank
----- End of picture text -----*

0.1 Bn tonnes market penetration = 250 Modules of capacity similar to India project

Energy; electricity, steam and conversion to gas and liquid fuels *Including cement manufacture, fertiliser Source: World Energy Energy Council

Corporate Presentation November 2016 | 28

Market Opportunity - Global Application

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Major low rank coal reserves

Australia

China

Indonesia

India & Pakistan

Turkey

Thailand Germany

Czech / Serbia / Poland …

North America

!

Fast Fact – Capacity represents significantly more than 500 years of consumption at current rates, i.e. ample space for growth if achieved with improved sustainability.

Corporate Presentation November 2016 | 29

Coldry Competitors

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----- Start of picture text -----

˃ This graph is a proxy Coldry is the world’s first low temperature, low pressure drying method capable
for process energy of producing a black coal equivalent product via a low cost, zero CO2 process.
efficiency.
˃ High temperature and
pressure requires
Low-rank coal
energy input. drying
20
processes
˃ Energy needs to be
generated, either from Coldry
gas or coal, adding cost
Steam Tube
to a process. Drying
˃ ECT have ‘cracked the
10 Upgraded Brown
code’ of efficient low Coal
rank coal drying.
0
0 100 200
Temperature (°C)
Higher OPEX Cost
Corporate Presentation November 2016 | 30
Higher OPEX Cost Press. (Mpa)
----- End of picture text -----

Corporate Presentation November 2016 | 30

Coldry Business Model

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Value Propositions	Revenue Streams	Customer Segments
˃ Cost effective low rank coal drying ˃ Open new markets ˃ Establish new revenue streams ˃ Diversify energy and resource options ˃ Revalue assets ˃ Enhance efficiency ˃ Mitigate CO2emissions	˃ License fees – plant sales ˃ Royalty fees – plant capacity deployed ˃ Maintenance and servicing fees	˃ Process integration ˃ Mine & power station owners ˃ Conversion process owners: ˃ Product consumption ˃ Power stations ˃ Conversion processes ˃ Matmor

Corporate Presentation November 2016 | 31

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˃ Value Proposition

• ˃ Technology Introduction

• ˃ Opportunity

• ˃ Steel Intensity

• ˃ Process Overview

˃ Inputs

˃ Commercialisation Pathway

˃ Technical Comparisons

• ˃ Business Model

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Matmor Value Proposition

• ˃ Lower cost raw materials

• ˃ Lower capital cost plant

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Business-as-usual use of lignite is relatively low value. Matmor allows lignite to be used to produce high value metal products.

• ˃ Lower emissions

• ˃ Higher value products

• ˃ Resource diversity & security

• ˃ Waste remediation solution

• ˃ Coldry provides essential

feed preparation step

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----- Start of picture text -----

Coldry Matmor Iron & Steel
Steel Making
Process Process market
Iron Oxide
Fines &
Waste
Low rank
Low rank Coal Fired Electricity
coal Power Market
station
High value
Moving up the value chain
Low value
----- End of picture text -----

Corporate Presentation November 2016 | 33

Matmor technology introduction

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Benefits

Process Features

Uses low-rank coal and alternative iron ore materials

• ˃ Low rank coal replaces coking coal ˃ Wide range of iron oxide sources

• ˃ Ability to use lower grades of iron ore ˃ Lower raw material cost

• ˃ Diversified supply chain ˃ Decoupling from coking coal and high grade iron ore improves energy and resource security

• ˃ Waste remediation solution improves environmental outcomes

• ˃ Economic advantages: Import replacement, monetise waste streams and add value to lower grade coal and iron oxide resources

• Lower operating ˃ Lower capital cost plant temperature, <1,000°C ˃ High quality metal product ˃ Increased energy efficiency

• Uses Coldry as the feed ˃ Low cost, zero CO2 drying and pelletising preparation process ˃ Eliminates coking ovens and sinter plants High Fe yield ˃ High level of Fe extracted from low value resources

• ˃ Suitable for existing steelmaking processes

Corporate Presentation November 2016 | 34

ECT Matmor Test Plant Melbourne, Australia

Matmor technology introduction

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DRI pellet

Benefits

Product Features

• ˃ Quality primary iron product suitable for existing steel making processes

High Fe content

• ˃ Low impurities resulting in high quality primary iron

Flexible output:

• ˃ Flexible applications

• ˃ DRI pellet

• ˃ Integrate seamlessly with existing steelmaking operations ˃ Feed Induction or Electric Arc furnaces

• ˃ Hot Liquid metal

• ˃ Solid Iron ˃ Export

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----- Start of picture text -----

Hot liquid
metal
Solid iron
----- End of picture text -----

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----- Start of picture text -----

High Fe
Recovery
----- End of picture text -----

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----- Start of picture text -----

45-65%
wt.%
Fe
----- End of picture text -----

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----- Start of picture text -----

Matmor
Process
----- End of picture text -----

Input flexibility: Matmor has successfully processed iron oxide inputs ranging from 45% to 65% Fe

Output: in a finished product form Matmor delivers a high quality product in line with desired market specifications.

Corporate Presentation November 2016 | 35

The ‘alternative raw material’ opportunity

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There exists a vast, ‘above ground ore body’ in the form of iron ore mine fines and slimes, and industrial wastes such as millscale and nickel refinery tailings.

Current processes can’t utilise fines and wastes without expensive pre-processing.

Matmor enables a lower cost primary iron production pathway by leveraging two unique features:

1 Decoupling iron making from coking coal

By utilising the rich organic chemistry within low rank coal, the Matmor process utilises a different chemical pathway to deliver a high quality product without the need for high quality coking coal, resulting in decreased raw material cost and diversified supply options.

Matmor liberates this resource in an efficient, cost-effective manner.

2 Exploiting the ‘above ground ore body’

By harnessing the vast ‘above ground ore body’ that exists as mine tailings, fines and slimes and from industrial wastes such as millscale and nickel refinery tailings, Matmor is able to leverage sunk mining and processing costs by providing a waste remediation solution that turns a contingent liability into a revenue stream.

Tailings storage locks up significant swathes of valuable land. Matmor minimises waste, releasing land for productive use.

Corporate Presentation November 2016 | 36

The ‘steel intensity’ challenge

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India is positioned to substantially increase its steel demand, yet is heavily reliant on imports of coking coal and iron ore.

The most powerful forces driving steel demand are aligned. As economies develop and modernise, steel consumption per capita grows, reflecting a wide range of growing applications – basic infrastructure, water treatment plants, food processing distribution centres, roads, bridges – and, as the middle class emerges, durable goods such as appliances and cars.

India has signaled its intent to double steel intensity from 64kg to 120kg per capita per year.

Matmor opens up new domestic raw material supply options in support of growth in emerging nations.

In countries with mature steel intensity curves, Matmor is an ideal waste remediation solution.

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----- Start of picture text -----

Steel Intensity (2015)
1200
South Korea
World:
Per capita
1000
GDP
$9,995 Red line represents the
average steel intensity
800 curve
Czech Republic
600
Japan
China
Germany
Canada
Turkey
400
Italy USA
Poland Russia
Thailand Australia
Spain France Netherlands
200 Mexico World:
India
Brazil 229 kg per capita
South Africa
Morocco
0
$0.00 $10,000.00 $20,000.00 $30,000.00 $40,000.00 $50,000.00 $60,000.00
GDP (USD) per capita
Apparent steel consumption (kg per capita)
----- End of picture text -----

Data: World Steel Association, World Bank Bubble size represents population

Corporate Presentation November 2016 | 37

Matmor Process

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----- Start of picture text -----

Inputs
Iron ore Low-rank coal
Waste
Heat
1 2 3 4 5 6 7 8 9
Mix & Condition Dry Composite Matmor DRI Steel Casting Finished
extrude Pellets Retort Pellet Refining Steel product
(Electric Arc
Furnace)
----- End of picture text -----

Matmor employs a different chemical ! pathway, making it the world’s first and only low temperature, low rank coal-based iron making process.

Corporate Presentation November 2016 | 38 Corporate Presentation November 2016 | 38

Inputs

Creating higher value product opportunities

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• ˃ The Matmor process combines metal oxide bearing media, low rank coal and a flux via the Coldry process to produce a composite pellet

• ˃ Feedstock flexibility: Matmor can reduce the following metal oxides to metal: ˃ Iron Ore: ˃ Hematite: Fe O 2 3 (Lump, fines and slimes)

• ˃ Magnetite: Fe3O4 – without the need for sintering

• ˃ Waste streams:

• ˃ Mill scale

˃ Blue Dust

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• ˃ Fe within Nickel ores (Limonite) and Nickel refinery tailings:

• ˃ Also recovers Ni within the alloy

• ˃ Has also recovered Cr content within these same materials

• ˃ Positive test results on both Ilmenite (Ti source) & Mn ores with further development required

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Matmor Commercialisation Pathway

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----- Start of picture text -----

Current stage of
development
Commercial
Bench Test Pilot Commercial
Scale
Scale Scale Scale Scale Demo
Expansion
~1 to 2 tph ~125,000 tpa ~500,000 tpa
capacity capacity capacity
----- End of picture text -----

Bench Test Unit

• ˃ 10kg output

• ˃ Batch Process

• ˃ Complete and in active service

Test Plant

• ˃ 1 tonne per day

• ˃ Single tube

• ˃ Semi-continuous process

• ˃ No pellet making integration

• ˃ Stage 1 complete

• ˃ Stage 2 due to commence H2 2016, now underway

Pilot Plant

• ˃ 1-2 tonne per hour ˃ Full automation

• ˃ Integrated pelletisation

• ˃ Multiple retort tubes

• ˃ Testing & validation

Commercial Demo

• ˃ Single furnace

• ˃ Multi-retort tube scale up

• ˃ Testing & validation

• ˃ Completion of R&D objectives

Commercial Expansion

• ˃ Modular deployment

• ˃ Commercial operations

Corporate Presentation November 2016 | 40

Matmor Process vs. Blast Furnace

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----- Start of picture text -----

Matmor Process
Low rank coal
˃ Lower Cost
˃ Simpler Steel Refining
Iron Direct Reduced
˃ More flexible Coldry Process Matmor Process Electric Arc
Oxide Iron Pellet
˃ Less CO Furnace
2
Flux
˃ Lower cost inputs Environmental Improvement Efficient Product:
˃ Utilise domestic Eliminates: Lower temperature than Blast Tailored to the same specification
raw materials ˃ Sinter plant Furnace: as traditional processes delivering
˃ Utilise waste ˃ Coke ovens ˃ Lower capex the desired grades of iron and
grade ore ˃ Associated CO2 emissions ˃ Lower maintenance cost steel for various applications.
˃ Economic at smaller scale
Blast Furnace
Coking
Coke Ovens
Coal
Steel Refining
Iron Sinter Pig
Blast Furnace Basic Oxygen
Oxide Plant Iron
Furnace
Flux
Corporate Presentation November 2016 | 41
----- End of picture text -----

Benefits vs Blast Furnace

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Decoupling from traditional raw materials strengthens a business’ resistance to inherent price volatility

• ˃ Critical Raw material prices have moved between early and late 2016; mainly Coking coal

• ˃ Compared below is F2015/16 average (left) vs. mid October Spot (right)

	Traditional	ECT		Traditional	ECT
	BF - BOF	C/M - EAF		BF - BOF	C/M - EAF
	Blast Furnace - Basic Oxygen Furnace	Coldry / Matmor - EAF + Power Generation		Blast Furnace - Basic Oxygen Furnace	Coldry / Matmor - EAF + Power Generation
Case / Scenario	Base Case	Mid Case		Base Case	Mid Case
	Crore ₹	Crore ₹		Crore ₹	Crore ₹
CAPEX	2,522	1,607		2,522	1,607
OPEX	969	1,002		1,485	1,022
SALES	1,264	1,307		1,330	1,376
Gross Profit	295	305		-155	354
IRR (ungeared)	9.1%	17.2%		negative	20.0%
IRR (geared 30%)	7.7%	18.4%		negative	22.1%

Inherent strength – Lower Capex, plus ability to use lower cost raw materials

• ˃ Coking coal (above $US 85 FOB)

• ˃ Fe Ore fines

2016 mid October spot price:

• ˃ Coking coal - $US 245 FOB

• ˃ Also, escalation of Ore & Steel (less significant)

Corporate Presentation November 2016 | 42

Currency: Indian Rupees

Benefits vs other methods

• ˃ Lower Temperature ˃ Lower residence time, higher productivity

• ˃ Lower Cost

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----- Start of picture text -----

!
• Residence time is a
proxy for asset
productivity
----- End of picture text -----

• Temperature is a proxy for asset capital intensity

• Bubble size represents ‘Relative Raw Material Cost’

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----- Start of picture text -----

Iron Production
Relative Raw Material Cost vs. Time & Temperature
20
18 Low temperature + low
16 Direct Reduced Iron residence time = lower
14 cost and higher
12 productivity
10
8 Blast Furnace
6
4
Matmor
2
0
700 800 900 1000 1100 1200 1300 1400 1500 1600 1700
Temperature (◦C)
Primary
Iron
Making
Process
Blast Furnace DRI Matmor
Temperature
1300-1500 1000-1100 800-900
(degrees C)
Residence Time
6 12-18 1.5-3
(hours)
Residence Time (hours)
----- End of picture text -----

Corporate Presentation November 2016 | 43

Matmor Business Model

• Value Propositions Revenue Streams ˃ Cost effective primary iron production ˃ Technology IP - Royalty fees from plant ˃ Waste remediation solution capacity deployed ˃ Open new markets ˃ Detailed Design and OEM – vending of ˃ Establish new revenue streams third party services ˃ Diversify energy and resource options ˃ Project Management fees – plant ˃ Revalue assets design through to commissioning ˃ Enhance efficiency ˃ EPC – Commission on contract value ˃ Mitigate CO2 emissions managed ˃ Maintenance and servicing – Commission on contract value managed

• ˃ Direct plant ownership / operation

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• Customer Segments Process integration ˃ Integrated steel plants ˃ Stand alone plant Product consumption ˃ Integrated steel plants ˃ Electric Arc Furnace ˃ Induction Furnace

Corporate Presentation November 2016 | 44

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˃ Commercialisation Pathway ˃ Revenue Model ˃ Commercialisation – next steps ˃ Value Proposition for low rank coal owners

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Commercialisation Pathway

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----- Start of picture text -----

Technology Fundamental Scale Market Commercial
Applied R&D Market Pull
Push R&D Demonstration Development Application
ECT’s commercialisation strategy is a core part of its
business model. Revenue is the goal.
˃ Commercialisation is the process that converts ideas, Supply Chain
research, or prototypes into viable products and
production systems.
Manufacturing Implementation
˃ Commercialisation relies on the creation of effective
manufacturing, supply chain and implementation
strategies. Commercialisation
˃ Research, development and commercialisation require
significant investment before revenue is realised.
Regulatory Sales
˃ Our commercialisation strategy also includes
marketing and sales systems, which will seek to drive
the transition from research investment to revenue Marketing
generation.
----- End of picture text -----

Corporate Presentation November 2016 | 46

Revenue Model

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Technology IP Royalties:

IP royalties represent a primary income stream to ECT in the future. Current model for India is based on industry benchmark pricing for replacement product equivalents and the installed plant capacity

Original Equipment Manufacturing

ECT will develop and secure a global agreement / s (and ongoing income from) the manufacturing of specific Coldry and Matmor equipment to be supplied to future projects.

Detailed Design (project specific):

Through engaging with specialist external partners, ECT will vend design services including detailed plant design, CAPEX estimates and OPEX estimates for each project.

Engineering, Procurement & Construction: EPC providers will be contracted to each project either directly by the project entity itself or indirectly through ECT where appropriate.

Operations & Maintenance:

Similarly to the EPC services, O&M providers will be contracted to each project either directly by the project entity itself or indirectly through ECT where appropriate.

Corporate Presentation November 2016 | 47

Commercialisation – Next Steps

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• ˃ Transition to Revenue:

The initial project in India will represent a transition from an ‘investment model’ to a ‘revenue model’ due to its ‘Demonstration and Integrated’ nature, with opportunities to optimise economics following successful operational proving.

• ˃ Target revenue streams include:

• ˃ Technology IP License – royalties based $/tonne Coldry and Matmor Capacity

• ˃ Detailed Design Services – delivered as part of the IP & project Management agreements

• ˃ OEM Services – delivered as part of Project management services

• ˃ Bespoke & adaptive:

Revenue modelling for future projects will necessarily incorporate tailored aspects of the business model and revenue streams, reflecting project specific criteria, with an average earnings indicator being derived from installed capacity data.

• ˃ Timing:

Initial revenues targeted to be realised during commercial demonstration (design, OEM and EPC)

• ˃ Assessment:

Engaging market analysts to provide regular valuation views based on active and pipeline projects to provide guidance to the market.

Corporate Presentation November 2016 | 48

Market Pull - Value Proposition for Low rank coal asset owners

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Incremental sales from existing low rank coal assets into higher value markets:

˃ Coldry Participate in thermal coal markets on a competitive marginal cost basis against thermal coal miners

˃ Matmor Participate in the iron and steel markets with a fundamental raw material and operational cost advantage against incumbent processes.

FOB Cash Costs* Adjusted to 6300kCal/kg energy Content

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----- Start of picture text -----

120
This ‘gap’ between market price and cost
100
Current market price of production is the opportunity for low
80 rank coal asset owners
60
40
20
Coldry Marginal Cost per tonne
0
Cumulative tonnes per annum (million)
$US/t
0 40 80 120 160 200 240 280 320 360 400 440 480 520 560 600 640 680 720 760 800 840 880
----- End of picture text -----

Steel Intensity (2015)

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----- Start of picture text -----

1200 South Korea
World:
Per capita
GDP
1000 $9,995
Red line represents the
average steel intensity curve
800
Czech Republic
600
Japan
China Germany
Canada
Turkey
400 Italy USA
Poland Russia
Thailand Australia
Spain France Netherlands
200 Mexico
India
Brazil World:
229 kg per capita
0 Morocco South Africa
$0.00 $10,000.00 $20,000.00 $30,000.00 $40,000.00 $50,000.00 $60,000.00
GDP (USD) per capita
Apparent steel consumption (kg per capita)
----- End of picture text -----

*Indicative estimate

Corporate Presentation November 2016 | 49

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˃ The India Project ˃ India: The place to be for Coldry ˃ India: The place to be for Matmor ˃ Project pathway ˃ Techno-Economic Feasibility Study ˃ Bacchus Marsh High Volume Test Facility

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India Project

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Objective:

• ˃ Development of an integrated Coldry demonstration + Matmor pilot facility in India

• ˃ Launchpad for global commercial rollout

Partners:

• ˃ NLC India Limited is the custodian of India’s lignite resources, the lead partner on Coldry and the project host

• ˃ NMDC Limited is India’s largest Iron ore miner

• ˃ Both companies are PSUs (Public Sector Undertakings, i.e. Majority Government owned entities)

• ˃ Combined market capitalization in excess of A$10Bn

Location:

• ˃ Neyveli, Tamil Nadu

• ˃ ~2.8GW power station

• ˃ ~25m tpa mine output

Corporate Presentation November 2016 | 51

India: The place to be for Coldry

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India is in a major growth phase:

• ˃ Energy demand increasing, outstripping domestic primary energy source growth

• ˃ With over 4.5 Bn tonnes of proved recoverable reserves in India, low rank coal is able to play a major supporting role via application of ECT technologies

• ˃ India will be the fastest growing major economy in 2016, with the IMF projecting GDP growth of 7.5 percent against China’s 6.8 and a global rate of 3.8 percent.

• ˃ India’s coal-based energy production is projected to double by 2030

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----- Start of picture text -----

Coal Demand-Supply Gap widens Estimated Energy Mix Electricity Use
1000 India 2030 14000
India’s coal demand has
USA
900 outstripped supply since,
2000, with accelerating 12000
800 divergence since 2009 South Korea
Australia
700 10000
600 Japan
8000
500 Germany
Rusia
6000
400
300
4000
China India’s per person electricity
200 consumption is lower than
Brazil
2000 advanced economies and
100
many emerging economies.
India
0
0
1990 1995 2000 2005 2010
- 10,000 20,000 30,000 40,000 50,000 60,000
Production Consumption Coal Renewable Hydro Nuclear Gas GDP per person ($US 2014)
Million tonnes
Electricity use per person (kWh)
----- End of picture text -----

Corporate Presentation November 2016 | 52

India: The place to be for Matmor

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India is in a major growth phase:

• ˃ Infrastructure development requiring substantial increases in iron & steel production

• ˃ Domestic coking coal reserves effectively zero, heavily reliant on imports

• ˃ Low value resources (low rank coal & iron ore fines & slimes) able to play a major role in bridging this gap via application of ECT technologies

• ˃ World Steel Association projects India’s steel consumption growth rate to remain the highest in the world at 7.3% pa for 2016

• ˃ India is currently the words third largest producer of crude steel

• ˃ Indian steel production sits at ~125m tpa, with a target of 300m tpa by 2025*

• ˃ If ECT can capture just 5% of the growth via Matmor, this represents 7.25M tpa

Steel Intensity (2015)

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----- Start of picture text -----

1200
South Korea
World:
Per capita India’s steel consumption needs
1000 $9,995GDP to increase from 64kg per capita
to several hundred kg to meet
growth requirements
800
Czech Republic
600
Japan
China Germany
Canada
Turkey
400
Italy USA
Poland Russia
Thailand Australia
Spain France Netherlands
200 Mexico
India World:
Brazil
229 kg per capita
0 Morocco South Africa
$0.00 $10,000.00 $20,000.00 $30,000.00 $40,000.00 $50,000.00 $60,000.00
GDP (USD) per capita
Apparent steel consumption (kg per capita)
----- End of picture text -----

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----- Start of picture text -----

Long term evolution of world steel
Mt demand
3,000
2,500
2,000
1,500
1,000
500
1870 1890 1910 1930 1950 1970 1990 2010 2030 2050
----- End of picture text -----

*Source: EY

Corporate Presentation November 2016 | 53

India Project Pathway

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• ˃ Demonstrate as a platform for subsequent larger scale commercial roll out

• ˃ ‘Demonstration’ achieves:

• ˃ Capital defined

• ˃ O&M capability displayed

• ˃ Product quality, value and use validated

• ˃ Business model proven

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----- Start of picture text -----

Commissioning, operations
and validation
2018
Financing, Construction
Project Agreements 2017
Tripartite Collaboration Construction
Agreement Preparation
2016
Techno-Economic
Feasibility Study
Matmor Pilot Plant Development
Program
2015
Partnership Approvals
Integrated Plant Proposal
Coldry EPC Partner
----- End of picture text -----

Coldry Feasibility Study

Complete Coldry Module Design

Corporate Presentation November 2016 | 54

India: Techno-Economic Feasibility Study

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Executive Summary

• ˃ Provides assessment of a proposed integrated Coldry / Matmor Plant, for the production of steel billet, at Neyveli, India

• ˃ Comparison against incumbent technologies of Blast Furnace (BF) and Coal-based Direct Reduced Iron (DRI)

• ˃ Led by MN Dastur, with significant support from Thermax and alongside Project Partners NLC and NMDC as part of the Tripartite working group

• ˃ Based on the significant economic potential detailed in this report, ECT intends to proceed with the detailed design program in preparation for the funding and construction of an interim stage combined Matmor Pilot and Coldry Demonstration plant

• ˃ Once complete, this interim stage plant will establish the conditions precedent to the ultimate objective of a full-scale commercial plant, proposed for construction in 2019

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India: Techno-Economic Feasibility Study

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Financial Analysis	BF – BOF	DRI - EAF	C/M - EAF	C/M - EAF
	Blast Furnace - Basic Oxygen Furnace & Power Gen	Coal Based DRI - Electric Arc Furnace & Power Gen	Coldry / Matmor - Electric Arc Furnace	Coldry / Matmor - EAF + Power Generation
Case / Scenario	Base Case	Base Case	Base Case	Mid Case
	Crore₹	Crore₹	Crore₹	Crore₹
CAPEX	2,522	2,257	1,400	1,607
OPEX	969	1,187	1,085	1,002
SALES	1,264	1,372	1307	1,307
Gross Profit	295	185	222	305
IRR (Ungeared)	9.1%	5.0%	14.1%	17.2%
IRR (Geared 30%)	7.7%	1.4%	14.3%	18.4%

Commentary

• ˃ An inherent strength of the Matmor technology vs. Incumbent steel production technologies is the lower Capital deployed for the same capacity, making it competitive at smaller scale – very important in high Capex industries

• ˃ Additionally, the diversification away from traditional raw materials provides additional competitive advantage, even in a high cost (with respect to raw materials) location such as India

• ˃ The TEF basis for raw material input cost data was a H2/2015-H1/2016 average. For Coking coal, that represented $US85 per tonne FOB. In the latter part of 2016, steel production inputs, particularly Coking coal, increased price substantially, more than doubling. That impact is material on the economics – see slide 42 for further analysis.

Corporate Presentation November 2016 | 56

India: Techno-Economic Feasibility Study

Outcomes :

• ˃ Energy & Resource security;

• ˃ Through the Coldry / Matmor innovation, lignite can be used instead of higher-cost coking coal. Soft iron ores, fines, and slimes can move up the value chain, as diversified sources of supply and displace the usage of higher-cost lump ore.

• ˃ This diversification of supply via the upgrading of lower-value and stranded domestic resources increases self-reliance, assisting India to decouple from the risks of heavy reliance on international suppliers of coking coal, and enabling the use of a broader range of domestic iron ore sources.

• ˃ Sustainability;

• ˃ Energy security underpins economic security, which in turn supports the cost of environmentally cleaner pathways.

• ˃ At the broader national level, increased economic prosperity leads to better ability to invest in, and respond to key environmental outcomes.

• ˃ The Coldry-Matmor process for steel making has lower emissions intensity than incumbent processes, helping mitigate environmental impact.

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India: Techno-Economic Feasibility Study

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Outcomes:

• ˃ Economic security; Underpinned by energy and resource security, economic security drives growth and improvement in the standard of living

• ˃ Enhancement of economic security can be accomplished through the application of technology to achieve diversification of suppliers and markets, reducing a nation's vulnerability to changes in supply, price, and foreign manipulation

• ˃ The Coldry and Matmor technologies act as economic levers, upgrading lignite to enable higher value applications that can broaden supply options across thermal coal, gas, oil and fertiliser markets, mitigating reliance on imports.

• ˃ Coldry increases the efficiency at which the lignite resource is used, extending its useful life or extracting greater value.

• ˃ Matmor’s potential lies in its ability to take ‘waste’ iron ore, combine it with low-cost lignite and turn it into a high-value product. It opens the door to alternative iron ore sources, diversifying supply and mitigating imports, resulting in an improved balance of payments, increases in GDP and contributes to affordable iron and steel supply in support of infrastructure growth.

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High Volume Test Facility (HVTF)

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This project is at the heart of our core values of Frugal Innovation, where, in the process of innovating and conducting R&D, we monetise the outcomes alongside the accrual of improved knowledge

Summary of Project Drivers

• ˃ Enhanced R&D capability thanks to broader and more flexible operational parameters

• ˃ OHS&E improvements

• ˃ Automation enhancements

• ˃ Maintenance improvements

• ˃ Technology scale-up testing & de-risking and process parameter optimisations

• ˃ Enhanced drying temperature testing and simulation allows for improved application simulation

• ˃ Ability to produce larger test samples for R&D trials in end applications

The HVTF will be a future enabler of greater O&M support for projects that apply our technology as well facilitating continual improvement and innovation “beyond the lab”

• ˃ Enhanced feedstock supply capability to support Matmor Test Plant validation process

Future Use

• ˃ Innovation collaboration facility – Industry/Universities/Government

• ˃ Knowledge centre for continuous improvement of Coldry and Matmor

Plant Throughput

• ˃ Stage 2 >300% ˃ Stage 3 >600%

Corporate Presentation November 2016 | 59

Bacchus Marsh HVTF

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High Volume Test Facility

• ˃ OHSE improvements

• ˃ Improved flexibility and range of operation, allowing broader control of independent variables

• ˃ Improved environmental performance

• ˃ Enhanced capability to conduct fundamental and applied R&D across meaningful volumes

Corporate Presentation November 2016 | 60

Bacchus Marsh HVTF

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Isolation of top and bottom of PBD results in improved dust containment and lower maintenance requirements

Increased output system capacity & improved dust control systems

Modified cross-current open-circuit air flow system for greater simulation capability

Capacity and flexibility in operational parameters is enhanced by a new waste heat simulation system

Corporate Presentation November 2016 | 61

Bacchus Marsh HVTF

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----- Start of picture text -----

Coldry Primary Processing train, featuring (1) raw
coal bunker, (2) surge hopper, (3) mill, (4)
extruder and (5) conditioning belt
Raw lignite receiving
system improvements:
˃ All weather
Motor upgrades
capability ˃
1 ˃ Variable speed
Hopper and ˃
Capability improvements
conveyor upgrades
5
2
3
4
Conveyor system upgrades
˃ Belt improvements
˃ Spillage reductions
----- End of picture text -----

Corporate Presentation November 2016 | 62

Section 6

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Summary

• ˃ Technologies with a disruptive edge

• ˃ We commercialise innovative technologies to increase the economic and environmental benefits derived from low grade, low rank and waste resources

• ˃ Low cost input with a high value output provides for a competitive edge for all adopters

• ˃ Emerging market focus: India as starting point

• ˃ New technologies supporting economically sustainable growth and self sufficiency – import off-sets

• ˃ ‘Make in India’ – Strong local engineering and project partners

• ˃ Commercialisation Strategy

• ˃ Broad global application following demonstration in India – Poland, Turkey, Indonesia, Australia

• ˃ Global roll-out underpinned by Indian manufacturing hub

• ˃ Continual improvement of technology suite to maintain competitive edge.

Mr SK Acharya Chairman & Managing Director NLC India Limited

Environmental Clean Technologies Limited Corporate Presentation November 2016 | 63

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Thank you.

Glenn Fozard Chairman glenn.fozard@ectltd.com.au +613 9939 4595

Ashley Moore Managing Director ashley.moore@ectltd.com.au +613 9939 4595

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