EVZ LIMITED — AGM Information 2008

Nov 24, 2008

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ENVIROZEL LIMITED

ABN 87 010 550 357 ACN 010 550 357 Level 7, 410 Collins Street Melbourne VIC 3000 Australia PO Box 237 Collins Street West Melbourne VIC 8007 Tel: +61 3 9670 4545 Fax: +61 3 9670 6670 www.envirozel.com

25 November 2008

The Manager Companies Australian Stock Exchange Level 45, South Tower, Rialto 525 Collins St Melbourne, Vic 3000

Dear Sir

Chairman’s Address to Annual General Meeting

Please find attached the Chairman’s Address to the Annual General Meeting of the Company. This meeting is scheduled to commence at 10.00am today.

Yours faithfully

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Ian Wallace Company Secretary

Chairman’s Address at AGM

The 2008 financial year witnessed the continued expansion of the Envirozel Group. The reported EBIT of $8.7 million, a 40% increase above the previous year, reflects this expansion.

This result included a full year’s contribution from Danum Engineering and National Engineering and a 10 month contribution from the TSF Engineering group which was acquired on 1 September 2007.

Whilst the reported pre tax profit increased to $6.9 million, 25% above the previous year, the result was below expectations due to several factors:

• The National Engineering business was significantly impacted by reduced activity due to increased steel prices and the tightening in global credit markets. This resulted in the delay and cancellation of numerous construction projects particularly in the retail sector to which National was heavily reliant. Losses in this business have impacted the current financial year.

• The integration of the TSF acquisition into the Envirozel Group, unlike our previous acquisitions, proved to be very difficult and resulted in a profit contribution less than expected by the market.

• Shell in Geelong decided not to renew Danum Engineering’s maintenance contract which ended on 30 June 2008. Work under this contract unexpectedly reduced significantly in the 2[nd] half of the financial year as the contract ran out.

During the 2008 financial year Envirozel recognised the need to consolidate the acquired businesses and to optimise integration opportunities within the Group.

We have completed a thorough analysis of each business in the Group and the risk profiles associated with those businesses. This analysis recognised a number of business risks which have now been or are being addressed.

We have also reviewed our acquisition strategy. Whilst no acquisition can be said to be easy, the problems encountered and the lessons learnt from our recent acquisitions will ensure that future acquisition risks are more thoroughly evaluated and minimised.

The Group has had a geographic concentration of business, especially in Geelong, Victoria. However, it is pleasing to advise that both Brockman Engineering and Danum Engineering are expanding geographically and are seeking and winning significant work outside the Geelong regional area.

In addition both Syfon and TSF have expanded into Brisbane, with Syfon also opening an operation in Singapore. This geographic diversification has already proved to be beneficial with a number of significant contracts being won in these locations.

The Group also had an unacceptable concentration of customers. The risks associated with this concentration became evident with the loss of the Danum maintenance contract with Shell. Danum lost approximately 70% of its business, with the end of the Shell

contract. Despite this, Danum has positively responded and continues to operate profitably albeit at levels less than the prior year. Danum continues to broaden its customer base and this will result in a much more robust business going forward.

It is a strategic goal of Envirozel to minimise reliance on anyone customer or business sector.

Envirozel has also recognised the need to enhance business development and customer relationships. We have significantly boosted our commitment to Business Development resources across all operations in the Group. In these difficult economic times it is imperative that the Group continues to commit resources to secure future work.

Andrew Powis in his address to the meeting will further elaborate on how we have addressed business risk issues.

Other major initiatives undertaken to date by Envirozel include:

• Each business setting strategic goals, supported by Long term business plans.

• The introduction of a more formal management structure.

• A strengthening of the Board of Directors.

• An ongoing assessment of productivity levels and workplace culture and

• An increased emphasis on Occupational Health and safety within the Group.

I believe all of these changes will better position the Group to deal with the current issues facing the domestic and international economic climate and subsequent growth beyond the short term.

The Board of Directors and Management of Envirozel are committed to managing the future expansion of Envirozel in a responsible and sustainable manner. In the current climate we believe that the Group debt exposure is at comfortable and controllable levels and its balance sheet and cash flows can underpin future expansion.

The Envirozel Group is not immune to the domestic and international economic conditions. The Groups steel fabrication business, National Engineering, continues to struggle, with numerous delays and cancellations of construction projects. This associated with a squeezing of margins will result in National reporting a loss for the current half-year and full year.

It is our goal to get National to a breakeven operating position during the current financial year. A number of changes have been made to ensure this goal can be achieved. There have been a number of redundancies as staff levels are reduced to levels appropriate to current production requirements. There has also been a change in the management at National. A review of the overall costs structure has been completed and cost savings have been identified. Importantly National has appointed a Business Development Manager who is charged with optimising opportunities for winning work on a broader geographic and market basis.

National is in a very competitive generic steel fabrication industry which is currently depressed. Its ability to achieve breakeven status will be rigorously monitored between now and the end of the financial year.

TSF Engineering is an exciting opportunity for Envirozel. However, during the current period Telstra imposed embargoes on the back of number of significant events have impacted on its performance. The July World Youth day and the Olympic Games embargoes have unexpectedly delayed the completion of a number of projects. Whilst these delays have impacted current performance it is important to note that this work is not lost and will be completed in the second half of the financial year. TSF maintains a very strong forward order book and its goal is to widen the customer base.

The Envirozel Group continues to see a tightening in market conditions across all sectors it is involved with. Despite this the syfonic roof drainage business, Syfon Systems continues to perform to budget as does the tank construction business, Brockman Engineering.

It is not our intention at this stage to give profit guidance for the half-year. The National Engineering loss and the work delays encountered by TSF will result in a positive EBIT for the six months which will be significantly less than the reported result for the same period last year of $5.2m.

Despite the anticipated decline in profitability for the first six months of the current financial year, the Directors consider the Group to be of sufficient financial capacity to continue paying dividends albeit at a reduced level compared to the prior year. At this stage the Directors expect to declare an interim dividend of 0.25cents per share when it releases its 31 December 2008 Half-Year accounts to the market in late February 2009.

In summary, Envirozel has addressed a number of risk related issues which have come from the acquisition of 5 separate businesses. It continues to reduce its risk profile by geographic, industry sector, customer and marketing expansion. Envirozel has established a clear strategy and will continue to invest in future growth both organically and through acquisitions which are complementary to our existing opportunities in order that this Company realizes it’s potential.

Again I would like to thank shareholders for their continued support and I re-enforce the Board and Management are committed to work hard to create future shareholder value.