EVZ LIMITED — Capital/Financing Update 2007

Sep 4, 2007

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A.C.N.010550357 A.B.N.87010550357

Level7, 410 CollinsStreet, Melbourne Vic 3000 phone: 03 96704545 fax: 03 9670 6670

05 September 2007

The Manager Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street Sydney NSW 2000

Dear Sir / Madam

Share Placement

Envirozel Limited (ASX: EVZ) is pleased to announce it has raised a further $2million via the issue of 4,000,000 shares at $0.50 each.

This placement, issued in accordance with ASX listing Rule 7.1, follows the recently announced share placement by the company where 20,000,000 shares at $0.50 were issued to assist with funding the acquisition of the business of TSF Engineering.

Funds raised in this additional placement will be used to assist the continued growth of the company.

The shares are to be issued to MMC Asset Management Pty Ltd, bringing their combined holding in the company to approximately 4.5% of the total issued capital upon settlement. This issue will represent 2% of the expanded issued capital of Envirozel.

Envirozel’s Executive Chairman, Mr Gordon McKern in commenting on the placement said:

“Envirozel in making its fifth acquisition, TSF Engineering, in the past 3 years is now positioned to invest in organic growth and synergies across all businesses in the Envirozel Group. These funds will assist greatly with these initiatives”.

Envirozel is grateful for the backing of MMC Asset Management Pty Ltd and the continued support provided by the investment community at large, which reflects the financial strength of the company and allows for continued growth whilst maintaining moderate gearing levels.”

Yours faithfully

Ian Wallace Company Secretary

For further information, please contact:

Gordon McKern Executive Chairman Envirozel Limited Tel: +61 3 9670 4545 E: gordon.mckern@envirozel.com

About Envirozel Limited

Envirozel is an emerging industrial group with a portfolio of specialist businesses operating in the infrastructure, water and engineering industries. The company’s operations currently encompass five successful businesses, Syfon Systems, Brockman Engineering, Danum Engineering, National Engineering and TSF Engineering. These businesses have strong positions in their respective markets with exceptional growth opportunities. The company’s strategy is to grow by acquisition targeting strong, established and profitable strategic businesses where generational change or succession issues have become a constraint on growth.

For further information, please visit: www.envirozel.com.au