EVZ LIMITED — Director's Dealing 2008

Jul 7, 2008

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ENVIROZEL LIMITED

8 July 2008

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

Mr James Gerraty Manager Issuers, Melbourne Level 45 Rialto South Tower 525 Collins Street, Melbourne Vic 3000

Dear James

- ASX Query Appendix 3Y

We respond to the questions raised in your letter dated 4 July 2008, in the same order as the numbering used in that letter.

1. The Appendix 3Y in question related to 31,306 shares in Envirozel Limited, purchased by Mr G Burns on 25 June 2008. Notification of this purchase via the Appendix 3Y was unfortunately lodged one day late.

The reason for the late lodgement of the Appendix 3Y was the document relating to this purchase was inadvertently delayed and not forward to the Company Secretary within the specified time period. The non-notification was discovered when a subsequent acquisition on the next day was notified to the Company Secretary, within the specified time period, and a reconciliation was completed on the Directors shareholding.

1. The Company has contracted with each Director to ensure each Director is fully conversant with the obligations required by listing rule 3.19A. In addition, the responsibilities and obligations of Directors under listing rule 3.19A are regularly reconfirmed.

2. The Company has contracted with each Director to ensure each Director is fully conversant with the obligations required by listing rule 3.19B. In addition, the responsibilities and obligations of Directors under listing rule 3.19B are regularly reconfirmed.

Yours sincerely,

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Ian Wallace Company Secretary

4 July 2008

Mr Ian Wallace Company Secretary Envirozel Limited Level 7, 410 Collins Street MELBOURNE VIC 3000

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ASX Limited ABN 98 008 624 691 Level 45 Rialto South Tower 525 Collins Street Melbourne VIC 3000

GPO Box 1784Q Melbourne VIC 3001

Telephone 61 (03) 9617 7842 Facsimile 61 (03) 9614 0303 Internet http://www.asx.com.au

Dear Ian

Envirozel Limited (the “Company”) Appendix 3Y – Change of Director’s Interest Notice

We refer to the following:

1. The Appendix 3Y lodged by the Company with ASX on 3 July 2008 for Graham Burns.

2. Listing rule 3.19A which requires an entity to tell ASX the following:

3. 3.19A.1 The notifiable interests of a director of the entity (or in the case of a trust, a director of the responsible entity of the trust) at the following times.

   • On the date that the entity is admitted to the official list.

   • On the date that a director is appointed.

The entity must complete Appendix 3X and give it to ASX no more than 5 business days after the entity’s admission or a director’s appointment.

• 3.19A.2 A change to a notifiable interest of a director of the entity (or in the case of a trust, a director of the responsible entity of the trust). The entity must complete Appendix 3Y and give it to ASX no more than 5 business days after the change occurs.

• 3.19A.3 The notifiable interests of a director of the entity (or in the case of a trust, a director of the responsible entity of the trust) at the date that the director ceases to be a director. The entity must complete Appendix 3Z and give it to ASX no more than 5 business days after the director ceases to be a director.

• Listing rule 3.19B which states as follows.

An entity must make such arrangements as are necessary with a director of the entity (or in the case of a trust, a director of the responsible entity of the trust) to ensure that the director discloses to the entity

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all the information required by the entity to give ASX completed Appendices 3X, 3Y and 3Z within the time period allowed by listing rule 3.19.A. The entity must enforce the arrangements with the director.

1. The Companies Update dated 27 June 2008, reminding listed entities of their obligation to notify ASX within 5 business days of the notifiable interests in securities held by each director and outlining the action that ASX would take in relation to breaches of listings rules 3.19A and 3.19B.

As the Appendix 3Y indicated that changes in the director’s relevant interests occurred on 25 June 2008 and 26 June 2008, it appears that there may have been a breach by the Company of listing rules 3.19A and/or 3.19B.

Please note that ASX is required to record details of breaches of the listing rules by listed companies for its reporting requirements.

ASX reminds the Company of its contract with ASX to comply with the listing rules. In the circumstances ASX considers that it is appropriate that the Company make necessary arrangements to ensure there is not a reoccurrence of a breach of the listing rules.

Having regard to listing rules 3.19A and 3.19B and Guidance Note 22: “Director Disclosure of Interests and Transactions in Securities - Obligations of Listed Entities”, we ask that you answer each of the following questions:

1. Please explain why the Appendices were lodged late.

2. What arrangements does the Company have in place with its directors to ensure that it is able to meet its disclosure obligations under listing rule 3.19A?

3. 3 If the current arrangements are inadequate or not being enforced, what additional steps does the Company intend to take to ensure compliance with listing rule 3.19B?

Your response should be sent to me by e-mail or by facsimile on facsimile number (03) 9614 0303. It should not be sent to the Company Announcements Office.

A response is requested as soon as possible and, in any event, not later than half an hour before the start of trading (ie before 9.30 a.m. A.E.S.T.) on Wednesday, 9 July 2008.

Under listing rule 18.7A, a copy of this query and your response will be released to the market, so your response should be in a form suitable for release and must separately address each of the questions asked. If you have any queries or concerns, please contact me immediately

Yours faithfully,

Sent electronically without signature

James Gerraty Manager Issuers, Melbourne

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