MYECO GROUP LTD — Capital/Financing Update 2009

Sep 3, 2009

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TO: COMPANY ANNOUNCEMENTS OFFICE ASX LIMITED

DATE: 4 September 2009

CONVERSION OF AQUENOX DEBT

The Board of Cardia Bioplastics Ltd (“Cardia”) advises that pursuant to the terms of the Convertible Debt Deed entered into with Aquenox Ltd (“Aquenox”) on 1[st] June 2007 it has agreed to convert the amount of $5,161,864 owed to it by Aquenox Ltd (“Aquenox”), and previously advanced to Aquenox for working capital purposes, into 258,093,200 fully paid ordinary shares in Aquenox at an issue price of 2 cents per share. The shares will represent 64.35% of the new expanded capital of Aquenox, and the issue is subject to Aquenox obtaining the approval of its shareholders to the allotment of shares to Cardia on conversion of the debt[1] .

The debt amount of $5,161,864 owed to Cardia by Aquenox has been fully provided for in Cardia’s accounts for the financial period to 30[th] June 2009 with a written down value of zero.

Cardia also has an outstanding fully secured loan of $1 million to Aquenox and is currently considering its options for repayment.

PAT VOLPE

Chairman

1 Upon conversion Cardia’s voting power in Aquenox, an unlisted company with more than 50 members, will increase from 20% or below to more than 20% and accordingly Aquenox shareholder approval will be required under item 7 of section 611 Corporations Act 2001 (“Cth”).