MYECO GROUP LTD — Capital/Financing Update 2011

Aug 28, 2011

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ASX CODE CNN OTCQX CODE: CDRBY

TO: COMPANY ANNOUNCEMENTS OFFICE ASX LIMITED

DATE: 29[th] August 2011

Market Update:

Cardia Bioplastics sales increase as the world’s move to Bioplastics starts to gain momentum, with global double digit growth in 2011 and is expected to continue in 2012.

• Sales for September 2011 quarter alone will exceed $1m double that posted for the June 2011 Quarter

• Sales for F2012 expected to triple that of F2011.

• Chinese manufacturing plant capacity to double to 11,200t p.a by year end 2011,

• Malaysian JV for film manufacture on track to commence production for films and carrier bags in November 2011.

Date: August 29 2011: Cardia Bioplastics Limited (Cardia) announced that it has commenced an expansion program to more than double its resin manufacturing capacity from 5,200t p.a to 11,200t p.a. It is expected that their Nanjing manufacturing plant in China will have completed this expansion program by the end of 2011.

Strong revenues in July and August 2011 with sales almost at a $1m showing that the September 2011 quarter is on track to increase sales by more than 100% compared to June 2011 quarter sales of $530,000.

The Board is confident that sales for the F2012 will be at least triple that of the F2011 year confirming the global growth in the Bioplastics industry.

Further, Cardia’s Malaysia joint venture is on track to commence production of bioplastic carrier bags and films by November 2011.

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The Company’s Chairman, Mr Pat Volpe said: “The Bioplastics market continues to gain momentum as governments around the world, consumers, brand owners and packaging companies shift to reduce their carbon footprint and look to bioplastics, which also reduce the exposure to oil price volatility typical for conventional plastics.

Over the last three years Cardia has invested heavily into the development of bioplastics for the packaging industry. Cardia has aligned itself to global brand owners and packaging companies through joint development projects as well as selling to customers directly or through distributors and packaging convertors.

Some of these companies include Nestlé , Kimberly-Clark, Colgate- Palmolive, Henkel, KFC (Australia), McDonalds (Japan), and 7-Eleven (China) Sealed Air, Kmart and Indofoods.

Cardia’s collaboration partners for organic waste management also include global companies such as BASF, Sulo and SITA.

Recently Cardia announced alliances with multinational packaging companies who have launched their bioplastics product ranges using Cardia Biohybrid™ resins technology. These companies include Wipak, Jockey Plastik, RPC Group, Jatco, Polyden and Stellar Films.

Mr Volpe said, “We are starting to see the fruits of our development projects with global brand owners and packaging companies.”

“Cardia is a pioneer in converting conventional plastics packaging to bioplastics. We have spent the past six years establishing ourselves as a global player in bioplastics and this is now beginning to bear fruit for us commercially. We now have a strong and rapidly growing portfolio of global clients interested in changing over to our bioplastics technology with us,” Mr Volpe said.

Cardia Bioplastics sustainable packaging technology was internationally endorsed when Nestlé publicly announced its preferred status with Cardia on renewable and sustainable packaging development this year.

Cardia expects its global efforts to be rewarded through accelerated sales commitments in 2011 and 2012.

Pat Volpe Chairman.