MYECO GROUP LTD — Capital/Financing Update 2011

Jul 10, 2011

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ASX CODE CNN OTCQX CODE: CDRBY

TO: COMPANY ANNOUNCEMENTS OFFICE ASX LIMITED

DATE: 11 July 2011.

MEDIA RELEASE

CARDIA BIOPLASTICS AUD5m MALAYSIAN MANUFACTURING JOINT VENTURE SCHEDULED TO BE IN PRODUCTION BY NOVEMBER 2011.

11[th] of July 2011: Cardia Bioplastics Limited and RNZ Green Bio Sdn Bhd (“RNZ”) have finalized the terms and conditions of a joint venture agreement to establish a bioplastics film, printing and bag manufacturing facility in Malaysia.

Cardia announced to the ASX on the 28th of September 2010 that the parties have been negotiating the terms and conditions of establishing a new Malaysian joint venture, Cardia Bioplastics Malaysia Manufacturing Sdn Bhd (“CBMM”), for the manufacture of finished bioplastics products.

Pursuant to the joint venture agreement, RNZ will contribute Malaysian Ringit (MYR) 15m (AUD 5m approximately) to maintain a 51% interest in CBMM. Cardia will not provide funding to CBMM, however Cardia will license CBMM with the right to manufacture films and bags using Cardia’s patented bioplastics resins, and assist the venture with Cardia Bioplastics management and operational expertise. Cardia and RNZ have equal Board representation on CBMM.

RNZ has contributed an initial cash subscription of MYR 500,000 (AUD 150,000) which has been received by CBMM with the balance being facilitated by RNZ through various Equity and Debt Funding for the sum of MYR 14,500,000 (AUD 4.85m) in which the Debt Funding will be a non recourse loan to CBMM shareholders and Directors and the guarantee will be solely provided by RNZ. The contribution of these funds by RNZ to the joint venture will be commensurate with the timing of equipment and working capital orders placed by CBMM.

The MYR 15m (AUD$5m) funding by RNZ will be applied to the setup of a finished film, bag and printing facility in Puncak Alam, one of Malaysia’s developing manufacturing hubs. These funds will finance Stages 1 & 2 of the facility and provide working capital for the joint venture. It is expected that Stage 1 will be completed by November 2011 with plant capacity of 1,500 tonnes pa. Stage 2 is expected to be completed by July 2012 and will double that capacity. The Plant will be scalable to 7,000 tonnes pa.

On injecting the full MYR 15m (AUD5m) RNZ will have a 51% equity interest.

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Any additional funding will be contributed in accordance with each stakeholder’s equity interest. Cardia’s Chairman Mr. Pat Volpe said: “This joint venture will provide Cardia with a strategic film and bag manufacturing facility to complement Cardia’s existing China resin and finished bioplastics manufacturing plant.

The Malaysian facility will supply both the local market as well as international markets where Malaysia, along with China, is recognized as being amongst the world’s major manufacturing hubs for the international supply of conventional plastic films and bags.”

Mr. Volpe said: “Cardia is well positioned to supply those local and international markets with our new and novel bioplastics product range of both Biohybrid™ and compostable film and bag products from Malaysia as well as China.

Cardia Bioplastics resin will be supplied from our China facility and in the future we will look at establishing a resin facility as well in Malaysia, providing Cardia further access to the gateway of the world through our strategic locations in both Malaysia and China”, he said.

The relationship between Cardia Bioplastics and RNZ Green Bio was announced by the Malaysian Minister of Energy, Green Technology and Water, YB Dato Sri Peter Chin Fah Kui, at the Malaysian National Utilities Summit 2010 in Kuala Lumpur. The Minister acknowledged the new venture between the two companies as one of the pioneers of bioplastics manufacturing in Malaysia.

In addition, the Minister endorsed Cardia Bioplastics’ efforts in promoting compostable bioplastics packaging that uses less oil with a lower carbon foot print and is environmentally responsible.

Cardia Bioplastics’ Chairman, Pat Volpe, said “We are launching in Malaysia with our partner RNZ. Cardia Bioplastics’ proprietary technology is accredited worldwide and will be licensed to CBMM for film and bag manufacturing. Malaysia is recognised as one of the world’s largest manufacturing hubs for plastics packaging. There are enormous opportunities for CBMM to manufacture bioplastics products for both the local and export market in this growing industry.”

RNZ Green Bio Chairman, Mr. IR Rozali Ahmad, said ”Our company has been extensively searching for the right partner that has a patent position, international accreditation and an established infrastructure for manufacturing, distributing and marketing of bioplastics products.Cardia Bioplastics fits the bill and I am impressed with the quality of its management and technical expertise. We have completed an extensive feasibility study and on that basis we are delighted to invest into this new and exciting bioplastics growth opportunity. With all terms and conditions agreed to, we are ready to commence the plant set up process with commercial production expected by November this year.”

Pat Volpe Chairman

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About Cardia Bioplastics

Cardia Bioplastics Limited (ASX CODE: CNN), through its 100% owned subsidiary Cardia Bioplastics (Australia) Pty Ltd, develops, manufactures and markets sustainable resins and finished products derived from renewable resources for the global packaging and plastic products industries. The Company holds a strong patent portfolio and its growth are fuelled by the global trend towards sustainable packaging. Established in Australia in 2002 as Biograde, the company Headquarters and Global Applications Development Centre is in Melbourne, Australia. The Product Development Centre and manufacturing plant is in Nanjing, China. There are Cardia Bioplastics offices in the Americas, Europe, Malaysia and China, and a network of leading distributors across Australia, the Americas, Asia and Europe. Visit www.cardiabioplastics.com

Cardia Bioplastics was the exclusive supplier of biodegradable packaging to the 2008 Beijing Olympic and Paralympic Games, was awarded the Australian Chamber of Commerce “AustraliaChina Business Excellence Award” in 2008, and won the 2009 “Clean Equity Monaco Conference Award” for Excellence in the field of Environmental Technology Commercialisation. Cardia Bioplastics has also received a recognition plaque from the Malaysian Minister of Energy, Green Technology and Water as recognition for its efforts in the bioplastics industry.

About RNZ Green Bio

RNZ Green Bio (RGB) is a Malaysian-based company that was registered and incorporated in Malaysia in March 2010. RGB’s major shareholder is RNZ Integrated (M) Sdn Bhd, a Malaysian private company involved in the oil & gas industry. RNZ is looking to expand its business opportunities into the growing bioplastics industry.

RGB’s management is experienced in the Malaysian manufacturing industry.

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