MYECO GROUP LTD — Capital/Financing Update 2011

Jun 15, 2011

ASX CODE CNN OTCQX CODE: CDRBY

TO: COMPANY ANNOUNCEMENTS OFFICE ASX LIMITED

DATE: 16 June 2011

SUCCESSFUL $4.5M CAPITAL RAISING - DESPATCH OF HOLDING STATEMENTS

Following the Company’s announcement released yesterday advising that Cardia Bioplastics Limited (“Cardia” or “the Company”) has successfully completed the renounceable rights offer (“Offer”) to shareholders and has raised the full $4,472,750, the company now wishes to advise that the allotment and issue of the 447,274,855 new shares and 223,637,482 new options pursuant to the Company’s renounceable rights issue offer has been completed and holding statements will be dispatched today.

An Appendix 3B applying for the quotation of new shares and new options allotted and issued under the renounceable rights issue is attached.

The Directors of the Company are very pleased with the outcome of the Offer and acknowledge the support from its shareholders and Patersons Securities Limited for managing the Offer and underwriting the shortfall.

Cardia Chairman, Mr. Pat Volpe, said, “We are very pleased to have raised these funds in what is currently a challenging market. This underscores the fact the Cardia has made significant advancements in the commercialization of our bioplastics products. The market for bioplastics is large and rapidly growing.Cardia’s significant groundwork in product and market development is now gaining real traction.

Cardia believes it is well placed to capitalize on potential sales opportunities with the expected global growth in the Bioplastics market in the short term.”

==> picture [593 x 63] intentionally omitted <==

Pat Volpe Chairman

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005.

Name of entity

Cardia Bioplastics Limited

ABN

89 064 755 237

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of +securities issued or to be issued 2 Number of+securities issued or to be issued (if known) or maximum number which may be issued	Ordinary Shares & Options
	Up to 447,274,855 Ordinary Shares and 223,637,482 Options

• See chapter 19 for defined terms.

24/10/2005Appendix 3B Page 1

3 Principal terms of the +securities (eg, if options, exercise price and expiry date; if partly paid+securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion) 4 Do the +securities rank equally in all respects from the date of allotment with an existing+class of quoted +securities? If the additional securities do not rank equally, please state:  the date from which they do  the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment  the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 5 Issue price or consideration	Fully paid ordinary shares. Options to acquire ordinary shares with an expiry date of 30 June 2012 and exercise price of 1.5 cents.
	The ordinary shares will rank equally with current quoted ordinary shares from the date of allotment. Shares issued upon the exercise of options will be ordinary shares that will rank equally with the then current quoted ordinary shares from the date of issue.
	1 cent per share. NILper option

6 Purpose of the issue Issued pursuant to a fully underwritten (If issued as consideration for renounceable rights issue of: the acquisition of assets,  1 new share for every 2 ordinary clearly identify those assets) shares.  1 new option for every 4 New shares accepted  1 new option for every 4 New shares underwritten, being Underwriter options per the Underwriting Agreement. To raise the funds for further growth and development of its bioplastics business.

7 Dates of entering+securities into uncertificated holdings or despatch of certificates 8 Number and+class of all +securities quoted on ASX (_including_the securities in clause 2 if applicable) 9 Number and+class of all +securities not quoted on ASX (_including_the securities in clause 2 if applicable)	16thJune 2011
	Number	+Class
	1,341,824,564 581,992,197 223,637,482	Ordinary Shares Options expiring 30thof June 2011 exercisable at 10 cents. Options expiring 30th June 2012 exercisable at 1.5 cents
	Number	+Class
	Nil

• See chapter 19 for defined terms.

24/10/2005Appendix 3B Page 3

10 Dividend policy (in the case The Board of Directors will consider of a trust, distribution establishing a dividend policy upon policy) on the increased achievement of profitable operations. capital (interests)

Part 2 - Bonus issue or pro rata issue

11 Is security holder approval required? 12 Is the issue renounceable or non-renounceable? 13 Ratio in which the+securities will be offered 14 +Class of +securities to which the offer relates 15 +Record date to determine entitlements 16 Will holdings on different registers (or subregisters) be aggregated for calculating entitlements? 17 Policy for deciding entitlements in relation to fractions 18 Names of countries in which the entity has +security holders who will not be sent new issue documents Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7.	N/A.
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A

19 Closing date for receipt of acceptances or renunciations 20 Names of any underwriters 21 Amount of any underwriting fee or commission 22 Names of any brokers to the issue 23 Fee or commission payable to the broker to the issue 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of +security holders 25 If the issue is contingent on +security holders’ approval, the date of the meeting 26 Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled 27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders 28 Date rights trading will begin (if applicable) 29 Date rights trading will end (if	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A

• See chapter 19 for defined terms.

24/10/2005Appendix 3B Page 5

applicable)

30 How do[+] security holders sell N/A their entitlements in full through a broker? 31 How do[+] security holders sell N/A part of their entitlements through a broker and accept for the balance? 32 How do[+] security holders N/A dispose of their entitlements (except by sale through a broker)? 33 +Despatch date N/A

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

• 34 Type of securities ( tick one )

• (a)  Securities described in Part 1

• (b) All other securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the

information or documents

• 35 If the[+] securities are[+] equity securities, the names of the 20 largest holders of the additional[+] securities, and the number and percentage of additional[+] securities held by those holders

36 If the[+] securities are[+] equity securities, a distribution schedule of the additional[+] securities setting out the number of holders in the categories 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over

• 37 A copy of any trust deed for the additional[+] securities

• See chapter 19 for defined terms.

24/10/2005Appendix 3B Page 7

Entities that have ticked box 34(b)

38 Number of securities for which+quotation is sought 39 Class of+securities for which quotation is sought 40 Do the +securities rank equally in all respects from the date of allotment with an existing+class of quoted +securities? If the additional securities do not rank equally, please state:  the date from which they do  the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment  the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 41 Reason for request for quotation now Example: In the case of restricted securities, end of restriction period (if issued upon conversion of another security, clearly identify that other security)
	Number	+Class

• 42 Number and[+] class of all +securities quoted on ASX ( including the securities in clause 38)

Quotation agreement

• 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the[+] securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the[+] securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those[+] securities should not be granted +quotation.

• An offer of the[+] securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

  • Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any[+] securities to be quoted and that no-one has any right to return any[+] securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the[+] securities be quoted.

• If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the[+] securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• See chapter 19 for defined terms.

24/10/2005Appendix 3B Page 9

• 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before[+] quotation of the[+] securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here... Date : 16[th] June 2011

Print name: REKHA BHAMBANI Company Secretary