MYECO GROUP LTD — Capital/Financing Update 2011

May 4, 2011

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TO: COMPANY ANNOUNCEMENTS OFFICE ASX LIMITED DATE: 5 MAY 2011

LETTER TO OPTIONHOLDERS

The attached letter has been sent to all Cardia Optionholders advising them of the renounceable rights issue by Cardia and giving them opportunity to exercise their options if they wish to participate.

Rekha Bhambhani Company Secretary

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5 May 2011

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Dear Option Holder

PARTICIPATION IN PRO-RATA RENOUNCEABLE RIGHTS ISSUE

The Directors of Cardia Bioplastics Limited (“CNN” or “the Company”) advise that the Company is undertaking a Pro-Rata Renounceable Rights Issue to all shareholders on the basis of one (1) new share for every two (2) shares held at 5pm on 19th May 2011 (“Record Date”) at an issue price of $0.01 (1 cent) plus one (1) free attaching option for every four (4) shares subscribed for.

Assuming none of the Company’s existing options are exercised 447,274,855 New Shares will be offered and up to approximately $4.5 million will be raised.

Cardia has appointed Patersons Securities Limited as Lead Manager and Underwriter to the offer. The Rights Issue is fully underwritten by Patersons Securities Limited.

The full terms and conditions of the Rights Issue are detailed in the Prospectus which can be viewed on the ASX website at asx.com.au. A copy of the Prospectus will be sent to each eligible Shareholder.

The terms and conditions of the options you currently hold do not entitle you to participate in the above Pro-rata Renounceable Rights Issue.

To participate in the Pro-Rata Renounceable Rights Issue, you must exercise your options in time for the new shares to be allotted prior to the Record Date of 5pm on 19[th] May 2011 .

To assist you in making that decision the highest and lowest closing prices for Cardia’s ordinary fully paid shares on the ASX during the last 3 months were $0.019 and $0.015 respectively and for the options $0.001 being the both lowest and highest price.

The closing prices of Cardia’s fully paid ordinary shares and options on Wednesday 4[th] May 2011 were $0.013 and $0.001 respectively.

Exercise price per Option is 10 cents.

A copy of the Notice of Exercise of Options form is attached for those optionholders who wish to exercise their options.

If you are in doubt as to the action you should take in relation to this notice, you should consult with your professional adviser for advice immediately.

If you do not wish to participate in the Rights Issue (in respect of your existing options), you do not need to take any action.

Should you have any questions in relation to the above matters, please contact our registry on telephone (08) 9389 8033.

Yours faithfully,

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Pat Volpe Chairman

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CNNO

CARDIA BIOPLASTICS LIMITED ACN 064 755 237 INCORPORATED IN VICTORIA

APPLICATION FOR SHARES UPON EXERCISE OF OPTIONS

I/We _________________________________________________________________________________________________

Securityholder Reference Number (S.R.N) / Holder Identification Number (H.I.N) __________________________

Contact Telephone Number __________________________

The registered holder(s) of the Options hereby exercise my/our Option for: ___________ __________________________________________

In figures In words

The registered holder(s) of the Options hereby exercise my/our Option for: ___________ ______________________________________________ In figures In words_

Ordinary Fully Paid Shares and enclose application money of 10 cents per share $............………..............................……………………………………... (amount payable on exercise)

I/We whose full name(s) and address(es) appear above hereby apply for the number of Shares shown above. I/We agree to be bound by the Constitution of the Company.

I/We whose full name(s) and address(es) appearConstitution of the Company.	above hereby apply for the number of Shares	(amount payable on exercise)shown above. I/We agree to be bound by the
Signature Of Shareholder(s)	**Companies Only- **Executed in accordance with	the Company’s Constitution and the
(All joint holders must sign)	Corporations Law.
----------------------------------------------------	----------------------------------------------------------------------
Signature Date	Sole Director and Sole Secretary	Date
---------------------------------------------------	-------------------------------------------------	--------------------------------------------------
Signature Date	Director Date	Secretary Date
----------------------------------------------------	-------------------------------------------------	--------------------------------------------------
Signature Date	DirectorDate	Director Date

Note : If signed under Power of Attorney, a Certified Copy of the relevant Power of Attorney document must be exhibited to the Registry. The Attorney declares that he/she has had no notice of revocation of the Power of Attorney.

TERMS AND CONDITIONS OF OPTIONS

**TERMS AND CONDITIONS OF OPTIONS **	**TERMS AND CONDITIONS OF OPTIONS **
The terms and conditions of the New Options are as follows
(a)	Each option entitles the holder to subscribe for 1 ordinary share in Cardia Bioplastics Limited ACN 064 755 273 (“the Company”) uponthe payment of $0.10 (10 cents).
(b)	The options will lapse at 5.00pm (AEST) on 30 June 2011 (“Expiry Date”)
(c)	The options are transferable.
(d)	There are no participating rights or entitlements inherent in these options and holders of the options will not be entitled to participate innew issues of capital that may be offered to shareholders during the currency of the option.
(e)	Optionholders have the right to exercise their options prior to the date of determining entitlements to any capital issues to the thenexisting shareholders of the Company made during the currency of the options, and will be given a period of not less than 10 BusinessDays notice before the record date to determine entitlements to the Issue in which to exercise the options.
(f)	In the event of any re-organisation (including reconstruction, consolidation, subdivision, reduction or return of capital) of the issuedcapital of the Company, the options will be reorganised as required by the Listing Rules, but in all others respects the terms of exercisewill remain unchanged.
(g)	The options shall be exercisable at any time during the period ending on or before the Expiry Date**(“Exercise Period”)by the deliveryto the registered office of the Company of a notice in writing(“Notice”)**stating the intention of the optionholder to exercise all or aspecified number of options held by the optionholder accompanied by an Option Certificate or Holding Statement and a cheque madepayable to the Company for the subscription moneys for the shares to be issued on exercise of the options the subject of the Notice.The Notice and cheque must be received by the Company during the Exercise Period. An exercise of only some options shall not affectthe rights of the optionholder to the balanceof the options held by the optionholder.
(h)	The Company shall allot the resultant shares and deliver a Holding Statement of shareholdings with a holders’ identification numberwithin 10 Business Days of exercise of the options.
(i)	The shares allotted shall rank, from the date of allotment, equally with the existing ordinary shares of the Company in all repects.

Cheques should be made payable to CARDIA BIOPLASTICS LIMITED and crossed “Not Negotiable” and drawn on an Australian Bank and posted to Advanced Share Registry Limited, PO Box 1156, Nedlands, Western Australia 6909.

NOTE: OPTIONS NOT EXERCISED BY 5.00 PM AEST 30 JUNE 2011 WILL AUTOMATICALLY EXPIRE.