MYECO GROUP LTD — Capital/Financing Update 2012

Feb 15, 2012

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TO: COMPANY ANNOUNCEMENTS OFFICE ASX LIMITED

DATE: 16 February 2012

LETTER TO OVERSEAS SHAREHOLDERS

The attached letter will be dispatched today to Cardia Shareholders’ resident outside of Australia and NewZealand notifying them that Renounceable Rights Issue Offer of Cardia does not constitute an Offer in any jurisdiction other Australia and New Zealand and advising them as to why the Directors consider it unreasonable to make such an Offer.

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Rekha Bhambhani Company Secretary

16 February 2012

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Dear Ineligible Shareholder,

PARTICIPATION IN PRO-RATA RENOUNCEABLE RIGHTS ISSUE

On 9[th] Feburary 2012, Cardia Bioplastics Limited (“Cardia” or “the Company”) announced a Pro-rata Renounceable Rights Issue (“Rights Issue”) pursuant to a prospectus dated 10 Feburary 2012 (“Prospectus’).

The Rights Issue is a renounceable offer on the basis of one (1) new share for every four (4) shares held on the record date (being 5pm on 23 Feburary 2012) at an issue price of $0.007 each with one (1) free attaching option for every one (1) share subscribed for.

The Rights Issue offer is being made to Shareholders with a registered address in Australia or New Zealand. The Company has determined, pursuant to Listing 7.7.1(a) of the Listing Rules of the Australian Securities Exchange (“Listing Rules”), that it would be unreasonable to make offers under the Prospectus to all shareholders with addresses outside of Australia and New Zealand (“Ineligible Shareholders”), having regard to the small number of such Shareholders and the costs of complying with legal and regulatory requirements in each of those jurisdictions.

Accordingly, in compliance with Listing Rule 7.7.1(b), the Company wishes to advise you that it will not be extending the Rights Issue offer to Ineligible Shareholders.

The Company has appointed Patersons Securities Ltd (“Nominee”) on normal commercial terms, as Nominee for the Ineligible Shareholders. The Nominee will arrange the sale of the rights which would have been offered to Ineligible Shareholders and, if sold, for the net proceeds to be sent to them. The Nominee will have the absolute and sole discretion to determine the timing and price at which the rights may be sold and the manner of any such sale. Neither the Company nor the Nominee will be subject to any liability to sell the rights or to sell them at a particular price.

You are not required to do anything in response to this letter.

It should be noted that it may be possible that no proceeds will be available for distribution to Ineligible Shareholders after the costs of the sale have been paid by the Nominee. You will be informed in due course of the outcome of the sale of your rights.

Should you have any questions in relation to the above matters, please contact me on telephone +61 488071025 or send email to Company Secretary at r.bhambhani@cardiabioplastics.com.

Yours faithfully,

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Pat Volpe Chairman

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