MYECO GROUP LTD — Capital/Financing Update 2012

Feb 9, 2012

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TO: COMPANY ANNOUNCEMENTS OFFICE ASX LIMITED DATE: 10 FEBURARY 2012

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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10 February 2012

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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 four (4) shares held at 5pm on 23[rd] Feburary 2012 (“Record Date”) at an issue price of $0.007 (0.07 cents) plus one (1) free attaching option for every one (1) share subscribed for.

Assuming none of the Company’s existing options are exercised 336,351,454 New Shares will be offered and up to approximately $2.35 million will be raised.

Cardia has appointed Patersons Securities Limited as Lead Manager and Underwriter to the offer. The Rights Issue is partially underwritten by Patersons Securities Limited up to $1.5 million.

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 23[rd] Feburary 2012 .

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 $0.013 and $0.008 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 Thursday 9[th] Feburary 2012 were $0.008 and $0.001 respectively.

Exercise price per Option is 1.5 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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CNNOA

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

Ordinary Fully Paid Shares and enclose application money of $0.015 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.

Signature Of Shareholder(s) Companies Only - Executed in accordance with the Company’s Constitution and the (All joint holders must sign) Corporations Law.

Signature Of Shareholder(s) (All joint holders must sign)	Companies Only- Executed in accordance with the Company’s Constitution and the Corporations Law.
---------------------------------------------------- Signature Date --------------------------------------------------- Signature Date ---------------------------------------------------- Signature Date	---------------------------------------------------------------------- Sole Director and Sole Secretary ------------------------------------------------- Date -------------------------------------------------- Director Date ------------------------------------------------- SecretaryDate -------------------------------------------------- Director Date 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 Attorneydeclares that he/she has had no notice of revocation of the Power of Attorney.

TERMS AND CONDITIONS OF OPTIONS

1. Each Option entitles the holder to, subject to any Shareholder approval under Item 7 of section 611 of the Corporations Act (if required), subscribe for one Share in the Company at the exercise price of 1.5 cents. If an Option is exercised by the Option Expiry Date, the Optionholder is entitled to receive a Piggy Back Option for no additional consideration. The Piggy Back Options will only be issued under a disclosure document to be lodged with ASIC probably in July 2012.

2. Each Option will expire at 5.00pm EST on 30 June 2012 ( Option Expiry Date ).

3. Each Share allotted as a result of the exercise of an Option will rank in all respects pari passu with the existing Shares in the Company on issue at the date of allotment.

4. Options do not have any voting rights at general meetings of the Company.

5. Subject to the Constitution of the Company and the Corporations Act, the Options will be freely transferable .

6. An Optionholder may exercise Options at any time prior to the Option Expiry Date by submitting the relevant Option Exercise Form to the Company’s Share Registry. Forms for exercising New Options are available from the Company’s share registry, the Company’s website or by contacting the Company directly.

7. There are not participating entitlements inherent in the options to participate in new issues of capital, which may be offered to shareholders during the currency of the Options. Prior to any new pro rata issue of securities to shareholders, holders of Options will be notified by the Company and will be notified 10 Business Days before the record date (to determine entitlements to the issue), to exercise Options.

8. In the event of any reconstruction (including a consolidation, sub-division, reduction or return) of the issued capital of the Company, all rights of holders of Options will be changed to the extent necessary to comply with the Listing Rules at the time of the reorganisation.

9. Shares issued pursuant to the exercise of an Option will be issued not more than 14 days after the Notice of Exercise.

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 2012 WILL AUTOMATICALLY EXPIRE.