MYECO GROUP LTD — Capital/Financing Update 2016

Jun 2, 2016

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TO: COMPANY ANNOUNCEMENTS OFFICE ASX LIMITED

DATE: 03 June 2016

DISPOSAL OF EQUITY INTEREST IN AKRONN JOINT VENTURE

The Directors of SECOS Group Limited (SECOS) are pleased to advise that SECOS has entered into a share sale agreement (Agreement) for the disposal of its 50.8% equity interest in Akronn Industries Sdn Bhd (Akronn) , a manufacturer of silicone coated film products in Malaysia, to Itasa Servicios Generales SL (ITASA), a Spanish manufacturer of high quality release liners.

The investment in Akronn is not considered core to the future development of SECOS. Total proceeds from the sale will be approximately A$205,000 at current exchange rates as described below.

Mr. Richard Tegoni, Executive Chairman of SECOS, said “the disposal of our equity interest in Akronn will enable SECOS to focus on its core businesses of sustainable film and packaging products, and sustainable waste diversion solutions and products. The Akronn business has not as yet generated profits and is better suited to being part of a coated firm specialist such as ITASA.

The divestment of the Akronn joint venture interest also provides SECOS with ongoing opportunities to sell its film products to ITASA, as well as opening up significant opportunities for the sale of film to the large international coated film market sector”.

Material Agreement Terms

• The Agreement is subject to certain conditions precedent which are customary for this type of transaction. The conditions must be fulfilled within three weeks of the date of the Agreement unless extended by mutual consent. Completion is required within five Business Days from satisfaction of the conditions precedent .

• The total consideration is RM 1,200,000 of which SECOS will receive 50.8% (RM 609,720 or approximately A$205,000).

• ITASA will be entitled to certain warranties provided by the Joint Venture Partners up to 24 months from the Completion Date. Warranties are capped at the total consideration paid.

• 50% of the consideration will be payable on completion, 25% after a 6 month warranty claim period, with the balance escrowed until the end of the 24 month warranty claims period.

The carrying value of SECOS’ investment in Akronn as at 31 December 2015 was NIL.

Richard Tegoni Chairman

About SECOS

SECOS Group Limited (ASX CODE: SES) is a global leader in sustainable packaging through the manufacture of proprietary high quality films and patented renewable resource-based sustainable and compostable packaging products. SECOS holds a strong patent portfolio and its sales growth is fueled by the global trend towards sustainable packaging. SECOS is headquartered in Melbourne, Australia and has manufacturing facilities in Melbourne, Nanjing, China and Kuala Lumpur, Malaysia.

SECOS sells its products globally and has sales offices in Australia, Malaysia, China, USA and a network of leading distributors across the Americas, Asia and Europe.

Visit www.cardiabioplastics.com, www.cardiabioproducts.com and www.stellarfilmsgroup.com

About ITASA

ITASA has been manufacturing high quality release liners since 1974 with annual sales growing 25% over the last years to reach 66MEur in 2015. ITASA is one of the top commercial silicone coaters in Europe, serving a wide range of applications ranging from highly competitive market segments such as Labels and Feminine Hygiene to highly demanding applications such as Medical, Self-Adhesive tapes, Graphic arts, and Composites.

ITASA has historically focused on paper based release liners, using state of the art thermal solvent less chemistry. As a way to implement its vision to become "a Global Release Liner producer, supporting market leaders worldwide" ITASA is happy to acquire Akronn Industries. The deal will reinforce ITASA's position as a global player, while broadening the product portfolio to Polyester, BOPP and PE liners (UV curing).

With the addition of the new Malyasia based facility to the existing Andoain, Spain and Mexico City, Mexico operations, ITASA will be reaching out to new markets, new customers and new sustainable growth opportunities