MYECO GROUP LTD — Capital/Financing Update 2017

Nov 7, 2017

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ASX RELEASE

8th November 2017

SECOS wins $1.5m+ contract to supply compostable bags to Penrith City Council

Highlights:

• SECOS wins material local government contract to supply compostable bags with Penrith City Council for more than $1.5 million over 18 months, providing a material boost to near-term revenue

• SECOS remains confident of the demand outlook for its eco-friendly compostable waste management products, which will drive the Company’s FY18 revenue growth along with business development in sustainable resins and films

Sustainable and eco-friendly bioplastics developer SECOS Group Limited (ASX: SES, “the Company”) is pleased to advise that through its subsidiary Cardia Bioplastics (Cardia), the Company has won material contract to supply compostable bags to Penrith City Council.

The contract with Penrith City Council in Sydney is the largest active waste diversion program amongst the city councils. This contract is valued at more than $1.5 million in newly won business over a term of 18 months, and represents approximately 7% of total company sales compared to FY17.

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The Company remains confident of the demand outlook for its eco-friendly compostable waste management products, as local authorities in Australia and abroad increasingly seek to divert organic food waste from landfill.

SECOS Managing Director, Stephen Walters, said:

“I am delighted to see the wins that SECOS is achieving in the organic waste diversion bag market.

“Having recently implemented a range of business improvement measures at the Company’s manufacturing plant in Nanjing, China, SECOS can now supply Australian councils with very cost competitive and high quality compostable bags. SECOS remains focused on becoming the supplier of choice for all Australian councils seeking to implement programs diverting organic food waste from landfill.

"Diverting organic waste from the landfill waste stream minimises councils’ rapidly-rising tipping fees and significantly cuts the landfills’ release of methane gas, which scientific research indicates is 23 times more harmful than carbon dioxide as a greenhouse gas.

SECOS Group Limited (ASX: SES) ACN 064 755 237 Level 2, Suite 6, 205-211 Forster Road Mount Waverley VIC 3149 Australia t: +613 8566 6805 e: info@secosgroup.com.au www.secosgroup.com.au

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“SECOS’ products help to divert food waste away from landfill into composting facilities, thus returning the nutrient value of food waste to the soil for the production of more food.

“At every opportunity, SECOS is looking to find innovative ways to reduce the ecological impact of the way we live on the planet. After all, SECOS got its name from striving to deliver S ustainable ECO logical S olutions.”

City of Penrith Mayor, Councilor John Thain, said:

“We are pleased to welcome SECOS as our local partner in continuing to deliver sustainable outcomes for Penrith.

“Our council is intently focused on sustainable waste management and resource recovery services, and diverting organic waste away from landfill through SECOS’ compostable bags supports our community’s efforts.”

SECOS expects to see continued growth in the waste management market both locally and globally as local councils and governments strive to implement organic waste diversion programs aimed at providing significant economic and environmental benefits.

For more information, please contact:

Richard Tegoni Executive Chairman +61 411 110 901 r.tegoni@secosgroup.com.au

Tim Dohrmann

Investor and Media Enquiries +61 468 420 846 tim@nwrcommunications.com.au

About SECOS Group Limited

SECOS Group Limited (ASX: SES) is a leading developer and manufacturer of sustainable packaging materials. Based in Melbourne, Australia, SECOS supplies its proprietary biodegradable resins, packaging products and high-quality cast films to a blue-chip global customer base.

SECOS holds a strong patent portfolio and the global trend toward sustainable packaging is fueling the Company’s growth, bringing FY17 revenue of $22 million.

The Company’s headquarters and Global Application Development Centre are based in Melbourne, Australia. SECOS has a Product Development Centre and manufacturing plant for resins and finished products in Nanjing, China, with manufacturing plants for high quality cast films in Melbourne and Kuala Lumpur, Malaysia. SECOS’ annual production capacity is 7,200 tonnes of bioplastic resins, 15,000 tonnes of cast film and 2,000 tonnes of blown film and finished products.

SECOS has sales offices in Australia, Malaysia, China and the US, with a network of leading distributors across the Americas, Asia and Europe.