MYECO GROUP LTD — Capital/Financing Update 2017

Aug 8, 2017

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ASX RELEASE

9 August 2017

SECOS response to bans on single-use plastic bags

Highlights:

• SECOS sees strong potential for recent industry shifts and legislative change to positively impact demand for the Company’s compostable and Biohybrid plastic products

• The macro environment is increasingly supportive of bioplastics: Australia is moving closer to a countrywide ban on single-use plastic bags, and major grocery retailers including Coles and Woolworths are moving ahead of proposed legislation to phase out their use

• SECOS is pursuing a significant opportunity to help retailers and others facilitate a switch to more environmentally friendly bags at similar price points to traditional plastics

Sustainable and eco-friendly bioplastics developer SECOS Group Limited ( ASX: SES , “ SECOS ” or “ the Company ”) notes strong investor interest in recent moves by Australian industry and legislators toward a countrywide ban on single-use plastic bags.

SECOS and its wholly owned subsidiary Cardia Bioplastics (“ Cardia ”) welcome these moves, seeing strong potential for further change to positively impact the Company’s business.

SECOS Managing Director, Stephen Walters, said:

“We welcome the recent decision by leading Australian grocery retailers Coles and Woolworths to stop supplying environmentally hazardous single-use bags to their shoppers by July of next year.”

“Moving away from single-use plastic bags will enhance retailers’ environmental and sustainability credentials. We see great scope for these and other retailers to continue along this path and meet customer demand for more environmentally friendly bags.”

“This change presents a significant opportunity for SECOS to help Coles, Woolworths and others toward this goal by offering bags made using our proprietary resin technology, including our compostable and Biohybrid product range.”

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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Background: Macro Tailwinds

Australia is moving closer to a countrywide ban on plastic bags:

• The State of Queensland recently introduced a bill restricting the use of plastic bags. The proposed legislation would ban retailers from giving away free lightweight plastic shopping bags (thinner than 35 microns) from 1 July 2018.

• If the proposed bill becomes law, three of Australia’s six states plus both territories (NT and ACT) will have bans in place. Although the states of New South Wales, Victoria and Western Australia are yet to introduce similar legislation, a petition in favour of bans in these states has collected more than 165,000 signatures.

• Industry leaders are moving ahead of the legislative curve, with leading Australian grocery retailers Coles and Woolworths having unilaterally decided to stop providing single-use shopping bags by 1 July 2018.

SECOS is pursuing an opportunity to help retailers move through a broader ban on plastic bags through two environmentally friendly options:

1. Facilitating a switch to fully compostable single use bags, empowering retailers to maintain customer service levels while ensuring single-use bags can fully compost back into the environment.

2. Offering larger reusable bags in settings where retailers are proposing to charge consumers circa 15 cents per bag. SECOS can produce these bags with a significant proportion of renewable content using far less oil and with a much lower carbon footprint than traditional plastics. The Company can achieve this using its proprietary and trademarked Biohybrid[TM] resin, at similar cost and superior performance compared to traditional plastics.

Industry Direction

The growing global costs of landfills are strong drivers of an industry shift toward bioplastics.

There is a material private and public benefit from participants in the waste management value chain seeking to divert waste away from landfills. Compostability of plastics plays a key role in waste diversion.

SECOS anticipates that in the medium to longer term, markets will move to fully compostable bags and products. However, unlocking the full environmental benefit of a shift toward compostable bags will require broader organic waste separation and diversion programs.

Several Australian local councils have already introduced such programs, which aim to divert food organic waste away from landfills where they produce dangerous methane gases. Several governments around the world are working toward banning this dangerous practice of burying food organic waste in landfills.

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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Growing Traction

As government and industry move toward compostable plastics to support waste diversion programs, SECOS can support interim efforts by supplying waste management products made using the Company’s proprietary Biohybrid[TM] resin.

Using this resin, SECOS can provide high-grade plastic films with enhanced features, including softer feel and improved strength. Although these products do not compost, they incorporate high levels of renewable content, use less oil than traditional plastics, and contribute to the reduction of Co2 in the atmosphere. The Company can supply these at similar price points to traditional plastics.

As a result, SECOS has experienced significant inbound interest and success selling products made using this grade of environmental resin, and the resin itself.

By adopting SECOS’ offerings outlined above, retailers wishing to offer reusable plastic bags can gain a genuine environmental benefit by increasing the bags’ renewable content, without increasing the cost to do so.

The Company continues to experience a strong level of interest in its products, particularly its innovative Biohybrid[TM] films, and will update investors as it gains further traction with this developing global opportunity.

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

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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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 FY16 revenue of $21 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 or representatives across the Americas, Asia and Europe.

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