PHOSLOCK ENVIRONMENTAL TECHNOLOGIES LIMITED — Capital/Financing Update 2019

Oct 8, 2019

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ASX ANNOUNCEMENT

Wednesday 9[th ] October 2019

PET secures initial $1.3m order for Florida Wetland and Lake Remediation Projects

Key Points:

• Initial $1.3m order from our US Licensee to begin active remediation as part of the Florida State Four Year plan.

• Successful trials with Phoslock[® ] have demonstrated its ability to mitigate the effects of Phosphorus in local water bodies.

• Phosphorus is an increasing threat to sensitive Eco-systems in Southern Florida with large budgets now allocated to their remediation.

ASX Code: PET Share Price: A$1.21 52 Week High: A$1.60 52 Week Low: A$0.32 Issued Shares: 562.5m Market Cap: A$680m Address: Suite 403 25 Lime Street Sydney NSW 2000 Phone: +61 2 8014 7611 Email: ir@phoslock.com.au www.phoslock.com.au www.phoslock.eu www.phoslock.com.br www.phoslock.cn PHK BLOG on Water Issues: www.phoslock.com.au

• This order is the first part of a process to use Phoslock[® ] as part of a Florida Wetland solution

PET US licensee, SePRO Corporation, has today placed a significant initial order for Phoslock[®] for use in ongoing new projects in and around Florida. The order follows the successful completion of several trials with Phoslock[®] over the past 12 months which demonstrated the capacity of the product to reduce Phosphorous levels in wetlands.

Helping counter increasingly Harmful Algal Blooms (HAB) in Florida, a Blue Green Algae Task Force has been established with significant State and Federal Funding to identify and test solutions to the problem. Phoslock[®] , uniquely, not only permanently reduces phosphorous in the water column but, when settled, forms a protective layer against phosphorus re-entering from the contaminated sediments.

A driving force behind these efforts is the need to protect sensitive downstream ecosystems such as the Everglades, which are at serious ecological risk due to elevated concentrations of phosphorous.

Logistically, the order requires 16,000 Phoslock[® ] 25kg bags to be delivered to SePRO for the application via ‘airboat’ across several specific wetland areas and several small lakes.

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Application of Phoslock[®] to wetland areas using airboats

Florida – Major Lakes and Rivers

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Project area highlighted in Red Circle

Several Phoslock[®] projects have been implemented in Florida over the past 12 months and the results achieved to date have been consistently positive. Details of individual projects cannot be disclosed due to commercial in confidence agreements. However, PET is delighted to

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announce that several milestone phosphorus mitigation projects will be undertaken under this initial order in Florida as a result. All these projects will be implemented before the end of January 2020.

These projects will be used as test cases for similar projects in other Florida Wetland areas and other States with similar problems.

Chairman Laurence Freedman AM stated: “ The testing of Phoslock under local conditions in Florida has been very extensive. The results have been outstanding and have been reviewed by a number of government organisations. We are confident that the results should enable it to be used in much larger projects. Success in these large-scale applications could open up a very large market for Phoslock in Florida and other US States”.

Mr Laurence Freedman AM Mr Robert Schuitema Chairman Managing Director

For more information please contact:

Mr Laurence Freedman AM – Chairman; Phone: + 61 (02) 8999 1999 Mr Robert Schuitema – Managing Director; Phone: +61 (02) 8014 7611 Mr Michael Kotowicz – Investor Relations; Phone: + 61 (02) 9199 8010 / Mob: 0416 233 145

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PHOSLOCK ENVIRONMENTAL TECHNOLOGIES LIMITED (PET)

Phoslock Environmental Technologies Limited is listed on the Australian Stock Exchange (ASX Code: PET).

Phoslock Environmental Technologies Limited (ASX: PET) is an international environmental company specialising in engineering solutions and water treatment products to remediate polluted lakes, rivers, canals and drinking water reservoirs.

PET has its headquarters in Sydney, Australia with offices in Brisbane, Beijing & Changxing, China; and Manchester, UK. PET is represented by licensees, distributors and agents in ten other countries including SePRO Corporation in the United States and HidroScience in Brazil. PET has a number of marketing and co-operation agreements in China with various environmental companies and government agencies.

In 2017 Phoslock (Beijing) was formed to help remediate the massive Chinese algae and water pollution problem. This 100% owned subsidiary undertakes design, engineering, and implementation of rivers, canals, reservoirs and lakes, along with construction of wetland areas. The significant broadening of the historical PET business allows for work on a greatly increased array of projects both in China and elsewhere.

PET owns the patent for Phoslock[®] , a unique water treatment product that permanently binds excess phosphorus in the water column and sediments. This in turn inhibits the growth of Harmful Algal Blooms (HAB) that lead to detrimental effects to both aquatic and human life.

Phoslock[®] is certified to be used in drinking water in North America, Europe, UK, Brazil, Australia and China.

Along with Phoslock[® ] PET also supplies:

1) Zeolites - a porous, natural material that can be applied to heavily polluted water to absorb nutrients such as nitrogen. Nitrogen is an important food source for the growth of harmful algae.

2) Bacteria. - Specialised types of bacteria can break down contaminants and organic matter that pollute water and cause human and water-borne diseases.

PET has a large multi-purpose factory in Changxing, Zhejiang province, China, 150km inland from Shanghai, which manufactures its patented technology, Phoslock[®] , along with nutrient binding materials zeolites and bacteria. It also has an engineering and physical water management division.

The Changxing Factory recently received ISO accreditation from TUV Rheinland, a German engineering accreditation agency for:

ISO 9001 – Quality Control and Documentation Certification; ISO 14000 – Environmental Management Standards Certification; and OSHA 18000 - Health and Safety Management Systems.

PET has secured the exclusive global licence to manufacture, sell and distribute a unique new product which, after removing phosphorus from polluted water, can be reused. PET has established a development team to advance the product to full commercialisation. It is anticipated that commercial quantities of the new product will be available by mid-2020.

For more information on the company, recent news and blogs, please visit our website: www.PHOSLOCK.com.au

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