Ann: Trading Halt, page-117

You were saying?....

Brevet Capital Advisers LLC (Brevet) – up to $10M Debt Financing of Indian Project
ECT is pleased to announce that Brevet Capital Advisers LLC (Brevet), the company’s existing
R&D debt provider, has entered into a term sheet to fund ECT’s estimated $10m funding contribution for execution of the proposed Indian project in collaboration with project partners NLC
L and NMDC. This funding will be provided as non-dilutive, senior secured debt at a competitive commercial interest rate, commensurate with terms and conditions of our pre-existing facilities.

Ashley Moore, Managing Director said, “The Brevet funding facility, along with the EFH facility,
provides the required strategic platform to complete the funding needs of the Company for the
Indian project. We have targeted solutions that are free of equity dilution and believe that the
blended rate of interest across both facilities is significantly below the weighted average cost of
capital for the company.”
The Brevet facility includes certain pre-conditions, including, a) ECT receiving an overseas ruling
from AusIndustry for the Indian project and, b) the Indian partners each co-contributing their 1/3
funding of the project.
The overseas ruling, which provides pre-approval for R&D claims on overseas activity, is currently
under review by AusIndustry. The two Indian partners' co-contribution of 1/3 each has been agreed
in principle and is subject to finalisation and execution of the Master Project Agreement (MPA),
which the parties are working to conclude soon.
Mr Moore continued, “Our project funding solutions are now laid out before us and allow us to
focus on the execution of the remaining conditions precedent, including the Master Project
Agreement with NLC and NMDC and the AusIndustry R&D Incentive Program overseas ruling.”
Overall, the Board and Management’s job is to maximise shareholder value and seeking project
financing that does not create additional dilution is key to achieving this. These debt arrangements
have been structured with this in mind and their establishment now allows management to focus
on business outcomes and deliverables in furthering the Indian project.
It should be noted that the Company still maintains the flexibility under shareholder approval of
Resolution 6 at its 2016 AGM, to issue shares to NLC and NMDC as part of the project
contemplated by the MPA. This does not conflict with today’s announcement, as the purpose of the
funding instruments announced today relates to ECT’s obligation to fund one third of the project.

December 22nd 2016.

That is all.