agm, page-9

As I said before, the term "demonstration plant" will no longer be used. Instead they will call it "Production Plant"...not commercial plant as stated in my original post.

In addition to the Chairman's address (see announcement) the following was also mentioned.

Today's announcement re: letter of intent, will become ESI's first ever REAL agreement to supply coldry pellets. All the previous MOU's although legitimate, are not as convincing as this one.

Given the credit crisis etc, Kos was very confident that funding WILL not be an issue to construct the first Plant. He is confident that ESI has a full proof business case that will get them over the line. He was 90% confident that ESI will not be required to raise any funds to contribute the the cost of building the Plant. He added that ESI is not likely to announce the cost of the plant, because it isnt necessary.

Kos stressed that the new Board does no longer want to be remembered for their past failures. From today, it will be a new beginning.

Kos stated that ESI has really struggled to make ends meet over the last 11 months...but after today's signing of the funding facility, ESI will now have adequate funds to not only survive the next 3 years, but also to grow substancially. In Kos's own words..."today we hit a substantial milestone". This was in reference to the letter of intent announcement and the final execution of the $10m funding facility.

Kos indicated that the plant will commence contruction before 2nd quarter and will be completed before 2010. The actual contruction will only take about 6 months but they are taking into acoount planning approvals etc.

Kos hopes that the first plant will be built at Latrobe Valley but if there are delays, ECT willinstigate PLAN B which is to set up the first plant overseas. He would not state a date for this but hinted that a date has been set. He stated that ECT will be agressively pursuing this as this is ECT number one priority.

ECT will no longer be referring to brown coal pellets...instead, they will now be calling the product "black coal substitute". ECT will be competing with the black coal market, so they wont be necessarily only servicing blown coal fired power generators.

Kos estimates that ECT will be earning an income after 2010.

Kos also mentioned MATMOR briefly and stated that MATMOR has alot more potential than coldry...but first without commencialising the coldry technology, they cant really pursue MATMOR.

Its hard to say how the market will view these recent announcements and the future ones. The board was releuctant to forecast the share price in the future. However, as long as ECT delivers on their business plan, the future looks amazingly bright.

After attending the last 2 AGM's, and listening to two different boards/management teams, I can say that the current board is far more competent and driven than the previous one.

I am confident to continue accumulating more shares now that I know that my investment is in excellent and capable hands.

As always, trade with caution particularly in this volatile market.