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Ann: Strategic China Regional Partnership with Jiangsu Jinzi-EMC.AX, page-2

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    Emefcy Group Limited (ASX: EMC) Announces Signing of
    Strategic China Regional Partnership with Jiangsu Jinzi – Opening
    Access to Key Southern Provinces
    November 2, 2016
    Melbourne, Australia and Caesarea, Israel: Emefcy Group Limited (ASX: EMC) (“Emefcy”) is pleased to
    announce the signing of a distribution & deployment partnership for Emefcy’s Membrane Aerated Biofilm
    Reactor (“MABR”) based wastewater treatment solutions with Jiangsu Jinzi Environmental Technology
    Company, Ltd. (“Jinzi”), a leading environmental protection company focusing on the design, building and
    operation of wastewater treatment systems for rural communities in the Central and Southern Provinces
    of China. The memorandum of understanding with Jinzi will open access to several key southern provinces
    in China.
    This is the third Chinese relationship that the Company has entered into in recent months; a testament to
    the growing recognition of Emefcy’s technology as a credible solution to China’s need for scalable, cost
    effective, energy-efficient wastewater treatment solutions in rural areas.
    The program roll-out will begin with an immediate MABR deployment with a treatment capacity of 20,000
    litres per day at a technical college in Changzhou, Jiangsu Province. The system is planned to demonstrate
    the ability of the technology to meet Class 1A effluent quality at low operating costs. Once regional
    certification is achieved, the partnership allows Jinzi to deploy Emefcy plants in regions where total
    potential demand for Emefcy product under the current Five Year Plan amounts to an estimated A$2.5B.
    Jinzi operates in several Provinces including Zhejiang, Guizhou, Fujian and Ningxia, and has already
    installed approximately 1,000 wastewater treatment plants in China. Jinzi plans to apply the MABR
    technology in larger wastewater treatment plants; with each treating a projected 100 -200 m3/day,
    addressing a population of 56 million who do not have access to wastewater treatment services.
    “We are excited to team up with Jinzi to deploy the most efficient wastewater treatment solution in the
    market today. Jinzi brings hands-on market and project execution experience to enable rapid deployment
    of MABR systems throughout the Southern Provinces,” said Richard Irving, Executive Chairman of Emefcy.
    Jinzi intends to deploy MABR-based wastewater treatment systems to rural communities throughout
    Central and Southern China. For all joint future contracts, Jinzi will purchase MABR modules from Emefcy,
    integrate them under Emefcy’s technical guidance into a complete treatment system and provide ongoing
    plant maintenance and related services.
    The Emefcy MABR modules initially will be produced at the Company’s manufacturing facility in Israel,
    and are scheduled to ship before the end of this calendar quarter. Emefcy, as previously announced, is in
    2
    the process of seeking license approvals and establishing manufacturing facilities in Jiangsu Province. The
    first manufacturing line in China is anticipated to be in place by the second quarter of calendar 2017.
    The first Jinzi installed MABR-based system is scheduled to be commissioned during the first quarter of
    2017.
    "We have been building and operating wastewater treatment systems for many years and have not seen
    such an effective biological treatment technology until now,” said Mr. Xie, President of Jinzi. “What
    impresses us about Emefcy’s MABR system is the highly effective yet simple design of the membrane,
    which uses minimal energy to deliver the highest oxygen content to the biofilm layer, resulting in the
    lowest operating cost and most importantly meeting class 1A discharge guidelines for the China market.”
    About Emefcy Group Limited
    Emefcy develops, manufactures and markets innovative, energy-efficient MABR based wastewater
    treatment solutions, aiming to change the economics of various markets and addressing the growing
    global demand for clean water for municipalities, resorts, commercial properties, and industrial plants.
    Emefcy’s advanced manufacturing facility in Israel is equipped with state of the art production
    machinery, and is currently producing second generation MABR based wastewater solutions enabling
    the Company to control the quality and meet the quantity requirements of its current global markets
    and initial anticipated orders for China. Higher volume manufacturing facilities are being implemented
    in China.
    With several global innovation awards and a strong scientific background, Emefcy is at the forefront of
    the next generation of MABR based wastewater treatment. MABR-based wastewater treatment plants
    have been operating in Israel for up to two years, and ustomer contracts have been signed in the US
    Virgin Islands, Ethiopia, and China. Additional MABR based wastewater solutions from Emefcy’s
    extensive R&D operations are anticipated to be announced in the coming year.
    Emefcy Group Limited (ASX: EMC) is a public company traded on the Australian Stock
    Exchange. Visit our website: www.emefcy.com
    Any forward-looking statements in this announcement are not guarantees of future performance and
    involve known and unknown risks, uncertainties, assumptions and other important factors, many of which
    are beyond the control of the Company, its directors and management.
    Jiangsu Jinzi Environmental Technology Company. Ltd.
    Jiangsu Jinzi Environmental Technology Company Ltd ("Jinzi ") was founded in 2006. Jinzi is a high
    technology company delivering environmental protection technology and solutions. As an EPC company,
    Jinzi focuses on the design, build and operation of rural wastewater treatment plants.
 
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