Shareholder Update: Capital RaisingThursday, 26 July 2012:...

Shareholder Update: Capital Raising
Thursday, 26 July 2012: Environmental Clean Technologies Limited (ASX: ESI) (ECT or
Company) provides the following update on capital raising activities.
Status of Monash Capital Share Placement Settlement
The Company has received $500,000 to date in part satisfaction of the $4 million placement as
approved at the General Meeting on 27 April 2012.
The Directors of ECT have received correspondence from Monash Capital advising that the
balance of the placement will be delayed beyond todays ‘resolution 4’ deadline.
Therefore the timeframe to settle the remaining balance of the $4 million placement under the
terms of resolution 4 will expire at 5pm today, triggering the contingency offer outlined in the
announcement on 19 July 2012.
The contingency offer from Monash will take the form of a Converting Loan totalling $6 million
instead of $4 million for the same quantity of shares, effectively achieving a 50% premium over the
terms previously approved by shareholders. The Converting Loan is be subject to shareholder
approval.
In the correspondence received from Monash Capital, Mr Neil Youren states, “We are naturally
frustrated by the delays experienced in finalising our funding package. However, we reiterate our
commitment to ECT and our written offer of 18 July 2012 to subscribe for up to 300 million Fully
Paid Ordinary Shares (ESI) at $0.02 and 300 million Listed Options (ESIO)”
Executive Chairman Mr Michael Davies commented “The ECT Board has worked closely with
Monash Capital over the past three months and appreciates the tremendous frustration
experienced in the course of finalising the funding package. Monash’s offer to acquire up to 300
million each of shares and options at $0.02 per share, demonstrates their serious intent to invest in
ECT and the broader energy sector. Accordingly, the ECT Board remains optimistic that Monash
can fulfil its obligations”
Mr Davies added, “Whilst the ECT Board is satisfied that Monash Capital is working diligently to
finalise its funding arrangements, the Company reserves all of its rights in regards to the
outstanding balance of funds. The recently announced ‘Fast Financing’ allows the Company to
meet all of its short-term obligations and to explore a number of funding alternatives”.
The process and timing around Monash’s Converting Loan offer will be the subject of further
announcements.
For Further Information Contact:
Mike Davies – Managing Director +61 3 9909 7684 or [email protected]
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