Quarterly Activity Report & Appendix 4C

Environmental Clean Technologies Limited (ASX: ECT) (ECT or Company) provides the following quarterly activity report and Appendix 4C.

Quarterly Activity Report – 1 October to 31 December 2020

During the quarter, the Company continued activities to rebuild its Bacchus Marsh facility (the “Project”) following the fire in October 2019.

Approximately $601K in cash was spent on the Project during the quarter on eligible research and development (R&D) expenditure that would qualify for the ATO’s R&D tax incentive.

Of this amount, $402K was attributable to property, plant and equipment purchases (previous quarter $313K) with the remaining $199K on other R&D project expenses (previous quarter $220K). An estimated $350K in accrued research and development tax incentive credit is yet to be drawn via the proposed loan referred to in the Appendix 4C below.

In the previous quarter the Company received its research and development tax incentive of ~$899K which was disclosed as a government grant. In the quarter ended 31 December 2020 government grants amounted to $20K which consisted of JobKeeper payments.

Other cash inflow and outflow categories were comparable to the previous quarter. As such, and notwithstanding the items mentioned above, the Appendix 4C is not materially different to the prior quarter.

Cash on hand at the end of the quarter was $324K compared to $1.220M at the end of September 2020.

Following the reporting period, on 7 January 2021, the Company received the $593K balance of the insurance proceeds payable following the fire at its Bacchus Marsh facility in October 2019.

For further information, contact:

Glenn Fozard – Chairman           [email protected]