Second Coldry Plant Prospect

Environmental Clean Technologies Limited (ASX:ESI) has signed a Heads of Agreement for the establishment of a Special Purpose Vehicle (SPV) with Alexis Minerals International Pty Ltd (AMI), to construct a plant for the production of 10M tonnes per annum of Coldry (Black Coal Equivalent) over the next 30 years.

AMI holds rights for extensive low rank coal (LRC) reserves in East Kalimantan, Indonesia. The reserves exhibit high levels of moisture and responded successfully to Coldry production trials and independent testing earlier this year.

Mr. Leslie Pereira, Director of AMI says of the project “We are very keen to explore the value adding opportunity Coldry technology represents. Coldry will allow us to improve the economic value associated with our coal reserves through dewatering, and provide a more competitive Black Coal Equivalent to address our target markets of neighboring South East Asian countries such as China, India, Bangladesh, Thailand, Vietnam and the Philippines.”

This agreement provides for ECT to contribute access to its Coldry intellectual property, plant designs and expertise, and for AMI to contribute sufficient coal reserves as well as a suitable plant location in Indonesia for the project.

Both parties will contribute sufficient resources to the SPV to commence the preparation on an Investment Memorandum to attract further investment to fund a formal feasibility study.

The feasibility study is expected to be completed before the end of Q4 CY2010.

“This development is a further milestone in the commercialisation of ECT’s Coldry technology and contributes to the realisation of our emerging markets growth strategy.

The agreement is consistent with our aim of generating significant shareholder value, while at the same time adding value to AMI’s LRC reserves” said ECT Chief Executive, Kos Galtos. “Alexis will be contributing capital to the SPV so we can move forward promptly. We are delighted to be able to progress two concurrent Coldry projects, the 20M tonnes per annum plant in Australia and now this exciting opportunity in Indonesia.”

About Alexis Minerals International (AMI)

Alexis is an Australian-based, privately owned joint venture company focused on coal exploration and mining in East Kalimantan. Alexis currently has five mining concessions in its portfolio.

About Environmental Clean Technologies Limited

Environmental Clean Technologies Limited is an Australia-based company. The Company is principally engaged in the research and development of dewatering and related technology. Its wholly owned subsidiaries include Asia Pacific Coal and Steel, and Enermode Pty Ltd.