Voluntary Suspension Extension

Voluntary Suspension Extension

Environmental Clean Technologies Limited (ASX: ECT) (ECT or the Company) is pleased to provide the following update on the progress of its India project.

Background

The Company requested a voluntary suspension in the trading of its securities from the ASX on 15 March 2019 until 1 April 2019 pending feedback from its India project partner, NMDC on the status of its process to consider and approve the signing of the Research Collaboration Agreement (RCA).

On 29 March 2019 an extension to the voluntary suspension was granted until 22 April 2019 to address seven (7) key objectives in achieving certainty around the process and timeframes.

While progress has been made on several objectives, as explained below, the Company has today requested a further extension until 6 May 2019 to provide additional time to complete the remaining items.

Objectives

Objective 1: NMDC’s request for extension of the MOU to allow for adequate time to complete their internal processes.

Status: in progress

ECT has met with NMDC to discuss their requirement for a further extension to the MOU terms. A request for extension has been drafted and submitted to the parties’ for signing.

Objective 2: Agreement to, and signing of, a further MOU extension by NLC India Limited (NLCIL), NMDC and ECT.

Status: in progress

As above in 1, this request for extension was provided to ECT and has been duly signed. The document is now in circulation with both NMDC and NLCIL, seeking their signatures. Both NMDC and NLCIL have confirmed their intent to execute the document accordingly.

Objective 3: Confirmation from NLCIL that all pre-existing approvals remain on-foot subject to the granting of the extension of the MOU as per 1.

Status: complete

Following a series of meetings between ECT and NLCIL over the past several weeks both companies are pleased to confirm that all board approvals remain on foot.

In addition, a further outcome from these meetings is the development of a collaborative framework for broader technology applications, which the Company will outline in a subsequent update.

Objective 4: Confirmation that the upcoming Indian federal election does not place NMDC or NLCIL into “caretaker mode”.

Status: complete

NLCIL and NMDC have confirmed that there are no such ‘caretaker mode’ provisions which apply to Centralised Public Sector Entities during an election period. ECT note that several regional polling events have been completed, with the remainder to be completed in the month of April and election results compiled during May. There has been no impact on the Company’s dealings with NLC or NMDC.

Objective 5: Distribution of the final Research Collaboration Agreement, schedules and signing protocol.

Status: complete

ECT is pleased to confirm that the final ‘frozen’ form of the RCA was distributed to all parties on 15 April 2019. Further, ECT has discussed the signing protocol requirements and is comfortable that these can be implemented promptly once the pending NMDC approval requirements are concluded. As outlined under objective 3 above, NLCIL remain ready, willing and able to countersign upon NMDC’s approval.

Objective 6: Confirmation from NMDC that all internal processes have been completed (ahead of objective 7 below).

Status: in progress

NMDC continue to progress their internal review process and all parties remain respectful of the need for completion of necessary approvals and formalities and remain patient and supportive in this regard.

NMDC senior directors will be available from the 25 April to continue discussions on the internal review process at which time ECT personnel will return to Hyderabad to support the finalisation of any remaining requirements.

Notwithstanding the pending nature of formal confirmations, NMDC representatives reiterated their support for the project during the recent visit by ECT.

Objective 7: Confirmation from NMDC of a date for their next board meeting and their intention to take the project proposal forward for a decision.

Status: in progress

Once the internal review process (mentioned under objective 6 above) is complete, it is expected the parties will be in a position to confirm the required provisions for board approval and respective board meeting date.

The Company is pursuing an ambitious, first-of-a-kind project with two Indian government owned companies, that fully realised, would be the largest ever research and development collaboration between India and Australia. Reaching binding agreement has taken longer than the parties anticipated, which is reflective of the complex nature of the arrangement and the importance of ensuring a firm legal and commercial foundation among the parties in the context of a partnership that may span many decades and involve several hundred million dollars of investment.

In the Company’s opinion, continued trading of its securities in the absence of the clarity currently being sought around the process and timing required to achieve board approval is likely to be materially prejudicial to its ability to complete its major strategic objectives.

The Company looks forward to providing further information as it becomes available.

For further information, contact:

Glenn Fozard – Chairman           info@ectltd.com.au