Debt Repayment

Environmental Recycling Technologies plc (the "Company")

Debt Repayment

The Company today announces a repayment of debt via the issue of new ordinary shares of 2.5 pence in the Company ("Ordinary Shares").

The Company has agreed to issue 20,000,000 new Ordinary Shares ("Debt Shares") at 3.75 pence (the "Issue Price") in settlement of amounts due to creditors (the "Debt Conversion"). The issue of the Debt Shares will reduce the creditors of the Company by £750,000.

The repayment of creditors via the issue of the Debt Conversion is in line with the board of directors' (the "Board") on-going strategy to reduce the current liabilities of the Company.

The Issue Price is equal to the closing mid-market price per Ordinary Share on 29 November 2010, being the last dealing day prior to the date of this announcement.

The Debt Shares will rank pari passu with the existing Ordinary Shares in the Company. Application has been made for the Debt Shares to be admitted to trading on the AIM market of the London Stock Exchange ("Admission"). It is expected that Admission will become effective on 6 December 2010.

Following Admission the Company will have 479,904,293 Ordinary Shares in issue. The Debt Shares will represent approximately 4.2 per cent of the issued share capital of the Company immediately following Admission.

30 November 2010

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