Exercise of warrants

Environmental Recycling Technologies plc (the "Company")

Exercise of warrants

The Company today announces that warrants to subscribe for 9,867,770 new ordinary shares of 2.5 pence in the Company ("Ordinary Shares") have been exercised. The exercise price for the warrants is 2.5 pence per new Ordinary Share. The net proceeds received by the Company following the exercise of the warrants is approximately £246,690.

Following the warrant exercise, there are 10,568,185 warrants to subscribe for new Ordinary Shares outstanding, 6,000,000 of which are no longer exercisable after 31 December 2010.

The new Ordinary Shares will rank pari passu with the existing Ordinary Shares in the Company. Application has been made for the new Ordinary 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 16 December 2010.

Following Admission, the Company will have 489,772,063 Ordinary Shares in issue. The new Ordinary Shares will represent approximately 2.0 per cent. of the issued share capital of the Company immediately following Admission.

10 December 2010

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