Exercise of warrants

Environmental Recycling Technologies plc (the "Company")

Exercise of warrants

The Company today announces that warrants to subscribe for 4,955,000 new ordinary shares of 2.5 pence in the Company ("Ordinary Shares") have been exercised. 4,000,000 of the warrants have been exercised at a price of 5 pence per new Ordinary Share and 955,000 of the warrants have been exercised at a price of 4 pence per new Ordinary Share. The net proceeds received by the Company following the exercise of the warrants is approximately £238,200.

The Company received the exercise notice for the warrants on [x] December 2010 and following the warrant exercise, there are 4,568,185 warrants to subscribe for new Ordinary Shares outstanding.

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 19 January 2011.

Following Admission, the Company will have 494,827,063 Ordinary Shares in issue. The new Ordinary Shares will represent approximately 1.0 per cent. of the issued share capital of the Company immediately following Admission.

13 January 2011

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