Licence Agreement

13 August 2012

ENVIRONMENTAL RECYCLING TECHNOLOGIES PLC

(AIM: ENRT)

New Licence Agreement

Environmental Recycling Technologies plc ("ERT" or "the Company") (AIM: ENRT), which has developed and is exploiting the patented rights to the Powder Impression Moulding ("PIM") process capable of converting mixed waste plastics into commercially viable products, is delighted to announce that it has granted a licence to Brownwater Plastics LLC.

The Licence allows for the manufacture and sale of Barge Covers, Barges, Barge components and Work flats used in the inland waters, lakes, harbours, rivers, canals, inlets and bays of the United States of America. Under the terms of the licence Brownwater Plastics will pay ERT annual royalties based on sales of products made using the PIM process.

Brownwater Plastics is an affiliated company of James Marine Inc. (http://www.jamesmarine.com/) a leading full-service inland river repair company based in Paducah, Kentucky, USA, which is located on the confluence of the Tennessee and Ohio rivers. James Marine and its subsidiary and affiliated companies employ nearly 1,000 people, providing services including shipyards, barge fleeting, painting and repair and barge covers to the inland river industry.

Brownwater Plastics has begun trialling PIM prototype barge covers on working barges, with very strong and encouraging results. It will commence commercial production and sale of barge covers immediately following the grant of the licence.

Barge covers, which have traditionally been manufactured using fibreglass have been shown to have improved properties when manufactured using the PIM process, as it; -

·; significantly improves the environmental impact of barge covers through the use of recycled plastics in original manufacture and the ability to recycle old barge covers

·; allows damaged barge covers to be repaired more easily on site

·; reduces loss of barge covers as plastic covers will float while fibreglass covers sink

According to the American Waterways Operators ("AWO"), http://www.americanwaterways.com/industry_stats/facts_about_ind/factsabout.pdf the national trade association for the U.S. tugboat, towboat and barge industry, the inland water network sustains a fleet of around 28,000 barges which move more than 800 million tonnes of raw materials each year, transporting 20% of America's coal and around 60% of U.S. grain exports. Waterways transportation is considered to be the most economical and environmentally friendly mode of commercial freight transport. For example an inland barge has a capacity 15 times greater than one rail car and 60 times greater than one trailer truck - the average river tow is around 15 barges tied together, the same load transported by train would require a train 3 miles long or a line of trucks stretching more than 35 miles .

Roger Baynham Managing Director said "We are delighted to have signed this licensing agreement with Brownwater Plastics, which further demonstrates the range of industry and geographic markets which offer opportunity for the PIM process."

Jeff James, President of Brownwater Plastics LLC said:

"Our introduction of ENRT's PIM manufacturing process brings great advantages for our customers and the environment. Our customers' fleet management costs will benefit from materially reduced barge cover losses and repair costs, while barge covers can now both be manufactured from recycled material and can be 100% recycled at the end of their lifespan, significantly reducing their environmental footprint."

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