SINO-ENVIRONMENT TECHNOLOGY GROUP LIMITED

(Incorporated in the Republic of Singapore on 2 October 2001)

Company Registration Number 200106480Z

BOARD ADVISORY TO SHAREHOLDERS

The board of Directors (the “Board”) of Sino-Environment Technology Group Limited (the
“Company”) refers to its announcements on 5 March 2009, 26 March 2009, 20 April 2009, 27
April 2009, 29 April 2009, 30 April 2009, 6 May 2009, 7 May 2009, 15 May 2009, 25 May 2009,
28 May 2009 and 30 June 2009.

Under the terms and conditions (the “Conditions”) of the S$149,000,000 4% convertible bonds
due 2013 (the “Bonds”) issued by the Company:

(a) Condition 4(B) provides that the Company ensures that, on each last day of each
calendar quarter on and after 30 June 2008, the ratio of Consolidated Total Debt (as
defined in the Conditions) to Consolidated EBITDA (as defined in the Conditions) for the
12 month period ending on such date is less than 5.0.

(b) Condition 4(E) provides inter alia that the Company shall file with The Bank of New York
Mellon (the “Trustee”) and publish in the Company’s quarterly earnings announcements
a statement (i) affirming its compliance with the covenants set out in Condition 4 and the
trust deed (as amended or supplemented from time to time) dated on or about 8 July
2008 between the Company and the Trustee, and (ii) setting out the ratio of Consolidated
Total Debt to Consolidated EBITDA calculated pursuant to Condition 4(B), showing in
reasonable detail the calculation of the ratio of Consolidated Total Debt to Consolidated
EBITDA, including the arithmetic computations of each component of such ratio.

(c) Condition 5 provides inter alia that the Company pays interest on the Bonds (as
calculated in accordance with the Conditions), where such interest is payable semi-
annually in arrear on 8 January and 8 July of each year (each an “Interest Payment
Date”), beginning on 8 January 2009, to holders of Bonds (the “Bondholders”)
registered in the register of Bondholders at the close of business on the 15th day
immediately preceding such Interest Payment Date.

The Board wishes to inform the following:

(i) The Company is not in a position to confirm if it is able to comply with Condition 4(B) and
Condition 4(E) for the following reasons:

The Company’s unaudited financial statements for the first quarter ended 31 March 2009
(the “First Quarter Financial Statements”) and unaudited financial statements for the
second quarter ending 30 June 2009 have not as at the date hereof been respectively
approved by the Board.

As announced by the Company on 30 June 2009, there has been a delay to the
commencement of the review of the significant cash transactions for the three month
period ended 31 March 2009 (the “Review”). The results of the Review are to be
considered for purposes of the approval by the Board of the First Quarter Financial

9 Temasek Boulevard, #32-02, Suntec Tower Two, Singapore 038989

Tel: +65 6820 8888 Fax: +65 6820 8868 Website: www.sino-env.com
 SINO-ENVIRONMENT TECHNOLOGY GROUP LIMITED
(Incorporated in the Republic of Singapore on 2 October 2001)
Company Registration Number 200106480Z

Statements. In addition, the Singapore Exchange Securities Trading Limited has agreed
to grant the Company a further extension of time up to 14 August 2009 to announce the
First Quarter Financial Statements.

(ii) The Company is unable to comply with Condition 5.

Failure by the Company to comply with any of Condition 4(B), Condition 4(E) or Condition 5 will
each constitute an event of default under the Conditions. Under the Conditions, upon the
occurrence of an event of default, the Bondholders will be entitled to, inter alia:

(A) request the Trustee by way of a request in writing from holders of 25% or more in
principal amount of the Bonds outstanding, or direct the Trustee by way of an
extraordinary resolution, to give notice to the Company that the Bonds are immediately
due and repayable in accordance with the Conditions; or

(B) convert their Bonds into ordinary shares in the Company in accordance with the
Conditions.

The Company has by way of a letter dated 8 July 2009 requested the following from the
Bondholders (through the Trustee) (the “Waiver Letter”) to inter alia:

(1) waive the Company’s obligation to comply with Condition 4(B), Condition 4(E) and
Condition 5;

(2) in relation to Condition 5, to extend the due date for the payment of the relevant interest
due in respect of the Bonds on the Interest Payment Date (being 8 July 2009) to the date
falling seven (7) days from the date of the Company’s receipt of the confirmation of the
Bondholders’ agreement to the Company’s requests in the Waiver Letter (the
“Extension”); and

(3) waive all events of default (including the events of default under Condition 10A) arising or
which may arise pursuant to the Conditions as a result of the Company’s non-compliance
with Condition 4(B), Condition 4(E) and Condition 5, and the Extension.

The Company is currently awaiting a reply from the Bondholders in respect of the Waiver Letter.

In the meantime, the Board would advise Shareholders and the investing public to
exercise extreme caution in the dealing of the shares of the Company.

The Company will continue to make further announcements as and when appropriate on a timely
basis.

BY ORDER OF THE BOARD

9 Temasek Boulevard, #32-02, Suntec Tower Two, Singapore 038989

Tel: +65 6820 8888 Fax: +65 6820 8868 Website: www.sino-env.com