IMDEX LIMITED — AGM Information 2010

Oct 13, 2010

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2010 ANNUAL GENERAL MEETING, 14 OCTOBER 2010

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Imdex Limited
Annual General Me e ting
14 October 2010
AGM 2010 Presentation 1
Today’s AGM
AGM 2010 Presentation 2
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Welcome

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Good morning ladies and gentlemen. It gives me great pleasure to welcome you to t h e 2010 Annual General Meeting of Imdex Limited.

My name is Ross Kelly. As Chairm a n of the Board of Directors of Imdex Limited, I wi l l occupy the Chair for this meeting.

Your Directors

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• Ross Kelly – Chairman

• � Bernie Ridgeway – Managing Director � Kevin Dundo – Non-Executive Director � Magnus Lemmel – Non-Executive Director � Betsy Donaghey – Non-Executive Director

• AGM 2010 Presentation 3

I would like to take this opportunity t o introduce my fellow directors, company secreta r y and other attendees today:

• Bernie Ridgeway is the Managing Director;

• Magnus Lemmel is a Non E x ecutive Director;

• Kevin Dundo is a Non Exec u tive Director;

• Elizabeth (Betsy) Donaghey , is a Non Executive Director

• Paul Evans is the Company Secretary.

Also attending today are other Imde x staff members and I am sure they would welco m e the opportunity to meet with you over tea and coffee after th e meeting.

We are also joined today by Mr Pet e r Rupp of the Perth firm of Deloitte, the Compan y ’s auditors. Peter will be available to answer relevant questio n s later in the meeting. Also attending is Mr Nin o Odorisio from QLegal, the Company’s solicitors.

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Quorum/Meeting Open

I confirm that a Quorum of members is present and accordingly declare the meeting o pen. [Constitution Article 15.3, 2 members present shall be a q uorum for the meeting].

Notice of Meeting

I advise the meeting that notice of this Annual General Meeting was mailed to all regi s tered members on Monday, 13 September 2010, and conseque n tly as sufficient notice of the meeting has been given to all shareholders, I will take the notice as read.

Minutes of previous meeting

The last meeting of the Company w a s the 2009 Annual General Meeting held on 15 O ctober 2009. The minutes of this meeting were approved by the B oard and signed by myself as the Chair of that m eeting in accordance with the provisions of Section 251A of the C o rporations Law.

The original minutes are tabled and t here are copies of the minutes available for insp e ction should any member wish to see them.

Proxies

I will now ask the Company Secreta r y to advise the meeting how many proxies have b een received.

SECRETARY - Thank you Mr Chair m an. I advise that 233 valid proxies have been r e ceived representing a total of 101,983,587 shares or 52.28% of th e issued capital of the Company. Thank you Mr C hairman.

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Agenda

• Welcome

• Chairman’s addre s s

• Managing Director ’ s address

• Resolutions and v o ting

• Resolution 1 : An n ual Financial Report, Directors’ and Auditor’s Rep o rts

• � Resolution 2 : Re - election of Kevin Dundo � Resolution 3 : Re - election of Betsy Donaghey � Resolution 4 : Iss u e of Performance Rights to Bernie Ridgeway � Resolution 5 : Ap p roval of Financial Assistance by Subsidiaries � Resolution 6 : Re m uneration Report

• � Close of Meeting

• AGM 2010 Presentation 4

Order of business and conduct

The meeting will follow the order of p roceedings outlined in the Notice of Meeting.

• I will give a brief report on the year just completed;

• Our Managing Director, Ber n ie Ridgeway, will then make a presentation cov e ring the significant events of the year;

• We will then consider the Fi n ancial Statements and Reports for the year end e d 30 June 2010. At this time I will invite questions and co m ments on the financial statements and the Co m pany generally;

• This will be followed by the e lection of Directors;

• And then approval of financi a l assistance by certain of the Company’s subsidiaries;

• And finally the approval of t h e Remuneration Report.

• Prior to each resolution, I will advise the meeting of the proxy votes cast for and against that resolution.

• And finally, as this is an Annual General Meeting, may I remind you that only the matters listed in the notice can be considered at this m e eting.

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When we get to questions and com m ents, if you wish to speak, could you please raise your hand, and when I call

upon you, could you please give us y our name.

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Chairman’s address
Ross Kelly
AGM 2010 Presentation 5
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Solid Performance i n a Difficult Year

• After effects of global financia l crisis still present in FY10

• Slow 1H10 with a strong 2H1 0 recovery

• FY10 revenue � 2% to $134. 3 m (FY09 - $137.0m)

• EBITA excluding non-operational items � 15% to $20.7m (FY09 - $24.5m)

• Impairment charges of $34.0 m (1H10 $28.4m; 2H10 $5.6m)

• Low gearing – net debt / capit a l of 19.6% (June 09 - 16.0%)

• Launch of new and improved d own hole instrumentation helped mining rental tool fleet numbers reco v er by nearly 200% from April 09 lows

• Successful acquisition of Flui d star / Ecospin effective 1 September 2010

• Strong 1Q11 results

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Ladies and gentlemen,

The 2010 financial year has bee n one of recovery – a year that has seen Im d ex recover strongly from the effects of the Global Financial Crisis.

In addition and, as announced to the market this morning, I am very pl e ased to report that our performance has continued to improve and that our company has had a stro n g unaudited result for the first quarter of the 2011 Financial Year.

Bernie will review the year’s res u lts in some detail however the headline out c omes that are shown on the slide behind me summarise w hat has occurred.

It was a year of two halves – s luggish trading conditions in the first half f o llowed by a strong and accelerating recovery led by the A ustralian Mining Sector in the second.

Revenue of $135.6m was achie v ed for the year – down 2.5% on the 2009’s figure of $139m.

EBITA excluding non operational items declined to $20.7m – down 15% on t h e 2009 figure.

An impairment loss of $34m w a s also incurred resulting in an overall loss after tax for the year of $21.5m.

$23.6m of the impairment result e d from writing off goodwill and intangible a s sets to reflect lower than expected cash flows from some o f our operating entities – a direct conseque n ce of the GFC. This was done at the half year.

The remaining $10.4m was the result of marking the value of Imdex’s inv e stment in Sino Gas and Energy Holdings to market as at J une 30 of this year.

What is very significant is that:

• in almost every instance c ash flows for the “impaired entities” are no w at or higher than those that prevailed “pre GFC”

• the value of our investme n t in Sino Gas and Energy has recovered to above its previous level.

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As my fellow Board Members c a n confirm, after considerable discussion we decided not to declare a dividend even though as a Boa r d we remain firmly committed to deliverin g worthwhile dividends to shareholders. We decided not to declare a dividend for 3 reasons:

• uncertainty over the ext e nt of the recovery from the GFC and w h ether any recovery that occurred would be sustai n ed

• the need to continue to invest in the development of new down hole instrumentation and in particular in the equipme n t needed to support our strategy to penetrat e the Oil and Gas sector

• the opportunity to consoli d ate our position in the Asia Pacific Region b y acquiring Fluidstar and the need for additional ca s h to do this.

So why did we recover so strong l y?

There is no doubt that along w ith the rest of Australia we were and are still fortunate to be the beneficiaries of a growing Chin e se economy and its unprecedented dema n d for minerals. However Imdex’s sound recovery and go o d first quarter are not due to this alone. In addition to experiencing good market conditions we were well positioned to capitalise upon them.

We now operate in 11 countries, have exposure to a number of under penetrated markets and hence opportunities to grow that we wo u ld not have, had we remained solely focuse d on Australia.

As an aside, it is also interestin g to reflect upon the new Mining Super Tax and its potential to drive mining investment offshore. Eve n if a worst case scenario eventuates and m ining activity migrates to other countries, our geographic diversity and international customer base w ill help protect us from much of the impact.

Also, as well as investing in geo g raphic diversity Imdex has also invested (a n d continues to invest) to acquire and develop the best do w n hole technology presently available. Thi s , along with our policy of renting our instrumentation, as opposed to selling it, allowed us to main t ain a reasonably strong revenue stream throughout the G FC. It also ensured that our rebound would be rapid as evidenced by the fact that our tool rental numb e rs are currently at all time highs.

Ladies and gentlemen, all that is in the past – how do we see the future?

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Even allowing for the fact that there are many reasons to be concerned ov e r the health of the global economy and the negative impa c t that another downturn could have on co m modities and hence our results, we are reasonably optimistic about our prospects.

Metals prices and demand are b o th high and appear likely to remain so for at least a year or so.

The gold price is high and conti n ues to climb. In turn, this is driving strong levels of expenditure on gold exploration.

As previously noted the Chinese economy remains strong fuelled by invest m ent in infrastructure and urban development. The Indian e conomy is relatively strong as well and is li k ely to strengthen further. All of these impact positively u p on the demand for drilling fluids and instr u mentation in both of our target sectors.

In order to exploit these relativel y favourable conditions we intend to continu e to pursue the successful strategy with which I am sure most of you are familiar. In particular, we will:

• Consolidate our strong p osition in the minerals industry in Australi a and the nearby Pacific while growing market sh a re in the other regions in which we operate and in particular in Africa and North and South A m erica. To do this we will focus on providin g our customers with the best possible service. This, as much as our products, is what differe n tiates us from the rest of the market.

• Continue our efforts to di v ersify into oil & gas, particularly into the ons h ore sub sector.

• Maintain our level of in v estment in research and development an d by doing so retain our technical leadership in do w n hole instrumentation within the minerals s ector as well as improve our technical offerings to o il & gas.

• Continue to explore opp o rtunities to grow through acquisition while a t all times ensuring that any potential acquisition both improves the company’s earnings per share and has the appropriate strategic foc u s. (The recent Fluidstar acquisition is an example of the type of company we might seek t o acquire)

There is a downside to the miner a ls boom – the strong Australian Dollar.

Our results are being impacted n egatively by this and although I am by no m eans an authority on our dollar’s future movements relative to other currencies (and if I was there wo u ld be no need for me to be standing before you today) there is a reasonable body of opinion that sa y s the $A will continue to strengthen against the $US.

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To date we have managed to co n tain the resultant exchange losses to mana g eable levels in two ways viz:

• by selectively increasing p rices to compensate whenever the competi t ive situation allows us to do so; and

• through natural hedging i.e. maximizing the extent to which costs and associated revenues are incurred in the same curr e ncy.

We are also exploring options to convert an appropriate portion of our $A d e bt to $CAD/US debt and so increase our natural hedge. A t this stage we have no firm plans to form a lly hedge our position by entering into future currency contracts because the benefits potentially av a ilable do not appear to justify the costs and risks involve d .

Finally, strategy is fine but nothi n g of value eventuates unless you have the right people. We have a very strong team and continue t o strengthen it. Imdex is committed to being a leader in its field and as part of this commitment we continue to employ the best people we can find – not only from Australia but from the rest of the world as w ell.

Within this context I wish to rec o gnise and thank Managing Director Bernie Ridgeway for his efforts and outstanding leadership over a particularly testing year. I also wish to r e cognise the outstanding dedication and great skill shown b y his management team and the rest of our employees and staff.

Thanks also to my fellow board Members for their hard work, dedication and insight. In particular I welcome Betsy Donaghey to th e Board. Betsy adds greatly to our deliberations. She has a highly developed strategic sense, a de e p understanding of the Upstream Oil and G as Industry and a great sense of humour. Her only obvio u s failing is that she follows Essendon.

And finally may I thank you, our s hareholders, for your ongoing support of, and belief in, the Company.

We have started the new financi a l year well and should continue in this vein.

Thank you.

Business of the Meeting

I will now move to the business detailed in the Notice of Meeting.

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Item 1 - To receive the Financial Statements and Reports

The first item of ordinary business d e als with the 2010 Annual Report.

The 2010 Annual Report has been distributed to all shareholders. Additional copies are also available in the meeting today and are available for d ownload on the Company’s Website.

( NB. No requirement to formally ad o pt the Annual Report, but simply under Corpora ti ons Act s. 317 to lay it before the AGM and allow a reasonable op p ortunity for questions to be put concerning the A nnual Report).

Before I invite Shareholders to ask q uestions concerning the Accounts I will invite the Managing Director to Address the Meeting.

[Bernie Addresses the Meeting]

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Managing Director’s address
Bernie Ridgeway
AGM 2010 Presentation 7
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1Q11 Builds on 2H1 0 Recovery
1H10
� Trading activity robust in Asi a /Pacific
� Canada, Africa and Latin America slower to recover
� Margins � due to slower recovery in other major mining regions
� But … 1H10 showed improv e ment on 2H09 low
2H10
� Significantly improved tradin g conditions globally
� Improved revenue and margins
� Mining tool rental fleet reached new historic highs
� Fluids businesses rebrande d to AMC to gain global synergies
1Q11
� Sustained recovery in tradin g conditions globally
� Continued revenue and EBI T A growth
� Mining rental tool fleet reach e d record high at end September, 2010
� Acquisition of Fluidstar / Ecospin
AGM 2010 Presentation 8
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Good morning everyone. I w ill begin by providing an overview of t h e Imdex Group trading performance for the 2010 finan c ial year and into 1Q11. I will also briefly c over the operations and divisional performance, commen t on the Outlook regarding Imdex’s main e n d markets of mining and oil & gas, and outline Imdex’s str a tegy and opportunities for growth in FY11 a n d beyond.

The 2010 financial year was a t a le of two halves where trading activity was robust in the first half, our performance was impacted by s o me of the major mining regions of Africa, C a nada and Latin America being slower to recover. Given t h e lag in recovery in these regions, both re v enue and margins were down in the first half. However, this all turned around in the second ha l f of the year where we experienced significantly improv e d trading conditions globally.

Our mining tool rental fleet reac h ed new highs by the end of the financial y e ar and our drilling fluids business showed growth in all re g ions.

These buoyant trading condition s have continued into 1Q11 where we have seen continued revenue and EBITA recovery and new r e cord highs reached in the mining tool rental fleet. Also, our drilling fluids business continues to gain market share in Canada and Latin America.

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We acquired the drilling fluids b u siness Fluidstar at the beginning of Septe m ber and additional solids control technology through the a c quisition of Ecospin at the same time.

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Revenue – Returnin to Growth
90 g
Revenue
80.3
80 ($m) 75.9
72.9
70 69.1
DHI
60 57.9 56.7 58.4
unaudited
50 45.9 46.9
40 DFC
29.8
30
23.1
20
10
0
1H06 2H06 1H07 2H07 1H0 8 2H08 1H09 2H09 1H10 2H10 1Q11
excludes other in c ome & discontinued operations
� Improved trading conditio n s in 2H10 and increased market share
� 2H10 revenues are seco n d highest ever
� 1Q11 record revenues
AGM 2010 Presentation 9
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As illustrated by the bar charts on this slide, the global financial crisis a n d resultant downturn in mineral exploration in calendar 2009, disrupted the upward trend of re v enue which the Group historically achieved. However, t his upward trend has resumed as shown b y 2H10 revenue of almost $76m which is only 5.5% below our record half year revenue of $80.3m p r ior to the GFC in 1H09. Given our revenue of $46.9m in 1 Q11, we have set a new quarterly benchm a rk and are on track to set a new high in 1H11 and for the f u ll year.

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EBITA – Returning t o Growth
25 EBITA * * excludes discontinued
($m) operations and non-
operational items
20 19.8 20.0 20.0
15
12.2 13.2 unaudited
11.3
10.1
10
7.5
5.4
5 4.5
2.0
0
1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1Q11
� EBITA trend similar to revenue
� Momentum has continued into 1Q11
� 1Q11 EBITA str o ng
AGM 2010 Presentation 10
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The EBITA trend is similar to th a t of revenue, however, it fell by a greater a m ount given the impact of the global financial crisis and do w nturn in mineral exploration, combined wit h a conscious decision by the Company to continue to rein v est in the business. As a result, costs were not reduced at the same speed as revenue reduced. W e took the view that we should contin u e to spend on product development, carry fixed costs a nd costs associated with the Company’s specialist skill set built up over a number of years in the mining regions of Africa, Canada and Latin A m erica. This has ensured that we are in a strong position t o benefit from the upturn in markets which w e are now experiencing.

As you can see, 2H09 was the l o w point in the cycle followed by a fairly sha r p recovery in earnings in 1H10 and again in 2H10. This tr e nd has continued into 1Q11 with EBITA of $ 11.3m.

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1Q11 Continues 2H 1 0 Recovery
R evenue * unaudited
($m) 46.9
43.2 42.9
39.0
37.1
32.8 33.0
30.5 29.5 28.9
26.2
3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11
excludes other income & discontinued operations
� 1Q11 revenu e highest ever for a quarter
� Expected to c o ntinue in 2Q11 and the full year
AGM 2010 Presentation 11
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Strong commodity prices have continued to drive mineral exploration expenditure and this is evidenced in our 1Q11 results where revenue reached a new quarterly record of $46.9m, surpassing the previous high of $43.2m in 1 Q09 which preceded the GFC. The 1Q11 revenue includes $1.5m from Fluidstar, acquired affective 1 September, 2010.

This strong revenue trend is exp e cted to continue in 2Q11 and the full year.

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1Q11 Continues 2H 1 0 Recovery
EBITA
12.5 ($m) unaudited
11.3
9.9
9.1
8.0
7.5
5.2
4.2
3.3
2.6
1.9
3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11
Exclud e s discontinued operations
� 1Q11 EBITA second highest ever
� Expected to co n tinue in 2Q11 and the full year
AGM 2010 Presentation 12
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The strong revenue recovery h a s resulted in a significant increase in profi t ability with EBITA in the quarter of $11.3m, within 10% o f the $12.5m achieved in 1Q09. 1Q11 E B ITA included profit from Fluidstar for the month of Septe m ber.

The key profit drivers have been the increase in the mining tool rental fleet to new highs and the increased revenue from the glob a l expansion of the drilling fluids business.

As many of you know, Imdex o p erates two divisions, being Drilling Fluids a n d Chemicals, and Down Hole Instrumentation. These tw o divisions mainly supply two key global en d markets, namely mining and mineral exploration, and oil & gas. Other markets that Imdex supplies i n clude coal bed methane, water well and horizontal directio n al drilling.

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Drilling Fluids and C hemicals
Revenue
($m) FY09 FY10
91.7 89.6
60.0
50.5
50.0 48.6
42.3 43.4 41.2 41.0
40.0
33.3
29.1
30.0
23.3
20.0 18.4
10.0
-
1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10
� FY10 revenue � 2% but 2 H10 revenue � 19% on 1H10
� Upward trend in revenue and margin continued into 1Q11
� 22% of FY10 revenue fro m oil & gas
AGM 2010 Presentation 13
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Looking firstly at the Drilling Flui d s and Chemicals Division, revenue was do w n 2% on FY09, however, importantly, 2H10 revenue was u p 19% on 1H10 revenue, with the trend continuing into 1Q11. This Division contributed 67% of total revenue for the year and 22% of drilling fluids revenue came from the oil & gas industry.

Revenue was underpinned by th e continued support of our global alliances w i th Boart Longyear, Major Drilling, Layne Christensen and m any other global and local drilling contracto r s.

At the beginning of this presenta t ion, I said that FY10 reflected a tale of two h alves. This is particularly evident when looking at margin s for this division. EBIT margin in 1H10 wa s 5.5% due to the slower recovery of activity in Africa, Ca n ada and Latin America, however, once the recovery became global, our trading conditions improved w hereby EBIT margin for 2H10 was 12.75%.

We expect that drilling fluid EBI T margins should increase to around 15% fo r FY11 as we expand the business globally, integrate Fl u idstar and as other growth initiatives su c h as the solids control technology contribute to both rev e nue and earnings.

We still have some work to do to perfect this technology, however, with the recent acquisition of Ecospin and the employment of a new experienced manager in this area, w e are confident of getting

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the technology right and providing a much needed solution to the global dia m ond drilling industry and other industries such as water w e ll and HDD

Acquisition of Fluids t ar/Ecospin

• Purchase price $12.8m (Fluid s tar - $12.3 m, Ecospin - $0.5m)

• Settled by additional debt facility

• Effective date 1 September 2 0 10

• Unaudited FY10 financial res u lts (Fluidstar)

• Turnover $ 12.8m

• EBIT $ 2.8m

• Benefits to the Imdex Group

• Increasing market share

• Earnings accretive

• Additional Solids Control IP (Ecospin)

On 8 September, 2010, Imdex a nnounced the acquisition of Fluidstar, a drilling fluids and chemicals business based in Brisbane. T h e purchase price was approximately $12. 3 m for Fluidstar which is around 4.3 times trailing EBIT. The business traded well in September, b eing the first full month attributable to Imdex with revenue of $1.5m and brings to the Group add i tional market share and expertise through the retention o f Fluidstar drilling fluid engineers and is earnings accretive.

We also acquired Ecospin at a c o st of $500,000 for its solids control technolo g y on which a provisional patent has been lodged.

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Down Hole Instrum e ntation
Continuing Revenue
($m) FY09 FY10
45.3 44.7
35.0
29.5 29.8
30.0 26.8 27.3
24.6
25.0
20.0 16.9 17.4
15.5
15.0
10.0
6.4
4.8
5.0
-
1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10
� FY10 revenue � 1% on FY 0 9 but 2H10 revenue � 57% on 1H10
� Upward trend in revenue and margins continued into 1Q11
� Market share increased du e to continued mining tool development
AGM 2010 Presentation 15
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Moving on to the Down Hole In s trumentation Division, FY10 revenue was in line with the previous financial year at $44.7 million. T h is division accounted for 33% of Group rev e nues.

The global financial crisis meant t hat customers were not buying new tools a n d the severe downturn in global mineral exploration expen d iture led to a significant reduction in rental i ncome. As the bar chart shows, the low point in the cycl e was 2H09 with a marginal recovery in 1H 1 0 followed by a massive 57% increase in revenue in 2H1 0 . The recovery trend has continued into 1Q 1 1.

The Down Hole Instrumentation Division also maintained its strategy of s u pporting global alliances which underpinned performance.

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Mining Tool Rental F leet
Circa 20% above
previous peak
� Circa 200% growth from April 09 low to September 10 high
� Growth expected to continue until Dec/Jan seasonal slowdown
� Driven by market recovery and increased market share from new tools
AGM 2010 Presentation 16
Tools on Hire
09
Nov 07 Jan 08 Mar 08 May 08 Jul 08 Sep 08 Nov 08 Jan 09 Mar 09 M ay Jul 09 Sep 09 Nov 09 Jan 10 Mar 10 May 10 Jul 10 Sep 10
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Ongoing product development t hrough the cycle ensured that Reflex re m ained the number one supplier of down hole instrumen t ation to the mineral exploration industry gl o bally. The investment in product improvements and the i n troduction of new products has been a key driver for the Company’s growth. This is evidenced by t h e fact that drilling rig utilisation pre GFC w as approximately 85%, however, at 30 September, 201 0 , drilling rig utilisation is estimated to be ar o und 70%, yet our mining tool rental fleet is approximately 2 0% above the previous peak recorded in July 2008.

I am pleased to say that all of the mining tools are now manufactured in Osborne Park, Western Australia.

The underperforming part of this division is the contribution from the oil & g a s industry. This is largely as a result of the additional tim e it has taken to develop a robust suite of t o ols, including the Target INS and Drop Tool. However, significant improvements continue to be ma d e to maximise returns in this area.

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	AGM 2010 Presentation Conservative balanc ($ millions) Jun 10 Net cash 9.0 Receivables 41.2 Inventory 28.6 Investment in SGE 6.8 Fixed assets 13.6 Intangibles 50.0 Other assets / Deferred tax 14.2 Total Assets 163.4 Payables 34.5 Commercial bills 19.5 Bank loan – Canada 5.7 Bank loan – Sweden 2.9 Vendor finance - HP Finance 3.9 Provisions / Deferred tax 2.4 Total Equity 94.5 (CA – Inventory)/CL * 1.03 CA/CL * 1.58 Gearing(net debt / capital) 19.6% 17 e sheet �Low gearing at 30 June, 2010 of 19.6%. Increased to 26.5% at Sep 10 (post Fluidstar) �Low capital intensity �Working capital investment supports recovery �$34.0m impairment drops intangibles and SEH value �Deferred tax asset on unrealised profits in tools �SEH: �Investment $6.8m. Cash cost $7.5m. Market value at 13 Oct 10 - $15.6m Jun 09 12.0 23.4 26.4 20.5 10.8 79.2 1.5 173.8 18.1 21.5 - 8.3 2.5 1.7 5.5 116.2 1.62 2.37 16.0% * using CIBC repayment terms not reported disclosure
	Total Assets
	Payables Commercial bills Bank loan – Canada Bank loan – Sweden Vendor finance HP Finance Provisions / Deferred tax
	Total Equity
	AGM 2010 Presentation (CA – Inventory)/CL * CA/CL * Gearing(net debt / capital)

As at 30 June 2010, Imdex had $ 32.0m total debt, down $2.0m from June 0 9. Gearing, represented by the percentage of net debt to capital, was 16% at 30 June, 2010 and has increased to 26.5% at 30 September, 2010, post the Fluid s tar and Ecospin acquisitions.

Cash flow from operations has allowed the Group to maintain strong liquidity w ith EBITA interest cover of 27 times.

The investment in Sino Gas & E nergy (Sino) has a cash cost at 30 June, 2010 of $7.5m; carrying value was $6.8m and at close of t rading yesterday, market value was approximately $15.6m.

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On Track with Strat e gy
Medium Term
Past FY10
(2-4 years)
Early StageMinerals 1% 21% 17%
Late Stage 49% 50%
Minerals
62%
Oil & Gas
Management’s best estimate Management’s best estimate
Fluids
19%
Downhole 38%
Instrumentation 50% 62%
Services 31%
Sell 25%
Rent
75%
100%
60%40%
¹ Based on actual or anticipated EBITA
2 Based on actual or anticipated Revenue
AGM 2010 Presentation 18
End-market 2exposure
1Profit
Divisional
2mix
Rent / Sell
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That covers Imdex’s performanc e in FY10. Now I’d like to spend a few minut e s discussing the outlook and the prospects of our busines s going forward.

Our focused strategy of havin g two distinct operational Divisions, drillin g fluids and down hole instrumentation, supplying two e n d markets, mining and oil & gas remains th e same.

As illustrated by this slide, Imde x will continue to concentrate on late stage m inerals applications and further penetrate under-develop e d mining markets globally, while growing our oil & gas business for both the Drilling Fluids and Down Hole Instrumentation Divisions.

Our objective over the next two t o four years continues to focus on generati n g at least 40% of Group revenue from the oil & gas indus t ry. In FY11, revenue from this sector shoul d exceed 20% which is up from the 17% in FY10, and o n the way to achieving the target of 40% . Such business sector diversification is logical, and is a n extension of our existing business into a sector in which we have considerable expertise.

In addition to increasing our bus i ness within the oil and gas sector, we will continue to implement the rental model, where possible, w h ich has proven to be resilient and has been a significant factor in our earnings improvement, particularly in 2H10 and 1Q11.

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Key Business Drive r s and Outlook
Mineral exploration Com m odity prices continue to be robust
spend Expl o ration activity levels and spend increasing
Client rig utilisation % Client utilisation levels ~ mid 70%s by 31/12/10
Level of tool rentals Sept 10 new high
Curr e ntly manufacturing to demand
Red u ctions expected over Dec/Jan shutdown
Development of new R&D investment spending has continued
instrumentation Both mining and oil & gas tools
Successful launch of new mining tools in late FY10
Key growth strategy Increasing no. of preferred supplier agreements
Revenue and cost 3 glo b al brands (AMC, Reflex, Flexit)
synergies Regi o nal structure = more effective cross selling
AGM 2010 Presentation 19
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Over the years, we have sim p lified this business and it is useful for shareholders to have an understanding of the key drivers f or Imdex.

Mineral exploration spending an d drilling rig utilisation are critical to our busin e ss and these are largely dependent on commodity prices a nd liquidity. Both are robust at the moment and are leading to a high level of demand for drilling fluids and down hole instrumentation. As mentioned earlier, our mining tools are all manufactured in Au s tralia and our rental fleet is at new highs d ue to robust demand as well as having an increased product offering resulting from investing through t he cycle.

We have been able to increase the number of preferred supplier agreement s we have with customers globally and we have simplifie d the brands to three, being AMC, Refl e x and Flexit. We have implemented a regional manag e ment and reporting structure which is already paying dividends by leveraging off the stronger divisi o n in the various regions.

Activity is strong in the Asia Pacific region, West and Central Africa and So u th Africa is looking more robust.

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Canada has experienced a stron g summer drilling season, however the seas o nal slowdown (transition between summer and winter drilling season) will impact from October to Dec e mber. This may be offset to some extent by the active sea s on in Latin America as summer approaches.

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Global Exploration S pend (non ferrous)
� Exploration by commodity: 14.0 Estimated Exploration Spend Worldwide US$ Billions
� Gold 44%
12.0
� Base Metals 33%
10.0
� Diamonds 5%
8.0
� Uranium 8%
� Exploration by stage: 6.0
� Greenfields 33% 4.0
� Minesite/late stage 67% 2.0
� 2010 activity levels up 44% 0.0
after 42% decline in 2009
� Dearth of new discoveries
Source: Metals Economics Group
� Deeper and more complicated ore b odies
� Longer timeframes from discovery t o production
� Rising exploration, development a n d production costs
AGM 2010 Presentation 20
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
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Many of you may have seen this slide previously relating to exploration spen d . It clearly illustrates the sharp increase in global minera l exploration expenditure post the GFC. M etals Economics Group indicated last month that they e x pect 2010 expenditure to be up by more th a n 44% in 2010 after the 42% decline in 2009. Gold and b a se metals make up in excess of 75% of bu d get spending.

Lead time from discovery to pro d uction for the average copper project take s approximately 23 years, and for the average gold project, it is 10-12 years. Discovery is becoming inc r easingly challenging, ore bodies are deeper, more complicated, and cost significantly more to bring int o production.

This is good news for Imdex bec a use mining companies will need to continu e spending on exploration and development requiring dow n hole instrumentation and drilling fluids to b e able to access deeper and more complicated ore bodie s .

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Oil and Gas E & P E xpenditure
Source: BP Statistical
Review, IEA World
Energy Outlook,
Monthly Oil Market
Report, Medium-
Term Oil Market
Report, Barclays.
Revised 0310
� E&P spending up in 2010 after de c reasing in 2009 due to GFC
� More drilling needed to sustain an d increase world oil & natural gas production
� Deeper and more complex reserv e s mean greater drilling intensity and complexity
� Unconventional hydrocarbons - in c reased drilling intensity and complexity to reach
remote reserves and improve rec o very rates
AGM 2010 Presentation 21
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A similar picture applies to the o il and gas industry where new world clas s discoveries are deeper, more complicated and more co s tly to develop. The International Energy A gency expects budgeted spending on exploration and pro d uction worldwide for 2010 to be up on 2009 levels.

Energy companies are forecast t o increase drilling intensity and complexity t o reach remote reserves and to increase recoveries.

Again this is exciting for Imdex d ue to the increasing requirement for drillin g fluids and sophisticated down hole technology, particularly in the offshore market, and our focus on further growing in the oil and gas market.

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Summary

• Focused strategy has delivered r e sults � 2H10 revenue and EBITA ret u rned to growth, continued into 1Q11 � New peak in mining tool rent a l numbers end 1Q11 � Healthy balance sheet with c o mfortable gearing � Successful acquisition of Flui d star/Ecospin

• � Strongly positioned for future gro w th � Well positioned to increase m arket share via expanded product offering � Global growth in mining tool fleet � Further development of oil & g as technologies � Regional structure driving cr o ss-selling and efficiency gains � Brand simplification:

• AGM 2010 Presentation 22

So, in summary, I’d like to leave y ou with the following key take-aways:

• The key business driver s of robust commodity prices and liquidity a re leading to increased demand for drilling fluids a nd down hole instrumentation.

• Imdex is a direct benefic i ary of this increased spending as shown b y the sharp increases in revenue and EBITA in 2 H 10 which has continued into 1Q11, with b o th revenue and earnings either exceeding or near p re GFC levels.

• These activity levels are e xpected to continue for the balance of FY11 .

• We have a strong balanc e sheet with low gearing and strong liquidity.

• We have a number of gr o wth initiatives, we have a better structure a nd an increased product offering with our mining t o ol rental fleet at record highs.

• Despite a competitive m a rket place, we are genuinely excited by wh a t lies ahead as Imdex is uniquely positioned to capitalise on these opportunities and grow shareholder value over the medium to longer term.

That concludes my presentation a nd I am now happy to take questions.

Chairman – Thank you Bernie.

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Resolutions and other
formal business
AGM 2010 Presentation 23
Appendices
AGM 2010 Presentation 24
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Comprehensive pro d uct portfolio
Market Miner a ls Oil & Gas
Drilling D own hole Drilling Down hole
Product fluids i n struments fluids instruments
Brand
AGM 2010 Presentation 25
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Corporate Snaps h ot
Board of Directors
Ross Kelly Non-Executive Chairman
Bernie Ridgeway Managing Director
Kevin Dundo Non-Executive Director
Magnus Lemmel Non-Executive Director
Betsy Donaghey Non-Executive Director
Paul Evans Company Secretary / CFO
Capital Structure
Shares on issue – 195m
Employee rights – 0.58m
Employee options – 13.4m
Market price 13 October 10 - $1 . 14
Market capitalisation - $222m
AGM 2010 Presentation 26
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Profit & Loss
($m) FY10 FY09 Var %
Revenue (excl interest income) 134.3 137.0 2% �
EBITDA 24.9 27.8 11% �
Depreciation (4.2) (3.3) 26% �
EBITA 20.7 24.5 15% �
Amortisation (6.4) (6.5) 3% �
Net interest expense (0.7) (0.9) 7% �
Tax expense (3.8) (5.8) 35% �
NPAT before non recurring items 9.8 11.3 14% �
- -
Impairment (34.0)
Forex on SGE loan (0.7) 1.1 -
Tax effect of non recurring items 3.4 (0.3) -
Reported NPAT (21.5) 12.1 -
NPAT / Weighted average shares on iss u e (cents) 5.02 5.98 16% �
Cash flow from operations ($m) 5.7 16.2 65% �
AGM 2010 Presentation 27
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Non-cash impairment charges
Area $ m Comment
� Mark-to-market valuation
Sino Gas and 4.9 (1H10) � Cash cost $7.5m
Energy Holdings 5.6 (2H10) � Carrying value $6.8m (30 Jun 10)
Limited (SEH)
� Market value $8.3m (22 Sep 10)
� AMC performed well. Asia Pacific strong.
Other regions slower to recover.
Fluids Businesses 11.0 (1H10) � Re-branding to “AMC” globally for both
mining and oil & gas markets
� Development and market entry of oil & gas
SEG/Flexit
12.5 (1H10) tools taking longer to ensure “best in class”
Business
� Three tools commercial
34.0 (FY10)
� Non-cash adjustment s to balance sheet carrying values
� No impact on funding
AGM 2010 Presentation 28
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Disclaimer
This presentation has been prepared by Imdex Limit e d (“the Company”). It contains general background information
about the Company’s activities current as at the date of the presentation. It is information given in summary form and
does not purport to be complete. The distribution of t h is presentation in jurisdictions outside Australia may be restricted
by law and any such restrictions should be observed.
This presentation is not (and nothing in it should be construed as) an offer, invitation, solicitation or recommendation with
respect to the subscription for, purchase or sale of a n y security in any jurisdiction, and neither this document nor
anything in it shall form the basis of any contract or c o mmitment. The presentation is not intended to be relied upon as
advice to investors or potential investors and does n o t take into account the investment objectives, financial situation or
needs of any particular investor. These should be co n sidered, with or without professional advice, when deciding if an
investment is appropriate.
The Company has prepared this presentation based o n information available to it, including information derived from
publicly available sources that have not been indepe n dently verified. No representation or warranty, express or implied,
is made as to the fairness, accuracy, completeness, c orrectness or reliability of the information, opinions and
conclusions expressed.
Any statements or assumptions in this presentation as to future matters may prove to be incorrect and differences may
be material. To the maximum extent permitted by law, none of the Company, its directors, employees or agents, nor any
other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of
any of them or any other person, for any loss arising f rom the use of this presentation or its contents or otherwise arising
in connection with it.
AGM 2010 Presentation 29
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