IMDEX LIMITED — AGM Information 2011

Oct 19, 2011

2011 AGM Chairman’s Agenda

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2011 ANNUAL GENERAL MEETING, 20 OCTOBER 2011

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2011 AGM Chairman’s Agenda

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Welcome

Good morning ladies and gentlemen. It gives me great pleasure to welcome you

to the 2011 Annual General Meeting of Imdex Limited.

My name is Ross Kelly. As Chairman of the Board of Directors of Imdex Limited, I

will occupy the Chair for this meeting.

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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

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Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World
2011 Annual General Meeting Presentation 3
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I would like to take this opportunity to introduce my fellow directors, company

secretary and other attendees today:

• Bernie Ridgeway is the Managing Director;

• Magnus Lemmel is a Non Executive Director;

• Kevin Dundo is a Non Executive Director;

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

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 Paul Evans is the Company Secretary.

Also attending today are other Imdex staff members and I am sure they would welcome the opportunity to meet with you over tea and coffee after the meeting. We are also joined today by Mr Peter Rupp (Audit Partner) of the Perth firm of Deloitte, the Company’s auditors. Peter will be available to answer relevant questions later in the meeting. Also attending is Mr Nino Odorisio from Q Legal, the Company’s solicitors.

Quorum/Meeting Open

I confirm that a Quorum of members is present and accordingly declare the

meeting open. [Constitution Article 15.3, 2 members present shall be a quorum for the meeting].

Notice of Meeting

I advise the meeting that notice of this Annual General Meeting was mailed to all registered members on Thursday, 15 September 2011, and consequently 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 was the 2010 Annual General Meeting held on 13 October 2010. The minutes of this meeting were approved by the Board and signed by myself as the Chair of that meeting in accordance with the provisions of Section 251A of the Corporations Law.

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The original minutes are tabled and there are copies of the minutes available for

inspection should any member wish to see them.

Proxies

I will now ask the Company Secretary to advise the meeting how many proxies

have been received.

SECRETARY - Thank you Mr Chairman. I advise that 258 valid proxies have been received representing a total of 96,054,554 shares or 46.97% of the issued capital of the Company. Thank you Mr Chairman.

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2011 AGM Chairman’s Agenda

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Order of business and conduct

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

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

• Our Managing Director, Bernie Ridgeway, will then make a presentation covering the significant events of the year;

• We will then consider the Financial Statements and Reports for the year ended 30 June 2011. At this time I will invite questions and comments on the financial statements and the Company generally;

• This will be followed by consideration of further four resolutions prior to

• consideration of the final resolution in relation to the 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 meeting.

When we get to questions and comments, if you wish to speak, could you please raise your hand, and when I call upon you, could you please give us your name.

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FY11 saw Imdex achieve it’s best ever results...

• Record financial performance in all major mining regions

• Record number of Reflex instruments on rent

• FY11 revenue 53% to $205.2m (FY10 ‐ $134.3m )

• EBITA excluding non‐operational items 132% to $48.1m (FY10 ‐ $20.7m )

• Strong balance sheet with low gearing even after acquisitions

• Record operating cash flow

• Exciting technology development and new product pipeline

• Strategic bolt‐on acquisitions add to margin and geographic footprint

• New growth initiatives to drive revenue and EBITA higher

...with records continuing in 1Q12

Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World 2011 Annual General Meeting Presentation 6

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2011 AGM Chairman’s Agenda

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Ladies and gentlemen,

The 2011 financial year has been an exceptionally positive one for Imdex with record revenue and profit performance and the achievement of key operational milestones.

In addition and, as announced to the market this morning, I am very pleased to report that our performance has continued to improve and that our company has had a strong unaudited result for the first quarter of the 2012 Financial Year.

Bernie will review the year’s results in some detail however the headline outcomes that are shown on the slide behind me summarise what has occurred.

Our revenue improved sharply during the 12 months to 30 June 2011 to set a new record at $205.2 million. This was 53% higher than FY10 revenue of $134.3 million.

A similar theme was experienced with earnings before interest, taxation and amortisation (EBITA) setting a new record at $48.1 million for the year which was 132% higher than the $20.7 million achieved in FY10.

These results are a fitting reward for the expertise and commitment displayed by our staff and management and the consistent delivery of quality products and services to our global customers.

The Directors were also delighted to announce a 2.75 cents per share fully franked final dividend. This is in addition to the 1.75 cents per share fully franked interim dividend paid in March 2011. This is in line with the Board’s commitment

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to pay a growing dividend stream while balancing the capital needs of the business during this exciting growth phase.

So why was it a record year?

The current financial year allowed the Imdex Group to enjoy the benefit of much of the work undertaken during the global financial crisis. Financial benefits have been gained by Imdex continuing to adhere to its proven strategy of being committed to:

• Growing its global business (organically and through acquisition with the acquisition of Fluidstar and Mud Data)

• Expanding into new markets

• Maintaining product leadership through investment in research and product development

• Increasing rental based revenue

• Achieving operational efficiencies.

Imdex’s decision to implement a regional structure dividing its minerals business into four operational regions, Africa, Asia Pacific, the Americas and Europe, yielded significant market share growth in FY11, particularly in the Americas and Africa. We expect this strategy to continue to yield further gains in market share across all regions in FY12 and beyond as cross selling opportunities are further unlocked.

Our ongoing research and product development spending saw the continued global uptake of new and improved down hole instrumentation which was a significant driver behind the increase in the size of the rental instrumentation

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fleet in FY11. By 30 June 2011, Reflex’s mining rental fleet had exceeded the previous high point in July 2008 by 79% and we expect new record levels to be achieved in FY12.

Over the past year, Imdex has also taken steps to further diversify its risk in relation to foreign currency movements. Although not eliminating this exposure, Imdex has continued to leverage the natural hedge provided by the growing businesses in the overseas regions and to diversify its debt into these overseas currencies. With the ability to vary the currency mix of the loan facility it provides much more effective tools to manage the net currency positions going forward.

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

Recent volatility in global financial markets has highlighted the uncertainties and concerns that exist in relation to European and US government debt levels and the slow recovery of the US economy.

While activity levels in both the minerals and oil & gas sectors are currently strong, we are alive to the potential for global economic concerns to impact the demand for commodities. As a result we are cautiously optimistic about FY12 and continue to progress a range of initiatives to grow the business both organically and through bolt-on acquisitions.

Since 1 July 2011 three new growth initiatives came into operation. The first is the oil and gas services joint venture with DHSO Services. This is expected to generate significant upside in future years as the advanced technology of the Imdex Group is combined with the customer network and industry expertise of DHSO Services. The second is the acquisition of Australian Drilling Specialities (ADS), an AMC dedicated drilling fluids manufacturer in Australia. This

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acquisition allows improved synergies and ownership of fluids technology and intellectual property. The third is the proposed acquisition of System Mud (Brazil) which provides Imdex access to the growing Brazilian minerals market and the ability to better serve our global customers.

Key growth drivers for FY12 and beyond for the Imdex Group will be:

• Oil and Gas DHSO Services joint venture operating out of Dubai

• Growth in mud recycling technology rentals / sales business

• Organic growth in all regions, particularly underpenetrated markets in Africa and the Americas

• Growth of Mud-Data, renamed AMC Oil & Gas Europe

• Integration of ADS as dedicated fluids manufacturer for Australia and flow on effects to our global drilling fluids manufacturing

• Further bolt on acquisitions.

I am confident that the Imdex Group will continue to benefit from the work done in the past few years to grow our research and product development capability, maintain our technology leadership position, retain our commitment to customers and grow our international footprint.

On behalf of the Board of Directors and employees, I would like to offer my sincerest thanks to our valued customers, shareholders, staff and management for your ongoing support and hope you will continue to be part of Imdex’s exciting future.

We have started the new financial year well and should continue in this vein. Thank you.

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2011 AGM Chairman’s Agenda

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Business of the Meeting

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

Item 1 - To receive the Financial Statements and Reports

The first item of ordinary business deals with the 2011 Annual Report.

The 2011 Annual Report has been distributed to all shareholders. Additional

copies are also available in the meeting today and are available for download on the Company’s Website.

( NB. No requirement to formally adopt the Annual Report, but simply under

Corporations Act s. 317 to lay it before the AGM and allow a reasonable

opportunity for questions to be put concerning the Annual Report).

Before I invite Shareholders to ask questions concerning the Accounts I will invite

the Managing Director to Address the Meeting.

[Bernie Addresses the Meeting]

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Exceptional growth in FY11

Pro

viding Quality Drilling Fluids and Leading Down Hole Instrumentation to the World Key indicator FY10 FY11 Change Revenue $134.3m $205.2m 53% EBITA (excl non‐operational items) $20.7m $48.1m 132% NPAT (excl non‐operational items) $9.8m $29.0m 196% Operatingcash flow $5.7m $35.9m 530% Gearing (net debt / capital) 19.6% 13.4%  Interest cover 27 times 17 times Total dividend (fully franked) ‐ 4.5 cents per share Number of employees (inclpart time) 300 399 33%

2011 An

nual General Meeting Presentation 8

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2011 AGM Chairman’s Agenda

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Good morning everyone. I will begin by providing an overview of the Imdex Group trading performance for the 2011 financial year and provide you with an update on how we have started the current year. I will also briefly cover the operations and divisional performance, comment on the outlook regarding Imdex’s main end markets of mining and oil and gas, and outline Imdex’s strategy and opportunities for growth in FY12 and beyond.

As our Chairman stated, the 2011 financial year was a record year in which we can be very proud. While we are pleased with the strong result, we are even more pleased with how we have positioned and continue to position Imdex for future growth. Our Company has never been in a better financial or operational position and this is due to successfully executing our focussed growth strategy over the last 5-6 years, irrespective of market conditions. We are obsessed with providing the best service to our customers, being market leaders in innovation and technology, and continuing to develop and up-skill our people. We have also consistently grown our geographic reach to the point now where we are a truly global player.

Over the 2011 financial year, the markets for our drilling fluids and down hole instrumentation were strong, and trading activity was robust in the major mining regions of Asia/Pacific, Africa, Canada and Latin America. As a consequence, Imdex generated record revenue of $205.2 million in FY11; a 53% increase on revenue in FY10.

Our Reflex instrumentation rental fleet reached new highs by the end of FY11 and our drilling fluids business showed growth in all regions. These factors assisted in generating a record after tax profit of $29.0 million in FY11, almost doubling our 2010 performance.

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Operating cash flow was also strong at $35.9 million and showed an increase of 530% on the previous year. Your Board reinstated the Company’s dividend for the first half of the 2011 financial year. For FY11, Imdex paid a total dividend, being interim and final dividends, of 4.5 cents per share fully franked to its shareholders. The growing dividend reflected the strength of Imdex’s underlying earnings and future opportunities balanced against the capital needs of the Company as it continues to grow.

Our workforce increased by one third during the year to almost 400 at 30 June, 2011.

These buoyant trading conditions have continued into 1Q12 where we have seen a number of new record highs achieved for quarterly revenue and EBITA, as well as in the Reflex instrumentation rental fleet. Also, our drilling fluids business continued to gain market share in Canada, Latin America and Africa whilst buoyant trading conditions prevailed in the Asia Pacific region.

We acquired the drilling fluids manufacturer, Australian Drilling Specialities (ADS) at the beginning of the new financial year and this business is performing very strongly.

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Record revenue
Revenue *  53% on FY10
($m)
205.2   44% on pre GFC record
revenue
of $142m
142.0 137.0 134.3  Minerals division
 87% of total revenue
103.8
 Strong performance
72.3
 Oil & Gas division
52.8
 13% of total revenue
O&G  Solid performance given
FY06 FY07 FY08 FY09 FY10 FY11 1Q12 floods impact in central and
north eastern Australia
excludes other income & discontinued operations
1Q12 numbers are unaudited
Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World
2011 Annual General Meeting Presentation 9
Minerals
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As illustrated by the bar charts on this slide, the global financial crisis and resultant downturn in mineral exploration in calendar 2009, disrupted the upward trend of revenue which the Group historically achieved. However, this upward trend resumed in FY11, with revenue of $205.2 million, which is 44% up on our previous record revenue of $142.0 million prior to the GFC in FY08.

The Minerals division performed very strongly and contributed 87% of total revenue with the Oil & Gas division making up the balance.

Given our revenue of $72.3 million in 1Q12, we have set a new quarterly benchmark being 20% above our previous best quarter of $60.1 million in 4Q11. Providing there are no material changes to our end markets, we are well on track to set new record high revenue in FY12.

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Record EBITA
EBITA
($m)  132% on FY10
48.1
 Strong minerals performance
38.8 in all major mining regions
drove EBITA growth
24.5   24% on pre GFC record of
22.3 20.7 21.1 $38.8m
 EBITA margins continued to
7.4 improve to 23.5%
FY06 FY07 FY08 FY09 FY10 FY11 1Q12
excludes other income & discontinued operations
1Q12 numbers are unaudited
Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World
2011 Annual General Meeting Presentation 10
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The EBITA trend is similar to that of revenue and in FY11 we set a new record for EBITA at $48.1 million, up 24% on the pre-GFC record of $38.8 million.

As you can see, the EBITA growth trend established pre GFC is now very much back on track and the record of $48.1 million last financial year should be exceeded significantly in FY12 given our record quarterly EBITA of $21.1 million in 1Q12.

EBITA margins improved to 23.5% in FY11 from 15% in FY10.

Robust commodity prices have continued to drive mineral exploration expenditure globally. The principal commodities behind this activity have been gold, copper, iron ore and coal. We have experienced increasing demand for drilling fluids and down hole instrumentation in each of the major mining regions

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which has allowed us to increase market share, expand our Reflex instrumentation fleet and generate fixed cost leverage across our business.

This is evidenced in our 1Q12 results where our EBITA margins have returned to pre GFC levels in the high 20’s.

As many of you know, Imdex operates two divisions, being Minerals and Oil & Gas. We will now take a look at the performance of the Minerals division which consists of the supply of drilling fluids (AMC) and down hole instrumentation (Reflex).

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Imdex’s global footprint
East Sussex, UK 2006 Rastede, Germany 2011
Calgary, Canada 2007 Riegel, Germany 2008
Timmins, Canada 2006 Aktau, Kazakhstan 2007
Salt Lake City, USA 2011 New Delhi, India 2010
Torreon, Mexico 2007
Accra, Ghana 2011
Singapore 2001
Jakarta 2001
Lima, Peru 2007 Belo Horizonte, Brazil 2011 Johannesburg, SA 2005 Townsville Brisbane
Perth 1987 Mudgee
Santiago, Chile 2007 Kalgoorlie Adelaide Melbourne
Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World
2011 Annual General Meeting Presentation 11
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Before we discuss the individual divisions, it is interesting to look at how we have expanded our geographic reach, particularly over the last 5-6 years. In this time, we have made 13 acquisitions, including the proposed acquisition of System Mud in Brazil and commenced one new joint venture . The drilling fluids

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acquisitions have all been about expanding our global reach and the instrumentation acquisitions have been to acquire technology.

I am very pleased to say that each of these acquisitions have been expanded considerably post acquisition and have provided the strong platform for the growth now being experienced.

During the course of these acquisitions we have also acquired some fantastic people who are integral to our success.

Now, turning to the individual divisions.

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Minerals division
177.7   60% on FY10
Revenue * Americas  Record mining Reflex fleet numbers
26%
($m)  AMC and Reflex continue to gain
market share
125.0 Africa
17%  AMC brand rolled out globally
108.8 111.3  Regional structure delivering cross
96.7
Europe selling advantages – same customer
Asia 3% base for fluids and instrumentation
Pacific
55% 65.0  Subject to no deterioration in end
markets, upward trend in revenue/
margin expected to continue
 Acquisition of ADS – 1 July, 2011
 Proposed acquisition of System
Mud (Brazil)
FY07 FY08 FY09 FY10 FY11 1Q12  Organic growth in all major
Regional structure adopted 1 July 10 – Comparatives mining regions
reconstructed using assumptions for illustrative purposes
excludes other income & discontinued operations
Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World
2011 Annual General Meeting Presentation 12
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Minerals Division revenue was up 60% on FY10 and this Division contributed 87% of total revenue for the year.

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As you can see, this Division performed very strongly during the year and revenue was underpinned by the continued support of our global alliances with Boart Longyear, Major Drilling, Layne Christensen and many other global and local drilling contractors.

AMC and Reflex continued to grow market share in all of the major mining regions. The AMC brand was rolled out globally replacing all of the smaller brands acquired over recent years.

The regional structure established at the beginning of the financial year facilitated cross selling opportunities and delivered very good results throughout the year.

The acquisition of Australian Drilling Specialities was consummated effective 1 July, 2011 and the proposed acquisition of System Mud should complete in the coming weeks.

The Reflex instrumentation rental fleet continued to grow and this provides a good segue into the next slide.

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Record Reflex rental fleet
 96% above previous peak
 Seasonal slowdowns over December/January
 Further growth expected in FY12 as new products rolled out
Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World
2011 Annual General Meeting Presentation 13
Instruments on hire
Nov‐07 Jan‐08 Mar‐08 May‐08 Jul‐08 Sep‐08 Nov‐08 Jan‐09 Mar‐09 May‐09 Jul‐09 Sep‐09 Nov‐09 Jan‐10 Mar‐10 May‐10 Jul‐10 Sep‐10 Nov‐10 Jan‐11 Mar‐11 May‐11 Jul‐11 Sep‐11
----- End of picture text -----

Ongoing product development through the cycle ensured that Reflex remained the number one supplier of down hole instrumentation to the mineral exploration and development industry globally. The investment in product improvements, the introduction of new products and a better regional structure have been key drivers for the Company’s growth.

This is evidenced by the fact that our mining instrumentation rental fleet is 96% above the previous peak recorded in July 2008.

The mining tools are manufactured in Osborne Park, Western Australia and we continue to release new and improved products into the market. Technology is a key differentiator for us and we spend approximately $5 million per annum on product development which maintains our market leading position. The return on investment in this area is high and we will continue to invest to ensure that our customers have access to the best technology available in the market place.

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Proposed acquisition of System Mud (Brazil)
 Purchase price ~$9.0m
 Will be immediately EPS accretive
 Effective date 1 August 2011. Completion expected late October
or early November 2011
 Forecast CY11 results
 Turnover $7.5m
 EBITA 1.4m
 Benefits to the Imdex Group
 Access to expanding Brazilian market and strengthen
position in Latin America
 Strategically placed to service global customers
 Platform for growth of Reflex brand and cross selling
Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World
2011 Annual General Meeting Presentation 14
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The proposed acquisition of System Mud is a further bolt-on acquisition which will be effective 1 August, 2011 and immediately earnings accretive. The purchase price is approximately $9 million and the acquisition completes our strategy of being able to service the Latin American market, support our global customers and increase market share in this expanding resource rich region.

System Mud, based in Itajai, in Santa Catarina state, will also be used as a base for Reflex in Brazil. Currently, the Reflex business is serviced from Chile.

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Market leading solids control technology

• Solids removal and fluid property management

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• Small environmental site footprint

• Reduced site set up and remediation costs

• Reduced water consumption

• Less wear and tear to drilling components by abrasive fluid

• Quicker to mobilise

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Traditional drilling fluid No sumps – fully enclosed No environmental
sumps system damage
Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World
2011 Annual General Meeting Presentation 15
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Many of you have seen this slide previously as we have been working on this technology for a few years. This new solids control technology for the diamond drilling industry in mining has been challenging, however, I am pleased to report that we are overcoming these challenges.

The industry would like to move away from the traditional method of using drilling fluid sumps to a proper above ground, closed loop system. The advantages include:

• Small or zero environmental footprint

• Reduced water consumption

• Less wear and tear on drilling components, and

• Increased productivity and less set up and remediation time and costs

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Our underground unit is commercial and our surface unit is nearing commercial status. From a revenue perspective, this technology should start to contribute late in FY12 and grow from there.

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Oil & Gas division
  19% on FY10
Revenue *  Fluids & chemicals impacted by floods in
($m) Australia
28.0 27.5  Instrumentation services growth via DHS JV
(oil and gas globally)
23.0  Continued product development on
existing/new instrumentation
17.0  Integration of Mud‐Data into
AMC brand complete
 Subject to no deterioration in end markets,
upward trend in revenue / margin expected
7.2 7.3 to continue
 DHSO JV effective 1 July 2011
 Expansion of Mud‐Data in European
market
FY07 FY08 FY09 FY10 FY11 1Q12
excludes other income & discontinued  Drilling fluids and
operations completion/production chemicals
Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World
2011 Annual General Meeting Presentation 16
----- End of picture text -----*

Revenue from this division was up 19% on FY10 at $27.5 million dollars. This was despite being negatively impacted by floods in central and north eastern Australia which delayed drilling programs for a number of our customers.

In order to assist the growth of this division, we acquired the drilling fluids and equipment business of Mud-Data in Germany and Romania and there is a separate slide in the presentation on that.

We intend to expand the production and completion chemicals side of this business and are widening our scope for these products internationally.

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We essentially had no contribution from our down hole instrumentation technology due to the change in business model and the establishment of the DHSO Joint Venture which I will cover in the next slide.

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DHS Oil & Gas Services JV to drive global growth

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• DHSO (majority owned by Lime Rock), is a 50:50 joint venture based in Dubai

• DHSO has exclusive global licence to Imdex technology

• Imdex sells instrumentation to the JV at cost + margin

• Initial target market the Middle East then expand globally

• Main competitors – Scientific Drilling International, Gyrodata

• Global onshore and offshore surveying and steering market ~US$500m to US$600m

• Aggressive growth planned over next 5 to 7 years

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Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World
2011 Annual General Meeting Presentation 17
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This joint venture became effective on 1 July, 2011 so had no impact on the year under review. It is not expected to contribute to earnings in FY12 as we invest in the business to position it for future growth which we believe will be significant.

The joint venture is based in Dubai and supplies down hole survey services to the oil & gas industry using Imdex technology. Aggressive growth is planned over the next 5-7 years to gain a significant share of the $500 million to $600 million global market in this area.

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2011 AGM Chairman’s Agenda

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The initial target market is the Middle East, however, by way of organic growth and potential acquisitions, the business will be expanded globally.

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AMC Oil & Gas Europe fully integrated

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• Based in Rastede, Northern Germany (near Bremen)

• Drilling fluids and chemicals and equipment

• Strong markets – oil & gas, geothermal and civil industries

• Solids control and high quality equipment for oil & gas and geothermal

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Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World
2011 Annual General Meeting Presentation 18
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I briefly mentioned earlier the acquisition of Mud-Data in Germany and Romania which has now been renamed AMC Oil & Gas, Europe.

This business supplies drilling fluids and equipment to the conventional and unconventional oil & gas industry as well as geothermal and civil industries.

We are also using AMC Oil & Gas, Europe as the base for our drilling fluids and chemicals business for the mining industry in Europe, the UK and Scandinavia.

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2011 AGM Chairman’s Agenda

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We have recruited strongly and have taken on experienced personnel at all levels within the business. A successful Open Day was held in early September to introduce the Imdex/AMC factor to existing and potential customers.

Tender activity is robust and the business will expand market share in Germany, Romania and in other key parts of Europe.

Whilst this business will not have a material impact on Imdex’s FY12 results, we are excited about the potential for FY13 and beyond.

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Strong balance sheet

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||||||||
|---|---|---|---|---|---|---|
|($millions)|Jun 10|Jun 11||Strong cash position|
|ReceivablesNet cash|41.29.0|18.450.2||Invested in working capital|
|Inventory|28.6|40.6|to support increased sales/|
|Investment in SEH|6.8|16.1|rentals|
|Fixed assets|13.6|17.3|
|Intangibles|50.0|55.9||Investment in SEH remains|
|Other assets / Deferred tax|14.2|20.6|
|non core|
|Total assets|163.4|219.1|
|Payables|25.7|32.8||Deferred tax on unrealised|
|Commercial bills|19.5|25.9|
|Bank loan – Canada|5.7|6.9|instrumentation profits|
|Bank loan – Sweden|2.9|1.0|
|Vendor finance|‐|2.8||Interest cover of 17 times|
|HP Finance|3.9|1.3|(EBITA over net interest|
|Provisions and current tax|Total equity|94.5|11.2|125.4|23.0|income)|
|(CA – Inventory)/CL |1.03|1.05||Low gearing|
|CA/CL Gearing|(net debt / capital)|19.6%1.58|13.4%1.62||Net debt of $19.5m|
|* Using CIBC and Westpac assumed repayment terms not statutory disclosure|
|Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World|
|2011 Annual General Meeting Presentation|19|

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As at 30 June 2011, Imdex had $19.5 million in net debt, down $3.5 million from 30 June 2010. Over this period gearing, represented by the percentage of net debt to capital, reduced from 19.6% to 13.4%.

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2011 AGM Chairman’s Agenda

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Cash flow from operations has allowed the Group to maintain strong liquidity with EBITA interest cover of 17 times.

The non-core investment in Sino Gas & Energy is now out of escrow and is likely to be sold to a strategic buyer who wants access to a large gas resource in China. Cash cost at 30 June, 2011 was $7.5 million; carrying value was $16.1 million and at close of trading yesterday, the market value was approximately $12 million.

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On track with strategy
Past FY11 Medium Term
Oil & Gas 1% 13%
Minerals
99% 87%
Instruments
19%
32%
Fluids 50%
31% 68%
Services
Sales 31%
Rentals 69%
¹ Based on actual or anticipated EBITA
Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World 2 Based on actual or anticipated revenue
2011 Annual General Meeting Presentation 20
2End market
1Profit
2mix
Rent / Sell
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That covers Imdex’s performance in FY11. Now I’d like to spend a few minutes discussing the outlook and the prospects of our business going forward.

Our focused strategy of having two distinct operational Divisions, minerals and oil & gas, supplying drilling fluids and down hole instrumentation remains.

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2011 AGM Chairman’s Agenda

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As illustrated by this slide, Imdex will continue to concentrate on late stage minerals applications and further penetrate under-developed mining markets globally, while growing our oil and gas business for both Drilling Fluids and Down Hole Instrumentation.

Inclusive of the DHSO JV, our objective over the next three to four years continues to focus on generating at least 40% of Group revenue from the oil & gas industry. In FY12, revenue from this sector should exceed 18% which is up from the 13% in FY11, and on the way to achieving the target of 40%. Such business sector diversification is logical, and is an extension of our existing business into a sector in which we have considerable expertise.

In addition to increasing our business within the oil and gas sector, we will continue to implement the rental model, where possible, which has proven to be sound and has been an important factor for our continued earnings improvement, particularly in FY11 and 1Q12.

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2011 AGM Chairman’s Agenda

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Increasing estimated global exploration spend
(non‐ferrous) (US$Bn) 20.4 20.8 22.5
19.0 19.3
18.0
17.0 17.1
13.2
11.5
10.4
7.5 7.7
5.1
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Source: Metals Economics Group (2005-2011); McKinsey analysis (2012-2018) Reproduced with
permission from Boart Longyear
  50% on CY10 to highest level ever
 Due to industry capacity constraints, likely flow into subsequent years
 Expenditure focused on gold and copper. Excludes coal and iron ore
 1/3 of estimated CY11 spend is by majors on long term projects
Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World
2011 Annual General Meeting Presentation 21
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Many of you may have seen this slide previously relating to exploration spend. It clearly illustrates the sharp increase in global mineral exploration expenditure post the GFC. Metals Economics Group indicated in mid September this year that they expect 2011 expenditure to be up by more than 50% in 2011 at an all time high of $17 billion dollars. In 2010, global spend was $10.5 billion dollars. It is important to point out that these numbers do not include expenditure on coal or iron ore.

Gold and base metals make up in excess of 75% of budget spending.

Metals Economics Group also makes the point that a third of estimated 2011 expenditure is with major companies on long term projects.

Lead time from discovery to production for the average copper project takes approximately 23 years, and for the average gold project, it is 10-12 years.

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2011 AGM Chairman’s Agenda

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Discovery is becoming increasingly challenging, ore bodies are deeper, more complicated, and cost significantly more to bring into production.

This is good news for Imdex because mining companies will need to continue spending on exploration and development requiring down hole instrumentation and drilling fluids to be able to access deeper and more complicated ore bodies.

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Key business drivers and outlook

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Mineral exploration Despite recent volatility in global financial markets,
spend commodity prices remain robust
Exploration activity levels and spend currently at record
levels
Client rig utilisation % Current high utilisation levels expected to continue subject
to no material deterioration in end markets
Level of Reflex rentals Reflex rental fleet records set in FY11. New records set
early in FY12
Development of new R&D and product development spending continued on
instrumentation both mining and oil & gas instrumentation
Further releases expected in FY12 and beyond
Key growth strategy Increasing # of preferred supplier agreements
Revenue and cost Minerals industry:2 global brands (AMC and Reflex)
synergies Regional structure = more effective cross selling
Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World
2011 Annual General Meeting Presentation 22
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Over the years, we have simplified this business and it is good for shareholders to have an understanding as to the key drivers for Imdex.

Mineral exploration spending and drilling rig utilisation are critical to our business and these are largely dependent on commodity prices and liquidity. Both are robust at the moment and are leading to a high level of demand for drilling fluids and down hole instrumentation as shown by our 1Q12 results.

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2011 AGM Chairman’s Agenda

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As mentioned earlier, our mining instruments are all manufactured in Australia and our rental fleet is at new highs due to robust demand as well as having an increased product offering resulting from investing through the cycle.

We have been able to increase the number of preferred supplier agreements we have with customers globally and we have simplified the mining brands to two, being AMC and Reflex. We operate a regional management and reporting structure which has and continues to pay dividends by leveraging the stronger business segment in the various regions.

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Summary

FY11 – Imdex’s best ever results

• Record revenue and earnings

• Record Reflex rental numbers

• Strong balance sheet

• Record operating cash flows

• Full year dividend of 4.5 cents per share

Attractive growth opportunities to drive further growth

• AMC Oil & Gas Europe drives fluids and equipment growth in the region

• DHSO joint venture drives Oil & Gas instrumentation/services growth globally

• System Mud acquisition increases representation and presence in expanding Brazilian market

• New technology/products in mining and oil & gas, including solids control

• Further organic growth across all global regions

• FY12 expected to be higher than FY11 assuming no material change to end markets

• Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

• 2011 Annual General Meeting Presentation 23

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

• The business drivers of robust commodity prices and liquidity are leading to increased demand for drilling fluids and down hole instrumentation.

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2011 AGM Chairman’s Agenda

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• Imdex is a direct beneficiary of this increased spending as shown by the exceptional growth in revenue and EBITA in FY11 which has continued into 1Q12.

• These activity levels are expected to continue for the balance of FY12, subject to commodity markets remaining buoyant and the debt crisis in Europe being contained.

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

• We have a number of strategic initiatives including organic growth and acquisitions which will drive growth in FY13 and beyond and should assist in taking Imdex to another level in terms of revenue and profitability.

• Despite a competitive market place and global issues outside our control, we are genuinely excited by what lies ahead as Imdex is uniquely positioned to capitalise on these opportunities and continue growing shareholder value over the medium to longer term.

That concludes my presentation, however, before closing I would like to echo our Chairman’s words and acknowledge our employees all around the world that make Imdex what it is today. I continue to be amazed by their commitment, inventiveness, dedication and hard work, and we are very privileged to have such talent working in the team.

I would also like to thank our customers, suppliers and consultants for their support throughout the year and trust that will continue for many years to come.

Finally, I would very much like to thank our Board for their guidance and support. We are very fortunate to have such a high quality Board.

I am now happy to take questions.

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2011 AGM Chairman’s Agenda

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Resolutions and other
formal business
Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World
2011 Annual General Meeting Presentation 24
Appendix
Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World
2011 Annual General Meeting Presentation 25
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2011 AGM Chairman’s Agenda

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Profit & loss
($millions) FY10 FY11 Var %
Revenue (excl interest income) 134.3 205.2 53%
EBITDA 24.9 53.8 116%
Depreciation (4.2) (5.7) 37%
EBITA 20.7 48.1 132%
Amortisation (6.4) (6.8) 7%
Net interest expense (0.7) (2.8) 260%
Tax expense (3.8) (9.5) 154%
NPAT before non recurring items 9.8 29.0 196%
- -
Impairment (34.0)
Forex on SEH loan (0.7) - -
Tax effect of non recurring items 3.4 - -
Statutory NPAT (21.5) 29.0 -
NPAT / Weighted ave shares on issue (cents) (11.05) 14.69 -
Cash flow from operations 5.7 35.9 530%
Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World
2011 Annual General Meeting Presentation 26
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Our business
Market Minerals Oil & Gas
87% of our business 13% of our business
Product
Instrumentation
Fluids Instruments Fluids
service
Brand
JV
Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World
2011 Annual General Meeting Presentation 27
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2011 AGM Chairman’s Agenda

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Drilling fluids

• Cools and lubricates the bit and drill rods

• Clears cuttings from the face of the bit and carries them to the surface

• Supports the formation through hydrostatic pressure

• Protects the drill rods and reduces excessive wear

• Plasters the hole with a semi‐impermeable filter cake

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Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World
2011 Annual General Meeting Presentation 28
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Reflex main product line
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EZ Shot
Single shot magnetic down hole survey instrument
EZ Trac
Multi shot magnetic down hole survey instrument
Reflex
Gyro Non-magnetic down hole survey instrument
ACT II
Digitial, electronic core orientation tool
Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World
2011 Annual General Meeting Presentation 29
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2011 AGM Chairman’s Agenda

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Disclaimer

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This presentation has been prepared by Imdex Limited (“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 this presentation in jurisdictions
outside Australia may be restricted by law and you should observe any such restrictions.
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 any security in any jurisdiction, and
neither this document nor anything in it shall form the basis of any contract or commitment. The presentation
is not intended to be relied upon as advice to investors or potential investors and does not take into account
the investment objectives, financial situation or needs of any particular investor. These should be considered,
with or without professional advice, when deciding if an investment is appropriate.
The Company has prepared this presentation based on information available to it, including information
derived from publicly available sources that have not been independently verified. No representation or
warranty, express or implied, is made as to the fairness, accuracy, completeness, correctness 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 from the use
of this presentation or its contents or otherwise arising in connection with it.
Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World
2011 Annual General Meeting Presentation 30
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