IMDEX LIMITED — Capital/Financing Update 2007

Aug 9, 2007

10 August 2007

Company Announcements Office Australian Stock Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001

Dear Sir/Madam

ACQUISITION OF 100% INTEREST IN POLY-DRILL DRILLING SYSTEMS LTD

Attached is an announcement of the above mentioned subject for release to the market.

The requisite Appendix 3B advice is attached.

Yours faithfully

Imdex Limited

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Paul Evans

Company Secretary

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Imdex Limited ACN 008 947 813 ABN 78 008 947 813 Level 1 15 Rheola Street, West Perth Western Australia 6005 PO Box 1325 West Perth WA 6872 Phone +61 8 9481 5777 Fax +61 8 9481 5377 E-mail imdex@imdex.com.au Page 1 of 1

Quality Endorsed Company ISO 9002 LIC: QEC 2807 Standards Australia

ASX and Media Announcement

ACQUISITION OF 100% INTEREST IN POLY-DRILL DRILLING SYSTEMS LTD

Statement by Bernie Ridgeway, Managing Director, Imdex Limited

Further to the announcement to the market on 12 June 2007, Imdex Limited (Imdex)(ASX Code: IMD) is pleased to announce that it has finalised an agreement to acquire all of the shares in Poly-Drill Drilling Systems Limited (Poly-Drill) for A$3.5 million effective from 1 July 2007.

The purchase price of A$3.5 million was satisfied by the:

• Payment of a cash consideration of A$1.75 million; and

• Issue of 1,212,751 ordinary shares at A$1.44 per share, being the issue price determined by the closing weighted average share price on the 5 business days prior to 1 July 2007. These shares will be held in voluntary escrow for a period of 12 months from 1 July 2007.

Poly-Drill undertakes the manufacture and sale of polymer drilling fluid based systems and fluids and solids control activities from Calgary, Canada. The fluid systems developed enables drilling without the use of numerous conventional drilling fluid products, such as fluid loss control additives and gels. The fluid systems are in use throughout North America and have established new standards in drilling fluid technology.

Poly-Drill also has a solids control system called the Zero Discharge Drilling system. The filtration system removes suspended solids from drill water which reduces drilling costs, eases the removal and disposal of potential pollutants, conserves water and recycles drilling chemicals in the drilling process.

Poly-Drill is also working towards commercialising a solids control system for the removal of oil from drill cuttings. Due to environmental issues, many countries require oil cuttings/sludge from oilfield drilling activities to be removed and some countries are seeking to enforce a zero impact policy for the environment. This provides markets for the Poly-Drill solids control equipment in conjunction with other Imdex group products. Several markets exist globally for this technology.

Poly-Drill is complimentary to the existing Drilling Products and Services business of Imdex and the acquisition facilitates the global expansion of Imdex’s business. The aim is to become a significant drilling fluids and chemicals supplier to the mining, oil and gas and water well industries in North America and a leading provider of solids control equipment globally.

This transaction is in line with the Imdex strategy to grow its business globally and build value for shareholders. The benefits this transaction delivers to Imdex and its shareholders are that:

1. It is complementary to the current Imdex drilling fluids and chemicals business;

2. It provides good growth opportunities and is consistent with Imdex's global expansion strategy;

3. It supplies the mining, oil and gas and water well industries and establishes for Imdex a base for the North American region; and

4. Through the solids control equipment, provides an additional revenue stream from the global oil and gas industry.

About Imdex

Imdex is a Perth based public company listed on the Australian Securities Exchange, whose core business is the supply of drilling products and services in Australia and internationally to the oil & gas, mining, water well, horizontal directional drilling and civil industries

For further information, please contact:

Ian Burston , Chairman; Bernie Ridgeway , Managing Director; Paul Evans , Chief Financial Officer and Company Secretary

IMD1003.60617.3

Appendix 3B New issue announcement

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005.

Name of entity

Imdex Limited

ABN

78 008 947 813

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of+securities issued or to be issued 2 Number of+securities issued or to be issued (if known) or maximum number which may be issued 3 Principal terms of the+securities (eg, if options, exercise price and expiry date; if partly paid+securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)	Ordinary Shares
	1,212,751 Ordinary Shares
	Fully Paid Ordinary Shares

• See chapter 19 for defined terms.

24/10/2005 Appendix 3B Page 1

Appendix 3B New issue announcement

4 Do the+securities rank equally in all respects from the date of allotment with an existing+class of quoted +securities? If the additional securities do not rank equally, please state: • the date from which they do • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 5 Issue price or consideration 6 Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets) 7 Dates of entering+securities into uncertificated holdings or despatch of certificates 8 Number and +class of all +securities quoted on ASX (_including_the securities in clause 2 if applicable)	Yes, Pari Passu with ordinary shares	Yes, Pari Passu with ordinary shares
	$1.44
	Further to the announcement to the market on 12 June 2007, issued pursuant to an agreement to acquire all of the shares in Poly-Drill Drilling Systems Limited (Poly- Drill). These shares will be held in voluntary escrow for a period of 12 months from 1 July 2007.
	On or about 2 August	2007
	Number	+Class
	181,161,754	Fully Paid Ordinary Shares

• See chapter 19 for defined terms.

24/10/2005

Appendix 3B Page 2

Appendix 3B New issue announcement

Number +Class 9 Number and +class of all 2,090,501 $0.20 Staff Options +securities not quoted on ASX 2,198,238 $0.35 Staff Options ( including the securities in clause 2 700,000 $0.75 Staff Options if applicable) 4,425,000 $1.00 Staff Options 675,000 $1.80 Staff Options 2,000,000 $0.30 Managing Director’s Options 1,000,000 $0.75 Chairman’s Options 10 Dividend policy (in the case of a No Change

• 10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)

Part 2 - Bonus issue or pro rata issue

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11 Is security holder approval
required?
12 Is the issue renounceable or non-
renounceable?
13 Ratio in which the [+] securities will
be offered
14 +Class of +securities to which the
offer relates
15 +Record date to determine
entitlements
16 Will holdings on different registers
(or subregisters) be aggregated for
calculating entitlements?
17 Policy for deciding entitlements in
relation to fractions
18 Names of countries in which the
entity has [+] security holders who
will not be sent new issue
documents
Note: Security holders must be told how their
entitlements are to be dealt with.
Cross reference: rule 7.7.
19 Closing date for receipt of
acceptances or renunciations
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• See chapter 19 for defined terms.

Appendix 3B Page 3

1/1/2003

Appendix 3B New issue announcement

20 Names of any underwriters 21 Amount of any underwriting fee or commission 22 Names of any brokers to the issue 23 Fee or commission payable to the broker to the issue 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of +security holders 25 If the issue is contingent on +security holders’ approval, the date of the meeting 26 Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled 27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders 28 Date rights trading will begin (if applicable) 29 Date rights trading will end (if applicable) 30 How do+security holders sell their entitlements_in full_through a broker? 31 How do+security holders sell_part_ of their entitlements through a broker and accept for the balance?

• See chapter 19 for defined terms.

Appendix 3B Page 4

1/1/2003

Appendix 3B New issue announcement

• 32 How do[+] security holders dispose of their entitlements (except by sale through a broker)?

• 33 +Despatch date

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

• 34 Type of securities ( tick one )

• (a) � Securities described in Part 1

• (b) All other securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

• 35 If the[+] securities are[+] equity securities, the names of the 20 largest holders of the additional[+] securities, and the number and percentage of additional[+] securities held by those holders

• 36 If the[+] securities are[+] equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories 1 - 1,000

• 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over

• 37 A copy of any trust deed for the additional[+] securities

• See chapter 19 for defined terms.

Appendix 3B Page 5

1/1/2003

Appendix 3B New issue announcement

Entities that have ticked box 34(b)

38 Number of securities for which +quotation is sought 39 Class of +securities for which quotation is sought 40 Do the+securities rank equally in all respects from the date of allotment with an existing+class of quoted +securities? If the additional securities do not rank equally, please state: • the date from which they do • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 41 Reason for request for quotation now Example: In the case of restricted securities, end of restriction period (if issued upon conversion of another security, clearly identify that other security) 42 Number and+class of all+securities quoted on ASX (_including_the securities in clause 38)
	Number	+Class

• See chapter 19 for defined terms.

Appendix 3B Page 6

1/1/2003

Appendix 3B New issue announcement

Quotation agreement

• 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the[+] securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the[+] securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those[+] securities should not be granted[+] quotation.

• An offer of the[+] securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

  - Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any[+] securities to be quoted and that no-one has any right to return any[+] securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the[+] securities be quoted.

  - If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the[+] securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before[+] quotation of the[+] securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here: ............................................................ Date: 10 August 2007 Company Secretary Print name: .....Paul Evans....................................................

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• See chapter 19 for defined terms.

24/10/2005 Appendix 3B Page 7