IMDEX LIMITED — Capital/Financing Update 2008

Aug 21, 2008

22 August 2008

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

Dear Sir/Madam

ACQUISITION OF 100% INTEREST IN WILDCAT CHEMICALS AUSTRALIA PTY LTD (WILDCAT)

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

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@imdexlimited.com Page 1 of 1

Quality Endorsed Company ISO 9002 LIC: QEC 2807 Standards Australia

22 August 2008

ASX and Media Announcement

ACQUISITION STRENGTHENS IMDEX OIL AND GAS SECTOR EXPERTISE

Statement by I F Burston, Chairman, Imdex Limited

Imdex Limited (Imdex) has executed a Heads of Agreement to acquire all shares in Wildcat Chemicals Australia Pty Ltd (Wildcat). Wildcat manufactures, distributes and custom formulates high performance specialty chemicals including oil field chemicals, process chemicals and drilling fluids from its manufacturing and distribution facility in Narangba, just north of Brisbane.

The Wildcat business is complementary to Imdex’s existing Drilling Fluids and Chemicals business and will facilitate its continued expansion by adding completion and production chemicals to products offered.

The acquisition of Wildcat:

• provides sustainable growth opportunities consistent with our expansion strategy;

• builds on the company's strategy of expanding the oil & gas business of Imdex;

• provides a manufacturing facility on the east coast of Australia, which is expected to have a positive impact on EBIT; and

• is reasonably priced in relation to earnings.

Wildcat is an existing supplier to the Imdex Group subsidiary Australian Mud Company (AMC) and manufactures a range of completion and production chemicals for the oil and gas industry.

Wildcat was formed in November 1996, with the aim of supplying high quality products together with a high level of service to the oil and gas industry. Sales and profitability have been increasing year on year and for the year ended 30 June 2008 revenue was approximately $2.8m producing EBIT in the order of $0.3 million.

The total cost of the transaction is $1.8 million and will be funded through existing cash resources.

Conditions Precedent

Conditions precedent to the acquisition of Wildcat include:

1. due diligence on all aspects of Wildcat to the satisfaction of Imdex in its sole discretion;

2. negotiation and execution of a definitive share sale agreement; and

3. Mr Barry John Roper concluding a suitable employment contract with Wildcat as General Manager in terms of which he will be employed by Wildcat and/or restrained for a suitable time period from competing directly or indirectly with Wildcat.

About Imdex

Imdex is a West Australian based S&P/ASX300 listed company, and a global leader in the provision of drilling fluids and down hole instrumentation technology. Imdex services major companies across the mining, oil and gas, water well and civil engineering industries. With a presence in all significant mining and exploration regions Imdex has a clear direction to take on the next stage of global expansion. Strategic rationalisation over FY 2008 has enabled the Group to more that double net profit and continues a five year track record of strong financial performance.

For further information, please contact:

Ian Burston , Chairman; Bernie Ridgeway , Managing Director; Paul Evans , CFO and Company Secretary

IMD1003.97216.1

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