IMDEX LIMITED

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21 February 2011

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Company Announcements O f fice ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001

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Dear Sir/Madam

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FY11 Half Year Results Conference Call and Slide Show

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Please find attached the scri p t from today’s FY11 Half Year Results Confere n ce Call and Slide Show.

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Yours faithfully

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Paul Evans

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Company Secretary

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Hello, everyone and thank you, Richard.

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I will begin by providing an overview of the Imdex Group results for the first half of FY11. Paul Evans, Imdex’s CFO and Company Secretary will then present a more detailed analysis of the financials. I will then 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 2H11 and beyond.

Time has been allowed for questions at the conclusion of the presentation. For listeners who are not familiar with the Imdex Group some additional slides have been included in the appendices. Further information can also be found on our website.

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Ladies and Gentlemen, I would like to make a few key points at the beginning. Imdex has achieved record half year performance and delivered consistent improvement in revenue and EBITA since the 2H09 low point.

Our strategy of continuing to invest through the Global Financial Crisis is supporting our ability to capitalise on improved industry dynamics

The simplification of brands and realignment of our business to a regional basis has been well executed and is delivering benefits

Our technology portfolio is strong and our new product pipeline is exciting.

We have a number of excellent growth opportunities which will commence in 2H11 and continue for many years to come.

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Now let’s get a little more specific and turn to Slide 7 which provides an overview of key results. Revenue from continuing operations was $95.9 million, being 64% up on the pcp.

EBITA from continuing operations was up 182% to $21.2 million with net profit after tax before nonoperational items up 301% to $11.4 million.

The Company performed strongly in the improved market conditions experienced in the first half of the 2011 financial year. Imdex achieved some significant milestones during 1H11 including the highest revenue and profit levels and record mining tool rental numbers.

Our cash flow from operations was up 202% on the pcp and our Balance Sheet remains strong with net debt to total capital at 18.4%, which is below the 19.6% gearing at June 10, and interest cover to EBITA of 16 times.

The Directors have reinstated the dividend by declaring a fully franked interim dividend of 1.75 cents per share given the improved trading conditions and forward visibility in our key markets. The Board’s goal of delivering a growing dividend stream reflecting the earnings’ profile of the company and in balance with the Company’s capital needs remains a high priority.

The robust trading conditions experienced in 1H11 have continued into 2H11, and we expect to see further growth given Imdex’s strong market positions, leading technologies, resilient business model and robust strategy.

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During the half we experienced strong growth in the mining tool rental fleet with new highs achieved prior to the seasonal slowdown in December, 2010. Pleasingly, tool numbers on active hire at the end of January, 2011 saw a new record being reached.

The regional business model for the mining side of our activities, which became effective 1 July, 2010, positively impacted our business during 1H11 and will continue to do so in the foreseeable future

The acquisition of Fluidstar has been seamless and has performed above expectations since the date of acquisition

We have continued to streamline our business with the relocation of Imdex Technology, Sweden to Australia and Germany

We have changed our business model for the oil & gas down hole instrumentation from a products model to a services based model. In doing so, we have formed a joint venture with DHS Oil, based in Dubai. DHSO is an existing user of our technology and is majority owned by Lime Rock which has a proven track record of growing specialist oil & gas service businesses.

On 17 December, 2010 we announced the proposed acquisition of Mud-Data, a drilling fluids and equipment supplier to the oil & gas and geothermal markets in Europe. This is an exciting acquisition which provides a solid base for growing a substantial drilling fluids and equipment business right across Europe.

Our solids control technology for the diamond drilling industry has provided many challenges, however, we now have the right expertise and a commercial technology. It is pleasing to note that we won the WA Innovator of the Year Award with this technology which offers the global mining and exploration industry a solution to the current practice of digging drilling fluid sumps beside the drilling rig. We are confident that offering an environmentally friendly solution will become industry standard practice in due course.

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As illustrated by the bar charts on slide 9, Imdex’s revenue was a new record and exceeded those experienced prior to the global financial crisis. Our 1H11 revenue of $95.9 million is 19% up on the previous peak half revenue experienced in 1H09. The Minerals division was very strong with robust demand for both drilling fluids and down hole instrumentation. The increase in revenue resulted from continued robust trading conditions and increased market share.

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Moving to Slide 10, you can see that the Minerals Division, consisting of AMC and Reflex, contributed 85% of revenue in the first half.

In the Minerals division, the rebranding of our drilling fluids to AMC across the globe was positively received by our customers and has been seamless.

In the oil and gas space, both our drilling fluids, through AMC and our Flexit down hole instrumentation, were below expectations during the period and contributed 15% of revenue.

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Slide 11 clearly shows the recovery in EBITA since the low point in 2H09.Total EBITA for the half was $21.2 million, up 182% on the pcp, at an EBITA margin of 22%.

Before moving onto the operational review and outlook for Imdex's principal markets, strategies and opportunities for future growth, I will hand over to Paul Evans for a more detailed look at Imdex's financial performance.

<< Slide 12 – 1H11 financial performance >>

<< Slide 13 - Profit and Loss >>

Thank you Bernie. Slide 13 outlines the financial results in more detail and compares the result for 1H11 against the prior corresponding period. As Bernie indicated, revenue from continuing operations for the half year was $95.9 million. This was up 64% on 1H10.

1H11 operating profit after tax was $12.1 million compared to $2.9 million (before non-recurring items) for the prior corresponding period.

The effective tax rate for the period was 26.5% due to an overprovision arising from FY10. Adjusting for the overprovision, the effective tax rate was 30%. The overprovision largely relates to differing tax treatment on the loan interest for SEH.

Cashflows from operations increased 202% to $13.9 million from the prior year reflecting the improved trading conditions in this half over the prior corresponding period.

<< Slide 14 – Conservative balance sheet>>

Moving to slide 14, total assets have increased $29.5 million since 30 June 2010 largely due to the improved trading and the acquisition of Fluidstar.

Our working capital investment has increased in line with the growth in business activity, particularly in the area of stock in the Fluids business.

Our total debt position has increased by $8.6 million since 30 June 2010 following the increase in facility limits secured for the Fluidstar and Ecospin acquisition. During the period we also converted $5 million from our Australian facility to our Canadian facility to provide a more effective natural hedge from our growing Canadian business.

The increase in our tax payable arises largely due to the improved trading position and FY10 taxes that become due and payable in 2H11.

<< Slide 15 – Comfortable gearing levels>>

Slide 15 details our current debt profile in more detail. At 31 December 2010 Imdex had $40.6 million total debt with the composition changing for the reasons previously stated.

Net debt (being total debt less cash held) has increased only $1.7 million from 30 June 2010 up to $24.7 million.

Despite debt levels increasing from 30 June 2010, gearing levels have decreased slightly to 18.4% from 19.6% due to the improved asset position.

<< Slide 16 – Operational Review>>

I’ll now pass back to Bernie for the remaining part of the presentation.

<< Slide 17 – Minerals Division - Graph>>

Thanks, Paul. As many of you know Imdex operates two divisions being Drilling Fluids and Chemicals, and Down Hole Instrumentation. These two divisions mainly supply two key global end markets, namely mining and mineral exploration, and oil and gas.

As stated earlier, we implemented a regional structure on 1 July, 2010 for our mining business which means a different reporting regime where the contributions from drilling fluids and down hole instrumentation are combined for the region.

You can see the bar charts on Slide 17 which demonstrates the strength in this side of our business. Record revenue of $81.5 million was 19% up on the previous peak achieved in 1H09 and was 75% up on the pcp. Asia Pacific is the dominant region generating 57% of revenue, whilst the Americas and Africa contributed strongly with 26% and 15% of revenue respectively.

We expect to drive further increases in the drilling fluids and down hole instrumentation mining business in 2H11 and beyond.

<< Slide 18– Minerals Division - Words >>

Mineral exploration expenditure in Asia Pacific, Africa, Canada and Latin America was strong in 1H11, with major customers such as Boart Longyear, Major Drilling, Lane Christensen, Energold, Foraco (including Adviser Drilling), Geosearch, Ausdrill, Swick and a host of other leading drilling contractors around the world experiencing increased drill rig utilization and demand for Imdex’s products.

AMC is the leading brand of drilling fluids for the global mining industry and ongoing product development ensured that Reflex remained the number one supplier of down hole instrumentation to the mining and mineral exploration industry globally.

I have spoken before about our unique surface and underground solids control equipment for the diamond drilling industry. It is becoming environmentally unacceptable to have sumps with the drilling fluids next to the drilling rig. Our technology allows drilling fluids to be contained while the solids are removed from the fluid and disposed of separately. Water conservation and zero footprint with no environmental damage are key advantages of using this technology.

There will be no meaningful contribution from this technology in FY11, however, we expect significant growth in FY12 and the following few years as the technology is rolled out globally and the industry fully embraces the advantages of using this technology.

It is expected that Minerals division revenue and margins will continue to trend upwards.

<< Slide 19 – Record mining tool fleet >>

Slide 19 clearly shows the benefit of our global structure and continued spending on product development and being the technology market leader. After the seasonal slowdown in December 2009, we witnessed a sharp increase in activity from January 2010 onwards and this trend continued right through to the December 2010 seasonal slowdown. Along the way, new monthly records were being achieved. However, a new record was set in the first month of 2H11 where mining tools on rental at 31 January, 2011 reached a new high and were 33% above the previous peak reached in July 2008.

Drill rig utilisation is likely to continue to increase in line with predictions by drilling companies, therefore, we would expect further marginal increases in the mining tool rental fleet in the run up to 30 June, 2011.

<< Slide 20 – Oil & Gas Division – Graph >>

In 1H11 the Oil & Gas Division generated $14.4 million in revenue compared to $11.1 million in 2H10 and $11.9 million in the pcp. It was 11% down on peak revenue of $16.2 million in 2H09 primarily due to the underperformance of the Flexit down hole instrumentation and delays caused by extensive flooding in the onshore Australian oil & gas industry

<< Slide 21 – Oil & Gas Division – Words >>

During the half we continued improvements on existing down hole instrumentation, particularly the Target INS and commenced field testing of the Drop version of the Target INS tool. In relation to the Drop version, we expect commercial units to be delivered in mid 2011.

As announced to the ASX on 21 January, 2011 Imdex has agreed to the formation of a 50:50 joint venture with DHS Oil Holdings Pty Ltd (DHSO), majority owned by Lime Rock, based in Dubai., DHSO already operates the Flexit technology and the global joint venture should allow Flexit to gain a better and more sustainable return than under the previous products model. The joint venture will be effective in 3Q11. The DHSO joint venture should contribute meaningfully to revenue and profits from FY12.

As announced to the ASX on 17 December 2010, Imdex entered into a heads of agreement to acquire 100% of the issued share capital of Mud-Data which is a drilling fluids and equipment supplier primarily based in Germany.

Mud-Data is a specialist products and equipment supplier to the oil & gas and geothermal industries in Germany. Under the ownership of Imdex, capability and geographic reach will be substantially expanded and will cover all of Europe. The Mud-Data acquisition allows Imdex to accelerate growth plans in Europe and increases our product offering.

Completion is expected in 3Q11 and Mud-Data should be a significant contributor to revenue and profits in FY12 and beyond.

<< Slide 22 – Strategy and outlook >>

Now I’d like to spend a few minutes on the Company’s outlook and prospects going forward.

<< Slide 23 – On track with strategy >>

Our focused strategy of supplying Drilling Fluids and Down Hole Instrumentation to two main end markets of mining and oil and gas is robust and will continue. As illustrated by slide 23, Imdex will continue to concentrate on late stage minerals applications and further penetrate underdeveloped mining markets globally while growing our oil and gas business for both Drilling Fluids and Down Hole Instrumentation.

Our medium term objective is to generate at least 40% of Group revenue from the oil and gas industry. In FY11 revenue from this sector should approximate 15% which down marginally on the 17% in FY10. However, in FY12 we should see significant contributions from the DHSO joint venture and the Mud-Data acquisition. We believe that this business sector diversification is logical and is an extension of our existing business into a sector in which we have considerable expertise.

<< Slide 24 – Key business drivers and outlook >>

On Slide 24, we have listed the key drivers for our business where mineral exploration spend and drill rig utilisation are very important. Drilling rigs require drilling fluid and down hole instrumentation and as utilisation levels increase, the demand for Imdex products increases. This in turn drives increases in the mining tool rental fleet and our growing relationships with global customers ensures a more sustainable business. Investing in research and product development to continue technology and market leadership and enhancing operational efficiencies are key components in maintaining these strong relationships and we will continue to do that.

The simplification of our brands and the implementation of the regional business model for our mining business has already paid dividends and will continue to benefit the group for many years to come.

<< Slide 25 – Global exploration spend (non ferrous) >>

Global non ferrous exploration expenditure has made a rapid recovery post the GFC and large, intermediate and junior companies are back exploring.

Beacon Securities estimate that global non ferrous exploration expenditure in calendar year 2011 will be up 20% on 2010 levels. Given the current levels of activity globally, this estimate may prove to be very accurate and would put expenditure back above pre-GFC levels.

Commodity prices appear robust and resource companies are well funded.

The spending is occurring in all major mining regions. Globally, the main activity is around gold, copper, nickel and uranium. There is also much activity in the iron ore and coal sectors.

Many of you have seen this slide previously, however, the facts remain the same. That is, there are long lead times from discovery to production and 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.

<< Slide 26 – Oil and Gas E&P expenditure>>

A similar picture applies to the oil and gas industry on slide 26 where new discoveries are deeper and more complicated and more costly to develop. The International Energy Agency has estimated E & P spending in 2011 to be up on those levels experienced in 2010.

Both the onshore and offshore rig counts are around historical highs.

By way of clarification, the DHSO joint venture is supplying services to both the onshore and offshore oil & gas industry whilst the AMC fluids business is aimed at niche markets in the onshore industry.

<< Slide 27 – Summary >>

In summary, I would like to close with the following remarks on slide 27:

We finished FY10 strongly and in 1H11 revenue and profits are the highest recorded by Imdex, allowing the reinstatement of an interim dividend. Our mining tool rental fleet at 31 January, 2011 being 33% above the previous peak reached in July 2008.

Our balance sheet is in good shape and we continued spending on product development through the GFC which has delivered a wider suite of tools and further improved technologies. The strength of our balance sheet has allowed us to pursue attractive growth opportunities, such as the acquisition of Fluidstar, the formation of the DHSO joint venture and the proposed acquisition of Mud-Data.

We continued to strengthen the management and global structure and have simplified our business by having only three brands to ensure Imdex is well positioned to service current robust levels of industry activity.

Given the underlying fundamentals of Imdex’s core markets, the trend experienced in 1H11 has continued into 2H11. As outlined on this call, in addition to increasing revenues, we also expect margins to improve further.

Imdex is well positioned to capitalise on a number of acquisition and organic growth opportunities and increase shareholder value over the longer term given the Company’s market positioning, unique suite of proprietary technologies, customer relationships and global footprint.

That brings the formal part of our presentation to an end. Paul and I are now happy to answer any questions you may have.

AI assistant

IMDEX LIMITED Interim / Quarterly Report 2011

65119_rns_2011-02-20_2d7ea67b-107e-4bc5-add2-3f365798d39b.pdf

FY11 Half Year Results Conference Call and Slide Show

Imdex Limited

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<< Slide 12 – 1H11 financial performance >>

<< Slide 13 - Profit and Loss >>

<< Slide 14 – Conservative balance sheet>>

<< Slide 15 – Comfortable gearing levels>>

<< Slide 16 – Operational Review>>

<< Slide 17 – Minerals Division - Graph>>

<< Slide 18– Minerals Division - Words >>

<< Slide 19 – Record mining tool fleet >>

<< Slide 20 – Oil & Gas Division – Graph >>

<< Slide 21 – Oil & Gas Division – Words >>

<< Slide 22 – Strategy and outlook >>

<< Slide 23 – On track with strategy >>

<< Slide 24 – Key business drivers and outlook >>

<< Slide 25 – Global exploration spend (non ferrous) >>

<< Slide 26 – Oil and Gas E&P expenditure>>

<< Slide 27 – Summary >>

AI assistant

IMDEX LIMITED — Interim / Quarterly Report 2011

65119_rns_2011-02-20_2d7ea67b-107e-4bc5-add2-3f365798d39b.pdf

FY11 Half Year Results Conference Call and Slide Show

Imdex Limited

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<< Slide 12 – 1H11 financial performance >>

<< Slide 13 - Profit and Loss >>

<< Slide 14 – Conservative balance sheet>>

<< Slide 15 – Comfortable gearing levels>>

<< Slide 16 – Operational Review>>

<< Slide 17 – Minerals Division - Graph>>

<< Slide 18– Minerals Division - Words >>

<< Slide 19 – Record mining tool fleet >>

<< Slide 20 – Oil & Gas Division – Graph >>

<< Slide 21 – Oil & Gas Division – Words >>

<< Slide 22 – Strategy and outlook >>

<< Slide 23 – On track with strategy >>

<< Slide 24 – Key business drivers and outlook >>

<< Slide 25 – Global exploration spend (non ferrous) >>

<< Slide 26 – Oil and Gas E&P expenditure>>

<< Slide 27 – Summary >>

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IMDEX LIMITED Interim / Quarterly Report 2011