IMDEX LIMITED — Investor Presentation 2007

Aug 16, 2007

17 August 2007

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

Dear Sir/Madam

Brokers Presentation

I attach a copy of the presentation to be made to Brokers today and next week.

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

IMDEX Limited

“Australia’s Global Drilling Products & Services Company” FY07 FULL YEAR RESULTS

August 2007

• Imdex is a Perth based, ASX listed company supplying drilling products and services to the mining, oil & gas, water well and civil industries globally.

• Imdex has two operating divisions globally:

• Drilling fluids and chemicals

• Drilling products (down-hole instrumentation) and services

• Imdex is a market leader in many disciplines

• Imdex is establishing a comprehensive global distribution and supply network

August 2007

• Record trading results delivered for FY07

• Buoyant conditions experienced in resources and energy

• sectors - we anticipate these conditions will continue

• Strong contributions from all businesses including acquisitions

• Full and final recovery of $1.1m cash from the RTE/Imdex Joint Venture

August 2007

Expansion of the Group continued in FY07 with the acquisition of three down-hole surveying instrument companies:

Reflex, Sweden Chardec, UK (1 August 06) (1 August 06) $25.4m $17m

Flexit, Sweden (1 May 07) $22m

August 2007

� Post 30 June 2007, 2 acquisitions and a 3[rd] scheduled for 1 October 2007

PolyDrill, Canada – acquisition effective 1 July 07 (cost A$3.5m)

Suay Energy Services, Kazakhstan – acquisition of 75% effective 1 July 07 (cost A$0.5m)

Southernland, Chile – acquisition proposed 1 October 07 (cost US$2.6m)

August 2007

up 153%

up 79%

up 69%

up 60%

up 44% 1.5 cents

August 2007

IMDEX LIMITED

Drilling Fluids & Chemicals Division

Drilling Products & Services Division

Australian Suay Southern Samchem Mud Polydrill * Energy * land ^ Company

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Surtron Reflex Chardec Flexit
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• • From 1 July 2007

• ^ - From 1 October 2007

August 2007

GLOBAL REACH – REGIONAL EXPERTISE

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Other Operations
Europe Germany Sweden
Kazakhstan Switzerland
Mongolia Turkey
UK
Vallentuna (Sweden)
Timmins
Calgary
East Sussex (UK)
Almaty (Kazakhstan)
China
Indonesia
Laos
Malaysia
New Zealand
Congo Papua New Guinea
Ghana Philippines
Guinea Singapore
Mali Thailand
Brisbane
Mauritania Kalgoorlie Canada
South Africa Perth Chile Santiago
Johannesburg
Tanzania Mexico
Uganda Peru
Zambia USA
Africa Asia Pacific Americas
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August 2007

						2007		2006		2005
	Year ended 30 June					$000’s		$000’s		$000’s
	Revenue					119,340		66,792		40,051
						79%		67%		1%
	EBITDA					30,196		14,414		6,889
			Sales up			109%		109%		630%
	EBIT		by 79%			22,398		11,983		5,499
						87%		118%		272%
	Net Profit after Tax					13,518		7,984		4,172
						69%		91%		213%
	Operating Cash Flow					16,141		10,074		3,155
						60%		91%		213%
	Earning per Share					8.74		6.07		3.66
	Dividendsper Share					2.50		2.00		-

August 2007

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|||||
|---|---|---|---|
|2007|2006|%|
|Year ended 30 June|$000’s|$000’s|Change|
|Drilling Fluids & Chemical|62,353|41,689|50%|
|Drilling Products & Services|56,139|25,023|124%|
|Sales up|
|Other*|848|80|by 50%|
|and 124%|
|Total Revenue|119,340|66,792|79%|

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• -comprises interest earned by corporate division

August 2007

• Segment revenue of $62.4m (up 50% on prior period)

• Segment EBITA up 82% on prior period

• Comprises: Australian Mud Company and Samchem

• Will also include PolyDrill (North America), Suay (Caspian Sea region) and Southernland (Latin America) in FY08

• Servicing mining, oil & gas, water well and civil industries

• Global presence – Africa, Asia-Pacific, Canada, Central & Latin America and Eastern Europe

• Organic/acquisition growth and exciting new strategic distribution and sales alliances expected to contribute to significant growth in FY08

August 2007

• Segment revenue of $56.1m (up 124% on prior period)

• Segment EBITA up 235% on prior period

• Comprises: Surtron, Reflex (now includes Ace Drilling), Chardec and Flexit

• Geophysical Logging concentrated in the high growth iron ore industry in Pilbara region of Western Australia

• Down Hole Surveying primarily servicing major gold producers in Australia

• Steering (STIS) business focused on CBM in Australia, UK and China

• International roll out of the new generation core orientation tool successful and further growth forecast

• Market leadership in down hole instrumentation in mining/exploration. Potential to expand into oil & gas industry

• Organic growth and exciting new strategic distribution and sales alliances (global presence) expected to contribute to significant growth in FY08

August 2007

Goodwill & intangible assets Other assets Property, plant & equipment Financial assets Inventory Receivables Cash	2007 $000’s	2006 $000’s
	62,779 888 13,207 16,056 13,839 27,806 15,271	3,219 136 9,967 4,500 9,707 18,798 6,421
Total Assets	149,846	52,748
Provisions / Deferred tax liabilities Vendor finance - Chardec Other borrowings Hire purchase borrowings Bank loan Commercial bills Payables	7,141 10,088 502 2,407 15,140 12,300 25,654	1,514 - - 2,894 - - 15,687
Total Equity	76,614	32,653

• Strong cash position

• Significant uplift in total assets due to acquisitions

� Increase in debt levels, however, gearing at 35%

• Commercial bills are AUD based

• Bank loan is SEK based and bears interest at about 4% per annum

� Non-interest bearing vendor finance reduced by $5.4m on 31 July 07 (debt to equity reduces to 31%)

Debt to Equity D/(D+E)

35% 8%

August 2007

					Current share price		107¢
					Number of shares		181.30M
					Market capitalisation		$193.99M
					EBITDA		$30.20M
					Depreciation		($4.37M)
					EBITA		$25.83M
					Amortisation		($3.43M)
					EBIT		$22.40M
					NPAT		$13.52M
					Basic earnings per share		8.74¢
					Earnings per share growth		44%
	Ian Burston	Chairman
	Bernie Ridgeway	ManagingDirector
	Kevin Dundo Ross Kelly	Non-Executive Director Non-Executive Director			Dividend per share		2.50¢
	Magnus Lemmel	Non-Executive Director			Dividend payout ratio		28.6%

August 2007

• Imdex is becoming the fourth global player in drilling fluids behind M-I (Schlumberger/Smith International), Halliburton and Baker Hughes

• Imdex is supplying market leading technology in down hole instrumentation to global markets

• Global mining expenditure continues to increase with further growth forecast for the medium term. Main growth forecast in Africa, Latin America and CIS

• Energy sector continuing to show strong operating conditions. Increasing market penetration with drilling fluids and also introducing down hole products into oil & gas industry eg MEMS gyro

• Significant growth is expected from recent acquisitions of Flexit, Suay, PolyDrill & Southernland

• Strategy is to consolidate the business, continue to build scale in both drilling fluids and down hole instrumentation, support the strategic alliances and launch new, improved products onto the global market

• Board and Management commited to delivery of growth and dividends to fellow shareholders

August 2007

Estimated Exploration Spend Worldwide (Non Ferrous)

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US$ Billions
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$9.0
$8.0
$7.0
$6.0
$5.0
$4.0
$3.0
$2.0
$1.0
$0.0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Data from the Corporate Exploration Strategies report of the Metals Economics Group – 2006 Edition
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There is sustainable growth in the resources sector

• Budgeted mineral exploration expenditure was a record US$7.1B in 2006. Forecast up again in 2007

• Exploration in non mature markets growing fast

• Demand continues to grow e.g. China, India

• Years of underinvestment

• Deeper and more complicated ore bodies

August 2007

Worldwide Exploration Budgets* by Region 2006 (%)

Worldwide Exploration Budgets* by Stage 2006 (%)

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Pacific /
United
Latin
SE Asia
States America Minesite
Grass
Australia 8% 4% 24% 18% roots
11%
39%
16%
19%
Africa 43%
18%
Canada
Late
Stage
Rest of
World
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• Brownfields exploration greater than greenfields from 2005 onwards

• In the decade prior to 2004, greenfields averaged over 50% more than brownfields

• 1,624 companies’ budgets totalling $7.13 billion Source: Metals Economics Group 2006

August 2007

IMDEX is an Australian global Drilling Products & Services Company a service provider to the natural resources industries