IMDEX LIMITED — Investor Presentation 2012

May 23, 2012

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8 Pitino Court, Osborne Park Western Australia 6017 PO Box 1262, Osborne Park Western Australia 6916

Tel: +61 (0) 8 9445 4020 Fax: +61 (0) 8 9445 4042 imdex@imdexlimited.com www.imdexlimited.com ABN 78 008 947 813

24 May 2012

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

Dear Sir/Madam

Euroz Investor Day Presentation

Please find attached the Euroz Investor Day Presentation release to be presented in Perth later today.

Yours faithfully

Imdex Limited

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Paul Evans

Company Secretary

Providing innovative drilling fluids and advanced down hole instrumentation worldwide.

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Imdex Limited

Euroz Investor Day 24 May 2012

Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide

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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 Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide

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Overview

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• ASX listed industrial company (ASX: IMD), head office in Perth, WA

• Market cap over $400 million; included in S&P/ASX 200 Index

• Global operations – presence in all major mining regions, niche oil & gas markets (fluids), global oil & gas (instrumentation/services)

• ~500 people globally (>60% outside Australia)

• Products:

Drilling fluids & chemicals (cool bit, keep hole open, cuttings to surface) Down hole instrumentation (survey, core orientation)

• Markets:

Mining

Oil & Gas

Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide

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Structured to meet client needs

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Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide

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Key points

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• Record result for nine months to 31 March 2012

• Combined revenue of $206.5 million, up 42% on pcp of $145.1m

• Combined EBITA of $54.1 million, up 63% on pcp of $33.2m

• Investing in organic expansion of drilling fluids business globally

• Regionalised structure/cross selling delivering benefits in minerals business

• Market leading technology and exciting new product pipeline

• Growth in FY12 and beyond driven by:

• Acquisitions (e.g. DHS/Vaughn) – O&G, global

• O&G drilling fluids, niche onshore markets

• Product innovation: Solids Removal Technology, Ez-Gyro, Smart Barrel – mining, global

Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide

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Revenue

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Combined revenue * ($m)

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205.2 206.5
142.0
137.0
134.3
FY08 FY09 FY10 FY11 9 mths to Mar 12
(Unaudited)
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*Combined revenue includes Imdex share of DHS JV revenues (excludes other income and discounted operations)

Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide

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EBITA

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EBITA * ($m)

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54.1
48.1
38.8
24.5
20.7
FY08 FY09 FY10 FY11 9 mths to Mar 12
(Unaudited)
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*Combined revenue includes Imdex share of DHS JV revenues (excludes other income and discounted operations)

Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide

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Minerals division

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Revenue * ($m)

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
9 months to 31
March 12 - up
44% on pcp
177.7 180.3  9 months
revenue > FY11

Further market
125.0 share growth
111.3
108.8 expected
internationally
Europe
Asia Pacific
Americas
Africa
FY08 FY09 FY10 FY11 9 mths to Mar 12
(Unaudited) (Unaudited)
(Unaudited)
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*Combined revenue includes Imdex share of DHS JV revenues (excludes other income and discounted operations)

Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide

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Reflex rental fleet

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SEP 08 JAN 09 MAY 09 SEP 09 JAN 10 MAY 10 SEP 10 JAN 11 MAY 11 SEP 11 JAN 12 MAY 12
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• Seasonal low in Dec 11 above pre GFC peak - strong bounce back followed

• Reflex rental fleet continuing to win market share with new record created in mid 4Q12

• The release of new products should grow rental fleet further in FY13 and beyond

Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide

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Oil & Gas division

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Combined revenue * ($m)

• 9 months to 31 March 12 up 30% on pcp

• Includes $4.4m from DHS JV. US business performing strongly; international ‘start up’ expanding into Latin America

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28.0
27.5
26.3
23.0 
17.0

FY08 FY09 FY10 FY11 9 mths to Mar 12
(Unaudited)
(Unaudited)
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AMC impacted by rig delays, weather conditions and costs associated with positioning for expansion (circa $1.8m 3Q12 EBITA loss)

Outlook for remainder of FY12

• Vaughn acquisition to support growth, positive contribution in FY12

• continued development of instrumentation

• opportunities for growth of AMC in niche onshore markets

*Combined revenue includes Imdex share of DHS JV revenues

(excludes other income and discounted operations)

Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide

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Solids Removal Technology

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Traditional drilling fluid sumps No sumps – closed loop system

• Solids removal and fluid property management

• Small environmental site footprint

• Reduced site set up and remediation costs. Quicker to mobilise

• Reduced water consumption

• Less wear & tear to drilling components by abrasive fluid

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• Roll out in Australia first then other regions to commence in 1H13

Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide

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Reflex EZ-Gyro[TM]

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• Unique patented north seeking gyro

• Reverse circulation, inside drill rods and casing, underground operations

• Transfers data to simple hand held device – no need for laptops

• Eliminates the need for service provider or technician onsite

• 1Q13 release to the market

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Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide

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Reflex Smart Barrel recovers core through deviated section

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Ore body
Corrected Uncorrected
Main Ore
Path Path
body
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Current practice using
down hole motor
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Ore body
Main Ore Corrected
Uncorrected
body Path
Path
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Reflex Smart Barrel
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• Geologist can have certainty through analysing the core

• Due for release 3Q13

Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide

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DHS Energy Services (incl.Vaughn)

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• Third largest global provider in the US$400m-US$500m O&G down hole survey market

• Strongly performing business in US onshore O&G market, representing approximately one third of the global market

• Building international business, based in the Middle East and expanding into Latin America

• Major competition – Scientific Drilling International and Gyrodata

• Expected revenues circa US$60m–US$70m for CY12

• Co-ordinated technology development

• Imdex share of DHS JV is 30% (as at 1 Jan 12)

• Supports Imdex strategy to generate 30 - 40% of revenues from the O&G market within the next 3 - 4 years

Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide

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Key business drivers & outlook

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Mineral exploration
spend
Client rig utilisation %
Level of Reflex rentals
Development of new
instrumentation
Revenue and cost
synergies
Key growth strategy
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Robust commodity prices. Exploration activity &
estimated spend at unprecedented levels despite caution
amongst some Juniors
Full drill rig utilisation levels in some regions –
Central/West Africa, Latin America. Positive outlook
statements by BLY and CPB
New down hole instrumentation records set in 4Q12
Product development spending ongoing on both
mining and O&G tools
3 global brands (AMC, Reflex, DHS Energy)
Regional structure = more effective cross selling
Underpenetrated mining markets, new products, O&G
industry
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Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide

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Estimated global exploration spend (non-ferrous) (US$Bn)

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22.5
20.8
(non-ferrous) (US$Bn)
20.0 [20.4]
19.3
18.2 18.0
17.1
13.2
11.5
10.4
7.5 7.7
5.2 5.1
4.6
3.5 3.7 3.5
2.5 2.9 2.8 2.6 2.2 2.4
1.9
93 94 95 96 97 98 99 2000 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
Source: Metals Economics Group (1993-2011); Mckinsey analysis (2012-2018). Reproduced with permission from Boart Longyear
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• CY11  58% on CY10 to highest level ever. CY12 est. to be 5%-15%  on CY11

• Circa 70%-75% related to gold and copper

• Does not include iron ore – estimated at $2.5 billion for 2012

Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide

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Gold discoveries v spending

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90 91 92 93 94 95 96 97 98 99 ‘00 01 02 03 04 05 06 07 08 09 10 11
(US $ m)
(Number of discoveries)
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 Despite spending increase, # of world class discoveries (>2m ozs) declined markedly

 10-14 years from discovery to production for the average gold project

Source: MineSearch and Gold Reserves Replacement Strategies. Reproduced with permission from Metals Economics Group

Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide

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Copper discoveries v spending

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90 91 92 93 94 95 96 97 98 99 ‘00 01 02 03 04 05 06 07 08 09 10 11
(Number of discoveries)
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(US $ m)
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 # of world class copper discoveries (>0.5m tonnes) declined markedly in recent years despite massive increases in expenditure

 Discovery to production for the average copper project is 20 years

Source: MineSearch and Copper Reserves Replacement Strategies. Reproduced with permission from Metals Economics Group

Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide

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Oil & Gas supply & demand

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
Explosion in E&P
capex from $130bn to
$545bn between
140 600
2000 to 2011
550
120
500 
Up to $600bn in 2012
450
100 
400 Driven by:
350
80  high prices
300
60 250  the need to
200 rapidly increase
40
150 supply
100
20
50
0 0
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
(E&P expenditure in $billions)
Oil production (million bbl/d). Oil price $/bbl
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Source: BP Statistical Review, IEA World Energy Outlook, Monthly Oil Market Report, Medium Term Oil Market Report, Lehman/Barclays, IFP. Reproduced with permission from Schlumberger

Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide

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Summary

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Financial results:

• Record revenue and profit levels; 9 months to March 12 > FY11

• Minerals business performing well and delivering strong margins

• Robust mining tool rental numbers to March 12 and new record experienced in mid 4Q12

• Strong balance sheet with comfortable gearing

• On track to deliver record FY12

Growth initiatives:

• Roll out of Solids Removal Units – unique for diamond drilling industry

• Introduction of Ez-Gyro and Smart Barrel to the minerals industry during FY13

• DHS JV drives O&G instrumentation/services organic/acquisition growth – global, onshore/offshore

• Organic growth in minerals business, primarily in Africa and the Americas

• Organic growth in AMC, Oil & Gas – niche onshore markets

Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide

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