IMDEX LIMITED — Investor Presentation 2014

Oct 16, 2014

216 Balcatta Road, Balcatta Western Australia 6021 PO Box 1262, Osborne Park Western Australia 6916

==> picture [115 x 64] intentionally omitted <==

Tel: +61 (0) 8 9445 4020 Fax: +61 (0) 8 9445 4042 imdex@imdexlimited.com

www.imdexlimited.com ABN 78 008 947 813

17 October 2014

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

Dear Sir/Madam

East Coast Roadshow

Please find attached the presentation for the Australian East Coast Roadshow being undertaken next week in Sydney and Melbourne.

Yours faithfully Imdex Limited

==> picture [125 x 33] intentionally omitted <==

Paul Evans Company Secretary

Providing innovative drilling fluids and advanced down hole instrumentation worldwide.

==> picture [51 x 49] intentionally omitted <==

==> picture [51 x 49] intentionally omitted <==

==> picture [720 x 117] intentionally omitted <==

==> picture [720 x 311] intentionally omitted <==

Investor Presentation

October 2014

1

Agenda

1Q15 SNAPSHOT BUSINESS OVERVIEW – MINERALS AND OIL & GAS OPERATIONAL UPDATE 1Q15 TECHNOLOGY LEADERSHIP REFLEX HUB OIL & GAS DIVISION SUMMARY APPENDICIES

1Q15 Snapshot

• Maintaining & gaining market share through technological leadership • Diversifying customer base – non-mining applications & resource companies Strategic • Building a broad based & resilient business & increasing annuity style revenue • Industry diversification – increasing % of oil & gas revenue • Combined revenue $58.7m (1Q14: $53.3m: 4Q14: $49.9m)[(1)] • EBITA $2.7m[(2)] (1Q14: $2.4m[(3)] ; 4Q14: $3.2m loss[(3)] ) Financial • EBITDA $5.0m[(2)] (1Q14: $4.4m[(3)] ; 4Q14: $1.6m loss[(3)] ) (Unaudited) • Minerals Division revenue $36.6m (1Q14: $35.2m; 4Q14: $32.9m) • Oil & Gas Division revenue $22.2m (1Q14: $18.1m: 4Q14: $16.9m)¹

Core Markets

• Minerals market – early signs of cycle upswing continuing • Oil & gas market – robust with substantial opportunities for year-on-year growth

¹ Includes 30% of VES joint venture

²Excludes the profit on sale of the remaining stake in SEH ($14.2m)

³FY14 excludes profit on partial sale of investment in SEH ($24.1m), one-off balance sheet adjustments ($18.2m) , together with costs and provisions relating to product containment incident ($9.1m)

Business Overview – Minerals

==> picture [154 x 81] intentionally omitted <==

==> picture [248 x 81] intentionally omitted <==

==> picture [248 x 81] intentionally omitted <==

Product / service	Downhole instrumentation	Drilling fluids & chemicals
offerings	In field geoanalysis	Solids removal units
	Data collection & management software
	Geoscientific data analysis software
Target markets	Drilling contractors	Drilling contractors
	Resource companies	Resource companies
	Non-mining applications	Non-mining applications
Strategic focus	New technologies	Expansion of equipment rental business
	Increasingly integrated data solutions
Competitive	Leading technology	SRUs
advantages	Multi-disciplinary skill set	Manufacturing & technical capabilities
	Market penetration	Drilling fluid engineers
	Established global presence & regional	User-friendly mud systems
	support centres	Global distribution network

Non-mining applications include horizontal directional drilling, water well and civil construction

Business Overview – Oil & Gas

==> picture [154 x 75] intentionally omitted <==

==> picture [223 x 75] intentionally omitted <==

==> picture [273 x 75] intentionally omitted <==

Product / service	Drilling & completion fluids	Wellbore surveying services
offering	Production chemicals	Inflex (formerly Target INS)
	Fluid & waste management	Gyroflex survey tool
	equipment
	Solids control equipment
Target markets	Oil & gas market – Eastern	Global oil & gas market
	hemisphere
Strategic focus	Increasing equipment rental	Land based US market
	Geographic expansion	Middle East
		Latin America
Competitive	Agility/capability to deliver	Leading technology
advantages		Efficient service capability – located in all
		active onshore US basins

Imdex ‘s Oil & Gas Division includes AMC Oil & Gas and a 30% shareholding in VES

Operational Update 1Q15

==> picture [608 x 289] intentionally omitted <==

• AMC SRUs on hire increasing – particularly Americas

• REFLEX HUB – trend of increasing throughput

• REFLEX instruments on hire up 33% from 3Q14

• AMC Oil & Gas continuing to strengthen, generating positive cash flow from operations

6

Summary and Outlook

Technology Leadership

7

Technology Leadership

• Leading R&D capabilities & personnel

• Continued product development through cycle – innovation through customer needs

• FY15 focus on marketing new technologies – UG / HP SRUs, EZ-Gyro, REFLEX TN14 & XRF

• Strong pipeline of technology development – FY15 & beyond

==> picture [380 x 324] intentionally omitted <==

8

SRU – Unique Sumpless Technology

==> picture [720 x 376] intentionally omitted <==

9

New REFLEX Technologies

REFLEX EZ-Gyro

• User-friendly driller operated north seeking gyro instrument

• • Highly accurate downhole surveying

==> picture [154 x 118] intentionally omitted <==

==> picture [126 x 126] intentionally omitted <==

==> picture [180 x 133] intentionally omitted <==

TN14 Gyrocompass

• Fast & accurate

• Significant advantages over current manual alignment system

REFLEX XRF

• Hand held instrument for on site geoanalysis

• Collects & transmits geochemical data to REFLEX HUB

• Real time logging, domaining & classification

REFLEX HUB

• Complete cloud based solution

• Enables efficient collection, storage & reporting of operational data

• Proprietary to Imdex, first mover advantage

10

==> picture [720 x 310] intentionally omitted <==

REFLEX HUB

11

Enabling Step Change

12

REFLEX HUB Resource Customers

==> picture [720 x 341] intentionally omitted <==

13

Summary and Outlook

Oil & Gas Division

14

Robust Oil & Gas Markets

15

VES Joint Venture

==> picture [444 x 426] intentionally omitted <==

• Significant organic growth in FY15 & beyond

• Niche market – high barriers to entry

• Broad customer footprint

• Clear path to increased market share

• Access to leading technology – accuracy and speed

• Comprehensive technology offering

16

Summary

Strategic

• Maintaining & gaining market share through technological leadership

• • Diversifying customer base – non-mining applications & resource companies • Building a broad based & resilient business & increasing annuity style revenue • Industry diversification – increasing % of oil & gas revenue

• Continued product development – innovation through customer needs

• What we are • Diversifying customer base – development & production phases of mining cycle • Marketing new technologies – enables revenue growth & diversification

doing

• Significant investment in development of Oil & Gas Division

• Increasing confidence in minerals market

Outlook

FY15

• Return of brown fields expenditure & recent capital raisings by juniors

• • REFLEX barometer up 33% & increasing number of SRUs on hire • Substantial growth opportunities within Oil & Gas market

• Strongly positioned to capitalise on opportunities – improved results forecast for FY15

17

==> picture [720 x 310] intentionally omitted <==

Appendix

18

SRUs – What Are The Benefits?

==> picture [720 x 398] intentionally omitted <==

19

SRUs – Quantifying The Benefits

20

The REFLEX HUB

==> picture [585 x 428] intentionally omitted <==

21

REFLEX HUB – Key Drivers

FOR IMDEX

FOR CONTRACTORS & RESOURCE COMPANIES

Adds value to existing range of instrumentation

Significantly enhances operational efficiency – simplifies workflows

Enables new technology / product offerings – e.g. in Paperless solution – data collection, storage & field geoanalysis management

Provides new service offerings – data management

Secure access to critical information in real time – globally

Diversifies customer base – increasing exposure to Accuracy & quality of field data development & production phases for drillers & miners

Enables expanded future annuity style revenue

One data set, a single source of truth

stream

22

The REFLEX Competitive Advantage

==> picture [720 x 381] intentionally omitted <==

23

==> picture [720 x 310] intentionally omitted <==

Additional Financial Information

24

FY14 Snapshot

• Maintaining & gaining market share through technological leadership

Strategic

  - Diversifying customer base – non-mining applications & resource companies

  - Building a broad based & resilient  business  –  increasing annuity style revenue

  - Industry diversification – increasing % of oil & gas revenue

  - Statutory revenue down 21% to $183.5m (FY13: $232.8m)

  - Combined revenue (ex. interest) down 18% to $204.6m (FY13: $249.4m)

• Financial • Underlying EBITA of $0.5m[(1)] (FY13: $35.2m) – reflecting higher fixed costs base & product development through the cycle

  • EBITA loss of $2.8m (FY13: $35.2m profit)

• Minerals market – challenging conditions with early signs of cycle upswing 4Q14

• Core Markets • Oil & gas market – robust with substantial opportunities for year-on-year growth

1 Adjusted to exclude one-off items (totalling a net loss of $3.2 million as follows: $24.1 million profit on partial sale of Imdex’s shareholding in Sino Gas & Energy Holdings (ASX: SEH); $18.2 million of non-cash balance sheet adjustments ($14.4 million of asset write downs and $3.8 million of closure costs); and $9.1 million of costs and provisions relating to the product containment incident as reported on 13 March 2014.

FY14 Key Metrics

==> picture [637 x 428] intentionally omitted <==

26

Combined Revenue $204.6m

==> picture [720 x 387] intentionally omitted <==

Includes share of VES JV revenue $21.1m (FY13: $16.6m)

27

Normalised EBITA/EBITDA

28

FY14 EBITA Segment Result

==> picture [720 x 234] intentionally omitted <==

The FY14 result includes profit on partial sale of investment in SEH ($24.1m), one-off balance sheet adjustments ($18.2m) , together with costs and provisions relating to product containment incident ($9.1m)

29

Minerals Division

==> picture [720 x 347] intentionally omitted <==

30

Revenue Base - Minerals

==> picture [720 x 393] intentionally omitted <==

31

Oil & Gas Division

==> picture [720 x 364] intentionally omitted <==

32

Working Capital Management

==> picture [720 x 313] intentionally omitted <==

• $2.9m of cash generated from $2.8m of EBITA losses

• Working capital release due to improvements in stock & debtor levels

33

Balance Sheet

==> picture [529 x 439] intentionally omitted <==

34

Disclaimer

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.

35