SCIDEV LTD — Annual Report 2013

Sep 26, 2013

Intec Ltd 2013 Annual Report

Contents	Page
Letter from the Chairman to the Managing Director	1
Review of Operations	2-3
Director's Report	4-11
Auditor's Independent Declaration	12
Consolidated Statement of Comprehensive Income	13
Consolidated Statement of Financial Position	14
Consolidated Statement of Changes in Equity	15
Consolidated Statement of Cash Flows	16
Notes to the Financial Statements	17-47
Director's Declaration	48
Audit Report	49-50
Schedule of Tenements	51
Shareholder Information	51-52
Corporate Governance Statement	53-55
Corporate Directory	56

Letter from the Chairman and Managing Director

Dear Intec Shareholder, 27 September 2013

This is Intec Ltd's (Intec) or the Company('s) twelfth Annual Report since listing on the Australian Securities Exchange and includes the audited financial statements for the financial year ending 30 June 2013.

For the 2012/13 financial year, the Company recorded a loss after tax of \$2.626 million, which included the following non-cash items: impairment expenses of \$0.873 million and depreciation and amortisation charges of \$0.843 million. Net cash outflows from operating activities reduced to \$0.829 million compared with \$3.330 million for the prior year.

In our letter last year we stated that the focus of management would be as follows:

• continuance of the IRC Project, subject to on-going Federal Government approvals and the receipt of pre-payments, as it represents a significant body of paid commercial work and covers the cost of employees assigned to the project;
• continued investigation of alternative value realisation strategies for certain components of its technology portfolio;
• preservation of its financial position to all extents possible; and
• the investigation of corporate and asset acquisition opportunities preferably with an Intec Process application association.

In respect of the above items, we can report as follows:

• the IRC Project is currently on-hold pending the receipt of an overdue invoice. The Company has at all times acted in accordance with its obligations under Australian and International laws. The Company does not intend to undertake further work on the IRC Project until either the unpaid invoice is paid or alternative contractual arrangements are agreed;
• The Company during 2012/2013 investigated a number of value realisation strategies for certain components of its technology portfolio but was unsuccessful in this regard. The on-going costs of the Company's technology portfolio have been consequentially significantly reduced;
• The Company's financial position remains sound with a cash balance at 30 June 2013 of \$3.4 million and significantly reduced operating costs; and
• Management investigated a number of corporate and asset acquisition opportunities during 2012/2013. The focus has been on those opportunities that would involve either an Intec Process application and/or the treatment of industrial waste. The Company believes that these investigations will be successful in the near term.

As stated last year, the intention of the Board and management is to grow the tangible asset base of the Company in order to provide a proper foundation for a listed company.

Yours sincerely

Trevor A Jones Kieran G Rodgers

Chairman Managing Director

Review of Operations

The Company and controlled entities (the Group) generated an operating loss after income tax of \$2,626,224 and net cash outflows from operations of \$828,709 in the year ended 30 June 2013. The operating loss included impairment expenses of \$872,977, comprising a write down in the carrying value of the Burnie Research Facility (\$705,590), a write down in the carrying value of shares held in Bass Metals Limited (\$66,187) and the reversal of a previous invoice issued in respect of the IRC project. As of balance date, the Group had net assets of \$4,042,968 and cash balances of \$3,402,821.

Hellyer Royalty

On 9 July 2012, the Group announced that it had agreed a re-structuring of the Hellyer Royalty with Bass Metals Ltd (BSM). As a result, the Group has been granted a 2.5% Net Smelter Return Royalty (NSR Royalty) in relation to base metals extracted from the following tenements:

• o RL11/1997: Mt Charter Retention Licence;
• o EL48/2003: Mt Block Exploration Licence;
• o EL24/2004: Bulgobac River Exploration Licence;
• o CML103M/1987: Hellyer Mine Lease; and
• o ML68M/1984: Que River Mine Lease.

In addition, the Company was issued 15 million shares in BSM for nil consideration and as a consequence is a Substantial Shareholder of BSM with a shareholding of 5.6%.

IRC Project

Stage 1 of the IRC Project involves the processing of 25,000tpa of zinc/lead bearing residues to generate Special High Grade zinc metal and lead metal together with other by-products as appropriate. The Final Milestone 1 Report, describing the results of the laboratory testing and development programme in Australia, was submitted to the client in August 2012. Subsequently, the Company completed an engineering design package for a pilot plant to be located near the project site. The pilot plant engineering design package forms a significant component of the second milestone for Stage 1 of the IRC Project with the other component being the construction of the pilot plant by a local service provider. The completion of the engineering design package largely completes Intec's component of Milestone 2. Milestone 3 is the operation of the pilot plant.

The completed engineering design package, Milestone 2, will be delivered to the client upon receipt of an overdue payment due to Intec International Projects Pty Ltd (IIP, the 50/50 joint venture between Intec and Mr Reza Maghzian).

During the year and subsequently, representatives of IIP have visited the client to discuss the outstanding invoice and alternative future contractual arrangements. These visits have not been at the Company's expense and while the Company is hopeful that outstanding commercial aspects of the IRC Project contract will be resolved, its focus has moved elsewhere.

In the course of the IRC Project, the Company has maintained ongoing consultation with the Australian Department of Foreign Affairs and Trade (DFAT). DFAT has stated that "based on the information provided by [Intec], we have determined that the provision of services up to and including Milestone 4 is not prohibited by, or subject to authorisation under, the Charter of the United Nations (Sanctions – Iran) Regulations 2008 and is not subject to Australia's autonomous sanctions in relation to Iran."

The Company will continue to carefully monitor the nature of equipment and technology associated with the delivery of its services to the IRC Project, in order to compily with all of its obligations under Australian and international law.

Burnie Research Facility

During the year, the Burnie Research Facility (BRF) was operated on a campaign basis to treat waste material from the ACL Group (ACL) in Launceston. The five-week campaign treated waste accumulated from approximately nine months of ACL operations. The treatment campaign was profitable on a standalone cash basis before consideration of certain fixed costs and non-cash items. A further campaign was successfully conducted subsequent to year end. The Company is hopeful that treatment of ACL waste will be an ongoing activity, albeit only on a campaign basis every six-months.

The BRF was originally constructed as a demonstration plant for the Hellyer Metals Project. The vision for the Hellyer Metals Project was the recovery of a portfolio of metals from the Hellyer tailings dam utilising Intec Process technology. This vision was not realised and subsequently, the BRF was utilised in order to progress other Intec Process technology applications such as spent pickle liquor. None of these applications provided a viable path towards a sustainable business for Intec. Subsequent to year end, the Company determined that

the BRF would be re-configured in order to solely treat Tasmanian sourced industrial waste. Consequently, those parts of the BRF not required for industrial waste treatment are in the process of being decommissioned. This decommissioning process is expected to be self funding from the sale of surplus plant and equipment.

Low-Grade Zinc Blending Project

Following completion of operations and a positive environmental audit of the Victorian stockpile site, EPA Victoria returned the remaining \$2.387 million security bond during the year. In addition, \$0.321 million of the remaining portion of the EPA Tasmania security bond was also returned during the year. The remaining amount of the security bond lodged with EPA Tasmania, \$0.040 million, was returned subsequent to year end following EPA Tasmania's approval of remediation works at the former Hellyer EAF dust storage site.

The Company also commenced investigations into obtaining value from its wholly-owned Zeehan slag dump on the West Coast of Tasmania, which contains approximately 420,000 tonnes grading 14% zinc (non-JORC).

Corporate

On 27 November 2012, the Company announced a notice of intention to sell unmarketable parcels of shares. The time for relevant shareholders to notify the Company expired on 11 January 2013. In total, 1,964 shareholders holding in aggregate 15,507,624 shares declined to retain their shareholdings. The aggregated shareholding was sold on-market on 18 January 2013.

The Company continued to review corporate and asset acquisition opportunities, while preserving its cash resources through careful cost control.

Directors' Report

Your Directors present their report on the Intec Group of Companies (referred to hereafter as the Group) consisting of Intec Ltd (Intec or the Company) and the entities it controlled at the end of, or during, the year ended 30 June 2013.

Directors

The following persons were Directors of the Company during the whole of the financial year and up to the date of this report. No Intec Director has been a director of any other ASX-listed company in the last 3 years.

Trevor A Jones B.Comm. (Melb) Chairman

Mr Jones has spent over 30 years working in the finance industry in Australia, United Kingdom and the USA. During this time he has held senior executive positions in investment funds management, stockbroking and corporate finance, and gained a broad experience of capital structuring and capital raising, particularly in the mining sector. Mr Jones was manager of equity portfolios for Shell Australia and National Employers Mutual in the United Kingdom. He was a Director of County NatWest Securities Australia Limited in London and then Director of Corporate Finance with Westpac Institutional Bank in Sydney. More recently Mr Jones was the Sydney Chief Executive for Melbourne-based Austock Group and was Chairman of both its Corporate Finance and Investment Management divisions. He was appointed as a Non-executive Director of Intec on 28 February 2007. Mr Jones is the Chairman of the Corporate Governance Committee and a member of the Audit Committee and the Nomination and Remuneration Committee.

Kieran G Rodgers B.E. (Hons.) Min. (UNSW), M.B.A. (IMD) Managing Director

Mr Rodgers joined Intec in March 2001 after 13 years of experience in merchant banking and financial consulting, principally at Resource Finance Corporation Ltd, which specifically focused on the Australian and international resources industry. He was appointed as an Executive Director of Intec on 28 February 2007. Mr Rodgers was appointed Managing Director on 6 February 2012. Mr Rodgers is s member of the Corporate Governance Committee.

James R G Bell B.A. (Syd), Ll.B. (Syd) Non-executive Director

Mr Bell is an Australian barrister and solicitor who has practised as a commercial lawyer for 30 years, including 10 years as a partner in the national law firm of Blake Dawson Waldron and 3 years as head of the Banking and Finance division of that firm in Sydney. In 1995, he established his own law firm and has advised some of Australia's major companies and professional firms across a broad spectrum of endeavour, also providing assistance to the board of Intec in relation to various corporate transactions over several years. He was appointed as a Non-executive Director of Intec on 1 May 2007. Mr Bell is the Chairman of both the Audit Committee and the Nomination and Remuneration Committee and a member of the Corporate Governance Committee.

Company Secretary

Robert J Waring B.Ec., C.A., F.C.I.S., F.Fin., F.A.I.C.D. Company Secretary

Mr Waring was appointed to the position of Company Secretary of Intec in December 1998 and has 40 years' experience in financial and corporate roles including 20 years in company secretarial roles for ASX-listed companies and 17 years as a director of ASX-listed companies. He is a director of Oakhill Hamilton Pty Ltd, which provides secretarial and corporate advisory services to a range of listed and unlisted companies.

Meetings of Directors

The numbers of meetings f the Company's Board of Directors and of each board committee held during the year ended 30 June 2013, and the numbers of meetings attended by each director were:

	Full	meetings of			Meetings of committees			Nomination
	Directors			Audit		Corporate Governance		and Remuneration
	A	B	A	B	A	B	A	B
T A Jones	4	4	2	2	1	1	1	1
K G Rodgers	4	4	*	*	1	1	*	*
J R G Bell	4	4	2	2	1	1	1	1

A = Number of meetings attended.

B = Number of meetings held during the time the Director held office or was a member of the committee during the year.

* Not a member of the relevant committee during the period.

Retirement, Election and Continuation in Office of Directors

Mr James Bell is the Director retiring by rotation, and being eligible, offers himself for re-election to the Board.

Principal Activities

During the year to 30 June 2013, the Group continued to operate the Burnie Research Facility on a campaign basis. The Company continued to investigate corporate and asset acquisition opportunities preferably with an Intec Process application association.

There were no significant changes in the nature of the activities of the Group during the year.

Review of Operations

The Review of Operations are disclosed and discussed on page 2 of the Annual Report.

Dividends

No dividends have been paid to members during the financial year and no recommendation is made as to the payment of dividends.

Significant Changes in the State of Affairs

There were no significant changes in the state of affairs of the Company during the financial year were as follows:

Events Subsequent to the End of the Reporting Period

No significant matters occurred after balance date.

Environmental Regulation

The Group's operations are presently subject to environmental regulation under the laws of the Commonwealth of Australia and the States of New South Wales and Tasmania.

Intec is licensed to operate under Section 55 of the Protection of the Environment Operations Act 1997 (NSW Environment Protection Authority) and the associated Protection of the Environment Operations (General) Regulation 1998.

Intec Envirometals Pty Ltd is licensed to operate premises in Tasmania under Section 25 (5) of the Environmental Management and Pollution Control Act 1994 (Tas). The Group is at all times in full environmental compliance with the conditions of its licences.

Remuneration Report

The remuneration report is set out under the following main headings:

• A Principles used to determine the nature and amount of remuneration;
• B Details of remuneration;
• C Service agreements and letters of employment;
• D Share based compensation;
• E Shareholdings of directors and key management personnel; and
• F Additional information.

The information provided in this remuneration report has been audited as required by Section 308 (3C) of the Corporations Act 2001.

A Principles Used To Determine the Nature and Amount of Remuneration

The objective of the Group's executive reward framework is to ensure that the reward for performance is competitive and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives and the creation of value for shareholders, and conforms with market best practice for delivery of reward. The Board ensures that executive reward satisfies the following key criteria for good reward governance practices:

• competitiveness and reasonableness;
• acceptability to shareholders;
• performance linkage / alignment of executive compensation;
• transparency; and
• capital management.

The Group has structured an executive remuneration framework that is market competitive and complementary to the reward strategy of the organisation.

Alignment to shareholders' interests:

• has economic profit as a core component of plan design;
• focuses on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and delivering constant return on assets as well as focusing the executive on key non financial drivers of value; and
• attracts and retains high calibre executives.

Alignment to programme participants' interests:

• rewards capability and experience;
• reflects competitive reward for contribution to growth in shareholder wealth;
• provides a clear structure for earning rewards; and
• provides appropriate recognition for contribution.

The framework provides a mix of fixed and variable pay and includes long term incentives. There is no defined relationship between company performance and remuneration at this point in time. However, the matter is under continual review. The fixed proportion of remuneration is currently 100%.

The Board has established a nomination and remuneration committee which provides advice on remuneration and incentive policies and practices and makes specific recommendations on remuneration packages and other terms of employment for executive directors, other senior executives and non-executive directors. The Corporate Governance Statement provides further information on the role of this committee.

Non-executive Directors

Fees and payments to Non-executive Directors reflect the demands which are made on, and the responsibilities of, the Non–executive Directors. The Board reviews Non-executive Directors' fees and payments annually.

Non-executive Directors' fees are determined within an aggregate Non-executive Directors' cash remuneration limit, which is periodically recommended for approval by shareholders. The current limit of \$400,000 was approved by shareholders at the 2007 Annual General Meeting held on 14 November 2007. In addition, Non-executive Directors are able to participate in issues of options pursuant to the Intec Option Plan. The values of any options granted to Non-executive Directors are not included in the aggregate cash remuneration limit as they are not cash based payments.

Executive pay

The executive pay and reward framework has three components:

• base pay and benefits;
• long term incentives through participation in the Intec Option Plan; and
• other remuneration such as superannuation.

The combination of these comprises the executive's total remuneration.

Base pay

Base pay is structured as a total employment cost package, which may be delivered as a combination of cash and prescribed non financial benefits at the executive's discretion.

Executives are offered a competitive base pay that comprises the fixed component of pay and rewards. Base pay for each senior executive is reviewed annually to ensure the executive's pay is competitive with the market. An executive's pay is also reviewed on promotion.

There is no guaranteed base pay increase included in any executive's contract.

Intec Option Plan

Information on the Intec Option Plan is set out in note 32.

B Details of Remuneration

Amounts of remuneration

Details of the remuneration of the Directors and the key management personnel (as defined in AASB 124 Related Party Disclosures) of Intec and the Group are set out in the following tables.

The key management personnel during the year ended 30 June 2013 of Intec and the Group include the Directors and the following senior executive officers:

D W Clark – Financial Controller

A J Randall – General Manager

D L Sammut – Corporate Development Manager

A R Tong – Head of Technology

2013	Short-term benefits			Termination benefits	Post employment benefits	Share based payment
Name	Cash salary \$	Director Fees \$	Consulting Fees \$		Super annuation \$	Options \$	Total \$
Non-executive
Directors
T A Jones Chairman	-	69,445	-	-	6,250	-	75,695
J R G Bell	-	53,419	-	-	4,808	-	58,227
Sub-total	-	122,864	-	-	11,058	-	133,922
Executive Director K G Rodgers	221,342	-	-	-	19,350	-	240,692
Sub-total	221,342	-	-	-	19,350	-	240,692
Other KMP
D W Clark 1	-	-	48,418	-	-	-	48,418
A J Randall	135,341	-	-	-	12,705	-	148,046
D L Sammut 2	135,178	-	-	79,243	16,875	-	231,296
A R Tong 3	93,369	-	-	116,145	15,549	-	225,063
Sub-total	363,888	-	48,418	195,388	45,129	-	652,823
Total	585,230	122,864	48,418	195,388	75,537	-	1,027,437

1. Consultancy ceased on 30 November 2012.

2. Ceased employment on 28 February 2013.

3. Ceased employment on 19 October 2012.

2012		Short-term benefits		Termination	Post	Share
				benefits	employment benefits	based payment
	Cash	Director	Consulting		Super
Name	salary	Fees	Fees		annuation	Options	Total
	\$	\$	\$		\$	\$	\$
Non-executive
Directors
T A Jones Chairman	-	76,729	-	-	6,906	4,880	88,515
A J Moyes1	-	20,903	9,543	-	1,881	-	32,327
J R G Bell	-	60,703	-	-	5,463	3,660	69,826
Sub-total	-	158,335	9,543	-	14,250	8,540	190,668
Executive Directors
P R Wood2	214,689	-	-	474,896	48,796	-	738,381
K G Rodgers	209,392	-	-	-	18,034	14,640	242,066
Sub-total	424,081	-	-	474,896	66,830	14,640	980,447
Other KMP
B A Banister3	73,269	-	-	27,452	28,312	-	129,033
D W Clark4	67,510	-	10,875	24,854	7,821	4,880	115,940
D J Purdie5	127,765	-	-	3,587	15,800	-	147,152
A J Randall	115,670	-	-	-	11,286	4,880	131,836
D L Sammut	179,375	-	-	-	16,144	12,200	207,719
A R Tong	175,396	-	-	-	21,019	12,200	208,615
Sub-total	738,985	-	10,875	31,193	100,382	34,160	940,295
Total	1,163,066	158,335	20,418	530,789	181,462	57,340	2,111,410

1. Resigned as a Non-executive Director on 21 November 2011.

2. Ceased employment on 6 February 2012.

3. Ceased employment on 4 November 2011.

4. Ceased employment on 31 March 2012, appointed as a consultant from 1 April 2012.

5. Ceased employment on 30 March 2012.

An annual performance review of the Managing Director and all key management personnel is undertaken. The result of these reviews forms the basis of remuneration recommendations to the Nomination and Remuneration Committee.

C Service Agreements and Letters of Employment

Remuneration and other terms of employment for the Managing Director and other specified executives are formalised in either service agreements or letters of employment. Each of these service agreements and letters of employment provides for the provision of long service leave to accrue at a rate of 0.87 weeks per year up to 10 years' service and 2 weeks per year for each additional year of service, and participation in the Intec Option Plan.

Each service agreement and letter of employment provides the remuneration rate to be paid to the employee. All salaries are paid monthly by direct bank deposit. Full details of remuneration paid are included in the table in part B of this note. Other major provisions relating to remuneration are set out below.

	Start Date	Term of Agreement	Base Salary plus Superannuation at 30 June 2013 \$	Notice period for termination (months)	Termination payment
Directors K G Rodgers	1 March 2012	3 years	234,888	6	6 months salary
Specified Executives A J Randall	1 July 2013	3 years	128,511	1	6 months salary

D Share Based Compensation

Options are granted under the Intec Option Plan, which was approved by shareholders at the 2001 Annual General Meeting. All directors, employees and consultants are eligible to participate in the plan.

Options are granted under the plan for no additional consideration. Options are granted for a five year period, and vest and are exercisable immediately, unless otherwise stated.

Options are granted to directors, employees and consultants after a review of performances during the preceding year which is carried out in conjunction with the annual salary review. The granting of options is at the Board's discretion and no individual has a contractual right to receive options.

The terms and conditions of each grant of options affecting remuneration in the previous, this or future reporting periods are as follows:

Grant date	Expiry date	Exercise price	Value per option	Date exercisable
			at grant date
9 December 2011	21 November 2016	\$0.03	\$0.0122	9 December 2011

Options granted under the plan carry no dividend or voting rights.

The exercise price of the options is based on the current market price on the date the options are granted as determined by the Board.

Details of options over ordinary shares in the Company provided as remuneration to each Director of Intec and each of the key management personnel of the Group are set out below. When exercisable, each option is convertible into one ordinary share of Intec. Further information on the options is set out in notes 20 and 32.

2013		Granted			Balance	Vested and
	Balance at	during the	Exercised	Lapsed	at the	exercisable
	the start of	year as	during the	during	end of	at the end
Name	the year	compensation	year	the year	the year	of the year
Directors of Intec Ltd
T A Jones	415,000	-	-	15,000	400,000	400,000
K G Rodgers	1,320,000	-	-	120,000	1,200,000	1,200,000
J R G Bell	330,000	-	-	30,000	300,000	300,000
Other key management personnel of the Group
D W Clark	400,000	-	-	400,000	-	-
A J Randall	430,000	-	-	30,000	400,000	400,000
D L Sammut	1,050,000	-	-	50,000	1,000,000	1,000,000
A R Tong	1,050,000	-	-	1,050,000	-	-

2012		Granted			Balance	Vested and
	Balance at	during the	Exercised	Lapsed	at the	exercisable
Name	the start of	year as	during the	during	end of	at the end
	the year	compensation	year	the year	the year	of the year
Directors of Intec Ltd
P R Wood	370,000	1,400,000	-	1,770,000	-	-
A J Moyes	190,000	500,000	-	690,000	-	-
T A Jones	15,000	400,000	-	-	415,000	415,000
K G Rodgers	210,000	1,200,000	-	90,000	1,320,000	1,320,000
J R G Bell	30,000	300,000	-	-	330,000	330,000
Other key management personnel of the Group
B A Banister	-	1,000,000	-	1,000,000	-	-
D W Clark	-	400,000	-	-	400,000	400,000
D J Purdie	-	400,000	-	400,000	-	-
A J Randall	60,000	400,000		30,000	430,000	430,000
D L Sammut	50,000	1,000,000	-	-	1,050,000	1,050,000
A R Tong	110,000	1,000,000	-	60,000	1,050,000	1,050,000

The assessed fair value at grant date of options granted to individuals is included in the remuneration tables above. Fair values at grant date are determined using share option valuation models that take into account the exercise price, the term of the option, the share price at grant date, the expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

There were no options granted in the twelve (12) months to 30 June 2013 (9 million – 2012).

Shares provided on exercise of remuneration options

No ordinary shares in the Company were provided as a result of the exercise of remuneration options by a Director of Intec. No options were exercised by any key management personnel of the Group.

Shares under option

Unissued ordinary shares of Intec under option at the date of this report are shown in Note 32.

Shares issued on the exercise of options

No ordinary shares of Intec were issued during the year ended 30 June 2013 on the exercise of options granted under the Intec Option Plan. No further shares have been issued on the exercise of options since that date.

E Shareholdings of Directors and Key Management Personnel

The number of shares in the company held at the end of the financial year by each Director of the Company and other key management personnel of the Group, including their personally related parties, are set out in the following table.

2013		Received during	Other changes	Balance at the end of
	Balance at the	the year on the	during the	the
Name	start of the year	exercise of options	Year	Year
Ordinary shares
Directors of Intec Ltd
T A Jones	268,954	-	-	268,954
K G Rodgers	14,779,623	-	3,125,000	17,904,623
J R G Bell	112,892	-	-	112,892
Other key management personnel of the Group
D W Clark	10,000	-	-	*
A J Randall	-	-	-	-
D L Sammut	49,561	-	-	*
A R Tong	5,400	-	-	*

*Ceased employment or consultancy during the year ended 30 June 2013.

			Other	Balance at
2012		Received during	changes	the end of
	Balance at the	the year on the	during the	the
Name	start of the year	exercise of options	Year	Year
Ordinary shares
Directors of Intec Ltd
P R Wood	1,449,115	-	-	*
A J Moyes	286,004	-	-	*
T A Jones	268,954	-	-	268,954
K G Rodgers	112,956	-	14,666,667	14,779,623
J R G Bell	112,892	-	-	112,892
Other key management personnel of the Group
B A Banister	167,800	-	-	*
D W Clark	10,000	-	-	10,000
D J Purdie	20,000	-	-	*
A J Randall	-	-	-	-
D L Sammut	49,561	-	-	49,561
A R Tong	5,400	-	-	5,400

*Ceased employment during the year ended 30 June 2012.

F Additional Information

In the five years since 1 July 2008 Directors' total remuneration has decreased by an average of 14.2% per annum.

Insurance of officers

The Company has, by Deed of Access, Indemnity and Insurance, paid a premium to insure the Directors and Officers of the Group in respect of certain legal liabilities, including costs and expenses in successfully defending legal proceedings, whilst they remain as Directors and Officers and for seven years thereafter. The insurance contract prohibits the disclosure of the total amount of the premiums and a summary of the nature of the liabilities covered.

Proceedings on behalf of the Company

No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings.

No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237 of the Corporations Act 2001.

Non audit services

The Group may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor's expertise and experience with the Company and/or the Group are important.

Details of the amounts paid or payable to the auditor (Crowe Horwath Sydney) for audit and non-audit services provided during the year are set out below.

During the year the following fees were paid or payable for services provided by the auditor of the Group entity, its related practices and non-related audit firms:

		Consolidated
		2013 \$	2012 \$
	Assurance Services
1.	Audit services Audit and review of financial reports and other audit work under the Corporations Act 2001
	Crowe Horwath Sydney	51,500	69,200
	Total remuneration for audit services	51,500	69,200
2.	Non audit services Tax compliance services, including review of company income tax returns	-	-
	Total remuneration for non audit services Auditor's Independence Declaration	-	-

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 11.

Authorisation

This report is made in accordance with a resolution of Directors. The financial report was authorised for issue by the Directors on 27 September 2013. The Company has the power to amend and revise the financial report.

Kieran Rodgers Managing Director

Sydney 27 September 2013

Consolidated Statement of Comprehensive Income

For the year ended 30 June 2013

			Consolidated
	Notes	2013 \$	2012 \$
Revenue from continuing operations	5	1,065,853	2,825,389
Administration expense Burnie Research Facility expenses Depreciation and amortisation expense Engineering and other consultants expenses Employee benefits expense	6	(449,071) (71,930) (834,180) (83,964) (1,120,696)	(571,254) (135,695) (858,610) (761,152) (2,492,701)
Finance costs	6	(3,177)	(40,927)
Recouped environmental bond	6	121,230	3,647,500
Impairments expense	6	(872,977)	(491,846)
Occupancy expense	6	(227,646)	(323,272)
Research and development expenses Treatment expense	6	(10,133) (120,538)	(271,091) (2,326,701)
Other expenses		(18,995)	(54,360)
(Loss)/Profit before income tax		(2,626,224)	(1,854,720)
Income tax benefit/(expense)	7	-	-
(Loss)/Profit from continuing operations (Loss)/Profit from discontinued operations after income tax		-	(1,184,201)
Net (Loss)/Profit for the year		(2,626,224)	(3,038,921)
Other comprehensive (loss)/income		-	-
Income tax relating to components
of other comprehensive income		-	-
Other comprehensive (loss)/income for the year, net of income tax		-	-
Total comprehensive (loss)/income for the year		(2,626,224)	(3,038,921)
(Loss)/Profit attributable to:
Owners of Intec Ltd		(2,567,869)	(3,098,238)
Non-controlling interests		(58,355)	59,317
		(2,626,224)	(3,038,921)
Total comprehensive (loss)/income attributable to:
Owners of Intec Ltd		(2,567,869)	(3,098,238)
Non-controlling interests		(58,355)	59,317
		(2,626,224)	(3,038,921)
		Cents	Cents
(Loss)/Profit per share from continuing operations attributable to the ordinary equity holders of the Company:
Basic profit/(loss) per share	31	(0.88)	(1.25)
Diluted profit/(loss) per share (Loss)/Profit per share attributable to the ordinary equity holders of the Company:	31	(0.88)	(1.25)
Basic (loss)/profit per share	31	(0.88)	(1.25)
Diluted (loss)/profit per share	31	(0.88)	(1.25)

The consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

Consolidated Statement of Financial Position

As at 30 June 2013

			Consolidated
		2013	2012
	Notes	\$	\$
ASSETS
Current assets
Cash and cash equivalents	8	3,402,821	1,399,941
Trade and other receivables	9	100,017	544,836
Cash on Deposit - Environmental bonds	10	40,000	2,740,359
Inventories	11	27,509	29,737
Total current assets		3,570,347	4,714,873
Non current assets
Trade and other receivables	12	-	386,630
Other financial assets	13	205,100	45,739
Plant and equipment	14	501,100	2,040,857
Intangible assets	15	10,000	10,000
Total non current assets		716,200	2,483,226
Total assets		4,286,547	7,198,099
LIABILITIES
Current liabilities
Trade and other payables	16	144,932	264,286
Provisions	17	98,647	263,657
Total current liabilities		243,579	527,943
Non current liabilities
Trade and other payables	18	-	964
Total non current liabilities		-	964
Total liabilities		243,579	528,907
Net assets		4,042,968	6,669,192
EQUITY
Contributed equity	19	71,641,977	71,641,977
Reserves	21	2,624,037	2,624,037
Accumulated losses	22	(70,224,008)	(67,656,139)
Total equity attributable to equity holders of the Company		4,042,006	6,609,875
Non-controlling interest		962	59,317
Total equity		4,042,968	6,669,192

The consolidated statement of financial position should be read in conjunction with the accompanying notes.

Consolidated Statement of Changes in Equity

For the year ended 30 June 2013

Consolidated	Share Capital		Reserves Accumulated Losses	Non Controlling Interest	Total
	\$	\$	\$	\$	\$
Balance at 1 July 2012	70,415,552	2,577,677	(64,557,901)	-	8,435,328
Comprehensive income
Loss after income tax expense for the year	-	-	(3,098,238)	59,317	(3,038,921)
Other comprehensive income for the year	-	-	-	-	-
Total comprehensive income for the year Transactions with owners in their capacity as owners Issue of shares, net of transaction costs Employee options granted Total transactions with owners in their capacity as owners	-	-	(3,098,238)	59,317	(3,038,921)
	1,226,425 -	46,360	- -	- -	1,226,425 46,360
	1,226,425	46,360	-	-	1,272,785
Balance at 30 June 2012	71,641,977	2,624,037	(67,656,139)	59,317	6,669,192
Balance at 1 July 2013	71,641,977	2,624,037	(67,656,139)	59,317	6,669,192
Comprehensive income
Loss after income tax expense for the year	-	-	(2,567,869)	(58,355)	(2,626,224)
Other comprehensive income for the year	-	-	-	-	-
Total comprehensive income for the year Transactions with owners in their capacity as owners	-	-	(2,567,869)	(58,355)	(2,626,224)
Issue of shares, net of transaction costs	-	-	-	-	-
Total transactions with owners in their capacity as owners	-	-	-	-	-
Balance at 30 June 2013	71,641,977	2,624,037	(70,224,008)	962	4,042,968

The consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

Consolidated Statement of Cash Flows

For the year ended 30 June 2013

			Consolidated
		2013	2012
	Notes	\$	\$
Cash flows from operating activities
Receipts from customers		758,165	3,075,226
Payments to suppliers and employees		(2,282,506)	(7,745,088)
Interest paid		(3,535)	(37,862)
Interest received		174,863	242,111
R&D tax offset received		497,859	-
Other receipts		26,445	1,135,285
Net cash (outflows)/inflows from operating activities	34	(828,709)	(3,330,328)
Cash flows from investing activities
Payments for plant and equipment		-	280,454
Proceeds from security deposits refunded Proceeds from sale or disposal of property, plant & equipment		2,821,589 10,000	1,642,938 49,000
Payment for shares in listed companies		-	(465,000)
Net cash inflows/(outflows) from investing activities		2,831,589	946,484
Cash flows from financing activities
Proceeds from issues of shares		-	1,250,000
Share issue costs		-	23,575
Net cash inflows from financing activities		-	1,226,425
Net (decrease)/increase in cash and cash equivalents		2,002,880	(1,157,418)
Cash and cash equivalents at the beginning of the financial year		1,399,941	2,557,359
Cash and cash equivalents at end of year	8	3,402,821	1,399,941

The consolidated statement of cash flow should be read in conjunction with the accompanying notes.

Notes to the Financial Statements 30 June 2013

1 Summary of significant accounting policies

These consolidated financial statements and notes represent those of Intec Ltd and controlled entities ('Consolidated Group' or 'Group'). The separate financial statements of the parent entity, Intec Ltd, have not been presented within this financial report as permitted by amendments made to the Corporations Act 2001 effective from 28 June 2010.

Basis of preparation

These general purpose financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001.

Compliance with International Financial Reporting Standards (IFRS)

The consolidated financial statements comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

Historical cost convention

The financial statements have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

Critical accounting estimates

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving either a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed below and in note 3.

Going concern statements

The financial report has been prepared on a going concern basis. The Directors consider the Group has adequate funding and therefore, no adjustments have been made to the financial report that might be necessary should the Group not continue as a going concern. Accordingly, the Directors have prepared the financial report on a going concern basis.

Burnie Research Facility

The carrying value of the Burnie Research Facility was \$1.713 million at 30 June 2012. The Group generated revenue through the Burnie Research Facility from the treatment of industrial waste for the year to 30 June 2013 and expects to continue do so in the short to medium term. However, the Directors have determined that an appropriate carrying value for the Burnie Research Facility at 30 June 2013 is \$0.300 million. The revaluation of the Burnie Research Facility has been determined on the basis of the present value of future cash flows that are expected to be generated by this asset. The revaluation resulted in an impairment charge of \$0.706 million. While there is uncertainty, the Directors consider that the realisable value of the Burnie Research Facility would exceed the carrying value of the asset in an orderly sale process.

Significant accounting policies

Accounting policies are selected and applied in a manner which ensures that the resultant financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions and other events is reported.

The Company has adopted relevant new and revised accounting standards and pronouncements with no material impact.

The following significant accounting policies have been adopted in the preparation and presentation of the financial statements:

(a) Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the statement of comprehensive income over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities, which are not an incremental cost relating to the actual draw down of the facility, are recognised as prepayments and amortised on a straight line basis over the term of the facility.

(b) Borrowing costs

Borrowing costs incurred for the construction of any qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed.

(c) Cash and cash equivalents

For statement of cash flow presentation purposes, cash and cash equivalents includes cash on hand and deposits held at call with financial institutions and term deposits held with financial institutions.

(d) Contributed equity

Ordinary shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

(e) Employee benefits

(i) Wages and salaries and annual leave

Liabilities for wages and salaries, including non monetary benefits and annual leave expected to be settled within 12 months of the reporting date are recognised in other payables in respect of employees' services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.

(ii) Long service leave

The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

(iii) Share based payments

Share based compensation benefits are provided to employees via the Intec Option Plan. Information relating to the plan is set out in note 32.

The fair value of options granted under the Intec Option Plan is recognised as an employee benefit expense with a corresponding increase in equity. The fair value is measured at grant date and recognised over the period during which the employees become unconditionally entitled to the options.

The fair value at grant date is determined using share option valuation models that take into account the exercise price, the term of the option, the impact of dilution, the share price at grant date, the expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

The fair value of the options granted is adjusted to reflect market vesting conditions, but excludes the impact of any non market vesting conditions (for example, profitability and sales growth targets). Non market vesting conditions are included in assumptions about the number of options that are expected to become exercisable. At each reporting date, the entity revises its estimate of the number of options that are expected to become exercisable. The employee benefit expense recognised each period takes into account the most recent estimate.

Upon the exercise of options, the balance of the share based payments reserve relating to those options is transferred to share capital and the proceeds received, net of any directly attributable transaction costs, are credited to share capital.

(f) Research and development expenditure

• Research and development expenditure comprises costs which are directly attributable to:
• researching and analysing existing exploration data;
• conducting geological studies, exploratory drilling and sampling;
• examining and testing extraction and treatment methods; and/or
• compiling pre-feasibility and feasibility studies.

Research and development expenditure may also includes costs incurred in acquiring mineral rights, the entry premiums paid to gain access to areas of interest and amounts payable to third parties to acquire interests in existing projects.

(g) Fair value estimation

The fair value of financial assets and financial liabilities must be estimated for recognition and measurement and for disclosure purposes.

The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments.

(h) Financial instruments

(i) Recognition and initial measurement

Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the company commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified "at fair value through profit or loss", in which case transaction costs are expensed to profit or loss immediately.

(ii) Classification and subsequent measurement

Finance instruments are subsequently measured at fair value, amortised cost using the effective interest rate method, or cost.

Amortised cost is the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method.

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm's length transactions, reference to similar instruments and option pricing models.

The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense item in profit or loss.

The Group does not designate any interests in subsidiaries, associates or joint venture entities as being subject to the requirements of Accounting Standards specifically applicable to financial instruments.

(iii) Financial assets at fair value through profit or loss

Financial assets are classified at "fair value through profit or loss" when they are held for trading for the purpose of short-term profit taking, derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation where a Group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in carrying value being included in profit or loss.

(iv) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost.

Loans and receivables are included in current assets, where they are expected to mature within 12 months after the end of the reporting period.

(v) Financial liabilities

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost.

(vi) Impairment

At the end of each reporting period, the Group assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in profit or loss. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified to profit or loss at this point.

vii) Financial guarantees

Where material, financial guarantees issued that require the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due are recognised as a financial liability at fair value on initial recognition.

The guarantee is subsequently measured at the higher of the best estimate of the obligation and the amount initially recognised less, when appropriate, cumulative amortisation in accordance with AASB 118: Revenue. Where the entity gives guarantees in exchange for a fee, revenue is recognised under AASB 118.

The fair value of financial guarantee contracts has been assessed using a probability-weighted discounted cash flow approach. The probability has been based on:

• the likelihood of the guaranteed party defaulting in a year period;
• the proportion of the exposure that is not expected to be recovered due to the guaranteed party defaulting; and
• the maximum loss exposed if the guaranteed party were to default.

(viii) De-recognition

Financial assets are de-recognised where the contractual rights to receipt of cash flows expire or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are discharged, cancelled or expired. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.

(i) Foreign currency translation

(i) Functional and presentation currency

Items included in the financial statements of each of the Group's entities are measured in Australian dollars and the consolidated financial statements are presented in Australian dollars, which is the Group's functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.

(j) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flows.

(k) Impairment of assets

In respect of non-current assets, each asset or cash generating unit is evaluated every reporting period to determine whether there are any indications of impairment. If any such indication exists, a formal estimate of recoverable amount is performed and an impairment loss is recognised to the extent that carrying amounts exceed recoverable amount. The recoverable amount of an asset or cash-generating group of assets is measured at the higher of fair value less costs to sell and value in use.

Fair value is determined as the amount that would be obtained from the sale of the asset in an arm's length transaction between knowledgeable and willing parties, and is generally determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset and its eventual disposal. Value in use is also generally determined as the present value of the estimated future cash flows, but only those expected to arise from the continued use of the asset in its present form and its eventual disposal. Present values are determined using a risk-adjusted pre-tax discount rate appropriate to the risks inherent in the asset. Future cash flow estimates are based on expected production and sales volumes, commodity prices (considering current and historical prices, price trends and related factors), reserves, operating costs, restoration and rehabilitation costs and future capital expenditure. This policy requires management to make these estimates and assumptions, which are subject to risk and uncertainty; hence there is a possibility that changes in circumstances will alter these projections, which may impact the recoverable amount of the assets.

In such circumstances, some or all of the carrying value of the assets may be impaired and the impairment would be charged against the statement of comprehensive income.

Intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash generating units). Non financial assets other than goodwill that suffer impairment are reviewed for possible reversal of the impairment at each reporting date.

(l) Income tax

The income tax expense or revenue for the period is the tax payable in the current period's taxable income based on the Australian income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses.

Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are settled. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability. An exception is made for certain temporary differences arising from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or taxable profit or loss.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses or to the extent that they will be offset by deferred income tax liabilities which will reverse in the same periods.

Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in subsidiaries where the parent entity is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.

Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.

Tax consolidation legislation

Intec Ltd and its wholly-owned Australian subsidiaries have formed an income tax consolidated group under tax consolidation legislation. Each entity in the Group recognises its own current and deferred tax assets and liabilities. Such taxes are measured using the 'stand-alone taxpayer' approach to allocation. Current tax liabilities (assets) and deferred tax assets arising from unused tax losses and tax credits in the subsidiaries are immediately transferred to the head entity. The Group notified the Australian Taxation Office that it had formed an income tax consolidated group to apply from 1 July 2008. The tax consolidated group has entered a tax funding arrangement whereby each company in the Group contributes to the income tax payable by the Group in proportion to their contribution to the Group's taxable income. Differences between the amounts of net tax assets and liabilities derecognised and the net amounts recognised pursuant to the funding arrangement are recognised as either a contribution by, or distribution to the head entity.

(m) Intangible assets

Costs incurred in respect of intellectual property are capitalised to the extent that it is expected that the asset may be realised in the future. Intellectual property has an indefinite useful life and is not subject to amortisation and is tested for impairment annually.

(n) Inventories

Inventories are valued at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. The methods used to assign costs to inventories are actual invoiced costs.

(o) Investments

Non-current investments in subsidiaries are measured on the cost basis. The carrying amount of non current investments is reviewed annually by Directors to ensure it is not in excess of the recoverable amount of these investments.

(p) Leases

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases (Note 25b). Payments made under operating leases (net of any incentives received from the lessor) are charged to the statement of comprehensive income on a straight line basis over the period of the lease.

(q) Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.

(r) Plant and equipment

All plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred.

Increases in the carrying amounts arising on revaluation of items of plant and equipment are credited, net of tax, to the asset revaluation reserve in shareholders' equity. To the extent that the increase reverses a decrease previously recognised in the statement of comprehensive income, the increase is first recognised in the statement of comprehensive income. Decreases that reverse previous increases of the same asset are first charged against revaluation reserves directly in equity to the extent of the remaining reserve attributable to the asset; all other decreases are charged to the statement of comprehensive income.

Depreciation on assets is calculated using the straight line method to allocate their cost or re-valued amounts, net of their residual values, over their estimated useful lives, as follows:

• Burnie Research Facility 3-10 years
• Office equipment 2-8 years
• Plant and equipment 4-7 years

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount (note 1(k)).

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the statement of comprehensive income. When re-valued assets are sold, it is Group policy to transfer the amounts included in other reserves in respect of those assets to retained earnings.

(s) Principles of consolidation

(i) Subsidiaries

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Intec Ltd as at 30 June 2013 and the results of all subsidiaries for the year then ended. Intec Ltd and its subsidiaries together are referred to in these financial statements as the Group.

Subsidiaries are all those entities over which the Group has the power to govern the financial and operating policies, generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity.

Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group.

Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

Investments in subsidiaries are accounted for at cost in the individual financial statements of the Company.

(ii) Associates

Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for in the consolidated financial statements using the equity method of accounting, after initially being recognised at cost.

The Group's share of its associates' post acquisition profits or losses is recognised in the statement of comprehensive income, and its share of post acquisition movements in reserves is recognised in reserves. The cumulative post acquisition movements are adjusted against the carrying amount of the investment.

When the Group's share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured long term receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate.

Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group's interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Group.

(iii) Joint Ventures

A joint venture is a contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control. Joint control is the contractually agreed sharing of control such that significant operational and financial decisions require the unanimous consent of the parties sharing control.

Jointly controlled operations ('JCO's): a JCO is a joint venture in which the venturers have joint control over the operations of the joint venture. JCO's do not involve the establishment of a corporation, partnership or other entity. Each participant derives benefit from the joint activity through a share of production, rather than by receiving a share of the results of trading. The Group's proportionate interest in the assets, liabilities, revenues, expenses and cash flows of JCO's are incorporated into the Group's financial statements under the appropriate headings.

Where necessary, adjustments are made to the results of subsidiaries, joint ventures and associates to bring their accounting policies into line with those used by the Group.

(t) Business combinations

Business combinations occur where an acquirer obtains control over one or more businesses.

A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or businesses under common control. The business combination will be accounted for from the date that control is attained, whereby the fair value of the identifiable assets acquired and liabilities (including contingent liabilities) assumed is recognised (subject to certain limited exemptions).

When measuring the consideration transferred in the business combination, any asset or liability resulting from a contingent consideration arrangement is also included. Subsequent to initial recognition, contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or liability is remeasured each reporting period to fair value, recognising any change to fair value in profit or loss, unless the change in value can be identified as existing at acquisition date.

All transaction costs incurred in relation to the business combination are expensed to the statement of comprehensive income.

The acquisition of a business may result in the recognition of goodwill or a gain from a bargain purchase.

(u) Provisions

(i) General

Provisions for legal claims are recognised when:

• the Group has a present legal or constructive obligation as a result of past events;
• it is more likely than not that an outflow of resources will be required to settle the obligation; and
• the amount has been reliably estimated.

Provisions are not recognised for future operating losses.

(ii) Provisions for close down and restoration and for environmental cleanup costs

Close down and restoration costs include the dismantling and demolition of infrastructure and the removal of residual materials and remediation of disturbed areas. Estimated close down and restoration costs are provided for in the accounting period when the obligation arising from the related disturbances occurs, whether this occurs during the mine development or during the production phase, based on the net present value of estimated future costs. Provisions for close down and restoration costs do not include any additional obligations which are expected to arise on the basis of a closure plan. The cost estimates are calculated annually during the life of the operation to reflect known developments e.g. updated cost estimates and revisions to the estimated lives of operations, and are subject to formal review at regular intervals.

Close down and restoration costs are a normal consequence of mining, and the majority of close down and restoration expenditure is incurred at the end of the life of the mine. Although the actual cost to be incurred is uncertain, the Group's management has estimated these respective costs based on feasibility studies, relevant government assessments and engineering studies using current restoration standards and techniques.

The amortisation or 'unwinding' of the discount applied in establishing the net present value is charged to the statement of comprehensive income in each accounting period. The amortisation of the discount is shown as a financing cost, rather than as an operating cost.

The initial closure provision together with other movements in the provisions for close down and restoration costs, including those resulting from new disturbance, updated cost estimates, changes to the estimated lives of operations and revisions to discount rates are capitalised within plant and equipment. These costs are then depreciated over the lives of the assets to which they relate.

As noted above, the ultimate cost of environmental remediation is uncertain and cost estimates can vary in response to many factors including changes to the relevant legal requirements, the emergence of new restoration techniques or experience at other mine sites. The expected timing of expenditure can also change, for example, in response to changes in ore reserves or production rates. As a result there could be significant adjustments to the provision for close down and restoration and environmental clean up, which would affect future financial results.

(v) Revenue and other income recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of treatment charges, trade allowances, rebates and amounts collected on behalf of third parties.

The Group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Group and specific criteria have been met for each of the Group's activities described below. The amount of revenue is not considered to be reliably measurable until all contingencies relating to the sale have been resolved. The Group bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and specifics of each arrangement.

Revenue is recognised for the major business activities as follows:

(i) Sales of goods and disposal of assets

Income from sales of goods and disposal of other assets is recognised when the Group has passed control of the goods or other assets to the buyer.

(ii) Interest revenue

Interest revenue is recognised on an accrual basis, taking into account the interest rates applicable to financial assets.

(iii) Management fees

Management fees are charged to subsidiaries on a cost basis for services provided and recognised as revenue in the statement of comprehensive income of the Company.

(iv) Consulting services and treatment fees

Revenue from consulting services and treatment fees are recognised using the percentage-of-completion method for fixed-fee arrangements or as the services are provided for time-and-materials arrangements.

(v) Other income

Other income, which includes government grants and any other forms of government assistance, is recognised on receipt or when reasonable assurance that income will be earned is established.

(vi) General

All revenue is stated net of goods and services tax (GST).

(w) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director.

(x) Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. Trade receivables are generally due for settlement within 30 days.

(y) Trade and other payables

These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

(z) Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of reporting period but not distributed at the end of the reporting period.

(aa) New Accounting Standards and interpretations

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the Group for the annual reporting period ended 30 June 2013. A discussion of those future requirements and their impact on the Group is as follows:

• AASB 9 Financial Instruments, 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 and 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 and AASB 2012-6 Amendments to Australian Accounting Standards – Mandatory Effective Date of AASB 9 and Transition Disclosures (effective from 1 January 2015)

AASB 9 Financial Instruments addresses the classification, measurement and derecognition of financial assets and financial liabilities. The standard was applicable from 1 January 2013 (now deferred to 1 January 2015) but was available for early adoption. The standard will have no effect on the Group accounting for its available-for-sale financial assets as the changes only affect the accounting for equity investments that are being held for trading.

There will be no impact on the Group's accounting for financial liabilities, as the new requirements only affect the accounting for financial liabilities that are designated at fair value through profit of loss and the Group does not have any such liabilities. The derecognition rules have been transferred from AASB 139 Financial Instruments: Recognition and Measurement and have not been changed. The Group does not intend to adopt the new standard before its operative date, which means that it would be first applied in the annual reporting period ending 30 June 2014.

• AASB 13 Fair Value Measurement and AASB 2011-8 Amendments to Australian Accounting Standards arising. AASB 13 was released in September 2011. It explains how to measure fair value and aims to enhance fair value disclosures. The Group has yet to determine which, if any, of its current measurement techniques will have to change as a result of the new guidance. It is therefore not possible to state the impact, if any, of the new rules on any of the amounts recognised in the financial statements. However, application of the new standard will impact the type of information disclosed in the notes to the financial statements. The Group does not intend to adopt the new standard before its operative date, which means that it would be first applied in the annual reporting period ending June 2014.
• AASB 10 Consolidated Financial Statements, AASB 11 Joint Arrangements, AASB 12 Disclosure of Interests in Other Entities, revised AASB 127 Separate Financial Statements, AASB 128 Investments in Associates and Joint Ventures, AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards and AASB 2012-10 Amendments to Australian Accounting Standards – Transition Guidance and Other Amendments (effective 1 January 2013)

In August 2011, the AASB issued a suite of five new and amended standards which address the accounting for joint arrangements, consolidated financial statements and associated disclosures.

AASB 10 replaces all the guidance on control and consolidation in AASB 127 Consolidated and Separate Financial Statements and Interpretation 12 Consolidation – Special Purpose Entities. The core principal that a consolidated entity presents a parent and its subsidiaries as if they are a single economic entity remains unchanged, as do the mechanics of consolidation. However, the standard introduces a single definition of control that applies to all entities. It focuses on the need to have both power and rights or exposure to variable returns. Power is the current ability to direct the activities that significantly influence returns. Returns must vary and be positive, negative or both. Control exists when the investor can use its power to affect the amount of its returns. There is also new guidance on participating and protective rights and on agent/principle relationships. The group does not expect the new standard to have any significant impact on the financial statements.

• AASB 11 introduces a principles based approach to accounting for joint arrangements. The focus is no longer on the legal structure of joint arrangements, but rather on how rights and obligations are shares by the parties to the joint arrangement. Based on the assessment of rights and obligations, a joint arrangement will be classified as either a joint operations or a joint venture. Joint ventures are accounted for using the equity method and the choice to proportionately consolidate will no longer be permitted. Parties to a joint operation will account for their share of revenues, expenses, assets and liabilities in much the same way as under the previous standard. AASB 11 also provides guidance for parties that participate in joint arrangements but do not share joint control. The group does not expect the new standard to have any significant impact on the financial statements.

This standard is applicable to annual reporting periods beginning on or after 1 January 2013. The standard has a new definition of 'control'. Control exists when the reporting entity is exposed, or has the rights, to variable returns (e.g. dividends, remuneration, returns that are not available to other interest holders including losses) from its involvement with another entity and has the ability to affect those returns through its 'power' over that other entity. A reporting entity has power when it has rights (e.g. voting rights, potential voting rights, rights to appoint key management, decision making rights, kick out rights) that give it the current ability to direct the activities that significantly affect the investee's returns (e.g. operating policies, capital decisions, appointment of key management). The consolidated entity will not only have to consider its holdings and rights but also the holdings and rights of other shareholders in order to determine whether it has the necessary power for consolidation purposes. The adoption of this standard from 1 July 2013 may have an impact where the Group has a holding of less than 50% in an entity, has de facto control, and is not currently consolidating that entity.

• AASB 12 Disclosure of Interests in Other Entities

This standard is applicable to annual reporting periods beginning on or after 1 January 2013. It contains the entire disclosure requirement associated with other entities, being subsidiaries, associates and joint ventures. The disclosure requirements have been significantly enhanced when compared to the disclosures previously located in AASB 127 'Consolidated and Separate Financial Statements', AASB 128 'Investments in Associates', AASB 131 'Interests in Joint Ventures' and Interpretation 112 'Consolidation – Special Purpose Entities'. The adoption of this standard from 1 July 2013 will not have a material impact on the Group.

• AASB 2011–4: Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements (applicable for annual reporting periods beginning on or after 1 July 2013)

This Standard makes amendments to AASB 124: Related Party Disclosures to remove the individual key management personnel disclosure requirements (including paras Aus29.1 to Aus29.9.3). These amendments serve a number of purposes, including furthering trans-Tasman convergence, removing differences from IFRSs, and avoiding any potential confusion with the equivalent Corporations Act 2001 disclosure requirements.

This Standard is not expected to significantly impact the Group's financial report as a whole because:

• some of the disclosures removed from AASB 124 will continue to be required under s 300A of the Corporations Act, which is applicable to the Group; and
• AASB 2011-4 does not affect the related party disclosure requirements in AASB 124 applicable to all reporting entities, and some of these requirements require similar disclosures to those removed by AASB 2011-4
• AASB 119 Employee Benefits (September 2011) and AASB 201-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011)

This revised standard and its consequential amendments are applicable to annual reporting periods beginning on or after 1 January 2013. The amendments make changes to the accounting for defined benefit plans and the definition of short term employee benefits, from 'due to' to 'expected to' be settled within 12 months. The later will require annual leave that is not expected to be wholly settled within 12 months to be discounted allowing for expected salary levels in the future period when the leave is expected to be taken. The adoption of this standard from 1 July 2013 will not have a material impact on the Group.

• AASB 2012-2 Amendments to Australian Accounting Standards – Disclosures - Offsetting Financial Assets and Financial Liabilities

The amendments are applicable to annual reporting periods beginning on or after 1 January 2013. The disclosure requirements of AASB 7 'Financial Instruments: Disclosures' (and consequential amendments to AASB 132 'Financial Instruments: Presentations') have been enhanced to provide users of financial statements with information about netting arrangements, including rights of sell-off related to an entity's financial instruments and the effects of such rights on its statement of financial position. It is expected that the amendments will not have a material impact on the Group.

• AASB 2012-3 Amendments to Australian Accounting Standards – Disclosures - Offsetting Financial Assets and Financial Liabilities

The amendments are applicable to annual reporting periods beginning on or after 1 January 2014. The amendments add application guidance to address inconsistencies in the application of the offsetting criteria in AASB 132 'Financial Instruments: Presentation' by clarifying the meaning of "currently has a legally enforceable right to set-off": and clarifies that some gross settlement systems may be considered to be equivalent to net settlement. The adoption of the amendments from 1 July 2014 will not have a material impact on the Group.

• AASB 2012-10 Amendments to Australian Accounting Standards – Transition Guidance and Other Amendments

These amendments are applicable to annual reporting periods beginning on or after 1 January 2013. They amend AASB 10 and related standards for the transition guidance relevant to the initial application of those standards. The amendments clarify the circumstances in which adjustments to an entities previous accounting for its involvement with other entities are required and the timing of such adjustments. The adoption of these amendments will not have a material impact on the Group.

2 Financial risk management

The Group's activities expose it to a variety of financial risks: market risk (including currency risk, cash flow and fair value interest rate risk and price risk), credit risk, liquidity risk and commodity risk. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group. Risk management is carried out by company management and the Board of Directors. Financial risks are identified and evaluated and, where considered necessary, strategies are put in place to investigate and/or minimise such risks. For additional discussion of the Group's financial risks, refer to Note 26.

(a) Foreign exchange risk

Foreign exchange risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency that is not the entity's functional currency. Currency protection measures may be deemed appropriate in specific commercial circumstances and are subject to strict limits laid down by the Board. The Group has not entered into any foreign currency hedging contracts during the year.

(b) Credit risk

Credit risk arises from the potential failure of counterparties to meet their obligations under the respective contracts at maturity. The Group has policies in place to ensure that sales of product are made to customers with an appropriate credit history. There is limited credit risk on financial assets of the Group since there is limited exposure to individual customers or countries and the Group's exposure is limited to the amount of cash, short term deposits and receivables which have been recognised in the statement of financial position. Deposits and financial arrangements are held in high rated financial institutions.

(c) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed finance facilities. (Refer note 26(c)(ii)).

(d) Cash flow and fair value interest rate risk

The Group's interest rate risk arises from borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk.

(e) Commodity price risk

The Group's normal policy is to sell its products at prevailing market prices. Exceptions to this rule are subject to strict limits laid down by the Board and to rigid internal controls. The Group has not entered into any commodity price hedging contracts during the year.

3 Critical accounting estimates and judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results.

The Group has identified the following critical accounting policies under which significant judgements, estimates and assumptions are made and where actual results may differ from these estimates under different assumptions and conditions and may materially affect financial results or the financial position reported in future periods.

Provision for restoration and rehabilitation

The Group's accounting policy requires the recognition of provisions for the restoration and rehabilitation of relevant operating sites. The provision recognised represents management's best estimate of the present value of the future costs required. Significant estimates and assumptions are made in determining the amount of restoration and rehabilitation provisions. Those estimates and assumptions deal with uncertainties such as: changes to the relevant legal and regulatory framework; the magnitude of possible contamination and the timing, extent and costs of required restoration and rehabilitation activity.

The provision recognised for each site is periodically reviewed and updated based on the facts and circumstances available at the time. Changes to the estimated future costs for operating sites are recognised in the statement of financial position by adjusting both the restoration and rehabilitation asset and provision. Such changes give rise to change in future depreciation and interest charges. For closed sites, changes to estimated costs are recognised immediately in the statement of comprehensive income.

Income taxes

The Group is subject to income taxes in Australia. Significant judgement is required in determining the provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred tax provisions in the period in which such determination is made. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses or to the extent that they will be offset by deferred income tax liabilities which will reverse in the same periods.

4 Segment information

(a) Geographical segments

The Group operates in primarily one geographical segment, namely Australia.

(b) Business segments

The Group primary business segment is the operation of its Burnie Research Facility and associated activities.

(c) Segment reporting – business segments, 2013

Due to the discontinued operations finishing in the 2012 financial year, no segment information has been shown for the 2013 financial year. The Group had only one business segment, which is Research and Development.

(d) Segment reporting – business segments, 2012

	Discontinued operations (Metal in concentrate) \$	R & D \$	Consolidated \$
Sales to external customers	-	2,450,359	2,450,359
Total sales revenue	-	2,450,359	2,450,359
Other revenue	-	14,255	14,255
Total segment revenue	-	2,464,614	2,464,614
Intersegment elimination			-
Unallocated revenue	-	-	360,775
Consolidated revenue			2,825,389
(ii) Segment Result
Segment profit/(loss) before tax	(1,184,201)	922,982	(261,219)
Intersegment elimination			-
Unallocated profit/(loss) Profit/(loss) before income tax			(2,777,702) (3,038,921)
Income tax benefit/(expense)			-
Profit/(loss) for the year			(3,038,921)
(iii) Segment assets and liabilities	Discontinued operations (Metal in concentrate)	R & D	Consolidated
	\$	\$	\$
Segment assets	-	4,941,986	4,941,986
Intersegment elimination			-
Unallocated assets			2,253,046
Total assets			7,195,032
Segment liabilities	-	323,037	323,037
Intersegment elimination			-
Unallocated liabilities			201,458
Total liabilities			524,495
(iv) Other segment information
Acquisition of plant & equipment	-	(280,237)	(280,237)
Unallocated			-
Total acquisition Depreciation expense	-	707,522	(280,237) 707,522
Unallocated			151,537
Total depreciation expense			859,059
(v) Cash flow information
Net cash flow from operating activities	-	(1,825,586)	(1,825,586)
Unallocated			(1,504,742)
Total cash flow from operating activities			(3,330,328)
Net cash flow from investing activities	-	1,642,938	1,642,938
Unallocated Total cash flow from investing activities			(696,454) 946,484
Net cash flow from financing activities	-	-	-
Unallocated			1,226,425
Total cash flow from financing activities			1,226,425

(e) Basis of accounting for purposes of reporting by operating segments

(i) Accounting policies adopted

Unless stated otherwise as detailed in Note 1.

(ii) Intersegment transactions

There are no intersegment transactions.

(iii) Segment assets

Where an asset is used across multiple segments, the asset is allocated to that segment that receives majority economic value from that asset. In the majority of instances, segment assets are clearly identifiable on the basis of their nature and physical location.

(iv) Segment liabilities

Liabilities are allocated to segments where there is a direct nexus between the incurrence of the liability and the operations of the segment. Borrowings and tax liabilities are generally considered to relate to the Group as a whole and are not allocated. Segment liabilities include trade and other payables.

(v) Unallocated items

The following items of revenue, expenses, assets and liabilities are not allocated to operating segments as they are not considered part of the core operations of any segment:

• impairment of assets and other non-recurring items of revenue or expense;

• income tax expense;

• current tax liabilities;
• other financial liabilities; and
• intangible assets.

(f) Major customers

Not applicable.

5 Revenue from continuing operations

		Consolidated
	2013	2012
	\$	\$
Sales revenue
Consulting fees	308,315	1,583,143
Product sales	-	867,216
	308,315	2,450,359
Other revenue
Interest received	172,248	248,558
Government subsidies	524,304	110,909
Sundry income	60,986	15,563
	757,538	375,030
Total revenue	1,065,853	2,825,389

6 Expenses

Profit/(loss) before income tax includes the following specific expenses

		Consolidated
	2013	2012
Depreciation
Plant and equipment	118,360	140,694
Office furniture and equipment	8,298	11,306
Burnie Research Facility	707,522	707,522
Total depreciation recognised in statement of comprehensive income
	834,180	859,059
Finance costs
Interest and finance charges paid/payable – others	3,177	40,927
Foreign exchange (gains)/losses	-	(5,054)
Occupancy expense	227,646	323,272
(Recouped) environmental bond	(121,230)	(3,647,500)
Impairments expense	872,977	491,846
Research and development 7 Income tax (benefit)/expense	10,133	271,091

		Consolidated
	2013	2012
	\$	\$
(a) The components of income tax (benefit)/expense comprise
Current tax	-	-
Deferred tax	(548,558)	(1,559,676)
Tax losses not recognised/(recouped)	548,558	1,559,676
Under/over provision of income tax	-	-
Income tax (benefit)/expense	-	-
(b) Reconciliation of income tax (benefit)/expense
to prima facie tax payable
Profit/(loss) from operations before income tax (benefit)/expense	(2,626,224)	(3,038,921)
Tax at the Australian tax rate of 30% (2012 - 30%)	(787,867)	(911,676)
Tax effect of amounts which are not deductible (taxable) in calculating taxable income:
Permanent differences	298,345
Tax losses not recognised/(recouped)	548,558	1,559,676
Temporary differences not recognised	(59,036)	(648,000)
Under/over provision of income tax	-	-
Income tax (benefit)/expense	-	-
Unused tax losses for which no deferred tax asset has been recognised	62,632,521	60,803,994
Potential tax benefit @ 30% (2012 – 30%)	18,789,756	18,241,198
All unused tax losses were incurred by Australian entities.

The benefit for tax losses will only be obtained if:

• (i) the Group derives future assessable income of a nature and an amount sufficient to enable the benefit from the deductions for the losses and temporary difference to be realised;
• (ii) the Group complies with the conditions for deductibility imposed by the tax legislation; and
• (iii) no changes in tax legislation adversely affect the Group in realising the benefit from deductions for the losses and temporary differences.

In addition, the availability of certain tax losses is subject to the Group successfully establishing deductibility, and in particular, satisfying the continuity of ownership test and the same business test.

(d) Tax consolidation legislation

The Company and its wholly-owned Australian subsidiaries have implemented the tax consolidation legislation with effect from 1 July 2008.

(e) Dividends

			Consolidated
		2013	2012
		\$	\$
	Final Dividend Franking account credits	-	-
8	Current assets - cash and cash equivalents	-	-
			Consolidated
		2013	2012
		\$	\$
	Cash at bank and on hand	3,402,821	1,399,941
		3,402,821	1,399,941

(a) Reconciliation to cash at the end of the year

The above figures are reconciled to cash at the end of the financial year as shown in the statement of cash flows.

(b) Cash at bank and on hand

These are interest bearing at interest rates between 2.70% and 3.95% (2012 – 3.45 % and 5.10%).

9 Current assets - trade and other receivables

		Consolidated
	2013	2012
	\$	\$
Trade debtors	-	45,739
GST receivables	-	11,070
Lease security deposit	39,539	-
Other receivables	26,591	469,439
Prepayments	33,887	18,588
	100,017	544,836

(a) Provision for impairment of receivables

Current trade and other receivables are generally on 30-day terms. Non-current trade and other receivables are assessed for recoverability based on the underlying terms of the contract. A provision for impairment is recognised when there is objective evidence that an individual trade or other receivable is impaired. These amounts have been included in the other expenses item. There is a provision for the impairment of a receivable at 30 June 2013 relating to the IRC project, see later discussion in this note.

(b) Credit Risk — trade and other receivables

The Group has no significant concentration of credit risk with respect to any single counterparty or group of counterparties other than those receivables specifically provided for and mentioned within this note.

The class of assets described as trade and other receivables is considered to be the main source of credit risk related to the Group. On a geographical basis, the Group has no significant credit risk exposure. The Group does not hold any financial assets with terms that have been renegotiated, which would otherwise be past due or impaired.

The following table details the Group's trade and other receivables exposed to credit risk (prior to collateral and other credit enhancements) with ageing analysis and impairment provided for thereon. Amounts are considered as 'past due' when the debt has not been settled, with the terms and conditions agreed between the Group and the customer or counterparty to the transaction. Receivables that are past due are assessed for impairment by ascertaining solvency of the debtors and are provided for where there are specific circumstances indicating that the debt may not be fully repaid to the Group.

The balances of receivables that remain within initial trade terms (as detailed in the table) are considered to be of high credit quality.

2013	Gross amount	Past due and impaired	Past due but not impaired			Within initial trade terms
			< 30	31-60	61-90	> 90
	\$	\$	\$	\$	\$	\$	\$
Trade debtors Lease security	101,200	101,200	-	-	-		- -
deposit	39,539						39,539
Other receivables	26,591	-	-	-	-		- 26,591
Prepayments	-	-	-	-	-		- -
Total	167,330	101,200	-	-	-		- 66,130

The impaired trade debtor amount of \$101,200 relates to an invoice raised in relation to the IRC Project. See the Review of Operations for further information on this matter.

2012	Gross amount	Past due and impaired	Past due but not impaired				Within initial trade terms
			< 30	31-60	61-90	> 90
	\$	\$	\$	\$	\$	\$	\$
Trade debtors	45,739	-	-	-	-	-	45,739
GST receivables	11,070						11,070
Other receivables	469,439	-	-	-	-	-	469,439
Prepayments	-	-	-	-	-	-	-
Total	526,248	-	-	-	-	-	526,248

(c) Collateral held as security and pledged

There is no trade debtor or other receivable amounts where collateral has been received as security or pledged.

(d) Financial assets classified as loans and receivables

	Note	Consolidated
		2013	2012
		\$	\$
Trade debtors	9	-	45,739
GST receivables	9	-	11,070
Lease security deposit	9	39,539	-
Other receivables	9	26,591	469,439
		66,130	526,248

10 Current assets – Cash on Deposit - Environmental bonds

		Consolidated
	2013	2012
	\$	\$
Cash on Deposit - Environmental bonds	40,000	2,740,000
	40,000	2,740,000

A cash-backed bond of \$756,000 was lodged in 2008 with EPA Tasmania which has been reduced to \$40,000 at 30 June 2013. The Group received this remaining bond amount subsequent to year end.

11 Current assets - Inventories at cost

			Consolidated
		2013	2012
		\$	\$
	Spares and reagents – finished goods	27,509	29,737
		27,509	29,737
12	Non current assets – trade and other receivables
			Consolidated
		2013	2012
		\$	\$
	Royalty receivable	-	225,000
	Lease security deposits	-	161,630
		-	386,630
13	Non current assets - other financial assets
			Consolidated
		2013	2012
	Financial assets available for sale	\$	\$
	Shares in listed companies, at cost	-	42,839
	Shares in listed companies, at market value	202,200	-
	Shares in unlisted companies, at cost	2,900	2,900
		205,100	45,739

The closing market price at 30 June 2013 of BSM shares and BSM options was 1.1 cents and 0.1 cents respectively; valuing the Group's BSM holdings at \$202,200 (18.1 million shares at 1.1 cents/share and 3.1 million options at 0.1 cents/option). An impairments expense of \$66,200 was raised against the BSM prior year fair value of \$268,400.

14 Non current assets - Plant and equipment

Consolidated	Office equipment	Plant and equipment	Burnie Research Facility	Total
Year ended 30 June 2012	\$	\$	\$	\$
Movement in carrying amounts
Opening net book amount	9,972	253,340	2,437,621	2,700,933
Additions	1,090	279,147	-	280,237
Disposals	-	(36,254)	-	(36,254)
Transfer	-	17,000	(17,000)	-
Impairment	-	(45,000)	-	(45,000)
Depreciation charge	(5633)	(145,904)	(707,522)	(859,059)
Closing net book amount	5,429	322,329	1,713,099	2,040,857
At 30 June 2012
Cost or fair value	250,614	881,400	6,287,620	7,419,634
Accumulated depreciation	(245,185)	(559,071)	(4,574,521)	(5,378,777)
Net book amount	5,429	322,329	1,713,099	2,040,857
Year ended 30 June 2013
Movement in carrying amounts
Opening net book amount	5,429	322,329	1,713,099	2,040,857
Additions	-	1,456	-	1,456
Disposals	-	(1,444)	-	(1,444)
Transfer	-	-	-	-
Impairment	-	-	(705,590)	(705,590)
Depreciation charge	(2,152)	(124,506)	(707,522)	(834,180)
Closing net book amount	3,277	197,835	299,987	501,100
At 30 June 2013
Cost or fair value	7,953	372,661	6,287,620	6,668,234
Accumulated Depreciation	(4,675)	(174,826)	(5,282,043)	(5, 461,544)
Impairment	-	-	(705,590)	(705,590)
Net book amount	3,278	197,835	299,987	501,100

15 Non current assets - Intangible assets

		Consolidated
	2013	2012
Intellectual property	\$	\$
Year ended 30 June Opening net book amount	10,000	10,000
Closing net book amount	10,000	10,000
At 30 June Cost	10,000	10,000
Net book amount	10,000	10,000

16 Current liabilities – Trade and other payables

		Consolidated
	2013	2012
	\$	\$
Unsecured liabilities
Trade payables	119,294	173,995
Other payables	-	30,911
Employee entitlements	25,638	59,380
	144,932	264,286
Less employee entitlements	(25,638)	(59,380)
Total financial liabilities	119,294	204,906
17 Current liabilities – Provisions
		Consolidated
	2013	2012
(a) Balances	\$	\$
Leasing obligations	-	121,230
Long Service Leave	98,647	142,427
	98,647	263,657
(b) Movement in provision
Provision for environmental obligations
Balance 1 July 2012	-	3,647,500
Released during year	-	(3,647,500)
Balance 30 June 2013	-	-
Provision for leasing obligations
Balance 1 July 2012	121,230	121,230
Released during year	(121,230)	-
Balance 30 June 2013	-	121,230
Provision for long service leave
Balance 1 July 2012	142,427	130,954
Net movement	(43,780)	11,473
Balance 30 June 2013	98,647	142,427
(c) Nature and purpose of provision The leasing provision related to the former EAF Dust storage site in Victoria.
18 Non current liabilities – Provisions		Consolidated
	2013	2012
(a) Balances	\$	\$
Transferred to current provision during year	-	964
Balance 30 June 2013	-	964
(b) Movements in provisions- long service leave	2013	2012
	\$	\$
Balance 1 July 2012	964	21,000
Transferred to current provision during year	(964)	(20,036)
Balance 30 June 2013	-	964

(c) Nature and purpose of provision

The provision for long service leave represents the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

19 Contributed equity

(a) Share capital		Notes		2013 Shares	2012 Shares
Ordinary shares Fully paid		(b)(c)	299,818,669		299,818,669
Total contributed equity			299,818,669		299,818,669
(b)	Movements in ordinary share capital
Date 2013	Details		Number of shares	Issue price (cents)	\$
30-06-2012	Balance at beginning of year – Company		299,818,669		71,949,227
30-06-2013	Balance at end of year		299,818,669		71,949,227
30-06-2008	Less share of associates capital raising costs expensed directly in equity		-		(307,250)
30-06-2013	Balance at end of year – Consolidated		299,818,669		71,641,977
2012
30-06-2011	Balance at beginning of year – Company Issued pursuant to share placement to		216,485,334		70,723,402
07-02-2012	sophisticated investors Issued pursuant to share placement to		32,472,801	0.015	487,092
22-03-2012	sophisticated investors Transaction costs pursuant to share placement to		50,860,534	0.015	762,908
22-03-2012	sophisticated investors				(24,175)
30-06-2013	Balance at end of year		299,818,669		71,949,227
	Less share of associates capital raising costs
30-06-2008	expensed directly in equity		-		(307,250)
30-06-2012	Balance at end of year – Consolidated		299,818,669		71,641,977

(c) Ordinary shares

Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the number of shares held.

On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

Ordinary shares have no par value and the Company does not have a limited amount of authorised capital.

(d) Options

Information relating to the Intec Option Plan, including details of options issued, exercised and lapsed during the financial year and options outstanding at the end of the financial year, is set out in Notes 20 and 32.

(e) Capital Management

Management controls the capital of the Group in order to maintain a good debt to equity ratio and ensure that the Group can fund its operations and continue as a going concern. The Group's debt and capital includes ordinary share capital and financial liabilities supported by financial assets. There are no externally imposed capital requirements.

Management effectively manages the Group's capital by assessing the Group's financial risks and adjusting its capital structure in response to changes in these risks and in the market. These responses include the management of debt levels, distributions to shareholders and share issues.

There have been no changes in the strategy adopted by management to control the capital of the Group since the prior year. The quantitative data the Group assesses as capital is \$4,042,967 which is consistent with the net assets of the Group (2012: \$6,672,224).

20 Options 2013

							Vested &
			Balance	Granted	Lapsed	Exercised	exercisable
Issue	Expiry	Exercise	at	during	during	during	as at
Date	Date	Price	30 June 2012	year	year	year	30 June 2013
14-11-2007	25-09-2012	\$0.1413	202,500	-	202,500	-	-
31-01-2008	25-09-2012	\$0.1413	165,000	-	165,000	-	-
09-12-2011	21-09-2016	\$0.0300	6,100,000	-	2,800,000	-	3,300,000
Total Options on issue			6,467,500	-	3,167,500	-	3,300,000

2012

							Vested &
			Balance	Granted	Lapsed	Exercised	exercisable
Issue	Expiry	Exercise	at	during	during	during	as at
Date	Date	Price	30 June 2011	year	year	year	30 June 2012
25-09-2006	30-08-2011	\$0.1013	461,000	-	461,000	-	-
15-11-2006	30-08-2011	\$0.1013	260,000	-	260,000	-	-
14-11-2007	25-09-2012	\$0.1413	470,000	-	267,500	-	202,500
31-01-2008	25-09-2012	\$0.1413	635,000	-	470,000	-	165,000
09-12-2011	21-09-2016	\$0.0300	-	9,000,000	2,900,000	-	6,100,000
Total Options on issue			1,826,000	9,000,000	4,358,500	-	6,467,500

All options have been issued pursuant to the Intec Option Plan (Refer Note 32).

21 Reserves

	Consolidated
	2013	2012
	\$	\$
(a) Reserves
Share-based payments reserve	2,624,037	2,624,037
	2,624,037	2,624,037
(b) Movements
Share-based payments reserve
Balance 1 July	2,624,037	2,577,677
Options expense	-	46,360
Total reserves	2,624,037	2,624,037

(c) Nature and purpose of reserves

Share based payments reserve

The share based payments reserve records the value of options issued by the Company. In previous years, the value of options issued under the Intec Option Plan to directors, employees and consultants has been recognised as an employment expense in the statement of comprehensive income.

22 Accumulated losses

Movements in accumulated losses were as follows:

		Consolidated
	2013	2012
	\$	\$
Balance 1 July	(67,656,139)	(64,557,901)
Net loss for the year	(2,567,869)	(3,098,238)
Balance 30 June	(70,224,008)	(67,656,139)

23 Key management personnel disclosures

(a) Directors

The following persons were Directors of the Company during the financial year:

(i)	Chairman – Non-executive
	T A Jones
(ii)	Executive Director
	K G Rodgers, Managing Director

• (iii) Non-executive Director J R G Bell
• (b) Other key management personnel

The following persons also had authority and responsibility for planning, directing and controlling the activities of the Group, directly or indirectly, during the financial year:

Name	Position
D W Clark1	Consultant, Financial Control
A J Randall	General Manager
D L Sammut2	Corporate Development Manager
A R Tong3	Head of Technology

1. Ceased consultancy on 30 November 2012

2. Ceased employment on 28 February 2013

3. Ceased employment on 19 October 2012

(c) Key management personnel compensation

	Consolidated
	2013	2012
	\$	\$
Short-term employee benefits	756,512	1,507,717
Termination benefits	195,388	394,352
Post-employment benefits	75,537	152,001
Share-based payments	-	57,340
	1,027,437	2,111,410

(d) Equity instrument disclosures relating to key management personnel

(i) Options provided as remuneration and shares issued on exercise of such options

Details of options provided as remuneration and shares issued on the exercise of such options, together with terms and conditions of the options, can be found in section D of the remuneration report on pages 7 to 9. (ii) Option holdings

The numbers of options over ordinary shares in the company held during the financial year by each Director of the Company and other key management personnel of the Group, including their personally related parties, are set out below.

2013		Granted				Vested and
		during the	Exercised	Lapsed	Balance at	exercisable
Name	Balance at the	year as	during	during	the end of	at the end
	start of the year	compensation	the year	year	the year	of the year
Directors of Intec Ltd
T A Jones	415,000	-	-	15,000	400,000	400,000
K G Rodgers	1,320,000	-	-	120,000	1,200,000	1,200,000
J R G Bell	330,000	-	-	30,000	300,000	300,000
Other key management personnel of the Group
D W Clark 1	400,000	-	-	400,000	-	-
A J Randall	430,000	-	-	30,000	400,000	400,000
D L Sammut 2	1,050,000	-	-	50,000	1,000,000	1,000,000
A R Tong 3	1,050,000	-	-	1,050,000	-	-

1. Ceased consultancy on 30 November 2012

2. Ceased employment on 28 February 2013

3. Ceased employment on 19 October 2012

2012		Granted				Vested and
		during the	Exercised	Lapsed	Balance at	exercisable
Name	Balance at the	year as	during	during the	the end of	at the end
	start of the year	compensation	the year	year	the year	of the year
Directors of Intec Ltd
P R Wood	370,000	1,400,000	-	1,770,000	-	-
A J Moyes	190,000	500,000	-	690,000	-	-
T A Jones	15,000	400,000	-	-	415,000	415,000
K G Rodgers	210,000	1,200,000	-	90,000	1,320,000	1,320,000
J R G Bell	30,000	300,000	-	-	330,000	330,000
Other key management personnel of the Group
B A Banister	-	1,000,000	-	1,000,000	-	-
D W Clark	-	400,000	-	-	400,000	400,000
D J Purdie	-	400,000	-	400,000	-	-
A J Randall	60,000	400,000	-	30,000	430,000	430,000
D L Sammut	50,000	1,000,000	-	-	1,050,000	1,050,000
A R Tong	110,000	1,000,000	-	60,000	1,050,000	1,050,000

(iii) Share holdings

The number of shares in the company held at the end of the financial year by each Director of the Company and other key management personnel of the Group, including their personally related parties, are set out below. There were no shares granted during the reporting period as compensation.

			Other	Balance at
2013		Received during	changes	the end of
	Balance at the	the year on the	during the	the
Name	start of the year	exercise of options	Year	Year
Ordinary shares
Directors of Intec Ltd
T A Jones	268,954	-	-	268,954
K G Rodgers	14,779,623	-	3,125,000	17,904,623
J R G Bell	112,892	-	-	112,892
Other key management personnel of the Group
D W Clark	10,000	-	-	*
A J Randall	-	-	-	-
D L Sammut	49,561	-	-	*
A R Tong	5,400	-	-	*

*Ceased employment or consultancy during year.

2012		Received during	Other changes	Balance at the end of
	Balance at the	the year on the	during the	the
Name	start of the year	exercise of options	Year	Year
Ordinary shares
Directors of Intec Ltd
P R Wood	1,449,115	-	-	*
A J Moyes	286,004	-	-	*
T A Jones	268,954	-	-	268,954
K G Rodgers	112,956	-	14,666,667	14,779,623
J R G Bell	112,892	-	-	112,892
Other key management personnel of the Group
B A Banister	167,800	-	-	*
D W Clark	10,000	-	-	10,000
D J Purdie	20,000	-	-	*
A J Randall	-	-	-	-
D L Sammut	49,561	-	-	49,561
A R Tong	5,400	-	-	5,400

*Ceased employment during year.

24 Contingencies

(a) Contingent liabilities

The parent entity and Group had no contingent liabilities at 30 June 2013, (2012- nil).

25 Commitments

(a) Capital commitments

There are no commitments for capital expenditure at the reporting date.

(b) Lease commitments

Operating leases

The Group leases office premises and several items of office equipment under non cancellable operating leases.. The leases have varying terms, escalation clauses and renewal rights. On renewal, the terms of the leases are renegotiated.

	Consolidated
2013	2012
\$	\$
	120,000
-	240,000
-	-
-	360,000
	-

(c) Tenement commitments

There are no minimum annual expenditure requirements attached to the tenements held by the Group. Details of tenements held are shown in the Schedule of Tenements.

26 Financial instruments

(a) Significant accounting policies

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement, and the basis on which income and expenses are recognised, with respect to each class of financial asset, financial liability and equity instrument are disclosed in Note 1 and Note 2 to the financial statements.

(b) Categorisation of financial instruments

The Group and the parent entity hold the following financial instruments:

		Consolidated
		Carrying amount
	2013	2012
Financial assets	\$	\$
Cash and cash equivalents (Note 8)	3,402,821	1,399,941
Receivables (Notes 9, 10 & 12)	106,130	3,671,555
Other financial assets (Note 13)	205,100	45,736
	3,714,051	5,117,232
Financial liabilities
Trade and Other Payables (Note 16)	119,294	204,906
	119,294	204,906

(c) Financial risk management objectives and policies

The main risks arising from the Group's financial instruments are credit risk, liquidity risk, market risk and cash flow and fair value interest rate risk. The Directors review and approve policies for managing each of these risks which are summarised below.

(i) Credit risk

The Group's exposure to credit risk arises from the potential default of counterparties on their contractual obligations resulting in a financial loss to the Group. Credit risk is monitored on a regular basis. Provision for impairment of financial assets is calculated based on past experience, and current and expected changes in client credit ratings. In addition, the Group does not engage in hedging of its financial assets. The Group has policies in place to ensure that sales of product are made to customers with an appropriate credit history. There is limited credit risk on financial assets, excluding metal in concentrate debtors. Metal in concentrate debtors cause a concentration of credit risk as there is a small number of debtors and a low volume of high value sales. Exposure to individual customers or countries is limited to the amount of cash, short term

deposits and receivables recognised at balance date and is minimised by using recognised financial intermediaries as counterparties and established letters of credit.

The Group does not hold either collateral as security or credit enhancements relating to any of its financial assets. As at the reporting date, there is no evidence to indicate that any of the financial assets were impaired. There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated.

(ii) Liquidity risk

Liquidity risk arises when the Group is unable to meet its financial obligations as and when they fall due. The Group generally settles financial obligations within thirty (30) days and in the event of a dispute make payments within thirty (30) days from the date of resolution.

The Group's financing activities are managed centrally by maintaining an adequate level of cash and cash equivalents to finance the Group's operations. The Group's surplus funds are also managed centrally by placing them with reputable financial institutions.

The risk implied from the values shown in the following table, reflects a balanced view of cash inflows and outflows. Trade payables and other financial liabilities originate from the financing of assets used in the Group's ongoing operations such as property, plant and equipment and investments in working capital, inventories and trade receivables.

Interest rate exposure and maturity analysis of financial assets

Consolidated			Interest rate exposure				Maturity dates
2013	Weighted average effective interest rate %	Carrying amount	Fixed interest rate	Variable interest rate	Non interest bearing	Nominal amount	Less than 1 month	1-3 months	3 months – 1 year	1-5 years
Cash and cash equivalents	3.7	3,402,821		- 3,402,821	-	-	1,002,821 2,400,000		-	-
Receivables Available for sale financial assets at cost, listed and	-	106,130	-	-	106,130	-	106,130		- -	-
unlisted investments	-	205,100	-	-	205,100	-	205,100		- -
	-	3,714,051		- 3,402,821	311,230	-	1,314,051 2,400,000		-	-
Payables: Trade creditors & accruals	-	119,294	-	-	119,294	-	119,294		- -	-
	-	119,294	-	-	119,294	-	119,294		- -	-
Consolidated	Interest rate exposure Weighted					Maturity dates
2012	average effective interest rate %	Carrying amount	Fixed interest rate	Variable interest rate	Non interest bearing	Nominal amount	Less than 1 month	1-3 months	3 months – 1 year	1-5 years
Cash and cash equivalents Receivables Available for sale financial assets at	5.1 3.5	1,399,941 3,671,555	- 2,740,000	1,399,941	- - 931,555	- -	1,399,941 3,284,925	- -	-	- - 386,630
cost, unlisted investments	-	45,736	-	-	45,736	-	-	-	-	45,736
Payables: Trade creditors &	-	5,117,232	2,740,000		1,399,941 977,291	-	4,684,866	-		- 432,366
accruals	- -	204,906	-		- 204,906	-	204,906	-	-	-
		204,906	-		- 204,906	-	204,906	-	-	-

(iii) Market risk

Foreign currency risk

The Group is exposed to foreign currency risk in that receivables from the sale of low-grade zinc-bearing product are denominated in US dollars. Hence, the Group's statement of financial position can be affected by movements in the Australian dollar/US dollar exchange rate. At 30 June 2013, the Group had no exposure to foreign currency risk.

	Consolidated
	2013	2012
USD	\$	\$
Financial assets
Cash and cash equivalents	-	-
Receivables	-	45,739
Financial liabilities
Trade creditors & other payables	-	-
Convertible note	-	-
Net exposure	-	45,739

(iv) Cash flow and Fair value interest rate risk

The Group's statement of comprehensive income is affected by changes in interest rates due to the impact of such changes on interest income and interest expense from bank balances.

The Group's policy is to obtain the most favourable interest rates available. The Group has not used any derivatives to mitigate its interest rate risk exposure.

The following sensitivity analysis is based on the interest rate risk exposures in existence at the balance sheet date. At 30 June 2013 if interest rates had moved, as illustrated in the table below, with all other variables held constant, the affect to post tax profit and equity is listed as follows:

Sensitivity disclosure analysis

	Post Tax Profit Higher/(Lower)			Equity Higher/(Lower)
	2013 2012		2013	2012
	\$	\$	\$	\$
Consolidated
+1% (100 Basis points)	34,028	13,999	34,028	13,999
-.5% (50 Basis points)	(17,014)	(7,000)	(17,014)	(7,000)

(d) Fair value

The fair values of financial assets and financial liabilities are determined as follows:

• the fair value of financial assets and financial liabilities with standard terms and conditions and traded in active liquid markets are determined with reference to quoted market prices; and
• the fair value of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash flow analysis.

The Group considers that the carrying amount of financial assets and financial liabilities recorded in the financial statements to be a fair approximation of their fair values, because of the short-term nature of the financial instruments and the expectation that they will be paid in full.

Financial Instruments Measured at Fair Value

The financial instruments recognised at fair value in the statement of financial position have been analysed and classified using a fair value hierarchy reflecting the significance of the inputs used in making the measurements.

The fair value hierarchy consists of the following levels:

• quoted prices in active markets for identical assets or liabilities (Level 1);
• inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (Level 2); and
• inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).

	Level 1 \$	Level 2 \$	Level 3 \$	Total \$
2013 Consolidated
Financial assets
Available for sale financial assets
- listed investments	202,200	-		- 202,200
- unlisted investments	-	2,900		- 2,900
	202,200	2,900		- 205,100
	Level 1	Level 2	Level 3	Total
Consolidated 2012	\$	\$	\$	\$
Financial assets
Available for sale financial assets
- listed investments	268,400	-		- 268,400
- unlisted investments	-	2,900		- 2,900
	268,400	2,900		- 271,300

(e) Debt/Equity management

The Group funds its exploration, development and operating activities using both debt and equity. The mix of debt and equity is determined by consideration of regulatory, commercial and risk factors as well as tax efficiencies and the impact on earnings per share. The Group prepares detailed medium to long term cash forecasts and determines funding requirements accordingly. Equity is ordinary shares, not preference capital.

27 Related party transactions

(a) Parent entities

The parent entity within the Group is Intec Ltd.

(b) Subsidiaries

Interests in subsidiaries are set out in Note 29.

(c) Key management personnel

Disclosures relating to key management personnel are set out in note 23. There were no outstanding loans with key management personnel.

(d) Transactions with subsidiaries

The following transactions occurred with related parties:

	2013	2012
	\$	\$
(i) Contract fees
The parent company, Intec Ltd, as subcontractor, charged fees to its 50%
owned subsidiary, Intec International Projects Pty Ltd (IIP), which is the
contractor the IRC Project.	199,645	753,000

During the year Intec passed on costs of \$98,445 to IIP. Also during the year Intec invoiced IIP in relation to the IRC project, this invoice was later reversed, the fee component of this invoice was \$101,200 (refer note 9).

(e) Loans to subsidiaries
Beginning of the year	58,901,864	56,958,244
Loans advanced/(received)	1,096,080	1,943,620
End of year	59,997,944	58,901,864
Less provision for doubtful debts	(59,997,944)	(58,901,864)
Carrying value at end of year	-	-
Movement in provision for doubtful debts
Beginning of year	58,901,864	56,958,244
Provided during year	1,096,080	1,943,620

End of year

59,997,944 58,901,864

Provisions for doubtful debts have been raised in relation to outstanding balances, and an expense has been recognised in respect of debts due from subsidiaries, which may be considered doubtful based on the net assets of each subsidiary.

(f) Terms and conditions

All transactions were made on normal commercial terms and conditions, except that there are no fixed terms for the repayment of loans between the parties. The Directors determined the loans to be interest free from 1 July 2010. Outstanding balances are unsecured and are repayable in cash.

28 Parent entity disclosures

(a) Financial position

		Consolidated
	2013	2012
	\$	\$
Assets
Current assets	3,486,598	1,331,117
Non current assets	208,819	169,998
Total assets	3,695,417	1,501,115
Liabilities
Current liabilities	230,921	316,372
Non current liabilities	-	963
Total liabilities	230,921	317,335
Equity
Issued capital	71,948,494	71,648,495
Accumulated losses	(73,297,125)	(70,971,515)
Reserves
Option expense reserve	2,532,029	2,532,029
Total equity	1,183,398	1,183,780
(b) Financial performance
Profit/(Loss) for the year Other comprehensive income	2,281,696 -	(2,325,228) -
Total comprehensive loss	2,281,696	(2,325,228)

(c) Guarantees entered into by the parent entity in relation to the debts of its subsidiaries There were no guarantees provided under the deed of cross guarantee with any subsidiary.

(d) Contingent liabilities of the parent entity

There were no contingent liabilities of the parent entity at 30 June 2013.

(e) Commitments for the acquisition of property, plant and equipment by the parent entity There were no commitments for the acquisition of property, plant and equipment by the parent entity at 30 June 2013.

29 Subsidiaries

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in Note 1(s).

Name of entity	Country of incorporation	Class of shares	Equity holding
			2013	2012
Investments held by Intec Ltd			%	%
Intec Copper Pty Ltd	Australia	Ordinary	100	100
Intec Envirometals Pty Ltd	Australia	Ordinary	100	100
Intec International Projects Pty Ltd Intec Metals Recycling Pty Ltd (de-registered	Australia	Ordinary	50	50
01/08/2012)	Australia	Ordinary	100	100
Investments held by Intec Envirometals Pty Ltd Intec Zeehan Residues Pty Ltd (formerly Encore
Metals NL)	Australia	Ordinary	100	100

Intec Ltd has the power to govern the financial and operating policies of Intec International Projects Pty Ltd so as to obtain benefits from its activities.

30 Events occurring after the reporting date

31 Profit/(loss) per share

There are no other matters or circumstances arisen since 30 June 2013 that have significantly affected or may significantly affect the Group's operations in future financial years, or the results of those operations in future financial years, or the Group's state of affairs in future financial years.

These financial statements were authorised by the Board of Directors on 27 September 2012.

Consolidated 2013 2012 Cents Cents (a) Basic profit/(loss) per share Profit/(Loss) per share from continuing operations attributable to the ordinary equity holders of the company (0.88) (1.25) Earnings/(loss) per share from discontinued operations - - Total profit/(loss) per share attributable to the ordinary equity holders of the company (0.88) (1.25) (b) Diluted profit/(loss) per share Diluted profit/(loss) per share from continuing operations attributable to the ordinary equity holders of the company (0.88) (1.25) Diluted earnings/(loss) per share from discontinued operations - - Total Diluted profit/(loss) per share attributable to the ordinary equity holders of the company (0.88) (1.25)

(c) Reconciliations of profit/(loss) used in calculating earnings per share

Basic profit/(loss) per share

Profit/(Loss) attributable to the ordinary equity holders of the company used in calculating basic profit/(loss) per share
from continuing operations	(2,626,224)	(3,038,921)
	(2,626,224)	(3,038,921)
Diluted profit/(loss) per share Diluted profit/(loss) attributable to the ordinary equity holders of the company used in calculating basic profit/(loss) per share
from continuing operations	(2,626,224)	(3,038,921)
	(2,626,224)	(3,038,921)
(d) Weighted average number of shares used as the denominator
	2013 Number	2012 Number
Weighted average number of ordinary shares used as the denominator in calculating basic profit/(loss) per share	299,818,669	299,818,669
Weighted average number of ordinary shares used as the denominator in calculating diluted profit/(loss) per share	299,818,669	299,818,669

(e) Information concerning the classification of securities

Diluted profit/(loss) per share

In the 2012 comparative financial year, potential ordinary shares being the balance of options granted at balance date are not considered dilutive as the conversion of these components to equity would result in a decrease in the net loss per share.

Options

Options granted to employees under the Intec Option Plan and to other entities have been included in the determination of diluted profit/(loss) per share. No options have been included in the determination of basic profit/(loss) per share. Details relating to the options are set out in note 20.

32 Share based payments

Employee option plan

The establishment of the Intec Option Plan was approved by shareholders at the 2001 Annual General Meeting. All Directors, employees and consultants are eligible to participate in the Intec Option Plan.

Options are granted under the Intec Option Plan for no consideration. Options are granted for a five year period and vest immediately unless otherwise stated. Options granted under the Intec Option Plan carry no dividend or voting rights. When exercisable, each option is convertible into one ordinary share. The exercise price of the options is the current market price on the date the options are granted as determined by the Board. The share based options are equity settled. Set out below are summaries of options granted under the plan and which have not lapsed:

Grant date	Expiry date	Exercise price	Value per option at grant date	Date exercisable
9 December 2011	21 November 2016	\$0.03	\$0.0122	9 December 2011

The weighted average share price at the date of options exercised during the year ended 30 June 2013 was \$Nil (2012 – \$Nil) as no options were exercised. The weighted average remaining contractual life of share options outstanding at the end of the period was 3.33 years (2012 – 2.03 years).

The assessed fair value at grant date of options granted under the Intec Option Plan is allocated equally over the period from grant date to vesting date, and the amount is included in the remuneration tables above. Fair values at grant date are independently determined using option valuation models that take into account the exercise price, the term of the option, the impact of dilution, the share price at grant date, the expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option. No employee options were granted during the year ending 30 June 2013 (2012- 9,000,000) as shown in Notes 20 and 23.

Shares provided on exercise of remuneration options

No ordinary shares (2012 - Nil) in the Company were provided as a result of the exercise of remuneration options to Directors. Accordingly, there were no expenses arising from share based payment transactions recognised in the statement of comprehensive income.

33 Non cash investing and financing activities

	Consolidated
2013	2012

Bass Metals Ltd shares acquired - 225,000

34 Reconciliation of profit/(loss) after income tax to net cash flows from operating activities

			Consolidated
		2013	2012
		\$	\$
	Operating profit/(loss) after income tax	(2,626,224)	(3,038,922)
	Non cash items and non operating cash flows
	included in statement of comprehensive income
	Administration expenses	150,463	785,667
	Depreciation and amortisation (Recouped)/expensed environmental bond	834,180 (2,821,589)	858,610 (3,647,500)
	Hellyer royalty written-off	-	1,184,201
	Impairments expense	771,777	491,846
	Options expense/(income)	-	46,360
	Unrealised foreign exchange loss	-	2,660
	Changes in assets and liabilities
	Decrease/(increase) in receivables	444,819	2,900,000
	Decrease/(increase) in environmental bonds	2,700,000	1,486,654
	Decrease/(increase) in inventories	5,260	9,596
	Increase/(decrease) in trade creditors	(163,133)	(762,000)
	Decrease/(increase) in provisions	(121,230)	(3,647,50)
	Net cash (outflows)/inflows from operating activities	(828,709)	(3,330,328)
35	Auditor's remuneration
			Consolidated
		2013	2012
	Assurance services
a.	Audit services
	Audit and review of financial reports and other audit work under the
	Corporations Act 2001
	Crowe Horwath Sydney	51,500	69,200
	Total remuneration for audit services	51,500	69,200
b.	Non audit services
	Tax compliance services, including review of company income tax
	returns	-	-
	Total remuneration for non audit services	-	-
36	Company details

The registered office and principle place of business is Level 3, 100 Mount Street, North Sydney NSW 2060.

Directors' Declaration

In the directors' opinion:

• (a) the financial statements and notes set out on pages 12 to 46 are in accordance with the Corporations Act 2001, including:
• (i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and
• (ii) giving a true and fair view of the consolidated financial position as at 30 June 2013 and of its performance for the financial year ended on that date; and
• (b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable; and
• (c) the remuneration disclosures set out on pages 5 to 9 of the Directors' report comply with Accounting Standard AASB 124 Related Party Disclosures and the Corporations Regulations; and
• (d) The financial statements comply with International Financial Reporting Standards; and
• (e) The directors have been given the declarations by the chief executive officer and chief financial officer required by section 295A of the Corporations Act 2001.

This declaration is made in accordance with a resolution of the directors.

Kieran Rodgers Managing Director

Sydney 27 September 2013

Schedule of Tenements

The Group held at 30 June 2013 the following tenements:

Tenement number	Tenement name	Expiry date	Area Km2	Security deposits held	\$	Annual expenditure commitments \$
Tenements held by Intec Zeehan Residues Pty Ltd
Mining Lease 6M/2010	Zeehan	5 January 2016	0.4		6,000	Nil
Retention Licence RL 3/1996	Zeehan	26 March 2014	1.00		5,000	Nil

Shareholder Information

The shareholder information set out below was applicable as at 20th September 2013.

A. Distribution of equity securities

Analysis of numbers of equity security holders by size of holding:

			Class of equity security Ordinary shares
			Number of shareholders	Number of shares
1	-	1,000	124	48,935
1,001	-	5,000	154	447,218
5,001	-	10,000	89	696,537
10,001	-	100,000	370	19,994,405
100,001	and over		280	278,631,574
			1,017	299,818,669

At the prevailing market price of shares \$0.008 there were 574 shareholders with less than a marketable parcel of ordinary shares worth \$500 (being 7,100,321 shares).

B. Equity security holders

The names of the twenty largest holders of quoted equity securities as at 20th September 2013 are listed below:

	Ordinary shares	Percentage of
Name	Number held	issued shares
MR KIERAN GREGORY RODGERS & MRS PATRICIA MARIE RODGERS	14,779,623	4.930
MR NOEL ALEXANDER ADAM	14,666,667	4.892
LONGWIN CAPITAL FINANCE LTD	14,666,667	4.892
MR MARTIN EDWARD MEYER	14,666,667	4.892
MRS KATHLEEN WATT	14,666,667	4.892
MR DONALD ALEXANDER BELL & MRS LEXIE ANN BELL	11,000,000	3.669
MR STUART ANDREW SPITERI	10,000,000	3.335
MR MAKRAM HANNA & MRS RITA HANNA	9,620,000	3.209
MR JOSEPH JAAJAA	8,690,700	2.899
MR PAUL MICHAEL BUTCHER	8,102,828	2.703
CORPORATE PROPERTY SERVICES PTY LTD	5,723,844	1.909
JP MORGAN NOMINEES AUSTRALIA LIMITED	5,381,935	1.795
MR JOHN JOSEPH REIDY	4,503,234	1.502
ORIAN HOLDING CORP	4,117,484	1.373
CALAMA HOLDINGS PTY LTD	4,011,983	1.338
MR ZYGMUND WOLSKI & MRS NOLA WOLSKI	3,809,517	1.271
MRS KATHLEEN FRANCES WATT	3,750,000	1.251
MR IANAKI SEMERDZIEV	3,500,000	1.167
SYMINGTON PTY LTD	3,500,000	1.167
MR KIERAN GREGORY RODGERS	3,125,000	1.042
Total of Top 20 shareholdings	162,282,816	54.127
Ordinary Shareholders	137,535,853	45.873
Total Ordinary Shares	299,818,669	100.000

C. Substantial holders

Substantial shareholders as at 20th September 2013 are listed below:
Mrs Kathleen Watt	6.14%
Mr Kieran Gregory Rodgers & Mrs Patricia Marie Rodgers	5.97%

D. Voting rights

The voting rights attaching to each class of equity securities are set out below:

(a) Ordinary shares On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.

(b) Options No voting rights.

E. Summary of options issued

	No. of options	No. of Holders	% Options Issued
Options expiring 21 November 2016 with an exercise price of \$0.03	3,300,000	5
Option holders with more than 20% of above class
KG Rodgers	1,200,000		36.36%
DL Sammut	1,000,000		30.03%

These options are unquoted equity securities.

Corporate Governance Statement

Intec Ltd's Board of Directors is responsible for the Corporate Governance of the Company and its controlled entities. Corporate Governance is a matter of high importance to the Company, and is undertaken with due regard to all of Intec's stakeholders and its role in the community. The Board draws on relevant best practice principles, particularly those issued by the ASX Corporate Governance Council in August 2007, with 2010 amendments (including the June 2010 recommendations on diversity). At a number of its meetings the Board examines the Company's Corporate Governance practices and the progress towards a review of its practices compared to those proposed by the ASX Corporate Governance Council. Unless explicitly stated otherwise, the Directors believe that the Company complies with the major principles and the underlying guidelines of the ASX, and is mindful that there may be some instances where compliance is not practicable for a company of Intec's size.

The Board has approved and adopted the following policies and charters with which Directors and management are required to comply, and which contain the information recommended by the ASX. These policies and charters can be found in the Corporate Governance Manual on the Company's website at www.intec.com.au under the section 'About Us – Corporate Governance'.

The table below sets out the Company's position relative to each of the eight principles contained in the ASX Corporate Governance Council's report. Where the Company has complied with the principles and recommendations during the reporting period a tick þ is indicated, and the relating information can be found in either the Corporate Governance Manual on the Company's website at www.intec.com.au under the section 'About Us – Corporate Governance' or in this Annual Report. Where the Company has failed to comply with a particular recommendation a cross ý is indicated and the Board's reasons are set out.

Note		Complied
Principle 1	Lay solid foundations for management and oversight
Recommendation 1.1	Companies should establish the functions reserved to the board and those delegated to senior executives and	þ
Recommendation 1.2	disclose those functions. Companies should disclose the process for evaluating the performance of senior executives.	þ
Recommendation 1.3	Companies should provide the information indicated in the Guide to reporting on Principle 1.	þ
Principle 2 Recommendation 2.1 Recommendation 2.2 Recommendation 2.3 Recommendation 2.4 Recommendation 2.5 Recommendation 2.6	Structure the board to add value A majority of the board should be independent directors. The chair should be an independent director. The roles of chair and chief executive officer should not be exercised by the same individual. The board should establish a nomination committee. Companies should disclose the process for evaluating the performance of the board, its committees and individual directors. Companies should provide the information indicated in the Guide to reporting on Principle 2.	þ þ þ þ þ þ
Principle 3 Recommendation 3.1	Promote ethical and responsible decision-making Companies should establish a code of conduct and disclose the code or a summary of the code as to: 3.1.1 the practices necessary to maintain confidence in the company's integrity; 3.1.2 the practices necessary to take into account their legal obligations and the reasonable expectations of their stakeholders; and	þ þ þ
Recommendation 3.2	3.1.3 the responsibility and accountability of individuals for reporting and investigating reports of unethical practices. Companies should establish a policy concerning diversity and disclose the policy or a summary of that policy. The policy should include requirements for the board to establish measurable objectives for achieving gender diversity and for the board to assess annually both the objectives and progress in achieving them.	þ

Recommendation 3.3	Companies should disclose in each annual report the measurable objectives for achieving gender diversity set by the board in accordance with the diversity policy and progress towards achieving them.	þ
Recommendation 3.4	Companies should disclose in each annual report the proportion of women employees in the whole organisation, women in senior executive positions and women on the board.	þ
Recommendation 3.5	Companies should provide the information indicated in the Guide to reporting on Principle 3.	þ
Principle 4 Recommendation 4.1	Safeguard integrity in financial reporting The board should establish an audit committee.	þ
Recommendation 4.2	The audit committee should be structured so that it:
	consists only of non-executive directors;	þ
	consists of a majority of independent directors;	þ
	is chaired by an independent chair, who is not chair of the board; and has at least three members.	þ ý
Recommendation 4.3	The audit committee should have a formal charter.	þ
Recommendation 4.4	Companies should provide the information indicated in the	þ
	Guide to reporting on Principle 4.
	The Company has decided to restrict the number of Audit Committee members to two because of the small size of the Board.
Principle 5 Recommendation 5.1	Make timely and balanced disclosure Companies should establish written policies designed to	þ
	ensure compliance with ASX Listing Rule disclosure requirements and to ensure accountability at a senior executive level for that compliance and disclose those
	policies or a summary of those policies.
Recommendation 5.2	Companies should provide the information indicated in the Guide to reporting on Principle 5.	þ
Principle 6 Recommendation 6.1	Respect the rights of shareholders Companies should design a communications policy for	þ
	promoting effective communication with shareholders and encouraging their participation at general meetings and
Recommendation 6.2	disclose their policy or a summary of that policy. Companies should provide the information indicated in the Guide to reporting on Principle 6.	þ
Principle 7	Recognise and manage risk
Recommendation 7.1	Companies should establish policies for the oversight and management of material business risks and disclose a	þ
Recommendation 7.2	summary of those policies. The board should require management to design and	þ
	implement the risk management and internal control system to manage the company's material business risks and report to it on whether those risks are being managed effectively. The board should disclose that management has reported to it as to the effectiveness of the company's management of its material business risks.
Recommendation 7.3	The board should disclose whether it has received assurance from the chief executive officer (or equivalent) and the chief financial officer (or equivalent) that the declaration provided in accordance with section 295A of the Corporations Act is founded on a sound system of risk management and internal control and that the system is operating effectively in all material respects in relation to financial reporting risks.	þ
Recommendation 7.4	Companies should provide the information indicated in the Guide to reporting on Principle 7.	þ

	Remunerate fairly and responsibly
Principle 8
Recommendation 8.1	The Board should establish a remuneration committee.	þ
Recommendation 8.2	The remuneration committee should be structured so that it: consists of a majority of independent directors;	þ
	is chaired by an independent chair; and	þ
	has at least three members.	ý
Recommendation 8.3	Companies should clearly distinguish the structure of non executive directors' remuneration from that of executive directors and senior executives.	þ
Recommendation 8.4	Companies should provide the information indicated in the Guide to reporting on Principle 8. The Company has decided to restrict the number of Nomination and Remuneration Committee members to two because of the small size of the Board.	þ

Diversity

The Company's Diversity Policy outlines the process by which the Board has set measurable objectives to achieve the aims of its Diversity Policy, with particular focus on gender diversity within the Company. In order to monitor the Company's performance, the Board has set measurable objectives in relation to all aspects of diversity. These objectives include procedural / structural objectives; initiatives and programmes and targets in respect of: the diversity of persons employed by (or who are consultants to) the Company; the diversity of persons on the Board; the nature of the roles in which persons are employed, including on full time, part time or contracted bases, and in leadership, management, professional speciality or supporting roles; and the participation of persons at different remuneration bands, each by reference to gender, age, ethnicity and cultural background. Subject to the size and operations of the Company, the Board is committed to the longterm goal of improving gender representation across all levels of the organisation. The Board assesses annually both the objectives and progress in achieving gender diversity. The proportion of women employees in the whole organisation is one out three (excluding the Board), there are no women in the two senior executive positions and there are no women on the three-member Board. The Board's measurable objectives for achieving gender diversity cannot be achieved based on the current size of the Company (two full-time employees and one part-time employee).

Securities Trading Policy

Directors, employees and key consultants of the Company may only deal in Intec's shares during 'window periods' nominated for this purpose from time-to-time by the Managing Director, or failing him, the Chairman. However, Directors, employees and key consultants of the Company are prohibited from buying or selling Intec shares at any time if they are aware of price-sensitive information that has not been made public.

The Company's Securities Trading Policy can be found in the Corporate Governance Manual on the Intec Ltd website www.intec.com.au.

Corporate Directory

PO Box 666

Directors Registered Office and Principal Place of Business Chairman Level 3,100 Mount Street Trevor A Jones North Sydney NSW 2060 Australia Managing Director PO Box 1507 Kieran G Rodgers North Sydney NSW 2059 Australia Non-executive Director Telephone: (+61 2) 9954 7888 James R G Bell Email: mail@intec.com.au Website: www.intec.com.au

Company Secretary Share Registry Robert J Waring Boardroom Pty Limited Level 7, 207 Kent Street Senior Management Sydney NSW 2000 Australia General Manager GPO Box 3993 Adam J Randall Sydney NSW 2001 Telephone: (+61 2) 9290 9600 Burnie Research Facility Facsimile: (+61 2) 9279 0664 20 River Road Email: enquiries@boardroomlimited.com.au Burnie TAS 7320 Australia Website: www.boardroomlimited.com.au

Burnie TAS 7320 Australia Auditors Crowe Horwath Sydney Level 15, 309 Kent Street Sydney NSW 2000 Australia

Patent Attorneys Griffith Hack 100 Miller Street North Sydney NSW 2060 Australia

Stock Exchange and Trading Platform Listings Intec Ltd shares are listed or traded on the Australian Stock Exchange (Code: INL), the Deutsche Boerse (Code: INF), and as American Depository Receipts on: the OTC Markets (Code: ICLJY)