SCIDEV LTD — Capital/Financing Update 2003

Jun 16, 2003

Intec Ltd

Superior and Sustainable Metals Production

Gordon Chiu Building J01 Department of Chemical Engineering Maze Crescent University of Sydney NSW 2006 Australia

Telephone: +612-9351-6741 Facsimile: +612-9351-7180 Email: mail@intec.com.au Website: www.intec.com.au

17 June 2003

Companies Announcements Office Australian Stock Exchange Limited

A\$2.6 million Renounceable Rights Issue to develop Intec Refractory Gold Process

The Board of Directors of Intec Ltd announces a renounceable rights issue of three new INL shares at A\$0.03 each for every five INL shares held (the Rights Issue).

Fully subscribed, the Rights Issue will result in the issue of 87,623,490 new INL shares, raising gross proceeds of A\$2,628,705 and bringing the Company's issued share capital to 233,662,632 shares. Ivanhoe Mines Ltd. (Intec's largest shareholder) has agreed to subscribe for its full entitlement of 17 400 000 INL shares under the Rights Issue for a subscription price of A\$522 000, and additionally to underwrite the first A\$978 000 of any shortfall, for a total commitment of A\$1.5 million. The Company now intends to arrange additional underwriting support up to the full amount of the Rights Issue.

In the present adverse environment for base metals processing technology worldwide, the current low market valuation of Intec, best known to date for its chloride-based conner, zinc, nickel and polymetallic technologies, is partly understandable. Nonetheless the Intec Board, together with the Company's cornerstone investor, the Ivanhoe Mines Ltd., considers that at its current share price, Intec and its suite of base metals technologies are fundamentally undervalued.

Fortunately, Intec has recently also adapted its world leadership in chloride hydrometallurgy to the treatment of refractory gold ores. These represent an increasing proportion (approximately one third) of the world's gold production and the Company has identified enormous interest in the provisionally patented Intec Refractory Gold Process (IRGP). The IRGP has been independently projected to be both decisively economic due to its atmospheric pressure, moderate temperature and short retention times, and environmentally advantageous due to the stability of its residues and the avoidance of cyanidation treatment of the oxidation tailings.

Intec is responding to the gold industry's interest by using the proceeds of the Rights Issue principally to build and operate an IRGP pilot plant conducting paid testwork at the facilities of the Ammtec Group at Brookvale in northern Sydney. Discussions are under way with the proposed early suppliers of feedstock to the IRGP pilot plant, whereby Intec will inject its technology into the relevant project in return for an equity interest commensurate with the project value-add. This accords with the Company's previously stated intention to build its market value as a projectoriented metals producing business.

In accordance with Section $734(5)(a)$ of the Corporations Act 2001, the Company advises that the securities to be offered by the Company under the Rights Issue are in a class of securities already quoted on the Australian Stock Exchange Ltd (ASX). A disclosure document in relation to the Rights Issue will be made available when the securities are offered. Any person wishing to acquire the securities will need to complete the application form which will accompany that disclosure document.

An ASX Appendix 3B in relation to the Rights Issue is attached.

Yours faithfully Intec Ltd

Philip R. Wood

Philip R Wood Managing Director and Chief Executive Officer

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003.

Name of entity

IntecLtd

ABN

25 001 150 849

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

$\mathbf{1}$ $\pm$ Class of $\pm$ securities issued or to be issued

Fully paid ordinary shares

• $\overline{2}$ Number of ⁺securities issued or to be issued (if known) or maximum number which may be issued
• $\overline{3}$ Principal terms of the *securities (eg. if options, exercise price and expiry date; if partly paid *securities, the amount outstanding and due dates for payment; if *convertible securities. the conversion price and dates for conversion)

Approximately 87,623,490

The securities will rank equally with Intec's currently quoted fully paid ordinary shares coded INL

⁺ See chapter 19 for defined terms.

4	Do the securities rank equally in all respects from the date of allotment with an existing "class of quoted securities?	coded INL	The securities will rank equally with Intec's currently quoted fully paid ordinary shares
	If the additional securities do not rank equally, please state: the date from which they do extent to which they the participate for the next dividend, (in the case of a. trust, distribution) or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment
5.	Issue price or consideration	A\$0.03 (3 cents) per share
6	Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets)	pilot plant.	To raise working capital and for construction and operation of the proposed refractory gold
7	Dates of entering *securities into uncertificated holdings or despatch of certificates	To be advised in Prospectus.
		Number	+ Class
8	Number and + class of all *securities quoted on ASX. (including the securities in clause 2 if applicable)	209,696,640	Fully paid ordinary shares

⁺ See chapter 19 for defined terms.

		Number	$+C$ lass
9	Number οf and class all securities not quoted on ASX	23,965,992	Ordinary fully paid
	(including the securities in clause		restricted 24 months from date of listing.
	2 if applicable)	1,275,000	30 June 2009 Options -
		7,301,956	exercise price \$0.50 16 July 2007 Options -
			exercise price \$0.25
10	Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)	The securities will rank equally with Intec's currently quoted fully paid ordinary shares coded INL

⁺ See chapter 19 for defined terms.

Part 2 - Bonus issue or pro rata issue

11	holder security approval Is. required?	N 0
12	Is the issue renounceable or non- renounceable?	Renounceable
13	Ratio in which the "securities will be offered	Three for five $(3:5)$
14	Class of securities to which the offer relates	Fully paid ordinary shares
15	*Record determine date to entiflements	To be advised in Prospectus
16	Will holdings on different registers (or subregisters) be aggregated for calculating entitlements?	Not applicable
17	Policy for deciding entitlements in relation to fractions	Fractional entitlements (if any) will be rounded up
18	Names of countries in which the entity has *security holders who will not be sent new issue documents Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7.	To be advised in Prospectus
19	Closing date for receipt οf acceptances or renunciations	To be advised in Prospectus

⁺ See chapter 19 for defined terms.

20	Names of any underwriters	Ivanhoe Mines Ltd. to the extent of the first A\$978 000 of any shortfall. The Company is in the process of arranging underwriting support for the balance of the issue. Details to be advised in Prospectus.
21	Amount of any underwriting fee or commission	To be advised in Prospectus
22	Names of any brokers to the issue	N/A
23	Fee or commission payable to the broker to the issue	N/A
24	Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of *security holders	N/A
25	If the issue is contingent on *security holders' approval, the. date of the meeting	N/A
26	Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled	To be advised in Prospectus
27	If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders.	To be advised in Prospectus
28.	Date rights trading will begin (if To be advised in Prospectus applicable)
29	Date rights trading will end (if applicable)	To be advised in Prospectus
30	How do *security holders sell their entitlements in full through - a broker?	To be advised in Prospectus
31	How do "security holders sell part of their entitlements through a broker and accept for the balance?	To be advised in Prospectus

⁺ See chapter 19 for defined terms.

32 How do "security holders dispose of their entitlements (except by sale through a broker)?

33 *Despatch date To be advised in Prospectus

To be advised in Prospectus

Part 3 - Ouotation of securities

You need only complete this section if you are applying for quotation of securities

34 Type of securities (tick one)

Securities described in Part 1

$(a)$

$(b)$

All other securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities Not Applicable

				Tick to indicate you are providing the information or
documents

35 If the *securities are *equity securities, the names of the 20 largest holders of the additional *securities, and the number and percentage of additional *securities held by those holders 36 If the "securities are "equity securities, a distribution schedule of the additional "securities setting out the number of holders in the categories $1 - 1,000$ $1,001 - 5,000$ $5,001 - 10,000$ $10,001 - 100,000$ 100,001 and over A copy of any trust deed for the additional *securities 37

⁺ See chapter 19 for defined terms.

Entities that have ticked box 34(b) Not Applicable

• Number of securities for which 38 ^*quotation is sought
• Class of "securities for which 39 quotation is sought
• 40 Do the *securities rank equally in all respects from the date of allotment with an existing "class of quoted *securities?

If the additional securities do not rank equally, please state:

• $\bullet$ the date from which they do
• the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment
• the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment
• 41 Reason for request for quotation now

Example: In the case of restricted securities, end of restriction period

(if issued upon conversion of another security, clearly identify that other security)

42 Number and *class of all *securities quoted on ASX (including the securities in clause 38)

+Class

$+$ See chapter 19 for defined terms.

Ouotation agreement

• $\mathbf{1}$ *Ouotation of our additional *securities is in ASX's absolute discretion. ASX may quote the *securities on any conditions it decides.
• $\overline{2}$ We warrant the following to ASX.
• The issue of the "securities to be quoted complies with the law and is not for an $\bullet$ illegal purpose.
• There is no reason why those "securities should not be granted "quotation.
• An offer of the "securities for sale within 12 months after their issue will not require disclosure under section $707(3)$ or section $1012C(6)$ of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any $\bullet$ applications received by us in relation to any *securities to be quoted and that noone has any right to return any *securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the *securities be quoted.
• We warrant that if confirmation is required under section 1017F of the Corporations Act in relation to the *securities to be quoted, it has been provided at the time that we request that the *securities be quoted.
• If we are a trust, we warrant that no person has the right to return the *securities to be quoted under section 1019B of the Corporations Act at the time that we request that the *securities be quoted.

$+$ See chapter 19 for defined terms.

• $\overline{3}$ We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.
• $\overline{4}$ We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before "quotation of the "securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here:

Robert J Waring (Director/Company Secretary)

Date: 17 June 2003

Print name: Robert J Waring

$= 1.42$

$+$ See chapter 19 for defined terms.