SCIDEV LTD — Capital/Financing Update 2004

Dec 14, 2004

Intec Ltd

Superior and Sustainable Metals Production

Gordon Chiu Building [01 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

15 December 2004

Companies Announcements Office Australian Stock Exchange Limited

Hellver exploration assets to be floated

Further to its ASX announcement of 19 May 2004, Intec Ltd (ASX Code: INL) advises that it has now entered into a conditional Term Sheet for the transfer of its exploration assets located in the immediate vicinity of its Hellver Metals Project in Tasmania to Resource Finance & Investments Limited ('RFI'). These assets comprise three Mining Leases, two Exploration Licences and a Retention Lease (together with related data, the 'Exploration Tenement Package'), covering an area of 68 square kilometres but excluding the Hellyer Mill and Tailings dam complex.

RFI is an unlisted public company that is presently negotiating to consolidate exploration interests in the Hellyer region through acquisition and/or joint venture in adjacent highly prospective areas, prior to seeking a listing on the ASX in the first half of 2005 to fund its exploration commitments. All INL shareholders will be accorded priority entitlement to subscribe in the listing of RFI. RFI was incorporated and has been funded to date by associates and clients of DJ Carmichael Pty Limited ('Carmichael'), the Perth-based stockbroking, investment management and corporate advisory firm.

As part of the sale, INL will have the right to appoint a Director to the RFI Board, whose current members are:

• $\bullet$ Mr Don Boyer Non-executive Chairman
• Mr Craig McGown
• Mr Paul Benetti

Mr Boyer is a geologist and resource company manager with over 34 years experience in gold and base metals exploration. He was most recently the Managing Director of Australian Mines Limited and is currently the Chairman of both Western Areas NL and Midas Resources Ltd.

Messrs Craig McGown and Paul Benetti are both Directors of Carmichael and its Corporate Finance arm, Carmichael Capital Markets Pty Limited, with extensive professional backgrounds in all aspects of resources-focused corporate finance.

In addition to the existing board, RFI is currently finalising the appointment of a Managing Director who is well credentialed in the resources sector, to assume day-to-day control of RFI.

RFI has recently finalised its mezzanine raising through clients of Carmichael, resulting in 10,250,000 issued shares, with cash on hand of over A\$350,000 and a further cash commitment of A\$700,000 callable by RFI following the acquisition of the Exploration Tenement Package. RFI will issue to INL 8,000,000 ordinary shares, plus 2,000,000 free options to acquire RFI shares for A\$0.25 each on or before 31 July 2007. Upon completion of this transaction, which immediately attributes a value in excess of A\$1,200,000 to the Exploration Tenement Package, INL will own 43.8% of the undiluted issued capital of RFI.

The Exploration Tenement Package is found within the Mt Read Volcanics Belt that hosts a prolific number of Tasmanian base and precious metals projects (see Figure 1 below).

Figure 1 - Location map showing the boundaries of the Mt Read Volcanics Belt in northwestern Tasmania. Also shown are the locations of known base and precious metals deposits and the Hellyer and Que River tenements area (circled by dotted line).

The potential of the Exploration Tenement Package falls into three main categories:

• Mt Charter: gold (plus silver) in barite mineralisation, comprising a JORC-conforming $\bullet$ Inferred Mineral Resource of 10 million tonnes $(a)$ 1.0 g/t Au extractable by opencut from surface down to 137 m depth.
• Oue River 'S' Lens: copper (plus silver) in volcanic massive sulphide, with best drilling results including:
• 8.3m @3.3% Cu, 28 g/t Ag, and
• 15.2m @1.6% Cu, 56 g/t Ag.
• Hellyer region: four identified drill-ready or near drill-ready zinc, lead, copper, gold and $\bullet$ silver massive sulphide targets (see Figure 2).

Figure 2 - Location of targets on Hellyer and Que River tenements map.

Mr Philip Wood, INL's Managing Director and Chief Executive Officer, stated "Intec is very pleased that it retains a significant stake in the considerable potential value of its Hellyer exploration assets. These will now be optimised by RFI as an ASX-listed company, through the financial backing of Carmichael and its clients and under the expert guidance of Chairman Don Boyer, who has deservedly earned an excellent reputation in Australian gold and base metals exploration. Intee looks forward to working closely with the RFI team on site, as we pursue our nearby Hellyer Metals Project for polymetallic tailings re-treatment".

RFI's Chairman Mr Don Boyer expressed the view that "The Hellyer tenements to be acquired from Intec will form an excellent cornerstone for the portfolio of base and precious metals properties that RFI is compiling for next year's proposed ASX listing. We are very pleased that Intec is maintaining its involvement with these properties through RFI, and are appreciative that Intec will be making all of its facilities on site at Hellyer available to assist RFI's exploration programme."

Yours faithfully Intec Ltd

Philip R. Wood

Philip R Wood Managing Director and Chief Executive Officer

For more information, contact:

Philip Wood Managing Director and Chief Executive Officer Intec Ltd

$(02)$ 9351 6741

Craig McGown Director Resource Finance & Investments Ltd

(08) 9263 5277