SCIDEV LTD — Capital/Financing Update 2004

Feb 16, 2004

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 February 2004

Companies Announcements Office Australian Stock Exchange Limited

A\$1.43 million R&D Start Grant approved for Intec Gold Process pilot plant

The Australian Government's Industry Research and Development ('IR&D') Board assists the research, development and commercialisation of Australian technologies via its merit-based dollar for dollar R&D Start Program.

Intec Ltd (ASX Code INL) advises that its A\$1.43 million grant application (made through the NSW office of Auslindustry) has now been approved for the construction, commissioning and operation of the Intec Gold Process ('IGP') pilot plant during the period from 31 October 2003 through to 31 December 2004.

The IGP pilot plant was constructed and pre-commissioned during the last quarter of 2003 on the premises of Ammtee Ltd (ASX Code AEC) at Brookvale in northern Sydney, with the continuing funding support of the Ivanhoe Mines Ltd. group (ASX Code IVN).

The IGP pilot plant is currently undertaking a full testwork campaign on tailings from the dam at the Hellyer mine in Tasmania. This dam, along with the Hellyer mill and associated mining and exploration tenements, was recently acquired by Intec's now wholly-owned subsidiary Intec Hellyer Metals Pty Ltd (previously IVNL Gold Pty Ltd). The results of the IGP pilot plant campaign will be used in the design, construction and operation of an Intec polymetallic demonstration plant, initially for Hellyer tailings and then on a paid basis for third party feeds, at AEC's recently acquired metallurgical research facility in Burnie, Tasmania.

It has been agreed with IVN that it will support the Hellyer Metals Project both operationally and through its major shareholding in INL, rather than through direct investment in the Project, which is accordingly now 100% owned by the Intec group.

Yours faithfully Intec Ltd

Kitin R. Wood

Philip R Wood Managing Director & Chief Executive Officer