SCIDEV LTD — Capital/Financing Update 2004

Jan 12, 2004

AMMTEC LIMITED A.C.N. 063 332 516

13 January 2004 ASX Announcement Company Announcement Office

The Directors of AMMTEC Ltd (ASX Code - AEC) advise that the company has joined with Intec Ltd (ASX Code – INL) and Ivanhoe Mines Ltd group (ASX Code – IVN, itself a 23.2% shareholder in INL). to negotiate with Messrs David McEvoy and Stephen Longley from PricewaterhouseCoopers (Receivers and Managers of Western Metals Copper Limited (In Liquidation) for the purchase of the Hellver Metals Project (the Project).

IVNL Gold Pty Ltd (IVNL), a company jointly owned by INL and IVN, has entered into the Hellyer Metals Sale and Purchase Agreement (SPA) as purchaser of the Project for a provisional purchase price of A\$1,597,973. IVNL's obligations under the SPA are quaranteed by AEC as to A\$270,000 and by INL and IVN jointly as to the balance. Completion of the transaction is due to take place within thirty days.

The Project principally comprises:

• the Burnie research facility: $1₁$
• $\overline{2}$ . the Hellver mining and exploration tenements (including Que River and the Hellver tailings $d$ am $)$ : and
• $\mathcal{R}$ the Hellver mill:

together with associated intellectual property.

The Burnie research facility is being acquired by IVNL on trust for AEC for an attributable price of A\$270,000 and consists of the freehold property (including several buildings) and numerous items of plant and equipment.

Although the employment of the Western Metals personnel at Burnie will largely be terminated prior to the Completion Date, it is anticipated that the majority of staff will be offered new positions with Ammtec in Burnie under the leadership of Dr Geoffrey Richmond.

The Burnie Research Laboratory will become the fourth metallurgical testing laboratory in the AMMTEC group. The parent Balcatta Laboratory is one of the largest metallurgical testing laboratories in the world. Metcon Laboratories based in Sydney provides high quality metallurgical testwork to east coast mining companiesand Optimet Laboratories based in Adelaide provides specialised flotation testing and advice to mining companies world wide.

Batch and pilot scale testing of the Intec Gold Process on the Hellver tailings project for INL and IVN will form a cornerstone workload for the Burnie Research Laboratory. However the laboratory will also operate as a commercial metallurgical testwork facility, conducting specialised hydrometallurgical circuit development and complex base metal flotation testing for companies both within and outside Australia.

The Hellyer tailings dam contains significant amounts of gold, zinc, lead, silver and copper (in descending order of value) above ground which, at current metals prices, have an aggregate in-situ value of approximately US\$1.2 billion (equivalent to approximately A\$1.6 billion at the current US\$/A\$ exchange rate).

Yours sincerely

Rod Smith Managing Director