SCIDEV LTD — Capital/Financing Update 2005

Oct 20, 2005

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

21 October 2005

Companies Announcements Office Australian Stock Exchange Limited

DEMONSTRATION PLANT AND BFS PROGRESS REPORTS

DEMONSTRATION PLANT

Intec Hellyer Metals Pty Ltd, the wholly-owned subsidiary of Intec Ltd (ASX Code: INL), owns and operates the 4 tonnes per day Hellyer Metals Project demonstration plant at Burnie. Tasmania which is currently being progressively and successfully commissioned.

Leach extraction efficiencies on Hellyer tailings alone as feedstock have already confirmed earlier expectations derived in 2004 from INL's Sydney pilot plant. 76.4% of the weighted metal value comprised in the Hellyer tailings is being leached at this point, with specific metal extractions as follows:

Moal
Zinc	96
Lead	97
Copper	85
Silver	85
Gold	30

Based on technical experience, these leach extraction efficiencies are anticipated to continue to improve incrementally over the next months.

In terms of product recovery:

• Zinc is being electrowon as 'super-jumbo' cathodes in the electrowinning cell at a current density steadily increasing towards our target of 600amps/m2. Melting tests have been successfully conducted to enable production of zinc ingots for sampling by industry users.
• Lead/silver cement is being produced and stockpiled for briquetting to provide samples to lead/silver refinery consumers.
• Copper oxychloride is being precipitated and will be sent to Ammtec (ASX Code: AEC) in Perth for processing via ion exchange into copper sulphate, the market value of which is several times that of pure copper.
• Loading of gold onto enclosed carbon columns will proceed at the demonstration plant over $\bullet$ the next months until being sent to the AJ Parker Centre in Perth for recovery as bullion.

Next week the demonstration plant will commence treating both Hellyer tailings and Electric Arc Furnace dust (supplied by each of Smorgon Steel Group Limited (ASX Code: SSX) and Onesteel Limited (ASX Code: OST)). Additionally, 20 tonnes of 'Zeehan Slag' is presently being excavated, transported and then finely ground, in preparation for treatment at Burnie alongside the Hellyer tailings and EAF dust feedstocks.

BANKABLE FEASIBILITY STUDY (BFS)

Data generated from the demonstration plant in 'steady state' (anticipated next month) is the single most important input into the Hellver Metals Project BFS, which is being undertaken by WorleyParsons (ASX Code: WOR) with the assistance of qualified sub-consultants. In addition to the demonstration plant, the following components of the BFS are now well advanced:

WorleyParsons (WOR): Tailings Recovery Options Study

A review of options for the recovery of tailings from the Hellyer tailings dam was completed by WOR. This study concluded that conventional dredging, either by a single dredge or with dual dredges, was the optimal recovery method.

AMC Consultants (AMC): Tailings Resource Confirmation

AMC has undertaken a review of previous drilling and sampling programs conducted on the Hellyer tailings dam in order to confirm a JORC-standard resource estimate. This work is near completion and will include the production of a 3-D model of the tailings dam, which will then be employed by AMC in the development of a tailings recovery plan.

GHD Ptv Ltd (GHD): Geotechnical Investigations

GHD commenced geotechnical investigations on the proposed site for a new residue disposal dam and also on the proposed site for the process plant.

Caloundra Environmental Ptv Ltd (Caloundra): Environmental

The Tasmanian Department of Primary Industries, Water and Environment has provided Caloundra with the final project-specific guidelines for the production of a Development Proposal and Environmental Management Plan (DPEMP) for the Hellyer Metals Project. To support the production of the DPEMP, Caloundra has commenced appropriate baseline surveys and consultations with relevant community groups.

H.G. Engineering (HGE): Process Engineering Design

Aspects of the process engineering design commenced and/or completed by HGE (present in person in Burnie for the past month) include process flow diagrams, development of preliminary equipment list, pipe and instrument diagrams, and specification and data sheets for significant equipment items.

WorleyParsons (WOR): General

In addition to the management of sub-consultants to the BFS, WOR has commenced a transport logistics study, finalised overall site layout, commenced design of the zinc casting house and identified key equipment suppliers.

CONCLUSIONS

The demonstration plant is proceeding towards 'steady state' without any 'showstoppers' and the BFS is on time and budget for completion during the March quarter 2006. The directors of INL are thus very well pleased with the overall progress to date of the Hellver Metals Project. In particular however, the INL directors wish to place on public record their recognition and appreciation of the tenacity and professionalism of our technical and operational teams during this inevitably arduous commissioning phase of the demonstration plant.

Yours faithfully Intec Ltd

Philip R. Wood

Philip R Wood Managing Director & Chief Executive Officer