SCIDEV LTD — Capital/Financing Update 2006

Nov 30, 2006

ABN 25001 150 849

Superior and Sustainable Metals Production

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

Companies Announcements Office

Australian Stock Exchange

Phone: 02-9351-6741 Fax: 02-9351-7180 Email: mail@intec.com.au Website: www.intec.com.au ASX code: INL

1 December 2006

Commercial Zinc Production Commences at Hellver

With contractual effect from today, Intec Ltd (ASX Code: INL) is very pleased to announce the formal commencement of commercial production of bulk zinc concentrate at the Hellyer Zinc Concentrate Project (HZCP, a 50/50 joint venture between INL and Polymetals (Hellyer) Pty Ltd). This follows a six month preparatory period, during which the Intec Hellyer Mill and related infrastructure have been refurbished; new equipment (including the tailings dam dredge) have been ordered and installed; all unit operations have been commissioned; and finally production has been ramped up towards the 'base case' commercial rate.

Operating on a 24-hour, 7-day basis, the dredge, grinding mill and flotation circuits are now operating at 80% of the capacity planned in the 65,000 tonnes per annum 'base-case' projections, and this output is daily continuing to improve.

The dredge is collecting 130 tonnes per hour of tailings, now grading 2.2% average zinc and increasing with depth. This tailings slurry is then delivered to shore tanks for temporary storage, prior to being pumped over 2.5 kilometres, with 30 metres vertical lift, to the Intec Hellyer Mill. Each of the dredge, shore tanks and pumps are operating within specifications.

At the Intec Hellyer Mill, the ball and tower grinding mills are operating consistently, regrinding the tailings slurry to 20 microns before passing it to the flotation circuits. Mill grinding availability has been 100%, with no down-time. Flotation efficiency is increasing through 65% of the targeted zinc recovery from the reground tailings to the bulk zinc concentrate.

The HZCP directly employs a workforce of 25, two thirds of whom formerly worked at the Hellyer Mill prior to its closure in 2000. This wealth of experience in our enthusiastic workforce has contributed to the rapidity and efficiency with which the Intec Hellyer Mill has been brought back into current production.

The concentrate storage shed at Hellyer now has a stockpile of approximately 800 tonnes of 'inspec' product, grading $41\%$ zinc, $10\%$ lead and $200g/t$ silver, with all other elements within the specifications of the offlake sales contracts. Daily trucking of this product to the HZCP's 8,000 tonne export storage bay at Burnie port will commence soon. Monthly shipments of 5,000 (and sometimes 10,000) tonne lots are expected to commence in the first half of January, based on recently-agreed attractive shipping rates and terms.

Photo: A 'drop' of bulk zinc concentrate on to the Hellyer concentrate storage shed stockpile.

The HZCP currently has two offtake agreements with leading Chinese smelters totalling over two thirds of the 65,000 tonnes per annum bulk zinc concentrate 'base case' production. Strong demand has been received from these and other smelters for the remaining 20,000 tonnes per annum of expected non-committed 'base-case' production. Under the terms of the sales contracts, the HZCP is paid 90% of the consignment value within a short period after the concentrate leaves port. As such, Intec expects to receive primary payment for its half of the first shipment before the end of January, 2007.

Pursuant to the completion of commissioning and transition to commercial production, and in accordance with their negotiated arrangement, Intec Ltd and Polymetals (Hellyer) Pty Ltd have today activated their joint venture agreement. After reconciliation of actual pre-'steady state' expenses, a payment of the modest difference between these expenses and the nominated up-front A\$6 million start-up amount will be made by Polymetals to Intec. From today, the HZCP operating expenses will be funded jointly, along with joint receipt of revenues.

At current metal prices, US\$/A\$ exchange rate, and 'base case' throughput, the total project is forecast to generate annual revenue of A\$128 million, and an EBITDA of \$70.5 million.

In a related development, the Federal Department of Environment and Heritage Hazardous Waste Technical Group has advised that Electric Arc Furnace Dust (EAFD), if blended with the HZCP's bulk zinc concentrate, would be classed as a "non-waste" under the Hazardous Waste (Regulation of Exports and Imports) Act 1989. The Department has accepted this advice, concluding that "the blended material is not a waste, and its export from Australia should therefore not be subject to regulation under the Act". Trials have commenced for magnetic beneficiation of the EAFD and blending of the high-zinc fraction with our bulk zinc concentrate, allowing the HZCP to increase its annual production of payable zinc units.

Provision has been made in the engineering of all HZCP unit operations to increase the Intec Hellyer Mill throughput from 1.5 million to 2 million tonnes per annum. This can be achieved by optimal utilisation of the existing equipment, rather than by additional capital investment. The increased feedstock can be sourced from the Hellyer tailings dam, the nearby Oue River mine being brought into production early next year by Bass Metals Ltd (ASX code: BSM, 18.5% owned by INL) and/or from the numerous other current and emerging regional producers who have expressed interest in supplying the Hellyer Metals Project.

The transition to commercial production of the HZCP represents a major milestone en route to Intec becoming an integrated regional mine-to-metal producer in northwestern Tasmania, utilisng its own resources, plant and technology and assisting other regional producers.

The INL Board would like to express their appreciation for the highly professional and effective efforts of Polymetals, Maintenance and Engineering Services Pty Ltd and their employees, various key consultants to the HZCP and INL's own senior management and staff in delivering Australia's first and only new zinc production in 2006. In the current resources boom-driven era of capital cost and timetable blow-outs, this has been an outstanding achievement.

Yours faithfully, Intec Ltd

Philip R. Wood

Philip R Wood Managing Director & Chief Executive Officer