SCIDEV LTD — Capital/Financing Update 2006

Oct 24, 2006

Intec Ltd

ABN 25 001 150 849

Superior and Sustainable Metals Production

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

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

25 October 2006

Companies Announcements Office Australian Stock Exchange Limited

Intec Acquires Encore Metals NL and Zeehan Slags Project

Intec Ltd (ASX code: INL) is pleased to advise that it has entered into a binding agreement to acquire unlisted Encore Metals NL ('Encore') and its Zeehan Slags resource. Technical and commercial due diligence has been completed, so that the transfer of ownership is being effected immediately.

Encore is the registered holder of Retention Licence 3/1996, located 3 kilometres south of Zeehan on Tasmania's West Coast and only 80 kilometres from Intec's Hellyer mine site (refer map and photo).

The Zeehan Slags comprise the century-old 460,000 tonne lead smelter slag dumps resource, grading approximately 13.6% zinc, 1.5% lead, $55\frac{g}{t}$ silver, with indium and minor copper also present. This corresponds with over 60,000 tonnes of contained zinc, nearly 7,000 tonnes of lead and 780,000 ounces of silver, with a combined in-situ metals value of over A\$364 million at today's metals prices and US\$/A\$ exchange rate. Zinifex Ltd holds certain contingent coexploitation rights in relation to the Zeehan Slags for which it is entitled to receive a productionbased royalty.

Intec's wholly-owned subsidiary, Intec Hellyer Metals Pty Ltd, will acquire all of the issued capital of Encore for a consideration of 20 million Intec shares to be issued pro-rata to Encore's four shareholders, who will also have the right to purchase a further 20 million Intec shares at a price of 18 cents per share upon the earlier of 23 October 2008 or the decision by Intec to commence commercial treatment of the Zeehan Slags.

Mr Philip Wood, Intec's Managing Director and Chief Executive Officer, comments that 'securing the Zeehan Slags resource considerably increases Intec's oxidised metals inventory and assists it to establish an early second cash flow to take advantage of the prevailing strong metal prices, particularly for zinc.'

'Intec's first cash flow is commencing right now in conjunction with partner Polymetals (Hellyer) Pty Ltd, with the production and sale to Chinese smelters of a bulk zinc concentrate using our existing Intec Hellver Mill and tailings dam resource.'

'The second cash flow will phase in when the Zeehan Slags are co-treated with our electric arc furnace dust stockpile using Intec's proprietary chloride leach technology. Our Burnie demonstration plant will be reconfigured to process these two feedstocks within the year to produce zinc metal and/or zinc oxide in commercial quantities.'

'We then expect to build a significantly larger zinc-bearing oxidised residues treatment plant at the Hellyer mine site, which will eventually be integrated, along with the Intec Hellyer Mill treating sulphidic tailings and ores, into the overall polymetallic Hellver Metals Project.'

'We welcome on to the Intec share register Alliance Resources Limited (ASX code: AGS) which holds a 40% interest in Encore and also Encore founder. Stephen Stone, who will remain a director of the company, to be renamed Intec Zeehan Residues Pty Ltd.'

Dr Andrew Tong, Intec's Senior Research Metallurgist, explains that 'recent trials on the Zeehan Slags through the Burnie plant went very well, with zinc recoveries higher than expected and good filterability achieved. Now, when we leach our EAF dust in order to extract the contained zinc, the resultant acid can be consumed as we extract further zinc from the Zeehan Slags material which acts as a neutralising agent. Thus, the co-treatment of these two feeds enables us to optimise the consumption of acid and maximise production of zinc units.'

Intec gratefully acknowledges the assistance of the Tasmanian Government's Department of Infrastructure, Energy and Resources and Department of Economic Development in facilitating the transaction with Encore.

Yours faithfully

Philip R. Wood

Phillip R Wood Managing Director and Chief Executive Officer