SCIDEV LTD — Capital/Financing Update 2006

Sep 24, 2006

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 September 2006

Companies Announcements Office Australian Stock Exchange Limited

Issue under Intec Option Plan

Under the terms of the Intec Option Plan (IOP) and pursuant to the recommendation of its Remuneration Committee, the Board of Directors of Intec Ltd (ASX code: INL) announces the grant of 5,050,000 options as recognition and incentive for INL staff and key consultants (excluding Directors), who have advanced the technical, project and corporate progress of INL during the 18 month period 1 January 2005 to 30 June 2006.

The options are exercisable at A$0.11 (11 cents) for a period of five years expiring on 30 August 2011. A copy of Appendix 3B as required by Listing Rule 3.10 is attached.

Additionally under the IOP, it is proposed to grant 2,600,000 options on the same terms and in respect of the same period as above to INL's Directors as follows:

Mr Ian W Ross (Chairman) - 400.000 options

Mr Philip R Wood (Managing Director and Chief Executive Officer) - 1,200,000 options

$Mr A$ John Moves (Technical Director) – 700,000 options

Mr Kenneth J Severs (Non-executive Director) – 300,000 options

The granting of these options to INL Directors is subject to approval by INL shareholders at the Annual General Meeting to be held on 15 November 2006.

Assuming that these options are approved, the total number of options granted under the IOP will remain at just less than 5% of INL's issued share capital.

Yours faithfully Intec Ltd

Robert J Waring Company Secretary

Appen3bSep2006issueofoptions

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003.

Name of entity

Intec Ltd

ABN

25 001 150 849

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

$\mathbf{I}$ $\pm$ Class of $\pm$ securities issued or to | be issued

5,050,000 options

$\overline{2}$ Number of +securities issued or to be issued (if known) or maximum number which may be issued

5,050,000 options

Principal terms of the *securities $\overline{3}$ (eg, if options, exercise price and expiry date; if partly paid *securities, the amount outstanding and due dates for payment; if *convertible securities. the conversion price and dates for conversion)

The options are issued to 12 staff and six key consultants and are to subscribe for ordinary shares at an exercise price of $0.11, and are exercisable at any time until expiry on 30 August 2011.

$\overline{5}$

6

$\overline{7}$

$,$ 8 $,$

$\overline{9}$

$\overline{4}$

Do the "securities rank equally inall respects from the date ofallotment with an existing 'class ofquoted *securities?If the additional securities do notrank equally, please state:the date from which they do۰the extent to whichthey٠theparticipatefornextdividend, (in the case of a trust,distribution)interestorpayment• the extent to which they do notrank equally, other than inrelation to the next dividend,distribution or interest payment	$\bf No$The securities (options) would rank equally with INLfully paid ordinary shares upon exercise by anoptionholder.
Issue price or consideration	The options are granted without charge and the optionexercise price is $0.11.
Purpose of the issue(If issued as consideration for theacquisitionof assets,clearlyidentify those assets)	Grant of options under the Intec Option Plan torecognise the important role of staff and key consultantsin advancing the success of INL.
Dates of entering *securities intouncertificated holdings or despatchof certificates	25 September 2006
Number*classоfalland*securitiesquoted$_{\text{on}}$ASX.(including the securities in clause2 if applicable)	Number535,445,463	*ClassFully paid Ordinary Shares
	Number	*Class
Numbertclass +οfalland*securities not quoted on ASX(including the securities in clause2 if applicable)	6,645,0974,189,196	16 July 2007 Options – exercise price$0.2462526 November 2008 Options – exercise
	25,000,000	price $0.1030 June 2008 Options – exercise price$0.08
	1,275,000	30 June 2009 Options – exercise price$0.49625
	8,272,144	24 February 2010 Options – exercise

price $0.069

$$0.11$

5,050,000

30 August 2011 Options - exercise price

Appendix 3B Page 3

$10^{\circ}$		Dividend policy (in the case of a $\int$ Options granted will have no participation in dividends
		trust, distribution policy) on the until they are exercised.
increased capital (interests)

Part 2 - Bonus issue or pro rata issue

			11 Is security holder approval Questions 11 to 33 are not applicable.
to	required?

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

Questions 34 to 42

Ouestions 34 to 42 are Not applicable

Quotation agreement

• $\mathbf{1}$ *Quotation of our additional *securities is in ASX's absolute discretion. ASX may quote the *securities on any conditions it decides.
• $\overline{2}$ We warrant the following to ASX.
  • The issue of the "securities to be quoted complies with the law and is not for an illegal purpose.
  • There is no reason why those *securities should not be granted *quotation.
  • An offer of the "securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section $1012C(6)$ of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any *securities to be quoted and that no-one has any right to return any *securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the "securities be quoted.
• We warrant that if confirmation is required under section 1017F of the Corporations Act in relation to the "securities to be quoted, it has been provided at the time that we request that the "securities be quoted.
• If we are a trust, we warrant that no person has the right to return the *securities to be quoted under section 1019B of the Corporations Act at the time that we request that the "securities be quoted
• $\overline{3}$ We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.
• $\overline{4}$ We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before +quotation of the +securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are $(w)$ to $(w)$ true and complete.

Sign here:	R Waring		25 September 2006
	(Secretary)
Print name:	Robert J Waring
Appen3b