SCIDEV LTD — Capital/Financing Update 2006

Jun 8, 2006

ABN 25 001 150 849

Superior and Sustainable Metals Production

Gordon Chiu Building [01 Department of Chemical Engineering Maze Crescent University of Sydney NSW 2006 Anstralia

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

9 June 2006

Companies Announcements Office Australian Stock Exchange Limited

Hellver Zinc Concentrate Project (HZCP) Update

The HZCP, a 50/50 joint venture between the Intec Group (ASX code: INL) and the unlisted Polymetals Group (PMS), is proceeding on track for zinc bulk concentrate production to commence in September this year, with the first shipment expected later in the December quarter.

Specific items being addressed are as follows:

Corporate

Detailed legal documentation of the INL/PMS Joint Venture should be completed prior to 30 June 2006, with effect from 1 May 2006.

Discussions have progressed with a number of traders and smelters (in both China and Europe) which are prospective purchasers of the HZCP concentrates, for which there appears to be a ready market for the foreseeable future. Both INL and PMS intend shortly to 'lock in' current zinc prices in relation to part of their respective halves of the HZCP's anticipated contained zinc production.

Regulatory Approvals

The draft Development Proposal and Environmental Management Plan (DPEMP) was presented to the Tasmanian Department of Primary Industry Water and Environment (DPIWE) during May, with approval expected by not later than mid-September 2006. Staff of the Environment and Water Section of DPIWE were due on site at Hellyer this month.

The Acid Rock Drainage Study, Water Management Study and Groundwater Study have been awarded to Geo-Environmental Management Pty Ltd, Aquatic Science and Golder Associates respectively and are currently under way. GHD has commenced work on the Tailings Management Plan and related engineering.

The estimated timeframe is currently on schedule for submission of the DPEMP and public notification by the end of July 2006, with approval anticipated by mid-September at the latest.

Logistics

Energy Management Services Pty Ltd (EMS) has completed its evaluation of the Que River high voltage sub-station. Consequently, a connection agreement has now been signed with Transend Networks, which has been instructed to proceed with the replacement of the existing circuit breaker at the Que River sub-station, while the transformers will remain intact and be used in their present form. EMS has also commenced its review of the terms for transmission charges.

A proposal received during May from Pacific National for transport, line repairs, concentrate storage and ship loading is presently being negotiated against a backdrop of pending changes to ownership of Tasmanian rail assets (see Figures $1 - 3$ ).

Figure 1: The concentrates loading facility at Burnie Port. Left to right: David Sproule (Managing) Director, PMS), Michael French (Manager - Infrastructure, Pacific National Tasmania), Andrew Lawry (Projects Manager, PMS), Philip Wood, Kieran Rodgers (Chief Financial Officer, INL)

Figure 2: INL and PMS personnel inspecting Pacific National Tasmania's tippler at Burnie Port

Figure 3: Concentrates Storage Shed at Burnie Port

In the meantime, all quotes for near-term trucking of concentrates from Hellyer to Burnie have now been received and were very competitive, with the contract today being awarded to S.D. Groves Earthmoving Pty Ltd.

Operations

A risk and metallurgical review has been completed and recommended confirmatory and optimisation metallurgical work has been initiated.

Details were finalised with Maintenance and Engineering Services Pty Ltd (MES, which has maintained the Hellyer Mill very effectively since 2000) for the Mill operation and maintenance contract for the HZCP. MES is currently reviewing the final document.

Recruitment of key personnel (including the identified Mill Superintendent) has commenced.

The dredging tender closed during May and is currently under evaluation by PMS as operator.

Engineering / Construction

Engineering drawings for tailings storage tanks have been completed and quoted upon by three engineering firms, with the contract being awarded today to Launceston-based Haywards Steel Fabrication and Construction. Overall process and engineering design for grinding and flotation have been progressed. Reagent procurement activities have also commenced, with copper sulphate and SIBX ordered.

PMS personnel were established permanently on site at Hellyer in late May and work has now commenced on plant and piping changes and refurbishment, for which a detailed schedule has been prepared.

Costs

Committed 'Start Up Costs' so far incurred by PMS are approximately A\$1,000,000 out of a minimum of A\$4,000,000 to be expended solely by PMS (INL does not pay any of the 'Start Up Costs') in order to achieve defined 'Steady State'.

Yours faithfully

Philip R. Wood

Philip R Wood Managing Director and Chief Executive Officer