SCIDEV LTD — Capital/Financing Update 2006

May 7, 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

8 May 2006

Intec Share Purchase Plan Offer

Dear Intec Shareholder

Capturing strong zinc price now

Figure 1 shows how the zinc metal price has risen extraordinarily over the past twelve months from US\$1,250 $(A$1,700)$ to its present level of US\$3,450 $(A$4,480)$ per tonne – a 176% increase! Given continuing strong global demand (especially from China), inadequacy of new zinc mining projects already 'in the pipeline' and rapidly depleting stockpiles, we expect strong zinc prices to continue for several years yet.

Figure 1: US\$ zinc metal price chart (July 2003 – present)

In these circumstances, Intec is uniquely fortunate in owning a large above-ground and readily treatable zinc resource in the Hellyer tailings dam (containing 305,000 tonnes of zinc with an in-situ current value of A\$1,366,400,000, among other base and precious metals – see Figure 2). This is immediately adjacent to our own well-maintained and available 1.5 million tonnes per annum mill for regrinding and flotation (see Figures 3 and 4). We are thus able to activate this processing facility to treat our own resource by conventional means to produce a saleable bulk zinc concentrate at much shorter notice than is the case for other zinc projects, in order to take advantage of current high zinc prices (which we will shortly be locking in based on these attractive levels for forward zinc sales over the next few years).

Figure 2: The Hellyer tailings dam

Figure 3: The 1.5mtpa SAG mill at Hellyer

Figure 4: The flotation plant at Hellyer

Our joint venture partner Polymetals Mining Services Pty Ltd is an experienced operator that will be providing all of the start-up capital (not less than A\$4 million) for the bulk zinc concentrate project, which is anticipated to be in production by end-September this year. We thus expect to be strongly cash-flow positive before the end of calendar 2006 and for further details you are referred to Intec's ASX announcement of 5 April 2006.

Intec Hellyer Metals Project

The treatment of our tailings resource via the Intec Hellyer Mill to produce a bulk zinc concentrate over the next few years does not detract from our longer term Hellyer Metals Project to recover all five payable metals (zinc, lead, silver, gold and copper) from the tailings and zinc-bearing secondary residues (such as electric arc furnace dust (EAFD)), using our own Intec Polymetallic Process. This Process is currently being successfully demonstrated and optimised on these blended feeds in our plant in Burnie, Tasmania (see Figure 5 and ASX announcement of 27 April 2006) as part of the Bankable Feasibility Study to be completed by WorleyParsons later this year.

Figure 5: Purification section of the Intec Hellyer Metals Demonstration Plant at Burnie, Tasmania

We have also recently acquired a large stockpile of EAFD (grading around 30% zinc) from Smorgon Steel, from which we expect to recover over 90% of the zinc for sale in the near term (see ASX announcement on 3 April 2006). Already our Burnie plant is treating EAFD to produce zinc metal cathode (see Figures 6 and 7) for use by Smorgon in its galvanising operations.

Figure 6: Commercial scale Prime Western Grade zinc cathode produced in Burnie demonstration plant.

Figure 7: Molten zinc cathode from the Burnie demonstration plant being cast into saleable ingot form.

AS10 million capital raising

On 28 April 2006 Intec announced details of a capital raising of up to A\$10 million comprising a placement of A\$6.05 million (undertaken at 11 cents per share), and a A\$3.95 million Share Purchase Plan Offer (SPP Offer), also at 11 cents per share, to all of the Company's existing shareholders.

The A\$6.05 million placement to 'sophisticated investor' clients of stockbroking firms has already been completed with all funds received, and I now set out details of Intec's SPP Offer to you at the same price below. Please read the remainder of this letter carefully and if you wish to participate in the SPP Offer, I suggest that you act promptly and follow the instructions provided.

Invitation to participate in the SPP Offer

The SPP Offer is designed to enable all shareholders in the Company, irrespective of the size of their shareholding, to purchase up to A\$5,000 worth of Intec shares at 11 cents per share (i.e. at the same price as 'sophisticated investors' have already subscribed). The SPP Offer does not entail the significant time delays and costs of lodging a prospectus and enables existing shareholders to purchase Intec shares free from stamp duty and brokerage. Intec shareholders (currently numbering approximately 1,500) who were recorded on our share register at 5.00 p.m. on 5 May 2006 (the Record Date) are now entitled to participate in the SPP Offer.

Each Intec Director intends to take up his maximum allocation of A\$5,000 worth of shares under the SPP Offer, both in respect of himself and all family-related persons and entities.

Funds received under the SPP Offer will be capped at a maximum aggregate of A\$3.95 million and, in the event that the SPP Offer is oversubscribed, applications will be dealt with on a 'first-come, first-served' basis.

Hse of Funds

The funds to be raised through the A\$6.05 million Placement and the SPP Offer (assuming full subscription to the maximum aggregate amount of A\$3.95 million) will bring the Company's cash at bank (net of trade creditors and capital raising costs) to approximately A\$11.3 million. These monies will be used to:

• (a) retire all bank debt totalling A\$4.8 million;
• (b) complete operations of Burnie demonstration plant through to at least 30 June 2006;
• (c) complete the WorleyParsons bankable feasibility study for the Hellyer Metals Project;
• (d) progress the Hellyer Metals Project financing with Macquarie Bank; and
• (e) provide working capital for the Company's Sydney- and Tasmania-based operations through to substantial positive cash flow before end-2006 from the Polymetals bulk zinc concentrate joint venture.

How to participate

If you would like to participate in the SPP Offer, please return your completed Application Form (attached), together with your cheque or credit card details representing the purchase price for the number of shares applied for. If you are paying by credit card, you may either fax (fax number +612-9351-7180) or mail your completed Application Form. Your Application Form must be received or the envelope postmarked on or before the closing date of 26 May 2006.

Please note that the maximum investment under the SPP Offer per shareholder is A\$5,000 (representing 45,455 shares at a purchase price of 11 cents per share). The minimum number that can be applied for is 4,545 shares at a total cost of A\$500. Shareholders may apply for the number of shares between the maximum and the minimum as set out on the attached Application Form.

The shares subscribed for will be issued, and quotation of the shares on ASX applied for, on or before 2 June 2006.

A full copy of the Terms of the SPP Offer is available in PDF format on the Company's website. If you have any questions, please call Registries Limited on +612-9290-9600 or the Company's office on $+612-9351-6741.$

Your Directors believe the SPP Offer provides all shareholders with an excellent opportunity to buy additional shares in the Company at 11 cents, which is the same entry price as 'sophisticated investors' and compares favourably with the ASX market price over recent weeks. We look forward to your participation in the SPP Offer at this exciting time for the Company and its Hellyer-related project activities.

Yours sincerely Intec Ltd

Philip R. Wood

Philip R Wood Managing Director & Chief Executive Officer

ABN 25 001 150 849

Superior and Sustainable Metals Production

Gordon Chiu Building 101 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

Name 1 Name 2 Name 3 Name 4 Name 5 Name 6

SHARE PURCHASE PLAN APPLICATION FORM

Plan to allow existing Intec Ltd shareholders to purchase up to 45,455 shares at 11 cents each (up to A\$5,000), payable in full on acceptance of this offer

1/We the above named, being registered as ordinary shareholder(s) in the Company, do hereby apply for the number of fully paid shares stated below at an issue price of 11 cents per share issued in accordance with the Intec Ltd Share Purchase Plan (the Plan) and the Constitution of the Company.

• The minimum number of shares you can apply for is $4,545$ , which will cost you A\$500
• The maximum number of shares you can apply for is 45,455, which will cost you A\$5,000
• You can purchase shares between the minimum and maximum as follows:

Please tick $\checkmark$ the appropriate box on the right:

--
for a cost of	A\$5,000
for a cost of	A\$3,000
for a cost of	A\$1,000
for a cost of	A\$500

I/We enclose my/our cheque or submit my/our credit card details for the amount indicated above.

CHEQUE/DRAFT DETAILS
DRAWER		BANK BRANCH		CHEQUE AMOUNT = A\$
CREDIT CARD DETAILS - VISA OR MASTERCARD ONLY
Mastercard	V ISA	(rick $\checkmark$ appropriate box)
NAME ON CARD	CARD NUMBER		EXPIRY DATE	SIGNATURE
CONTACT DETAILS - should we need to contact you regarding this form
Contact Name	Business Tel	Home Tel /Mobile Tel E-mail Address:

RETURN OF THIS FORM WITH YOUR CHEQUE OR CREDIT CARD DETAILS FOR PAYMENT WILL CONSTITUTE YOUR APPLICATION FOR SHARES UNDER THE TERMS OF THE PLAN

INSTRUCTIONS ON HOW TO COMPLETE THIS FORM ARE ON THE REVERSE SIDE OF THIS PAGE

ACCEPTANCES must be received or postmarked by 26 May 2006

Intec Ltd

ABN 25 001 150 849

INSTRUCTIONS TO APPLICANTS

Please read these instructions carefully

PAYMENT

Payment must be made in Australian currency only. Cheques should be made payable to:

"Intec Ltd" and crossed "Not Negotiable".

Sufficient cleared funds should be held in your account, as your application will be rejected if your cheque is dishonoured. If paying by credit card please sign the signature box next to your credit card details. Receipts for payment will not be issued. Payment in cash will not be accepted.

HOW TO LODGE YOUR APPLICATION

The completed form should be forwarded with your payment to the postal address on the enclosed reply-paid envelope or by hand delivery to the address set out below and must reach that address or be postmarked by 26 May 2006.

By mail Intec Ltd C/- Registries Limited PO Box R67 Royal Exchange Sydney NSW 1223

Or by hand delivery Intec Ltd C/- Registries Limited Level 2 28 Margaret Street Sydney NSW 2000

Registries Limited: Telephone no: +612-9290-9600 Fax no: +612-9279-0664

Or by fax (Credit card payments only) Intec Ltd. Fax no. +612-9351-7180

IF YOU ARE UNSURE HOW TO COMPLETE THIS APPLICATION FORM PLEASE CONTACT REGISTRIES LIMITED (details above) OR INTEC LTD ON

TEL: +612-9351-6741 OR FAX: +612-9351-7180 OR EMAIL: mail@intec.com.au

IMPORTANT NOTE: In accepting the Offer you represent and warrant that (unless otherwise agreed with the Company) you are not in any jurisdiction other than Australia or New Zealand or, if in another jurisdiction, you are aware of your eligibility to participate in the Offer.

If you have any questions, please contact Registries Limited for assistance. Tel +612 9290-9600.

CHANGES TO ADDRESS OR NAMES SUPPORTED BY YOUR SIGNATURE

If your name and address is not exactly as shown overleaf, please provide details below. Your sponsoring broker should be notified for amendments to holdings on the CHESS sub register.

CHANGE OF ADDRESS DETAILS

SIGNATURE(S) REOUIRED IF CHANGE OF DETAILS

Details

Signature(s)

YOUR PRIVACY

The information provided by you on this Application Form will be used by Registries Limited and Intec Ltd for processing this application and registering your shareholding in Intec Ltd and for no other purpose.

If you would like to receive Intec Ltd announcements by email please tick $\checkmark$ the box below and provide your email address.

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