SCIDEV LTD — Capital/Financing Update 2006

Jan 5, 2006

Intec Ltd

Superior and Sustainable Metals Production

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

Telephone: +612-9351-6741 Facsimile: +612-9351-7180 Email: mail@intec.com.au Website: www.intec.com.au

6 January 2006

Companies Announcement Office Australian Stock Exchange Limited

Dear Sir

Please find attached an information release relating to the signing of a Heads of Agreement between Smorgon Steel Group Limited and Intec Ltd regarding electric arc furnace dust.

Yours faithfully Intec Ltd

Robert J Waring Company Secretary

Intec Ltd

Superior and Sustainable Metals Production

Information release: 6 January 2006 Smorgon Steel and Intec Sign Heads of Agreement Regarding EAF Dust

Smorgon Steel Group Ltd (ASX Code: SSX) and Intec Ltd (ASX Code: INL) have entered into a Heads of Agreement for the initial and ongoing supply of Electric Arc Furnace Dust (EAF Dust) from Smorgon Steel to INL for use in INL's Hellyer Metals Project in northwestern Tasmania (the Hellyer Metals Project). Closure of the transaction is expected to occur not later than 31 January 2006 and will be subject to (amongst other things) approval by the Victorian EPA.

Smorgon Steel and INL have worked together over recent months to develop techniques for the successful introduction of EAF Dust into INL's process and both companies are confident, based on tests carried out at INL's demonstration plant at Burnie, in the success of the process.

Smorgon Steel will initially supply approximately 22,000 tonnes of EAF Dust, which has been pelletised using Smorgon Steel's proprietary technology, to INL. Smorgon Steel will pay INL an up-front treatment fee of A$2.42 million in relation to the initial 22,000 tonnes. These funds will be used to assist in the future development and commercialisation of INL's process. The EAF Dust is intended to be treated at the Hellyer Metals Project, subject to the approval of the Tasmanian Department of Primary Industries, Water and Environment.

The Heads of Agreement also addresses the ongoing supply of EAF Dust by Smorgon Steel to the Hellyer Metals Project and other commercial opportunities of potential benefit to both companies.

Philip Wood, Managing Director and Chief Executive Officer of INL, stated "The initial supply of EAF Dust contains about A$16 million worth of zinc metal at today's prices, and our test work is showing that we can extract over 95% of the contained zinc into readily saleable Prime Western zinc ingot, both economically and environmentally responsibly".

Neville Power, Chief Executive of Smorgon Steel Reinforcing and Steel Products, said "Smorgon Steel is Australia's largest recycler of scrap steel into new steel products. We are committed to producing excellent products using the most efficient recycling technologies available and our involvement with Intec reflects this commitment".

For further information, please contact:

Smorgon Steel

Bruce Loveday Executive General Manager, Corporate & Investor Relations Phone: (03) 8671-4414 Mobile: (0413) 808-027 Email: blovedav@smorgonsteel.com.au

Intec

Philip R Wood Managing Director and Chief Executive Officer Phone: (02) 9351 6741 Mobile: (0438) 675 501 Email: philip@intec.com.au

650 Lorimer Street Telephone 61 3 9673 0400 Port Melbourne 3207 Facsimile 61 3 9673 0450 Victoria Australia