SCIDEV LTD — Capital/Financing Update 2009

Nov 4, 2009

ABN 25 001 150 849

Level 3 2 Elizabeth Plaza North Sydney NSW 2060 Australia PO Box 1507 North Sydney NSW 2059 Australia

Phone: 02-9925-8170 Fax: 02-9925-8110 Email: mail@intec.com.au Website: www.intec.com.au ASX code: INL

Companies Announcements Office 5 November 2009 Australian Securities Exchange

Intec Launches HK Corporate Platform For Chinese Projects

Intec has teamed its technology with Hong Kong-based investors to build a long term corporate platform to progress metalliferous waste recycling projects in China. The first commercial scale application of the Intec Process will be for the treatment of Liugang Steel's blast furnace dust containing zinc, lead and indium in Liuzhou City, Guangxi Province, China.

Figure 1: Signing Ceremony: Intec and Green Resources Left to right: Mr Truman Wong (Director, Green Resources), Mr Philip Wood (Managing Director & Chief Executive Officer, Intec) and Mr James Leung (Director, Green Resources).

Yesterday in Hong Kong, Intec Ltd (ASX code: INL) signed a Subscription Agreement with Green Resources (Asia Pacific) Holding Limited ("Green Resources", inclusive of its nominees where applicable: see www.gresources.cn) for the rapid development of Intec Process-related projects in China.

Green Resources is a special purpose vehicle incorporated in Hong Kong for the purpose of implementing primary and secondary resources projects using the Intec Process, combined with other advanced sustainable international technologies as appropriate, to exploit the many metalliferous waste recycling opportunities in China, several of which have already been identified and advanced through Intec's Chinese representative office.

The Subscription Agreement

This provides for the following multi-stage cross subscription of shares between Intec and Green Resources:

Stage 1

Stage 1 of the Subscription Agreement was completed yesterday, with Intec becoming a 7% shareholder of Green Resources in return for:

• (i) The grant to Green Resources of a royalty-free 20-year Intec Process technology licence in China, subject to Intec's existing licensing arrangements and specified performance conditions; and
• (ii) Intec's investment in Green Resources of RMB 2,000,000, (approximately A$325,000 at current exchange rates), which funds will be satisfied by the issue of approximately 21.7 million Intec ordinary shares at a price of A$0.015 each to Green Resources.

These and other funds will be applied by Green Resources to complete the feasibility study for the furnace dust project in Liuzhou City ("Liuzhou Project", see Figure 2). On 23 October 2009, an incorporated joint venture (Liuzhou Green Resources Dust Environmental Utilization Co., Ltd.) was formed between Green Resources (51%) and Liuzhou Ruilirui Environmental Technology Company Ltd (49%), a company

Figure 2: Distant photo of part of Liugang's steelmaking plant taken by Dr Andrew Tong from his room in the hotel owned by Liugang during Intec's recent site visit.

controlled by Liugang-Liuzhou Iron and Steel (Group) Company ("Liugang"), one of China's most successful emerging steel producers (www.liuzhousteel.com). See Figure 3 below.

The Liuzhou Project will initially treat 50,000 tonnes per annum of furnace dusts from Liugang. The dust contains iron (25%), carbon (30%), zinc (7%), lead (1.5%), and indium (250 ppm). The treatment plant will produce high purity zinc oxide, lead sulphide and indium metal for sale to external parties, along with high purity hematite and carbon for sale to Liugang for re-use in the blast furnaces.

To commence production in 2011, this will be the largest commercial-scale application of the Intec Process to date and economic modelling is strongly positive. The plant will thus also act as a clear demonstration of the economic and environmental advantages of the Intec Process for both the processing of industrial wastes and mineral concentrates and ores.

Figure 3: Signing of the Liuzhou Green Resources Dust Environmental Utilization Co., Ltd. incorporated joint venture on 23 October 2009. Third from left: Mr Truman Wong (Director, Green Resources); Fourth from left: Mr Zhang Bingyan (Director, Liuzhou Ruilirui Environmental Technology Company Ltd)

Once the plant is fully established, expansion of the plant to 1,000,000 tonnes feed stock per annum will be considered, in concert with the production rates of furnace dusts from Liugang. Supplementary feed materials from local industries will also be pursued on appropriate commercial terms, along with sludges produced by satellite Green Resources plants using the Intec Process at waste water and electroplating industrial sites, where project proposals with Green Resources are already well advanced.

In addition, Stage 1 of the Subscription Agreement entitles Green Resources to take a placement of fifty million Intec shares at an issue price of A$0.015 on or before 18 November 2009.

Stage 2

Stage 2 of the Subscription Agreement provides for the issue to Intec of a further 13% equity interest in Green Resources, thereby bringing Intec's shareholding to 20%, for an investment of RMB 13,000,000 (approximately A$2,110,000 at current exchange rates) conditional upon:

• 1. Commencement of the Liugang Project;
• 1. Completion of satisfactory due diligence by Intec on all matters relating to the Liugang Project and Green Resources. For this purpose, Intec has engaged the services of Somerley Ltd (www.somerley.com.hk), a specialist financial services company based in Hong Kong which has a formal association with Inteq Ltd, Intec's Australian corporate advisors; and
• 1. The placement to Green Resources of Intec shares, subject to all necessary approvals, at an issue price of A$0.015 per share for an equivalent A$ value of RMB 13,000,000 (approximately 140.7 million shares being approximately A$ 2.11 million at current exchange rates).

Stage 2 is expected to be completed by 30 June 2010 following which Intec will be entitled to appoint a director to the board of Green Resources. He will sit alongside Truman Wong (20 years of experience in Chinese industry, marketing, fine chemicals and factory management), Joe Lam (Intec's Chinese Representative, and General Manager of Guangzhou Greeneer Chemical Technology Co., Ltd. www.greeneer.cn/home\_en.asp) and James Leung (accountant, 20 years experience in financial management).

Stage 3

Stage 3 of the Subscription Agreement involves a cross-investment between Intec and Green Resources for the equivalent value of RMB 10,000,000 (approximately A$1,625,000 at current exchange rates), so that at completion of Stage 3, Intec will hold a 30% interest in Green Resources. In return, Intec will allot to Green Resources, subject to all necessary approvals, the appropriate number of Intec shares for an A$ equivalent of RMB 10,000,000 at an issue price which will be the 20-day volume weightedaverage price for Intec shares on the ASX immediately prior to completion of Stage 3. Stage 3 of the Subscription Agreement is expected to be completed by 30 September 2010.

The resultant cross shareholdings between Green Resources and Intec will provide the initial basis for further merging corporate interests and cross-jurisdictional listings.

Commentary on Opportunities for the Intec Process in China

The launch of Green Resources is the culmination of over two years of intensive market development efforts by Intec's representative office in Guangzhou, led by Joe Lam. China is a vast highly integrated and rapidly growing economy with a well-established culture of recycling. New environmental standards are high, but there are many existing operations where environmental and economic performance can be substantially enhanced by recovery of metals and by-products through the recycling of solid and liquid waste streams using the proprietary Intec Process, which is extensively patented in China.

Intec is extremely excited about the arrangements with Green Resources which represents a very significant and long term strategic move into China for Intec with an experienced and highly capable partner.

Yours faithfully Intec Ltd

Philip R Wood Managing Director and Chief Executive Officer

About Intec Ltd

Intec Ltd is an Australian company which owns the Intec Process for superior and sustainable metals production. The Intec Process comprises a set of patented chloride-based hydrometallurgical processes that have been demonstrated to produce high purity base and precious metals from concentrates of sulphide and oxide ores, tailings and industrial wastes. The Intec Process has substantial environmental and cost advantages over both the widely used conventional smelting and refining processes and other known hydrometallurgical processes.

It is also expected that Intec's intellectual property derived from its waste metals recovery technology will have broad application for mine tailings water, industrial waste water and waste sludge treatment, both nationally and internationally.