SCIDEV LTD — Capital/Financing Update 2009

Mar 17, 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 Australian Securities Exchange

18 March 2009

Update on the Intec Metals Recycling Project

During the relatively short period since the 23 November 2008 announcement of the proposed Intec Metals Recycling Project at Newcastle, Intec Ltd (ASX code: INL) has been actively engaged in efforts to bring the Project to a successful outcome.

The 28 February 2009 deadline for the execution of the A$20m Contract for Sale of the Mayfield industrial plant by the Vendor (Delta EMD Australia Pty Ltd) to INL has been allowed to pass. Discussions between the Vendor and INL are continuing, with the conditions and price of the proposed acquisition again open to negotiation, reflecting the changed market circumstances.

Working with our corporate advisers, Inteq Limited, a project and corporate financial model has been prepared for Stage 1 of the Intec Metals Recycling Project, being the refurbishment of the Refractory Unit for the processing of electric arc furnace dust (EAFD), starting with Intec’s own stockpile. The assumptions of the financial model are predominantly based on the independent engineering study issued by GHD Australia in December 2008 and have been verified wherever practicable, including a comprehensive external logistics study for the supply and transport of both feedstocks and products.

Furthermore, INL has worked closely with various Government bodies, engaging the active support of the NSW Department of State and Regional Development, which has in place a range of practical initiatives to foster business in the Hunter region.

Based on the assumptions described above and the suggested reduced acquisition price which is more in line with current market conditions, the indicative internal rate of return on the full Project capital investment for Stage 1 (including entire site acquisition price and transaction costs, refurbishment of the Refractory Unit, transport of the EAFD, and working capital) is in excess of 35% after allowing for financing costs. Using this financial model, these values increased markedly as the site acquisition cost (and therefore also financing costs) further decreased and/or as proposed levels of Government support were factored in.

Beyond Stage 1 of the Intec Metals Recycling Project, the Stage 2 Hydrometallurgical Unit has been anticipated by INL to provide additional profitable returns (IRR of over 50%) in the longer term.

==> picture [51 x 51] intentionally omitted <==

ASX code: INL

However, the Project overall is severely challenged by the adverse global financial conditions and particularly by the tight credit market for, and/or present excess capacity of, the mining, minerals processing and waste management industries.

Successful financing of the Project is further hampered by the marked downturn of the Australian steel industry. A large portion of Australia’s secondary steel production has been idled this year, making negotiations regarding an ongoing supply agreement for EAFD difficult, and while public statements indicate that this is expected to be temporary, the uncertainty surrounding the industry output negatively impacts upon the ability to raise funds for the Intec Metals Recycling Project.

INL is nevertheless continuing to pursue all available avenues for the successful development of the Intec Metals Recycling Project via the acquisition of the Mayfield site. The Project is favoured by early cash flows and the multiple opportunities afforded by the extensive, high-quality existing infrastructure. However, the combined influences of the poor market conditions, the instability in the metals industries, and the Vendor’s challenging timeframe seeking early determination (before end-April at the latest) of the sale of its site, mean that the likelihood of a successful financing outcome for the Project at Mayfield has notably decreased.

A further update for shareholders concerning the definitive outcome of the Intec Metals Recycling Project will be provided next month.

Yours faithfully

Intec Ltd

==> picture [109 x 61] intentionally omitted <==

Philip R Wood

Managing Director and Chief Executive Officer