SCIDEV LTD — Interim / Quarterly Report 2007

Feb 27, 2007

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

Companies Announcements Office Australian Stock Exchange

28 February 2007

Half-Yearly Report

Please see attached the 31 December 2006 Half-Yearly Report for Intec Ltd (ASX code: INL).

Yours faithfully, Intec Ltd

Philip R. Wood

Philip R Wood Managing Director & Chief Executive Officer

ABN 25 001 150 849

Superior and Sustainable Metals Production

Gordon Chia Building J01 Department of Chemical Engineering Maze Crescent University of Sydney NSW 2007 Australia

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

HALF-YEARLY REPORT

31 DECEMBER 2006

ABN 25 001 150 849

Corporate directory

Directors

lan W Ross (Non-executive Chairman) Philip R Wood (Managing Director & Chief Executive Officer) Trevor A Jones (Non-Executive Director) A John Moyes (Technical Director) Kieran G Rodgers (Finance Director & Chief Financial Officer) Kenneth J Severs (Non-executive Director)

Company Secretaries

Robert J Waring Grahame Clegg

Senior Management

Jean-Louis Huens (Chief Operating Officer) Chung Ho Lam (Senior Process Engineer & IT Manager) Mick Ryan (Operations Manager) Dave Sammut (Corporate Development Manager) Andrew Tong (Senior Research Metallurgist & Laboratory Manager) Grahame Clegg (Financial Controller)

Principal Registered Office in Australia

Gordon Chiu Building, J01 Department of Chemical Engineering Maze Crescent University of Sydney NSW 2006 Australia Telephone: (+61 2) 9351 6741 Facsimile: (+61 2) 9351 7180 Email: mail@intec.com.au Website: www.intec.com.au

Sydney City Office

Level 13 Macquarie House 167 Macquarie Street Sydney NSW 2000 Australia Telephone: (+61 2) 8667 3038

Intec Hellyer Metals Pty Ltd

PO Box 952 39 River Road Burnie TAS 7320 Australia Telephone: (+61 3) 6431 6333

Facsimile: (+61 3) 6431 6896

Intec Hellyer Metals Demonstration Plant

20 River Road Burnie TAS 7320 Australia Telephone: (+61 3) 6432 4063 Facsimile: (+61 3) 6432 3594

The Hellyer Mine

Cradle Mountain Link Road Wynyard Waratah Council District TAS 7321 Australia Telephone: (+61 3) 6439 1155 Facsimile (+61.3) 6439 1405

Melbourne EAFD Site

433-451 Somerville Road West Footscray VIC 3012 Australia Telephone: (+61 3) 6439 1155

North American Representative Office

J Philip Evans 32 Charles Street Georgetown, Ontario Canada L7G 2Z3 Telephone and Facsimile: (+1 905) 873 4985

European Representative Office

Kenneth J Severs 'Appletree' Frith Road, Aldington Frith Kent TN25 7HI United Kingdom Telephone and Facsimile: (+44 1233) 721 328

Intec Ltd

ABN 25 001 150 849

Corporate directory

Share Register

Registries Limited Level 2, 28 Margaret Street Sydney NSW 2000 Australia

PO Box R67 Royal Exchange Sydney NSW 1223 Australia

Telephone: (+61 2) 9290 9600 Facsimile: (+61 2) 9279 0664 Email: registries@registriesltd.com.au Website: www.registriesltd.com.au

Auditors

PricewaterhouseCoopers Darling Park Tower 2, 201 Sussex Street Sydney NSW 1171 Australia

Legal Advisers

Allens Arthur Robinson Level 28 Deutsche Bank Place Corner of Hunter and Phillip Streets Sydney NSW 2000 Australia

Patent Attorneys

Griffith Hack 100 Miller Street North Sydney NSW 2060 Australia

Stock Exchange Listings

Intec Ltd shares are listed on the Australian Stock Exchange (Code: INL) and the Deutsche Boerse (Code: INF).

Australian Stock Exchange Listing

Intec Ltd shares are listed on the Australian Stock Exchange under the code INL. The home branch is Sydney.

Intec Ltd

ABN 25 001 150 849

Contents

Directors' report
Consolidated income statement	4
Consolidated balance sheet	5.
Consolidated statement of changes in equity	6
Consolidated statement of cash flows	7
Notes to the financial statements	8
Directors' declaration	12
Auditors' independence declaration	13.
Independent review report	14

IntecLtd Directors' report

Your Directors present their report on the consolidated entity consisting of Intec Ltd (Intec or the Company) and the entities it controlled for the half-year ended 31 December 2006.

Directors

The names of the Company's Directors in office during the half-year and until the date of this report are set out below. Directors were in office for this entire period unless otherwise stated.

Ian W Ross (Non-executive Chairman) Philip R Wood (Managing Director and Chief Executive Officer) Trevor A Jones (Non-executive Director, appointed 28 February 2007) A John Moyes (Technical Director) Kieran G Rodgers (Finance Director and Chief Financial Officer, appointed 28 February 2007) Kenneth J Severs (Non-executive Director)

Review of operations

The net loss of the consolidated entity after providing for income tax amounted to $5,598,243 (2005 $-$ loss $5.321.435).

The half year to 31 December 2006 marked Intec's fundamental transition to becoming an operating regional minerals production company, and the only new producer of zinc in Australia in 2006.

Intec was pleased to announce on 1 December 2006 the formal commencement of commercial production of bulk zinc concentrate at the Hellyer Zinc Concentrate Project (HZCP, a 50/50 joint venture between Intec and Polymetals (Hellyer) Pty Ltd). This followed a six-month preparatory period, during which the Intec Hellyer Mill and related infrastructure had been refurbished; new equipment had been ordered and installed; all unit operations had been commissioned; and production had been ramped up towards the 'base case' commercial tailings treatment rate of $1.5M$ tpa.

'Steady state' operations at the Hellyer Metals Project demonstration plant at Burnie, Tasmania were successfully completed during the September quarter 2006. The demonstration plant was put on care and maintenance pending the preparation of a metallurgical and engineering report about the operations by Ammtec and WorleyParsons, which is due in the current quarter. Engineering planning was also commenced for the reconfiguration of this demonstration plant for semicommercial operations. To utilise the same basic process and equipment, the demonstration plant will be adjusted to operate from higher-grade combined feedstocks: Zeehan Residues (~14% Znequivalent) and Electric Arc Furnace Dust (EAFD, 20-30% Zn).

The decision to reconfigure the demonstration plant followed the acquisition in October 2006 of Encore Metals NL, 100% owner of the 460,000 tonne Zeehan residue stockpile, located approximately 80km southwest of the Intec Hellyer Mill in Tasmania. The stockpile contains commercial quantities of zinc (>60,000 tonnes), lead (>7,000 tonnes) and silver (~780,000 ounces).

Concurrently, engineers from WorleyParsons are working with Intec's technical staff to complete the engineering feasibility study for the overall Hellyer Polymetallic Project. The demonstration plant operations and the feasibility study form part of the development of the interim Hellyer Zinc Residues Project, which will treat the Zeehan Residues and EAFD to produce 10,000 tonnes per annum of zinc units, final determination of which is being based on economic and technical considerations.

Events occurring after the reporting date

The first shipment of 4,986 (dry) tonnes of bulk zinc concentrate from the HZCP, with a provisional average grade of 41% zinc, 7% lead and $210g/t$ silver, departed the Port of Burnie on

IntecLtd Directors' report (continued)

30 January 2007. Payment of US$1.86 million, representing Intec's 50% share of 90% of the provisional value after smelter charges, was received on 28 February 2007.

The Company has drawn down a further A$3.1 million under the Macquarie Bank Working Capital Facility.

Throughput rates of the tailings feedstock at the Intec Hellyer Mill have been ramped up to the base case' rate of 1.5Mtpa, however the average zinc grade of the tailings mined to date have been' lower ( $\sim$ 2.2%) than the average grade of the total tailings resource (2.8% Zn) due to the mining methods employed during the start-up of operations. This has resulted in lower overall production rates of bulk zinc concentrate during the start-up phase of the HZCP joint venture. It is expected that output rates will increase to the estimated $~63,000$ tpa as the dredging operations progress and the average grade of the tailings being fed to the Intec Hellyer Mill increases.

Bass Metals Ltd (ASX code: BSM, 18.4% owned by Intec) has commenced trial mining of 2,000 tonnes of ore at Que River, approximately 4km from the Intec Hellyer Mill. This zinc/lead ore will be crushed on site, then trucked to the Intec Hellyer Mill for processing alongside Intec's tailings. BSM has signed a Letter of Intent with the HZCP for the processing of ongoing production. Noting that the Que River ore contains materially higher zinc grades than Hellyer tailings (2.8% Zn), should the trial progress to full-scale mining of 100,000tpa ore at Que River, Intec would expect to increase production of bulk zinc concentrate to approximately 100,000tpa.

Separately but concurrently, Intec has also been granted approval by the State and Federal environmental regulatory authorities to conduct a trial of blending EAFD with the bulk zinc concentrate product from the HZCP. The blending option offers enhanced contained zinc value, particularly if Intec's current EAFD beneficiation trials in Sydney and Burnie are successful in further upgrading the $(\sim 27%)$ present zinc content in the EAFD.

On 23 February 2007 Intec announced that it beneficially owns 14.56% (on a fully diluted basis) of Jervois Mining Limited (ASX code: JRV) at an average entry price of approximately 1.16 cents. Intec considers that its own existing demonstration plant, strong future cashflows and proven technological and project development capabilities could accelerate development of JRV's Young and Nyngan nickel laterite resources. Intec looks forward to productive discussions shortly with the Board and Management of JRV in order to progress mutually beneficial outcomes for the two companies and their shareholders.

The financial effect of these transactions has not been brought to account at 31 December 2006.

Intec Ltd Directors' report (continued)

Namea a shekara ta 1970, wasan ƙwallon ƙafa ta ƙasar Ingila. Ya ƙasar Ingila a ƙasar Ingila.	Shares Held	PercentageRKA KALUSI
ANZ Nominees Ltd	41,782,885	7.504
Orian Holding Corp
(Ivanhoe Mines Ltd. Group)	34,312,366	6.163
National Nominees Ltd	21,384,842	3.841
Oregon Nominees Ltd	9,500,000	1.706
Alliances Resources Limited	7,952,200	1.428
Macquarie Bank Ltd	7,246,377	1.301
Mr Stephen Stone	6,083,400	1.093
Reach Out Pty Ltd	5,572,460	1.001
Mr William E Conway	5,046,428	0.906
Mr Michael John Mackenzie	5,045,455	0.906
Smacer Pty Ltd	4,590,910	0.825
Mr Peter Colin Taylor	4,045,455	0.727
Grizzly Holdings Pty Ltd	3,885,691	0.698
II Bronson Jacobs Pty Ltd	3,500,000	0.629
Kurraba Investments Pty Ltd	3,454,545	0.620
Wendelini Pty Limited	3,234,583	0.581
Barona Group Pty Ltd	3,166,364	0.569
Plymouth Holdings Inc	3,143,173	0.565
Eclipse Properties Pty Ltd	3,045,455	0.547
Mr Bryan Welch	3,000,000	0.539

The top 20 shareholders as at 20 February 2007 are as follows:

No other event has occurred subsequent to 31 December 2006 requiring disclosure in, or amendment to, these financial statements.

Auditor's Independence Declaration

An independence declaration from the Company's auditor, PricewaterhouseCoopers, is included on page 13 of the financial report.

This report is made in accordance with a resolution of the Directors.

Philip R. Wood

Philip R Wood Managing Director Chief Executive Officer

Sydney 28 February 2007

Intec Ltd Consolidated income statement

for the half-year ended 31 December 2006

	Half-year
	31 December2006	31 December2005
	$	S
Revenue from operating activities	21,475
Revenue from outside operating activities	322,847	70,500
Revenue from ordinary activities	344,322	70,500
Equity share of associates profits (losses)	(56, 703)	7,553
Administration expense	(633, 185)	(319,603)
Depreciation expense	(1,155,076)	(249, 023)
Employee benefits expenses	(2,124,392)	(1,292,393)
Engineering and other consultants expenses	(31, 483)
Hellyer demonstration plant expenses	(3,011,457)	(2,614,349)
Hellyer mill care and maintenance costs	(68, 932)	(443,008)
Occupancy expense	(125, 320)	(122,093)
Patent fees	(124, 820)	(196, 810)
Research and development expenses	(7,366)	(30, 556)
Other expenses from ordinary activities	(175, 657)	(131, 723)
Loss from ordinary activities before income taxexpense	(7,170,069)	(5,321,435)
Income tax benefit relating to ordinary activities	1,571,826
Net loss attributable to the members of Intec Ltd	(5,598,243)	(5,321,435)
Basic loss per share (cents per share)	1.04	1.24
Diluted loss per share (cents per share)	1.04	1.24

The above consolidated income statement should be read in conjunction with the accompanying notes.

Intec Ltd Consolidated balance sheet

as at 31 December 2006

	31 December	30 June
	2006	2006
Current assets	$	$
Cash assets	1,014,937	6,492,968
Receivables	2,014,214	250,335
Inventory	1,200,663
Other current assets	148,965	21,455
Total current assets	4,378,779	6,764,758
Non-current assets
Receivables	290,000	190,000
Deferred cost of mineral prospects	2,845,409
Investments in associates accounted for using the
equity method	1,389,306	932,338
Property, plant and equipment	28,977,525	26,265,779
Other financial assets	715,525
Intangible assets	10,000	10,000
Total non-current assets	34,227,765	27,398,117
Total assets	38,606,544	34,162,875
Current liabilities
Payables	1,818,195	1,027,313
Provisions	25,035
Interest bearing liabilities	1,250,000
Deferred revenue	1,000,000
Total current liabilities	4,093,230	1,027,313
Non-current liabilities
Deferred revenue	4,833,333
Deferred income tax liability		1,571,826
Provisions	132,065	59,115
Total non-current liabilities	4,965,398	1,630,941
Total liabilities	9,058,628	2,658,254
Net assets	29,547,916	31,504,621
Equity
Contributed equity	59,136,614	56,680,490
Reserves	15,626,365	14,440,951
Accumulated losses	(45, 215, 063)	(39,616,820)
	29,547,916	31,504,621
Total equity

The above consolidated balance sheet should be read in conjunction with the accompanying notes.

Intec Ltd Consolidated statement of changes in equity

For the half-year ended 31 December 2006

	31 December2006	31 December2005
	S	$
Total equity at the beginning of the half-year	31,504,621	10,305,334
Current year expenses recognised directly in equity
Employee share options granted	829,843	98,089
Transfer to equity of value of employee share optionsexercised	(38,507)
Options issued to Macquarie Bank Limited inconsideration for entering into a finance facility
recognised in options expense reserve		513,396
Share of associates reserves accounted for using theequity method	(1,324)	34,926
Contractual rights to acquire shares granted onacquisition of controlled entity	395,402
Net expenses recognised directly in equity	1,185,414	646,411
Loss for the half-year	(5,598,243)	(5,321,435)
Total recognised income and expense for the year	(4, 412, 829)	(4,675,024)
Transactions with equity holders in their capacity asequity holders
Contributions of equity, net of transaction costs	2,499,683	500,000
Transfer from options expense reserve on exercise ofoptions	38,507
Share of associates capital raising costs reporteddirectly in equity	(82,066)
	2,456,124	500,000
Total equity at the end of the half-year	29,547,916	6,130,310
Total recognised income and expense for the half-year
is attributable to member of Intec Ltd	(4, 412, 829)	(4,675,024)
	(4, 412, 829)	(4,675,024)

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

Intec Ltd Consolidated statement of cash flows

For the half year ended 31 December 2006

	Half-year
	31 December2006$	31 December2005S
Cash flows from operating activities
Receipts from customers	23,623
Payment to suppliers and employees	(5,640,765)	(4,508,137)
Interest received	128,664	60,135
Other income	32,240	10,365
Net cash flows (from) operating activities	(5,456,238)	(4, 437, 637)
Cash flows from investing activities
Acquisition of plant and equipment	(58, 890)	(1,354,091)
Acquisition of investments in financial assets	(715, 525)
Acquisition of investment in associate	(597,061)
Net cash flows (from) investing activities	(1,371,476)	(1,354,091)
Cash flows from financing activities
Proceeds from issue of shares	108,324	500,000
Borrowings	1,250,000	1,000,000
Share issue costs	(8, 641)
Net cash flows from financing activities	1,349,683	1,500,000
Net increase (decrease) in cash held	(5,478,031)	(4,291,728)
Cash at the beginning of the financial period	6,492,968	4,544,757
Cash at the end of the financial period	1,014,937	253,029

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

Intec Ltd Notes to the consolidated financial statements

For the half year ended 31 December 2006

Note 1. Basis of preparation of the half-year financial report

The half-year financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, applicable Accounting Standards including AASB 1029 "Interim Financial Reporting" and other mandatory professional reporting requirements (Urgent Issues Group Consensus Views).

For the purpose of preparing the half-year financial report, the half-year has been treated as a discrete reporting period.

The half-year financial report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the Company as the full financial report.

The half-year financial report should be read in conjunction with the Annual Financial Report of Intec as at 30 June 2006. It is also recommended that the half-year financial report be considered together with any public announcements made by Intec during the half-year ended 31 December 2006 in accordance with the continuous disclosure obligations arising under the Corporations Act 2001.

The Company and controlled entities generated a net loss of $5,598,243 and negative cash flows from operations of $5,456,238 in the half-year ended 31 December 2006 as the Company continues to work towards the commercialisation of Intec Processes. As of balance date, the Company and controlled entities had net assets of $29,547,916 and cash balances of $1,014,937. The continuing viability of the consolidated entity and its ability to continue as going concerns and meet their debts as they fall due in future years are dependent upon:

• (i) successful sale of bulk zinc concentrate from the Hellyer Zinc Concentrate Project; and
• (ii) success in proving and commercialising the Intec Processes.

The Directors believe that the consolidated entity will be successful in the above matters and, accordingly, have prepared the financial report on a going concern basis. The Directors regularly monitor the Company's cash position and, on an on-going basis, consider a number of strategic and operational plans and initiatives to ensure that adequate funding continues to be available for the Company to meet its business objectives.

Significant accounting policies adopted during the half-year

(i) Deferred Cost of Mineral Projects

Exploration, evaluation and development cost incurred are accumulated in respect of each identifiable area of interest. These costs are only carried forward to the extent that they are expected to be recouped through the successful development of the area where activities in the area have not yet reached a stage which permits reasonable assessment of the existence of economically recoverable reserves.

Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to abandon the area is made.

When production commences, the accumulated costs for the relevant area of interest are amortised over the life if the area according to the rate of depletion of the economically recoverable reserves.

IntecLtd Notes to the consolidated financial statements

For the half year ended 31 December 2006

A regular review is undertake of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area if interest.

(ii) Inventories

Raw materials and stores, work in progress and finished goods are stated at the lower of cost and net realisable value. Cost compromises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

(iii) Joint ventures

The proportionate interests in the assets, liabilities and expenses of a joint venture activity have been incorporated in the financial statements under the appropriate headings. Details of the joint venture are set out in note 7.

Note 2. Equity securities issued

	Half-year		Half-year
	2006	2005	2006	2005
	Shares	Shares	$	S
Issue of ordinary shares during thehalf-year:Placement to institutional investors		7,246,377		500,000
Acquisition of Encore Metals NL	20,000,000		2,400,000
Exercise of options	1,341,743		108,324
Transfer from option expense reserveon exercise of options			38,507
Transaction costs relating to share
issues			(8,641)
	21,341,743	7.246.377	2,538,190	500,000

Note 3. Contingent liabilities

Since the last annual reporting date, there has been no change of any contingent liabilities or contingent assets.

IntecLtd

Notes to the consolidated financial statements

For the half year ended 31 December 2006

Note 4. Events occurring after reporting date

The Company has drawn down a further $3.1 million under the Macquarie Bank Working Capital Facility.

On 23 February 2007 Intec announced that it beneficially owns 14.56% (on a fully diluted basis) of Jervois Mining Limited (ASX code: JRV). This ownership is comprised of 197,407,783 shares and 107,200,000 options to purchase JRV shares at 1.0 cent each prior to 30 November 2007. The investment cost to date in JRV is $2.462 million. This investment has been designated as an "available for sale asset."

The financial effect of these transactions has not been brought to account at 31 December 2006.

No other event has occurred subsequent to 31 December 2006 requiring disclosure in, or amendment to, these financial statements.

Note 5. Segment information

The consolidated entity operates in one business segment and one geographical segment, only being recovery of minerals from ores in Australia.

Note 6. Business combination

a) Encore Metals NL

On 15 November 2006 Intec Ltd acquired all of the issued shares in Encore Metals NL, the holder of a mining tenement at Zeehan containing the Zeehan Slag dumps, for consideration of $2,400,000 by the issue of 20,000,000 shares.

The acquired business contributed revenues of nil and net profit of nil to the group from 15 November 2006 to 31 December 2006. If the acquisition had occurred on 1 July 2006, consolidated revenue and consolidated loss for the half year ended 31 December 2006 would have been $344,322and $5,574,348 respectively.

Details of net assets acquired and goodwill are as follows:

Purchase consideration	Б
20,000,000 shares issued at $0.12 each	2,400,000
Contractual right to acquire 20,000,000 shares at a price of 0.18 each	395,402
Total purchase consideration	2,795,402
Fair value of net identifiable assets acquired	2,795,402
Goodwill	Nil

Intec Ltd Notes to the consolidated financial statements

For the half year ended 31 December 2006

The assets and liabilities arising from the acquisition are as follows:

	Acquiree's
	carrying
	amount $	Fair value $
Deferred cost of mineral properties	192,580	2,845,402
Payables	(50,000)	(50,000)
	142,580	2,795,402

b) Intec International Projects Pty Ltd

On 2 November 2006, Intec International Projects Pty Ltd was incorporated with Intec Ltd as its only shareholder and having $2 issued capital.

Prior period

Nil.

Note 7. Joint Venture

On 1 December 2006, a controlled entity, Intec Hellyer Metals Pty Ltd ("IHM") entered into an unincorporated joint venture with Polymetals (Hellyer) Pty Ltd known as the Hellyer Zinc Concentrate Project Joint Venture ("the joint venture").

The joint venture has been formed to produce bulk zinc concentrate from the tailings dam of the Hellyer mine.

IHM has a 50% interest in the joint venture costs and output.

The interest in the joint venture has been included in the consolidated accounts in the following categories:-

	2006	2005
	$	$
Cash	470,766	$\overline{\phantom{a}}$
Receivables	240,364	۰
Inventory	1,200,663	$\overline{\phantom{a}}$
Security Deposits	100,000	۰
Payables	(799, 923)	$\overline{\phantom{a}}$
Provisions	(25,035)	٠
Net assets	1,186,835	$\overline{\phantom{a}}$

Intec Ltd Directors' declaration

In the Directors' opinion:

• the financial statements and notes set out on pages 3 to 9 are in accordance with the $(a)$ Corporations Act 2001, including:
  • complying with Accounting Standards, the Corporations Regulations 2001 and other $(i)$ mandatory professional reporting requirements, and
  • giving a true and fair view of the consolidated entity's financial position as at 31 $(ii)$ December 2006 and of its performance, as represented by the results of its operations and cash flows, for the half-year ended on that date; and
• $(b)$ there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Directors of Intec Ltd.

On behalf of the Board

Philip R. Wood

Philip R Wood Managing Director Chief Executive Officer

Sydney 28 February 2007

$12 ,$

PRICEWATERHOUSE COPERS TO

PricewaterhouseCoopers ABN 52 780 433 757

Darling Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171 DX 77 Sydney Australia www.pwc.com/au Telephone +61 2 8265 0000 Facsimile +61 2 8266 9999

Auditor's Independence Declaration

As lead auditor for the review of Intec Limited for the half year ended 31 December 2006, I declare that to the best of my knowledge and belief, there have been:

• a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
• b) no contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Intec Limited during the period.

Michelle Cluara

Partner PricewaterhouseCoopers

Sydney 28 February 2007

Liability Emited by a scheme approved under Professional Standards Legislation

PriceWATERHOUsE(COPERS ®

INDEPENDENT AUDITOR'S REVIEW REPORT

to the members of Intec Limited

PricewaterhouseCoopers ABN 52 780 433 757

Dading Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171 DX 77 Sydney Australia www.owc.com/au Telephone +61 2 8266 0000 Facsimile +61 2 8266 9999

Report on the Haif-Year Financial Report

We have reviewed the accompanying half-year financial report of Intec Limited, which comprises the balance sheet as at 31 December 2006, and the income statement, statement of recognised income and expense and cash flow statement for the half-year ended on that date, other selected explanatory notes. and the directors' declaration for the Intec Group (the consolidated entity). The consolidated entity comprises both Intec Limited (the company) and the entities it controlled during that half-year.

Directors' Responsibility for the Half-Year Financial Report

The directors of the company are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor's Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including; giving a true and fair view of the consolidated entity's financial position as at 31 December 2006 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Intec Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. It also includes reading the other information included with the financial report to determine whether it contains any material inconsistencies with the financial report. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Liab@tv linifed by a scheme approved under Professional Standards Legislation

PRICEWATERHOUSE COPERS ®

For further explanation of a review, visit our website http:/www.pwc.com/au/financialstatementaudit.

While we considered the effectiveness of management's internal controls over financial reporting when determining the nature and extent of our procedures, our review was not designed to provide assurance on internal controls.

Our review did not involve an analysis of the prudence of business decisions made by directors or management.

Matters relating to the electronic presentation of the reviewed financial report

This review report relates to the financial report of Intec Limited (the Company) for the half-year ended 31 December 2006 included on intec Limited web site. The company's directors are responsible for the integrity of the Intee Limited web site. We have not been engaged to report on the integrity of this web site. The review report refers only to the financial report identified above. It does not provide an opinion on any other information which may have been hyperlinked to/from the financial report. If users of this report are concerned with the inherent risks arising from electronic data communications they are advised to refer to the hard copy of the reviewed financial report to confirm the information included in the reviewed financial report presented on this web site.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Intec Limited is not in accordance with the Corporations Act 2001 including:

(a) giving a true and fair view of the consolidated entity's financial position as at 31 December 2006 and of its performance for the half-year ended on that date; and

(b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.

Pries mater houselooper

Michelle Chearp

M W Chiang Partner

Sydney 28 February 2007

Intec Ltd ABN 25001150849

ASX CODE: INL

Gordon Chiu Building J01 Department of Chemical Engineering Maze Crescent University of Sydney NSW 2007 Australia Telephone: +61 2 9351 6741 Email: mail@intec.com.au