SCIDEV LTD — Interim / Quarterly Report 2008

Feb 27, 2008

ABN 25 001 150 849

Gordon Chiu Building J01 Phone: 02-9351-6741 Department of Chemical Engineering Fax: 02-9351-7180 Maze Crescent Email: mail@intec.com.au University of Sydney NSW 2006 Website: www.intec.com.au Australia ASX code: INL

Companies Announcements Office 28 February 2008 Australian Securities Exchange

Half-Yearly Report

Please see attached the 31 December 2007 Half-Yearly Report for Intec Ltd (ASX code: INL).

An interview with myself discussing the half-yearly results will be available online today at Boardroom Radio http://www.brr.com.au/event/41538.

Yours faithfully, Intec Ltd

Philip R Wood Managing Director & Chief Executive Officer

ABN 25 001 150 849

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

HALF-YEARLY REPORT

31 DECEMBER 2007

Intec Ltd

ABN 25 001 150 849

Corporate directory

Directors

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

Company Secretaries

Robert J Waring Grahame Clegg

Senior Management

Brian Banister (Chief Operating Officer) Dave L Sammut (Corporate Development Manager) Andrew R Tong (Senior Research Metallurgist & Laboratory Manager)

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

Burnie Office

10-12 River Road Burnie TAS 7320 Australia Telephone: (+61 3) 6431 9867 Facsimile: (+61 3) 6431 3629

Demonstration Plant

PO Box 952 39 River Road Burnie TAS 7320 Australia Telephone: (+61 3) 6431 4687 Facsimile: (+61 3) 6431 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 EAF Dust Storage Site

433-451 Somerville Road West Footscray VIC 3012 Australia

West Australian Representative Office

Mr Stephen Stone 173 Hammersley Road Subiaco WA 6008 Australia Telephone: (+61) 418 804 564

North American Representative Office

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

European Representative Office

Mr Ken Severs 'Appletree' Frith Road, Aldington Frith Kent TN25 7HJ United Kingdom Telephone and Facsimile: (+44 1233) 721 328

Chinese Representative Office

Mr Joe Lam Suite 1410, The Hub 1068 East XingGang Road Guangzhou PRC Telephone: +86 (0)20 89236813 Facsimilie: +86 (0)20 89236040

Intec Ltd

ABN 25 001 150 849

Corporate directory

Share Registry

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

Patent Attorney

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 Börse (Code: INF).

Auditor

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

Legal Adviser

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

Intec Ltd

ABN 25 001 150 849

Contents

Directors' report	1
Consolidated income statement	3
Consolidated balance sheet	4
Consolidated statement of changes in equity	5
Consolidated cash flow statement	6
Notes to the financial statements	7
Directors' declaration	13
Independent review report	14
Auditor's independence declaration	16
Additional shareholder information	17

Intec Ltd Directors' report

Your Directors present their report on the consolidated entity consisting of Intec Ltd (Intec, INL or the Company) and the entities it controlled (the Group) for the half-year ended 31 December 2007.

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.

Trevor A Jones (Non-executive Director, appointed Non-executive Chairman 1 January 2008) Philip R Wood (Managing Director and Chief Executive Officer) James R G Bell (Non-executive Director) A John Moyes (Technical Director) Kieran G Rodgers (Finance Director and Chief Financial Officer) Kenneth J Severs (Non-executive Director) Ian W Ross (Non-executive Chairman, resigned 31 December 2007)

Review of operations

The net profit of the Group after providing for income tax for the half year to 31 December 2007 amounted to \$1,169,000 (2006 – loss \$5,598,000).

The half year continued to see steady production from the Hellyer Zinc Concentrate Project (a 50/50 joint venture between INL and Polymetals (Hellyer) Pty Ltd), albeit during an anticipated period of mining of lower grade (average 2.3% Zn) tailings from the Hellyer tailings dam. The lesser amount of contained zinc in the feedstock was offset by improved recoveries at the Intec Hellyer Mill, which resulted from ongoing efforts to optimise production rates and recovery efficiencies. These efforts included the installation of a modern control system and refurbishment of the high intensity conditioners and additional flotation cells.

The receipt in December 2007 of the required regulatory approvals for the Hellyer Residues Project marked the on-time achievement of the full complement of Project milestones for the year. That these approvals were granted in record time – only four months from application to approval – denotes the strong support for the Hellyer Residues Project from the Government, regulatory authorities and people of Tasmania.

Enhancements to the Hellyer Residues Project planning included the commitment by the Federal Government of \$11.7 million in funding for the rail infrastructure in northwestern Tasmania, specifically including the 11km spur line between the Hellyer site and the main bulk transport line.

Additionally, Intec signed a collaboration agreement with Veolia Environmental Services in December 2007. Intec and Veolia will identify Australian waste streams that are suitable as feedstock for Intec's patented hydrometallurgical technology. The wastes will be supplied to the Hellyer Residues Project.

Campaign operations were conducted at the Burnie Demonstration Plant between September and December 2007. These demonstrated the unit hydrometallurgical operations of the Intec Process as intended to be applied at the Hellyer Residues Project and yielded product samples to assist in developing potential sales agreements for the Project.

Intec was pleased to announce in November 2007 the opening of its representative office in Guangzhou, China. This reflects the increasing importance of China to Intec's business, in terms of sales of products from Intec's Hellyer Zinc Concentrate Project Joint Venture and Hellyer Residues Project, purchasing opportunities for raw materials (including feedstocks and reagents), potential project opportunities for Intec's wholly-owned hydrometallurgical technology (the Intec Process) and potential sourcing of investment funding.

Intec Ltd Directors' report (continued)

Bass Metals Ltd (ASX code: BSM, 23.2% owned by Intec) announced on October 5 2007 that diamond drill hole HLD957 had intersected 57.5 metres containing 9.2% Zn, 4.7% Pb, 94 g/t Ag and 2.89g/t Au from 181 metres downhole at the Southern Barite Zone (recently renamed the Fossey Zone), along strike from the historic Hellyer mine. During the December 2007 Quarter, BSM shareholders voted in favour of Intec participating pro rata in a placement (at 42 cents per BSM share) to maintain Intec's 23.2% holding in BSM.

Events occurring after the reporting date

No events have occurred subsequent to 31 December 2007 requiring disclosure in, or amendment to, these interim financial statements.

Auditor's Independence Declaration

An independence declaration from our auditor, PricewaterhouseCoopers, is included on page 16 of the financial report.

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

Philip R Wood Managing Director Chief Executive Officer

Sydney

27 February 2008

Intec Ltd Consolidated income statement

	Half-year ending
	31 December 2007	31 December 2006
	\$'000	\$'000
Revenue from continuing operations	14,020	21
Other income	-	323
Cost of production less changes in inventory of metal
in concentrate and work in progress	(7,800)	-
Administration expense	(776)	(633)
Demonstration plant expenses	(1,171)	(3,011)
Depreciation and amortisation expense	(63)	(1,155)
Employee benefits expense	(2,093)	(2,124)
Engineering and other consultants expenses	(28)	(31)
Finance costs	(80)	-
Occupancy expense	(230)	(125)
Research and development expenses	(148)	(132)
Other expenses	(363)	(246)
Share of net losses of associates accounted for using the equity method	(99)	(57)
Profit/(loss) before income tax	1,169	(7,170)
Income tax benefit	-	1,572
Profit/(loss) for the half year attributable to the members of Intec Ltd	1,169	(5,598)
Basic earnings/(loss) per share (cents per share)	0.21	(1.04)
Diluted earnings/(loss) per share (cents per share)	0.19	(1.04)

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

Intec Ltd Consolidated balance sheet

	Half-year ending
	31 December	30 June
	2007	2007
Current assets	\$'000	\$'000
Cash and cash equivalents	1,757	2,971
Trade and other receivables	3,380	5,230
Inventories	3,371	3,434
Derivative financial instruments	452	301
Total current assets	8,960	11,936
Non-current assets
Receivables	1,116	1,211
Exploration expenditure	2,849	2,854
Investments in associates accounted for using the
equity method	4,769	3,202
Plant and equipment	32,942	31,402
Intangible assets	10	10
Total non-current assets	41,686	38,679
Total assets	50,646	50,615
Current liabilities
Trade and other payables	3,227	2,681
Interest bearing liabilities	1,000	-
Deferred Revenue	6,637	8,289
Total current liabilities	10,864	10,970
Non-current liabilities
Deferred revenue	1,833	3,174
Provisions	2,305	2,241
Total non-current liabilities	4,138	5,415
Total liabilities	15,002	16,385
Net assets	35,644	34,230
Equity
Contributed equity	59,360	59,423
Reserves	15,904	15,596
Accumulated losses	(39,620)	(40,789)
Total equity	35,644	34,230

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

Intec Ltd Consolidated statement of changes in equity

	Half-year ending
	31 December 2007	31 December 2006
	\$'000	\$'000
Total equity at the beginning of the half-year	34,230	31,505
Current year expenses recognised directly in equity
Employee share options granted	286	830
Transfer to equity of value of employee share options exercised	-	(39)
Share of associates reserves accounted for using the equity method	22	(1)
Options issued on acquisition of controlled entity	-	395
Net expenses recognised directly in equity	308	1,185
Profit/(loss) for the half-year	1,169	(5,598)
Total recognised income and (expense) for the year	1,477	(4,413)
Transactions with equity holders in their capacity as equity holders
Contributions of equity, net of transaction costs	-	2,500
Transfer from options expense reserve on exercise of options	-	38
Share of associates capital raising costs reported
directly in equity	(63)	(82)
	(63)	2,456
Total equity at the end of the half-year	35,644	29,548
Total recognised income and (expense) for the half
year is attributable to member of Intec Ltd	1,477	(4,413)
	1,477	(4,413)

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

Intec Ltd Cash flow statement

	31 December 2007 \$'000	Half-year ending 31 December 2006 \$'000
Cash flows from operating activities
Receipts from customers	10,741	24
Payment to suppliers and employees	(8,594)	(5,641)
Interest received	125	129
Other income	39	32
Net cash inflows/(outflows) from operating activities	2,311	(5,456)
Cash flows from investing activities
Acquisition of plant and equipment	(2,903)	(59)
Acquisition of investments in financial assets	-	(715)
Acquisition of investment in associate	(1,717)	(597)
Security deposits refunded	95 -	-
Net cash outflows from investing activities	(4,525)	(1,371)
Cash flows from financing activities
Proceeds from issue of shares	-	108
Borrowings	1,000	1,250
Share issue costs	-	(9)
Net cash inflows from financing activities	1,000	1,349
Net increase (decrease) in cash held	(1,214)	(5,478)
Cash at the beginning of the financial period	2,971	6,493
Cash at the end of the financial period	1,757	1,015

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

Intec Ltd Notes to the financial statements

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

This half-year financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Accounting Standard AASB 134 "Interim Financial Reporting" and other mandatory professional reporting requirements.

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 2007. 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 2007 in accordance with the continuous disclosure obligations arising under the Corporations Act 2001.

The Group generated a net profit of \$1,169,000 and positive cash flows from operations of \$2,311,000 in the half-year ended 31 December 2007 as the Group participates in sales of zinc concentrate via the Hellyer Zinc Concentrate Joint Venture and continues to work towards the commercialisation of the Intec Processes. As of balance date, the Group had net assets of \$35,644,000, and cash balances of \$1,757,000. While the balance sheet shows negative working capital of \$1,904,000 at 31 December, the deferred revenue included in the current liabilities relates to the accounting requirement to recognise revenue in the period in which it is earned. This is a non cash item which will reduce by recognising lease and royalty revenue over the period of the Hellyer Zinc Concentrate Joint Venture. Excluding these accounting liabilities the Group has a positive working capital position of \$2,442,000 at 31 December 2007.

The Group continues to generate income through its participation in the Hellyer Zinc Concentrate Project Joint Venture, and accordingly, the Directors 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

No significant accounting policies have been adopted in the current half year.

The accounting policies are consistent with those of the previous financial year.

Note 2. Equity securities issued

	Half-year		Half-year
	2007 Shares	2006 Shares	2007 \$'000	2006 \$'000
Issue of ordinary shares during the half-year:
Acquisition of Intec Zeehan Residues Pty Ltd (formerly Encore Metals NL)	-	20,000,000	-	2,400
Exercise of options	-	1,341,743	-	108
Transfer from option expense reserve on exercise of options	-	-	-	39
Transaction costs relating to share issues	-	-	-	(9)
	-	21,341,743	-	2,538

Note 3. Segment information

(a) Business segments

The Group operates in the following industries:

(i) Metal in concentrate

Production of metal in concentrate from tailings at the Hellyer minesite. These operations are carried out by the Hellyer Zinc Concentrate Project Joint Venture in which the Group has a 50% interest. The Joint Venture commenced on 1 December 2006.

(ii) Research and Development

The Group continues to undertake research and development activities with respect to the commercialisation of the Intec Process technology including operation of the Burnie demonstration plant and the commencement of EAF dust processing at an Intec Process plant on the Hellyer Site.

(b) Geographical segments

The Group operates in one geographical segment, namely Australia.

(a) Segment reporting – business segments

2007

(i) Segment Revenue

	Metal in
	concentrate	R & D	Consolidated
	\$'000	\$'000	\$'000
Sales to external customers	12,240	-	12,240
Intersegment sales	-	-	-
Total sales revenue	12,240	-	12,240
Other revenue	1,421	210	1,631
Total segment revenue	13,661	210	13,871
Intersegment elimination			-
Unallocated revenue			149
Consolidated revenue			14,020
(ii) Segment Result
Segment profit/ (loss)	5,656	(3,224)	2,432
Intersegment elimination			-
Unallocated profit/ (loss)			(1,263)
Profit before income tax			1,169
Income tax benefit			-
Profit for the year			1,169
(iii) Segment assets and liabilities
Segment assets	37,706	8,012	45,718
Intersegment elimination			-
Unallocated assets			4,928
Total assets			50,646
Segment liabilities	13,119	629	13,748
Intersegment elimination			-
Unallocated liabilities			1,254
Total liabilities			15,002

(iv) Other segment information

Acquisition of plant and equipment	Metal in concentrate \$'000 2,820	R & D \$'000 83	Consolidated \$'000 2,903
Unallocated			-
Total acquisition			2,903
Depreciation expense	1,342	23	1,365
Less capitalised into inventory	(786)	-	(786)
Less transferred to cost of goods sold	(516)	-	(516)
Depreciation expense	40	23	63
(v) Cash flow information
Net cash inflows from operating activities	6,429	(2,753)	3,676
Unallocated			(1,365)
Total cash inflows from operating activities			2,311
Net cash outflows from investing activities	(2,725)	(83)	(2,808)
Unallocated			(1,717)
Total cash outflows from investing activities			(4,525)
Net cash flow from financing activities	-	-	-
Unallocated			1,000
Total cash inflows from financing activities			1,000
Net cash inflows/(outflows)	3,704	(2,836)	868
Unallocated			(2,082)
Total net cash inflows			1,214

(a) Segment reporting – business segments (continued)

2006

(i) Segment Revenue

	Metal in
	concentrate	R & D	Consolidated
Sales to external customers	\$'000 -	\$'000 -	\$'000 -
Intersegment sales	-	-	-
Total sales revenue	-	-	-
Other revenue	167	16	183
Total segment revenue	167	16	183
Intersegment elimination			-
Unallocated revenue			161
Consolidated revenue			344
(ii) Segment Result
Segment profit/ (loss)	(989)	(5,048)	(6,037)
Intersegment elimination			-
Unallocated profit/ (loss)			(1,133)
Loss before income tax			(7,170)
Income tax benefit			1,572
Loss for the year			(5,598)
(iii) Segment assets and liabilities
Segment assets	32,164	3,065	35,229
Intersegment elimination			-
Unallocated assets			3,377
Total assets			38,606
Segment liabilities	7,197	372	7,569
Intersegment elimination			-
Unallocated liabilities			1,490
Total liabilities			9,059

(iv) Other segment information

	Metal in
	concentrate \$'000	R & D \$'000	Consolidated \$'000
Acquisition of plant and equipment	-	59	59
Unallocated			-
Total acquisition			59
Depreciation expense	1,053	102	1,155
Less transferred to cost of goods sold	-	-	-
Less capitalised in cost of goods sold	-	-	-
	1,053	102	1,155
(v) Cash flow information
Net cash outflows from operating activities	(407)	(3,950)	(4,357)
Unallocated			(1,099)
Total cash outflows from operating activities			(5,456)
Net cash outflows from investing activities	-	(59)	(59)
Unallocated			(1,312)
Total cash outflows from investing activities			(1,371)
Net cash inflows from financing activities	-	-	-
Unallocated			1,349
Total cash inflows from financing activities			1,349
Net cash outflows	(407)	(4,009)	(4,416)
Unallocated			(1,062)
Total net cash outflows			(5,478)

Note 4. Contingent liabilities

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

Note 5. Events occurring after reporting date

No events have occurred subsequent to 31 December 2007 requiring disclosure in, or amendment to, these interim financial statements.

Intec Ltd Directors' declaration

In the Directors' opinion:

• (a) the financial statements and notes set out on pages 3 to 12 are in accordance with the Corporations Act 2001, including:
• (i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements, and
• (ii) giving a true and fair view of the Group's financial position as at 31 December 2007 and of its performance, as represented by the results of their operations and their 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 Managing Director Chief Executive Officer

Sydney 27 February 2008

Intec Ltd Additional shareholder information

The top 20 shareholders as at 18 February 2008 are as follows:

Name	Shares Held	Percentage
ANZ NOMINEES LIMITED	51,600,807	9.221
ORIAN HOLDING CORP	34,312,366	6.132
OREGON NOMINEES PTY LTD	13,000,000	2.323
ALLIANCE RESOURCES LIMITED	7,952,200	1.421
MACQUARIE BANK LIMITED	7,246,377	1.295
NATIONAL NOMINEES LIMITED	6,764,342	1.209
REACH OUT PTY LTD	5,572,460	0.996
MR WILLIAM E CONWAY	5,046,428	0.902
MR MICHAEL JOHN MCKENZIE	5,045,455	0.902
DR LEON EUGENE PRETORIUS	5,000,000	0.893
SMACER PTY LTD	5,000,000	0.893
KURRABA INVESTMENTS PTY LTD	4,454,545	0.796
MR STEPHEN STONE	4,182,316	0.747
GRIZZLY HOLDINGS PTY LTD	3,885,691	0.694
MESUTA PTY LTD	3,700,000	0.661
NEWVEST PTY LIMITED	3,600,000	0.643
WENDELINI PTY LIMITED	3,234,583	0.578
BARONA GROUP PTY LTD	3,166,364	0.566
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED	3,160,249	0.565
PLYMOUTH HOLDINGS INC	3,143,173	0.562