SCIDEV LTD — Interim / Quarterly Report 2009

Jul 5, 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 6 July 2009 Australian Securities Exchange

Quarterly Activities Report: Appendix 4C June 2009

On behalf of Intec Ltd (ASX code: INL, or the Company), I now attach the June 2009 Quarterly Report for Entities Admitted on the Basis of Commitments (Appendix 4C).

Highlights

• Recycling operations at the Burnie Research Facility are nearing the completion of the first commercial waste contract.
• Intec's waste recycling operations were twice recognised in June, as 'runner up' in the Tasmanian Awards for Environmental Excellence, and as a finalist for the prestigious Banksia Environmental Awards (winners to be announced on 24 July 2009).
• The A$10 million (in total) sale of Intec's Hellyer assets is near finalisation. Ministerial approval for the transfer of the Hellyer mining lease to Bass Metals was received in mid-June.
• Bass Metals has recently announced that it intends to commence commercial operations at Hellyer in mid-2010. After a specified trial period, this milestone would trigger (A$5 million maximum) royalty payments to Intec.
• The proposed partner for the acquisition of the Mayfield site has verbally indicated that it no longer expects to continue negotiations with the site Vendor. For present purposes therefore, Intec has no further way of proceeding at that site.
• The application for partial funding assistance for the galvanising industry project in Victoria was submitted on schedule in mid-May 2009. A formal response from the Victorian government is expected in the next few months.
• Intec's current due diligence programme continues to support the advancement of the EAF dust recycling project at Whyalla, South Australia.
• A feasibility study is underway for the recycling of zinc, lead and other metals from Chinese steel industry dusts at an existing project site in southeastern China. Senior Intec executives are scheduled to visit China late in July 2009, to progress technical and corporate discussions related to Chinese projects, utilising the Intec Process and related Intec technology and know-how.
• In a possible early sign of recovery for the global minerals processing industry, Intec has started to receive some new enquiries regarding the use of the Intec Process at various international locations.
• During the June 2009 Quarter, Intec successfully completed its Share Purchase Plan and associated Placement. The investment response (in excess of A$2 million) was "healthily above expectations".
• The total cash available at the end of the quarter was A$1,990,000.

Operations Update

Burnie Research Facility

After several months of campaign operations at Intec's Burnie Research Facility, the successful commercial recycling of heavy metals from the first contract of Tasmanian industrial waste sludge is nearing completion.

Following the governmental refinancing of ACL just prior to the end of the last financial year, Intec is actively pursuing an additional contract opportunity with ACL. These would continue and expand on the success of this demonstrated use of Intec's technology and know-how for superior environmental and economic outcomes.

Figure 1: Mineral product from Intec Recycling of ACL waste being delivered back to the 'mainstream' metals industry

Importantly, the outcomes of this operation were twice recognised during the June 2009 Quarter, firstly via the

Tasmanian Awards for Environmental Excellence, as part of which Intec's Burnie operation came 'runner-up' in the Small Business Sustainability category "showcasing [Intec's] innovative approaches and commitment to a sustainable future".

Intec has also been listed as a finalist for the Eco Innovation category of the Banksia Environmental Foundation Awards (www.banksiafdn.com.au). Since their inception in 1989, the Banksia Environmental Awards have earned the reputation as the most prestigious environmental awards in Australia. The awards (to be announced on 24 July 2009) acknowledge excellence, dedication and leadership in various areas that contribute to the environment and a sustainable future.

We would like to acknowledge and thank our Burnie team for this recognition that their work has brought to the Intec Process and our associated technologies.

Figure 2: The Burnie Team –from the left, Chris Mulder (Production Superintendent), Daryl Purdie (Senior Process Engineer), Mick Charles (Operator), Carlene Fishwick (Office Manager), Adam Randall (Plant Manager) and Brian Banister (Chief Operating Officer, Intec Ltd).

A$10 million Sale of Hellyer Assets

Formal paperwork for the A$10 million sale (total consideration, immediate and deferred) of Intec's Hellyer assets is expected to be completed during July 2009. Following receipt of Ministerial approval on 15 June 2009 for the transfer of the Hellyer mining lease to Bass Metals, the A$1 million mining lease bond was repaid to Intec. The additional A$3.51 million cash payment from Bass Metals is currently held in an interest-bearing trust pending the final lease transfer during July, upon which the Macquarie debt facility will be fully repaid and closed.

In a recent presentation, Bass Metals has indicated its intention of restarting the Hellyer mill in mid-2010, at which milestone (and following a royalty-exempt 'trial' tonnage) the payment to Intec of the throughput-based A$5 million cash royalty for the assets will commence.

Intec Metals Recycling Project at Newcastle

In the light of the challenges facing direct financing efforts within the preferred timeframes of the Vendor of the former EMD production facility at Mayfield, Newcastle, Intec widened its framework of possible project arrangements, and placed greater emphasis on a collaborative approach to the strategic site acquisition. The company identified potential project partners who have the resources to purchase the site directly from the Vendor. Of a number of serious potential project partners, one devoted considerable resources to its own due diligence for the site acquisition.

However, Intec has now received verbal indication that this party considers it unlikely that it will proceed with negotiations with the Mayfield site Vendor. If there is no other purchaser of the site "as is", it is likely that the Vendor will instead demolish the existing on-site infrastructure later in 2009. Intec considers this an unfortunate loss of high-quality infrastructure, affecting the NSW minerals industry, the NSW environment and NSW employment, and the local community, but at this stage we have no further means by which to pursue a project at the site.

Galvanising Industry Project in Victoria

Intec is pursuing a significant potential project for the recycling of spent pickle liquor from the galvanising industry, dependent on partial funding support from the Victorian EPA. The funding application was submitted on schedule on 15 May 2009 and, based on Intec's meeting with the Victorian EPA last week, it is expected that the HazWaste Fund Panel will deliver a formal response in the next few months.

The project will commence immediately upon confirmation of Victorian EPA funding. The total start-up cash cost of this project is approximately

Figure 3: A galvanising industry acid 'pickle' bath

A$2 million, including the costs for the design and construction of the associated commercial treatment plant, with significant resultant testwork and demonstration plant income for Intec. Thus Intec, which will additionally make 'in-kind' contributions of the use of its Burnie Research Facility, project management services and a technology licence establishment fee, is not required to fund any of the cash costs of the project, which potentially has much broader long term application, both in Australia and overseas.

EAF Dust Project at Whyalla in South Australia

Figure 4: The Whyalla plant

Following the signing of a Memorandum of Understanding with Ausmelt Limited to evaluate the potential for using Ausmelt's Whyalla smelter to treat electric arc furnace (EAF) dust and other zinc-bearing feed materials, representatives of Intec have visited the site to progress our assessment of the opportunity. Ausmelt has assembled a 'data room' at its Melbourne head office to further assist the due diligence process being carried out by Intec's technical team. To date, the site visit, data room, due diligence and all other available indicators support the continued advancement of this project.

Intec has also engaged on a per diem basis the services of Mr Jim Siemon to augment Intec's technical capabilities for the Whyalla due diligence and commissioning programmes.

Mr Siemon has over thirty five years of industry experience, including CSIRO, CRA and Rio Tinto, Pasminco, Zinifex and most recently as Principal Technologist for Nyrstar. He also has important recent experience with Ausmelt's Whyalla plant, and is thus ideally placed to assist Intec with its considerations.

Although commercial terms of a potential Whyalla transaction have not been negotiated, it should be noted that transaction and start-up costs would necessitate raising additional project capital at the appropriate time from project and industry partners.

Chinese Projects

An Intec Process project in Southern China is being progressed by Intec's Chinese Representative, Mr Joe Lam, specifically in terms of financing, feedstock supply, product sales arrangements and site selection. A feasibility study is already under way for the recycling of zinc, lead and other metals from Chinese steel industry dust, with the aim of expanding the project over time to become a comprehensive solid inorganic waste recycling centre. This project would retrofit an existing excellently-located plant in China for rapid implementation of the first phase of operations.

The commercial terms on which Intec's technology is being provided to the project, Intec's resultant free-carried project interest and our board representation in the incorporated joint venture, are currently being negotiated. Senior Intec executives are scheduled in late July 2009 to visit three proposed Chinese project sites and meet with local project proponents.

Browns Sulphide Project

Discussions continued throughout the June 2009 Quarter between Compass Resources and Hunan Nonferrous Metals Corporation with respect to the Browns Oxide and Sulphide Projects in the Northern Territory. Intec is awaiting the outcome of these discussions in the hope of restarting its programme for the use of the Intec Process at the very large Browns Sulphide Project.

Other Minerals Projects

In a possible early sign of recovery for the global minerals processing industry, Intec has started to receive some new enquiries regarding the use of the Intec Process at various international locations. While it must be emphasised that only a small proportion of such enquiries lead to viable project opportunities, the return of new incoming enquiries after a lull of several months is a welcome development.

Project Timing

The timing of the various projects is dependent on a number of factors beyond Intec's control, but an indicative framework is as follows:

• ACL waste recycling at Intec's Burnie Research Facility already underway.
• Further commercial waste recycling contract at Burnie 2009.
• Victorian spent pickle liquor recycling (subject to partial government funding) programme covering 2009 & 2010. Project income near term.
• Other Australian commercial galvanising industry plants/projects 2010 and/or later.
• Other developing waste application opportunities (including electronic waste) 2010 and hopefully ongoing.
• Ausmelt Due diligence for three months. If appropriate, implementation in late 2009/early 2010.
• First Chinese steel dust project 2010.
• Resumption of Browns Sulphide Project trial treatment programme timing unknown.

Corporate

Share Purchase Plan and Placement

Intec was pleased to announce on 19 June 2009 the successful completion of its Share Placement Plan and associated Placement. As noted to the Intec board at its meeting in June, the investment response (in excess of A$2 million) was "healthily above expectations".

The directors and staff of Intec would like to thank investors for their funding support at the attractive entry price of A$0.015 per share. This price represented a significant discount relative to the INL share trading price prior to the announcement of the SPP/Placement, and the ensuing announcements of the Victorian galvanising industry project and the Whyalla EAFD recycling project.

Although the INL share price inevitably matched the SPP issue price during the offer period, Intec now looks forward to applying its enhanced working capital to advancing our current projects.

Cash Position

The Company's cash balance at 30 June 2009 was A$1,990,000.

The Directors consider that the Company's available cash, receivables and other liquid current assets are sufficient for its immediate working capital requirements and that additional capital will be raised as required on favourable terms relative to the current share price.

Yours faithfully Intec Ltd

Philip R Wood Managing Director and Chief Executive Officer

Rule 4.7B Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Introduced 31/3/2000. Amended 30/9/2001

Name of entity
Intec Ltd
ABN		Quarter ended ("current quarter")30 June 2009
25 001 150 849
Consolidated statement of cash flows
Cash flows related to operating activities	Current	Year to date
	quarter	(12 months)
	$A'000	$A'000
1.1 Receipts from product sales and related debtors	362	7,790
1.2 Payments for
(a) advertising and marketing	(1)	(6)
(b) hydrometallurgical process development	(483)	(1,509)
(c) HZCP joint venture costs	(26)	(6,720)
(d) administration costs and corporate overheads	(779)	(5,308)
1.3 Dividends received	-	-
1.4 Interest and other items of a similar nature received	53	155
1.5 Interest and other costs of finance paid	(45)	(279)
1.6 Income tax rebate received	-	-
1.7 Other income	-	225
Net Operating Cash Flows	(919)	(5,652)
1.8 Net Operating Cash Flows (brought forward)	(919)	(5,652)
Cash flows related to investing activities
1.9 Payment for acquisition of:
(a) businesses	-	-
(b) equity investments	-	-
(c) intellectual property	-	-
(d) physical non current assets	-	(1,079)
(e) other non current assets	-	-
1.10 Proceeds from disposal of:
(a) businesses	-	-
(b) equity investments	239	2,259
(c) intellectual property	-	-
(d) physical non current assets	-	500
(e) other non current assets	-	-
1.11 Loans to other entities	-	(22)
1.12 Loans repaid by other entities	-	20
1.13 Other: Hellyer EAFD Security Deposit Paid	-	(756)
Other: Hellyer Mine Lease Security Deposit Repaid	990	990
Other: Security Deposits Repaid	-	20
Net investing cash flows	1,229	1,932
1.14 Total operating and investing cash flows	310	(3,720)

	Currentquarter$A'000	Year to date(12 months)$A'000
Cash flows related to financing activities
1.15 Proceeds from issues of shares, options, etc.	2,182	2,324
1.16 Proceeds from sale of forfeited shares	-	-
1.17 Proceeds from borrowings	-	-
1.18 Repayment of borrowings	(883)	(1,430)
1.19 Dividends paid	-	-
1.20 Other (provide details if material)- share issue costs	-	(399)
Net financing cash flows	1,299	495
Net increase (decrease) in cash held	1,609	(3,225)
1.21 Cash at beginning of quarter/year	381	5,215
1.22 Exchange rate adjustments to item 1.20	-	-
1.23 Cash at end of quarter/year	1,990	1,990

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.24 Aggregate amount of payments to the parties included in item 1.2	180
1.25 Aggregate amount of loans to the parties included in item 1.10	-

1.26 Explanation necessary for an understanding of the transactions Salaries, Directors fees and consultancy fees at normal commercial rates.

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows Nil
• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest Nil

Financing facilities available

Add notes as necessary for an understanding of the position.

	Amount	Amount
	available	used
	$A'000	$A'000
3.1 Loan facilities	3,650	3,650
3.2 Credit standby arrangements	Nil	Nil

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the	Current	Previous
consolidated statement of cash flows) to the related items in the	quarter	quarter
accounts is as follows.	$A'000	$A'000
4.1 Cash on hand and at bank	100	381
4.2 Deposits at call	1,890	-
4.3 Bank overdraft	-	-
4.4 Other - 30 day bank bills	-	-
Total: cash at end of quarter (item 1.23)	1,990	381

Acquisitions and disposalsof business entities	Acquisitions(Item 1.9(a))	Disposals(Item 1.10(a))
5.1 Name of entity
5.2 Place of incorporation or registration
5.3 Consideration for acquisition or disposal
5.4 Total net assets
5.5 Nature of business

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.
• 2 This statement does/does not give a true and fair view of the matters disclosed.

(Director/Company Secretary)

Sign here: Date: 6 July 2009

Print name: Philip R. Wood

Notes

• 1. The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• 1. The definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to this report except for the paragraphs of the Standard set out below.
  • 6.2 reconciliation of cash flows arising from operating activities to operating profit or loss
  • 9.2 itemised disclosure relating to acquisitions
  • 9.4 itemised disclosure relating to disposals
  • 12.1(a) policy for classification of cash items
  • 12.3 disclosure of restrictions on use of cash
  • 13.1 comparative information
• 1. Accounting Standards. ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.