SCIDEV LTD — Interim / Quarterly Report 2010

Jan 19, 2011

ABN 25 001 150 849

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

Phone: 02-9954 7888 Fax: 02-9925 8110 Email: mail@intec.com.au Website: www.intec.com.au ASX code: INL

Companies Announcements Office 20 January 2011 Australian Securities Exchange

Quarterly Activities Report: Appendix 4C December 2010

On behalf of Intec Ltd (ASX code: INL, or the Company), I now attach the December 2010 Quarterly Report for Entities Admitted on the Basis of Commitments (Appendix 4C).

Highlights

• Phase 2 trials are underway at Intec's Demonstration Plant in Burnie for the spent pickle liquor recycling project, with operations and reporting are expected to be completed during the March 2011 Quarter.
• Intec been granted a mining lease approval for the mining of up to 100,000 tonnes of zinc-bearing feedstock from the Company's stockpile at Zeehan, Tasmania. This material is being crushed and blended with electric arc furnace dust to prepare a specified and Federally-approved product for export to China. The first shipment of 12,000t of product is expected during February 2011.
• The November 2009 Subscription Agreement between Intec and Green Resources expired on 31 December 2010. The concurrent technology licence agreement has been replaced by a nonexclusive project-based licence for Green Resources.
• During the March 2011 quarter, Intec will report to clients the outcomes of the Conceptual Study for the Middle Eastern zinc-lead project and the Intec Gold Process testwork for AngloGold Ashanti.
• Intec's work in relation to the Browns Sulphide deposit is progressing encouragingly via Ammtec's ongoing concentrate flotation testwork.
• On 17 November 2010, Intec concluded an agreement with JX Nippon, under which the two companies have cross-licensed each other with relevant patents, inclusive of a $5m payment by JX Nippon to Intec. Payment was received on 30 November 2010.
• On 19 November 2010, Intec made a placement of 25 million fully-paid ordinary shares at a price of 3.0 cents per share to clients of broker Taylor Collison Limited. The funds raised were used to make full payment to La Jolla Cove Investors, Inc. in full satisfaction of all obligations between the parties under the convertible note facility.
• Bass Metals has stated that its Hellyer Mine Project, from which royalties capped at A$5 million are payable to Intec at a rate of $2.50 per tonne throughput at the Hellyer mill, "The mill is ready to start the commissioning process on high grade Fossey ore which is due to commence in mid January." First royalty receipts are expected in the September quarter 2011.
• The Company's total cash available at the end of the quarter was $4,098,000.

Operations Update

Burnie Research Facility

During the second half of 2010, INL has completed construction of its demonstration plant for the Intec Process zero-waste recycling of spent pickle liquor from the galvanizing industry, which contains zinc, iron, and hydrochloric acid.

Commencing in November 2010, the Burnie plant modifications for the Phase 2 trial programme have been fully commissioned, and stable operations were achieved in December. To date, the trials have successfully produced specified iron oxide, zinc metal, gypsum, and regenerated hydrochloric acid products from approximately 5,000L of spent pickle liquor waste. A further 25,000L is in-process or in-store.

The plant is currently undergoing some equipment adjustments and will continue operations, completion of Phase 2 trials and comprehensive reporting during the current Quarter.

Frank and Vince Gucciardo, Directors of GB Galvanizing Service Pty Ltd, Intec's Victorian-based collaborative partner in the spent pickle liquor recycling project, holding a sheet of high-grade zinc produced at Intec's Burnie trial operations. GB Galvanizing is the recipient of $780,000 of HazWaste funding for the project from EPA Victoria.

As previously announced, this technology optimisation and implementation project has been generously supported by EPA Victoria with the approval of $780,000 of HazWaste funding for the research, demonstration and engineering portion of the proposed $2.85 million project. This funding is provided through a formal agreement between EPA Victoria and GBG, with Intec paid for its development work as a contractor to GBG.

In 2011, if Phase 2 has confirmed its technical and economical feasibility, Phase 3 of the project will involve the construction of a full-scale spent pickle liquor recycling project at GBG's operating site in Victoria, for the recycling of a minimum of 1,000,000 litres per annum.

Zeehan Residues

During the course of the second half of 2010, Intec has worked on a project to mine a portion of the stockpile of zinc-bearing feedstock at Zeehan. A mining lease for the extraction of 100,000 tonnes was granted in January 2011, alongside the necessary ancillary local and state approvals for the mining, transport and handling of the project materials.

The Zeehan feedstock is being crushed at a dedicated site near the port of Burnie, and then blended at the appropriate ratio with electric arc furnace (EAF) dust from Intec's Tasmanian

The first charge detonated in the Zeehan stockpile to fracture the dense material in preparation for mining.

stockpile, to create a specified zinc-bearing product for export. As with a similar blended product successfully produced during mid-2008 at Intec's Hellyer operations, the current blended product has been approved for export as a mineral product by the Federal Department of Environment, Water, Health and the Arts.

The blended product is of a comparatively low grade and thus the contracted sales terms and cash revenues are expected to be commensurately limited (and are subject to the demand risk factors associated with the current firm zinc prices). If successful, the developing project offers the opportunity of dealing productively with Intec's various zinc-bearing stockpiles. The first 12,000t trial shipment is expected to be loaded in February 2011.

Chinese Projects

Following the conclusion of investigations and development of the proposed Liuzhou Steel Project during the September 2010 Quarter, Green Resources (Asia Pacific) Holding Ltd has advanced a proposal for an alternative high-grade industrial waste project in Hunan Province.

During the interim, the Subscription Agreement between Intec and Green Resources expired on 31 December 2010. The concurrent technology licence agreement has been replaced by a nonexclusive project-based licence for Green Resources.

Other International Projects

Following successful laboratory testwork and associated desktop engineering, Intec is due to release the Conceptual Study to the client for the Middle Eastern zinc/lead project in the next few weeks. It is expected that a representative delegation from the client company will visit Intec in Australia during the current quarter to go over the outcomes of the study in detail, and to discuss the further development of the project during 2011.

Separately, Intec expects to report to AngloGold Ashanti the results of its testwork assessing the performance of the Intec Gold Process on a gold concentrate currently being commercially produced. The result will be compared to the performance of conventional technologies for the same mineral feedstock, with the intention that, provided that the Intec Gold Process results are suitably favourable, the Intec technology would be included by AngloGold Ashanti as a viable metallurgical option for its future refractory gold projects under consideration or development.

Browns Sulphide Project Testwork

During 2010 Intec progressed an application of the Intec Process to selectively extract and recover lead, copper and nickel-cobalt for the Browns Sulphide project.

As discussed in previous reports, a 10kg sample of Intec Process residue (following 95-98% selective extraction of the lead using the Intec Process) is currently being subject to testwork with Ammtec Limited to assess the flotation performance of the remaining copper, cobalt and nickel minerals.

Corporate Update

Agreement with JX Nippon

On 17 November 2010, Intec announced that it had entered into an agreement with JX Nippon Mining & Metals Corporation ("JX Nippon"). Both Intec and JX Nippon have patent portfolios in the field of halide-based hydrometallurgy for the processing of base and precious metals. Under the Agreement, Intec and JX Nippon have cross-licensed each other with these patent portfolios, inclusive of a A$5 million payment by JX Nippon to Intec. Payment was received on 30 November 2010.

Approximately $750,000 of capital was required to allow the Company to prepay in full the amount owing to La Jolla Cove Investors under the US$1.5 million convertible note dated 1 July 2010, thereby pre-empting further INL share conversions.

A placement of 25,000,000 fully paid ordinary shares at a price of 3.0 cents per share was made on 19 November 2010 to clients of stock broker Taylor Collison Limited. The funds raised were used to make full payment to La Jolla Cove Investors, Inc. (LJCI) in satisfaction of all outstanding debt and other obligations between the parties under the convertible note facility.

2010 Annual General Meeting

Intec's 2010 Annual General Meeting was held on Thursday, 18 November 2009. The text, audio and video of the meeting, as well as the ASX announcements associated with the meeting may all be found on Intec's web site:

(www.)intec.com.au/public\_panel/Investor\_Information/AGM2010.

Strategic Review

As announced during the 2010 Annual General Meeting, the Intec Board of Directors intends to undertake a full review of the operations and strategies of the Company in the light of the opportunity created by the capital received from the agreement with Nippon JX and the capital expected to be received from the Hellyer royalty.

As stated by Trevor Jones, Chairman, during the AGM: "The real imperative for us is to ensure…that there is a very sharp focus on immediate return, not long term return. … Everything is being critically analysed at the moment in terms of best utilisation of the cash resources we currently have."

Hellyer Royalty

In regard to the $5 million capped royalty payable by Bass Metals Ltd to Intec at the rate of $2.50 per tonne processed through the Hellyer Mill, Bass Metals provided an operations update in its December 2010 Quarterly report. It noted that "Refurbishment of the Mill was completed during the quarter and the commissioning process on water and waste rock commenced. The mill is ready to start the commissioning process on high grade Fossey ore which is due to commence in mid January. First concentrate sales are planned to occur in late January."

Allowing for ramp-up of the Hellyer Mill during the March 2011 Quarter, and for lag in the payment of royalties by BSM, Intec does not expect to receive meaningful cash flow from royalty payments until the September quarter of 2011.

Finance

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.

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")31 December 2010
25 001 150 849
Consolidated statement of cash flows
Cash flows related to operating activities	Currentquarter$A'000	Year to date(6 months)$A'000
1.1 Receipts from product sales and related debtors	5,332	5,563
1.2 Payments for
(a) advertising and marketing	-	-
(b) hydrometallurgical process development	(744)	(1,292)
(c) administration costs and corporate overheads	(712)	(1,224)
1.3 Dividends received	-	-
1.4 Interest and other items of a similar nature received	48	90
1.5 Interest and other costs of finance paid	(20)	(34)
1.6 Income tax rebate received	-	-
1.7 Other income	1	6
Net Operating Cash Flows	3,905	3,109
Cash flows related to investing activities1.9 Payment for acquisition of:(a) businesses	-	-
(b) equity investments	-	-
(c) intellectual property	-	-
(d) physical non current assets	(29)	(55)
(e) other non current assets	(2)	(2)
1.10 Proceeds from disposal of:
(a) businesses	-	-
(b) equity investments	-	-
(c) intellectual property	-	-
(d) physical non current assets	-	-
(e) other non current assets	-	-
1.11 Loans to other entities	-	-
1.12 Loans repaid by other entities	-	-
1.13 Other: Security Deposit Paid	(6)	(45)
Net investing cash flows	(37)	(102)
1.14 Total operating and investing cash flows	3,868	3,007

	Currentquarter$A'000	Year to date(6 months)$A'000
Cash flows related to financing activities
1.15 Proceeds from issues of shares, options, etc.	1,057	1,484
1.16 Proceeds from sale of forfeited shares	-	-
1.17 Proceeds from borrowings	-	279
1.18 Repayment of borrowings	(811)	(819)
1.19 Dividends paid	-	-
1.20 Other (provide details if material)
Share Issue Costs	(45)	(45)
Foreign Exchange Call Option	-	-
Net financing cash flows	201	899
Net increase (decrease) in cash held	4,069	3,906
1.21 Cash at beginning of quarter/year	29	192
1.22 Exchange rate adjustments to item 1.20	-	-
1.23 Cash at end of quarter/year	4,098	4,098

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	99
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

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	-	-
3.2 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	38	192
4.2 Deposits at call	4,060	-
4.3 Bank overdraft	-	-
4.4 Other - 30 day bank bills	-	-
Total: cash at end of quarter (item 1.23)	4,098	192

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: 20 January 2011

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.