SCIDEV LTD — Interim / Quarterly Report 2016

Apr 28, 2016

Suite 105, 48 Atchison Street St Leonards NSW 2065 Australia

Phone: 0438 675 510 Email: mail@intec.com.au Website: www.intec.com.au ASX code: INL

Company Announcements Office Australian Securities Exchange

29 April 2016

Quarterly Activities Report: Appendix 4C – March 2016

Attached is the March 2016 Quarterly Report for Entities Admitted on the Basis of Commitments (Appendix 4C) for Intec Ltd (ASX Code: INL; Intec or the Company).

Science Developments Pty Ltd

Intec owns a 50% interest in Science Developments Pty Ltd (SciDev) and holds an option to increase its ownership to 100% based on an agreed formula related to the future profitability of SciDev. SciDev is a manufacturer and supplier of coagulants and flocculants for wastewater treatment and sludge dewatering.

SciDev achieved both sales and profit growth during the quarter. In relation to the Optiflox® system, modifications were made to the system during the quarter. The system has been re-installed at Peabody Energy's Wilpinjong coal mine and is currently operating under trial conditions including the controlled dosing of SciDev coagulant product. Initial trial data indicates that the system provides both productivity and cost benefits although the quantum of such benefits require further data gathering. The Company expects to release further information on the trial during the current quarter.

During and subsequent to the quarter, SciDev personnel have visited a further four Peabody Energy coal mines in Australia. Following the delivery of a commercial proposal, which was based on laboratory testwork on samples of relevant coal slurry, a trial of SciDev coagulant has been approved at one of these mine sites and will commence shortly. In addition, development of proposals for commercial trials of SciDev product at the three other Peabody Energy sites are currently in progress. SciDev is confident that trials at either some or all of these sites will be approved. All of these sites represent opportunities for the installation of OptiFlox® systems.

The Company is disappointed that the trial of the OptiFlox® system at Wilpinjong has taken longer than originally anticipated. However, work during the quarter on a re-configuration of the system appears to have been successful. Additionally, SciDev has a number of prospective prospects in hand regarding future sales of both chemicals and OptiFlox® systems. The Company remains confident that the successful commercialisation of the OptiFlox® system will result in sales and profit growth for SciDev in both coal and other industries.

Corporate

Intec continues to investigate other acquisition opportunities, principally those either complementary or supplementary to SciDev. Intec also continues to investigate options for realising value from its wholly-owned Zeehan Slag dump.

The attached Appendix 4C, including the consolidated statement of cash flows, represents a consolidation of the cash flows of Intec, its wholly-owned subsidiaries and SciDev. The consolidated cash balance at 31 March 2016 was $0.644 million.

Intec Ltd

Kieran Rodgers Managing Director

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Name of entity

Intec Ltd

ABN			Quarter ended
25 001 150 849			("current quarter")31 March 2016
	Consolidated statement of cash flows
		Currentquarter$A'000	Year to date(9 months)$A'000
	Cash flows related to operating activities
1.1	Receipts from product sales and related debtors	408	1,210
1.2	Payments for
	(a) advertising and marketing	-	-
	(b) zinc bearing concentrate cost of sales	-	-
	(c) hydrometallurgical process development	-	-
	(d) payments to suppliers & corporate overheads	(322)	(1,065)
	(e) employee costs	(163)	(508)
1.3	Dividends received	-	-
1.4	Interest and other items of a similar nature received	4	13
1.5	Interest and other costs of finance paid	(9)	(20)
1.6	Income tax paid/receipt	-	(13)
1.7	Royalty income	-	-
1.8	Other Income	-	-
	Net Operating Cash Flows	(82)	(383)
	Cash flows related to investing activities
1.9	Payment for acquisition of:
	(a) businesses	-	-
	(b) equity investments	-	-
	(c) intellectual property	(1)	(15)
	(d) physical non-current assets	(6)	(36)
	(e) other non-current assets	-	-
1.10	Proceeds from disposal of:
	(a) businesses	-	-
	(b) equity investments	7	183
	(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	-	-
	Net investing cash flows	-	132
1.14	Total operating and investing cash flows	(82)	(251)

Appendix 4C (Continued)

Quarterly report for entities admitted on the basis of commitments

		Currentquarter$A'000	Year to date(9 months)$A'000
	Cash flows related to financing activities
1.15	Proceeds from issues of shares, options, etc.	-	-
1.16	Proceeds from sale of forfeited shares	-	-
1.17	Proceeds from borrowings	-	-
1.18	Repayment of borrowings	(9)	(31)
1.19	Dividends paid	-	-
1.20	Other (provide details if material)	-	-
	Net financing cash flows	(9)	(31)
	Net increase (decrease) in cash held	(91)	(282)
1.21	Cash at beginning of quarter/year	735	926
1.22	Exchange rate adjustments to item 1.20	-	-
1.23	Cash at end of quarter/year	644	644

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 initem 1.2	82
1.25	Aggregate amount of loans to the parties included in item1.10	-
1.26	Explanation necessary for an understanding of thetransactions
	Directors' fees are at normal commercial rates.
	Non-cash financing and investing activities
2.1	Details of financing and investing transactions which havehad a material effect on consolidated assets and liabilities butdid not involve cash flows	Nil
2.2	Details of outlays made by other entities to establish orincrease their share in projects in which the reporting entity	Nil

has an interest

Appendix 4C (Continued)

Quarterly report for entities admitted on the basis of commitments

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 1 250 228 3.2 Credit standby arrangements Nil Nil
  • 1. Trade finance facility

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in theconsolidated statement of cash flows) to the related items in theaccounts is as follows.	Currentquarter$A'000	Previousquarter$A'000
4.1Cash on hand and at bank	85	48
4.2Deposits at call	59	187
4.3Bank overdraft	-	-
4.4Term Deposits	500	500
Total: cash at end of quarter (item 1.23)	644	735

Acquisitions and disposals		Acquisitions	Disposals
of business entities		(Item 1.9(a))	(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.

Sign here: Date: 29 April 2016

(Director/Company secretary)

Print name: Kieran Rodgers

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	-reconciliationofcashflowsarisingfrom
	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.