SCIDEV LTD — Regulatory Filings 2004

Oct 25, 2004

Intec Ltd

ASX Code: INL 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

Telephone: +612-9351-6741 Facsimile: +612-9351-7180 Email: mail@intec.com.au Website: www.intec.com.au

26 October 2004

Companies Announcements Office Australian Stock Exchange Limited

The Hellyer Metals Project - Letter of Understanding from Smorgon Steel

Inter Ltd (ASX Code: INL) announced the results of the pilot plant campaign for the Hellyer Metals Project on 17 August 2004. The pilot plant program extended over four months at Ammtec's Sydney facility and included three steady-state campaigns solely on Hellyer tailings material and two steady-state campaigns on a blend of Hellyer tailings and zinc-bearing electric arc furnace (EAF) dust supplied by Smorgon Steel and one other steel producer.

The pilot plant campaign on a blend of Hellyer tailings and Smorgon Steel EAF dust resulted in metal extraction levels from Hellyer tailings consistent with the extractions achieved in previous pilot plant campaigns and also resulted in extraction of 95% of the zinc contained in the Smorgon Steel EAF dust which graded 31% zinc.

The co-treatment of Hellyer tailings and EAF dust forms the basis for the 'Enhanced Case' in the pre-feasibility study completed by H.G. Engineering of Toronto, Canada and released to the ASX on 7 September 2004. The financial evaluation of the 'Enhanced Case' demonstrates significant technical and economic advantages over an already very robust 'Base Case' (for the treatment of Hellyer tailings only).

INL and Smorgon Steel have held discussions regarding the latter's interest in the Hellyer Metals Project as a site for the co-treatment of EAF dust and the resultant recovery as pure metal of the significant quantities of zinc contained in this material. The discussions with Smorgon Steel have resulted in it providing INL today with the attached Letter of Understanding in relation to the Hellyer Metals Project for release to the ASX.

Yours sincerely Intec Ltd

Philip R. Wood

Philip R Wood Managing Director and Chief Executive Officer

attach

ANARANG BERTA

26 October 2004

Mr Philip R Wood Managing Director and CEO Intec Limited Gordon Chiu Building, J01 Department of Chemical Engineering Maze Crescent University of Sydney, NSW 2006

Dear Philip

NON-BINDING LETTER OF UNDERSTANDING

I refer to our joint testwork on co-treatment of Smorgon Steel's electric arc furnace dust with Intec's polymetallic Hellyer tailings, which forms the basis of the 'Enhanced Case' for the Hellyer Metals Project.

The purpose of this letter is to confirm Smorgon Steel's interest in continuing discussions with Intec for a potential participation by Smorgon Steel in the development and commercialisation of the Project.

I look forward to our continued discussions.

Yours sincerely

Neville Power Chief Executive Smorgon Reinforcing and Steel Proclucts

Smorgon Steel Reinforcing and Steel Products.
Level 1. 668 Larimer Street I	Telephone 6: 3 9673 0470
Port Melbourne 3207.	Facsimile 6: 2 9645 6371
VIC Australia

Civision of The Australian Stael Company (Operations) Pty, Ltd. ABN 89-089-426-955