SCIDEV LTD — M&A Activity 2004

May 16, 2004

Intec Ltd

Superior and Sustainable Metals Production

Gordon Chiu Building J01 Department of Chemical Engineering Maze Crescent University of Sydney NSW 2006 Australia

17 May 2004

Companies Announcements Office Australian Stock Exchange Limited

Intec Agrees to Acquire Encore Metals NL

Intec Ltd (ASX Code - INL) advises that it has entered into an agreement with the four shareholders of Encore Metals NL (Encore) to acquire all of the issued shares of Encore, subject to due diligence by INL. Encore is an unlisted public company whose only asset is a 100% interest in the Zeehan Slag Dump located near the town of Zeehan in western Tasmania. The Zeehan Slag Dump represents residue material from lead smelling activities carried out over a century ago and contains 450,000 tonnes of material grading 13.4% zinc, 1.7% lead, 54 g/t silver and 50 g/t indium. At current metal prices and exchange rates the in-situ metal value of the slag dump is approximately A$118 million.

Location of the Zeehan Slag Dump in relation to the Hellyer Metals Project

Telephone: +612-9351-6741 Facsimile: +612-9351-7180 Email: mail@intec.com.au Website: www.intec.com.au INL proposes to blend the slag material with Hellyer tailings to provide additional feed material for INL's Hellyer Metals Project, which is located approximately 90 kilometres to the northwest via the most suitable road through Henty. Preliminary indications, based on the results of initial laboratory testwork, are that the addition of Zeehan slag material to the Hellyer Metals Project will both provide technical and significant additional economic benefits to the enlarged Hellver Metals Project. Further detailed laboratory testwork is expected to confirm the results of the initial laboratory program as part of INL's due diligence on this transaction.

The Zeehan Slag Dump

The consideration for the acquisition of Encore is the issue of 4.5 million fully paid ordinary INL shares (escrowed to 31 December 2004), the cash payout of existing Encore trade creditors (capped at A$30,000) and the right to acquire a further 4.5 million fully paid ordinary INL shares at an issue price of A$0.15 per share. The right to acquire these additional INL shares at A$0.15 will only arise at the time at which Zeehan slag material commences to be processed at the Hellyer Metals Project.

The Encore acquisition is scheduled to be completed by 30 June 2004 and is subject to:

• 1. The receipt of all regulatory and/or statutory approvals required for the transfer of the ownership of Encore to INL: and
• Completion to INL's satisfaction of technical and corporate due diligence. $2.$

INL is also progressing discussions with the owners of several other Tasmanian base metal resources in relation to the potential toll treatment of material at the Hellyer mill and/or the provision of additional feedstock for the Hellyer Metals Project.

Yours sincerely

Philip R. Wood

Philip R Wood Managing Director and Chief Executive Officer