SCIDEV LTD — Regulatory Filings 2007

Jan 21, 2007

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

Phone: 02-9351-6741 Fax: 02-9351-7180 Email: mail@intec.com.au Website: www.intec.com.au ASX code: INL

Companies Announcements Office Australian Stock Exchange

22 January 2006

Hellyer Zinc Concentrate Project Update

Intec Ltd (ASX code: INL) is pleased to announce that the first shipment of bulk zinc concentrate from the Hellyer Zinc Concentrate Project ('HZCP') has been confirmed for Saturday 27 January aboard the "M.V. Mount Rainier". Payment for 90% of the contained zinc value to the Intec/Polymetals Joint Venture will follow 10 days after the vessel's departure from Burnie port (pictured above).

The shipment will include all of the HZCP's concentrate production that has been transported to Burnie as of that date, an estimated total of over 5,000 (wet) tonnes of bulk zinc concentrate, with an average grade of $38%$ Zn, $8.7%$ Pb and $228gt$ Ag.

This first 5,000t shipment is almost two weeks later than previously anticipated due to the feedstock zinc grades being initially lower than expectation, thus slowing production output for the same zinc grade of product concentrate.

The average tailings feedstock zinc grades dropped initially due to the diluting effects of lowergrade tailings near the surface of the Hellyer tailings dam becoming mixed with the targeted highergrade materials lower down during the early stages of the dredging operations.

While the early intent has been to seek deeper, higher-grade tailings via more directed dredging, practical experience has demonstrated that wider cuts from the surface to the bottom of the tailings are operationally preferable. However, as deeper materials are accessed, these are initally diluted by lowergrade materials settling under gravity into the collection zone.

The short term effect has been that the feedstock being received at the Intec Hellyer Mill has been lower zinc grade on average (approximately 2.1%, versus the average zinc grade throughout the entire tailings dam of $2.8%$ - of which the HZCP management remains fully confident).

This temporary effect will improve as the ratio of the cutting face width against the height of the tailings resource increases. The presently improving tailings feedstock zinc grade is now becoming increasingly apparent for this reason.

Given its temporarily lower-grade feedstock, the output rate of the mill was necessarily reduced to maintain the saleable grade $(38%)$ of the bulk zinc concentrate product, hence the delay of a few weeks in our first shipment.

More importantly, the mill and flotation circuit have been operating to expectation. The average daily throughput has continued to increase, now reaching 100% of the planned rate. Recoveries are good despite the lower feedstock grade, and process optimisation continues to yield improvements in this area.

Yours faithfully, Intec Ltd

Philip R. Wood

Philip R Wood Managing Director & Chief Executive Officer