SCIDEV LTD — Investor Presentation 2017

Mar 21, 2017

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SciDev Ltd (ASX:SDV) – Investor Presentation March 2017

Corporate Overview

Corporate overview:	Corporate overview:
ASX code	SDV
Cash (as at 28 February 2017) ~$1.1m
Market Cap (at $0.014 per share)	$6.9m
52 week high ($/share) $0.027
52 week low ($/share)	$0.004
Shares on issue 494.8m

Major shareholders No of shares % held	Major shareholders No of shares % held	Major shareholders No of shares % held
Kieran Gregory Rodgers & Patricia Maree Rodgers	22,914,178	4.63%
PW Pembroke Pty Ltd 20,000,000 4.05%
Kathleen Frances Watt	18,416,667	3.72%
Donald Alexander Bell & Lexie Ann Bell 15,000,000 3.03%
Longwin Capital Finance	14,666,667	2.96%
Martin Edward Meyer 14,666,667 2.96%
Total 105,664,179 21.35%

Board & Management:

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Chairman: Trevor Jones

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Managing Director: Kieran Rodgers

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Non-executive Director: Daniel (Don) Cronin

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Company Secretary: Heath Roberts

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Business overview and investment attractions

SciDev, previously Intec Ltd, is an Australian company which develops, manufactures and supplies coagulants and flocculants for wastewater treatment and sludge dewatering

SciDev serves customers in the dairy, food, unconventional gas, quarrying, coal and metalliferous mining industries

The Company has a focus on the Industrial Internet of Things technology through the installation of patent pending, OptiFlox® Systems – the IIot market will exceed $12Bn worldwide by 2026

SDV also owns 100% of the high-grade, zinc-bearing, Zeehan Slag Dump

SciDev – Waste Water Treatment

Zeehan Slag Dump

Field proven provider of wastewater treatment chemicals and water clarity control systems to the Australian market

Located three kilometres south of Zeehan on the west coast of Tasmania

Broad product suite of chemicals, unique manufacturing capabilities and patent pending technology provide productivity and cost efficiencies to customers

OptiFlox® System provides real time, cloud-based, chemical dosing unit for use in coal preparation plants, dairy processing facilities and sewage treatment plants

Approximately 430,000 tonnes at 14% zinc (non-JORC)

Located on granted mining leases – ability to fast track production

Management currently reviewing production strategies to maximise asset value

Existing customer base includes participants in the coal, metalliferous mining, unconventional gas, dairy, and food manufacturing industries

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OptiFlox® System (patent pending)

Product overview and advantages

Control of water clarity through the ability to accurately measure in real-time the critical characteristics that influence water clarification performance. This is a significant problem in coal washing plants, sewage plants, dairy processing plants etc.

OptiFlox® Systems constantly measures in real-time, five characteristics of slurry feed in order to generate output from a SciDev developed algorithm (ALG)

If ALG output breaches a pre-determined set point, chemical dosing commences to lower the ALG below this set point maintaining required water clarity

Increases chemical sales for SciDev – all OptiFlox® Systems can only be used with SDV chemicals

OptiFlox® System reduces operating costs through effective and efficient chemical dosing and thus minimises productivity losses due to plant downtime

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Established customer base:

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OptiFlox® System (patent pending)

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Case Study: Peabody Energy – Wilpinjong Mine, NSW

Peabody Energy has permanently installed the OptiFlox® Mark-2 System following a six month trial

• OptiFlox® Mark-2 System was developed based on results from a six-month trail of the Mark-1 System at Wilpinjong

• Mark-2 System has a smaller footprint and enhanced operating and reporting capabilities

• Two-year contract executed for the supply of an OptiFlox® System and associated chemicals

• Generates annual revenues of $350,000 - $400,000 through licence fees and chemical sales

• Testwork underway at additional Peabody energy sites and a further two sites operated by major coal industry participants

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Coal market opportunities – local and international

• Value of lost revenue due to productivity losses from inadequate wastewater clarification in coal preparation plants estimated to range from $1.6m to $10m depending on plant throughput and coal prices

• International licensing arrangements to be pursued in 2017 – initial target countries: USA, Canada and South Africa

Country <5 mtpa 5-10 mtpa 10-15 tmpa >15 mtpa Total	Country <5 mtpa 5-10 mtpa 10-15 tmpa >15 mtpa Total	Country <5 mtpa 5-10 mtpa 10-15 tmpa >15 mtpa Total	Country <5 mtpa 5-10 mtpa 10-15 tmpa >15 mtpa Total	Country <5 mtpa 5-10 mtpa 10-15 tmpa >15 mtpa Total	Country <5 mtpa 5-10 mtpa 10-15 tmpa >15 mtpa Total
Australia	30	26	11	1	68
Canada 10 4 - - 14
China	1,390	500	100	10	2,000+
Poland 16 19 4 - 39
India	53	5	2	-	60
Russia - - - - 56
South Africa 30 30 - - 60
Turkey 40 10 - - 50
United States of America 144 75 30 20 289
Potential savings to industry per plant $1.6m $10m
Potential industry savings per annum $4.2Bn $26.1Bn

Potential benefit industry globally: $4.1Bn to 26.1Bn

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OptiFlox® System: Other Industry Opportunities

Sewage – 240 major sewage treatment plants in Australia represent significant opportunities

• Problem: Inefficiencies in chemical dosing hence higher costs as current systems are unresponsive to variations in colloidal matter entering the thickener and resultant higher energy costs in secondary treatment facilities

• SDV will target contract operators of sewage treatment plants in Australia and internationally

• Global market opportunity : >US$12Bn in chemical sales

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Dairy – 23 major dairy sites in Australia with applicable waste water treatment plants

• Problem: Variation in colloidal milk solids as product mix changes between yoghurt, milk powder, cream etc. presents industry issues. This can result in inefficiencies in chemical dosing, higher operating costs, poor utilisation of downstream biological treatment facilities and higher landfill disposal costs

• Installation of an OptiFlox® System in the dissolved air flotation unit of waste water treatment plants would improve chemical dosing efficiencies and lower operating costs

• Global market opportunity : technology licencing in Europe, USA and New Zealand following Australian market penetration

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Zeehan Slag Dump, Tasmania

• Company retains 100% ownership of Zeehan Slag Dump – 3km south of Zeehan on the West coast of Tasmania

• Estimated non-JORC resource of 430,000 tonnes at 14% grade zinc

• Mining lease and development authority granted

• Company stands to benefit from recent increase in zinc price value to be realised during 2017

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The Company is pursuing a number of options to maximise value and fast track production:

Direct sale of ore

Blending

Further beneficiation

Ore can be crushed, screened and sold directly to off-takers / marketing groups

Possibility the ore could be crushed, screened, blended with other zinc ores and then sold on to end-users

Ore can be crushed, screened and processed (leaching or roasting) to produce a more pure concentrate

Higher value for contained metal could be received

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Near Term Growth Drivers

• Further OptiFlox® System/chemical trials at other Peabody Energy sites and with other large coal industry participants

• OptiFlox® System trials to commence with major dairy industry participants

• Exploring OptiFlox® System opportunities in the sewage industry

• International licencing opportunities for the OptiFlox® System

• Value of Zeehan Slag Dump, Tasmania to be realised during 2017 – management discussing production optionality

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Disclaimer

Important Information

This presentation has been prepared by SciDev Ltd (SciDev) based on information available to it as at the date of this presentation. The information is provided in summary form and does not contain all information necessary to make an investment decision. Hence, no representation is made as to the accuracy, completeness or reliability of the information. In addition, neither SciDev nor any of its subsidiaries, directors, employees, shareholders nor any other person shall have liability whatsoever to any person for any loss, including without limitation from any fault or negligence arising from this presentation or any information supplied in connection with it.

This presentation may contain forward-looking statements and projections. These reflect SciDev’s current expectations, based on what it believes to be reasonable assumptions. SciDev gives no warranty or representation as to its future financial performance or any future matter. Except as required by law or ASX listing rules, SciDev is not obliged to update this presentation after its release, even if matters change materially. This presentation does not constitute financial advice. Further, this presentation is not and should not be construed as an offer to sell or a solicitation of an offer to buy SciDev securities and may not be relied upon in connection with any purchase of SciDev securities.

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Contact

Managing Director – Kieran Rodgers krodgers@scidev.com.au +61 (0) 438 675 510 Suite 105 48 Atchison Street St Leonards NSW 2065 Australia www.scidev.com.au

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Appendix 1: Products and services

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• Powder and liquid coagulant and flocculant products specifically designed for the treatment of wastewater treatment in the quarrying and metalliferous mining sectors

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• A range of polymers specifically developed for the dairy sector which provide a less costly, safer and greener method for treating wastewater from dairy processing plants

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• An advanced range of polymers which reduces chemical treatment costs by 20% in the sewage treatment sector

• Polymers enable cost and performance optimisation across sludge dewatering for filter presses, belt presses and centrifuges, gravitational settling in clarifiers and thickeners, and solid concentrations of waste sludge streams

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• The OptiFlox® product range comprises an extensive range of chemistry as well an online, cloudbased automated chemical dosing system for the control of water clarity and specifically designed for use in the coal mining, dairy and sewage treatment industries

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Appendix 2: Wilpinjong Mine, NSW – real-time data

OptiFlox® System - Wilpinjong Site Data 22 & 23 September 2016

	100		SciDev coagulant is automatically dosed	SciDev coagulant is automatically dosed	SciDev coagulant is automatically dosed	SciDev coagulant is automatically dosed	SciDev coagulant is automatically dosed	SciDev coagulant is automatically dosed	[at the appropriate rate]	[at the appropriate rate]	[at the appropriate rate]	[at the appropriate rate]	[at the appropriate rate]	[at the appropriate rate]	when	when	when	when	when	when	when	when	when	when	when																																																										Illustrates times when no or	Illustrates times when no or
			the actual ALG climbs above the ALG set						point.					Coagulant dosing is																																																																					minimal coagulant dosing is
ALG Value & Chemical Dose Rate	40 60 80		maintained until the ALG returns to below the											desired set point.																																																																					ALG Set Point ALG Actuals OptiFlox® Chemical Dosing required.
	0 20
		22/09/2016 06:00:01 22/09/2016 06:45:50 22/09/2016 07:32:38 22/09/2016 08:18:27 22/09/2016 09:05:14 22/09/2016 09:53:59 22/09/2016 10:41:45 22/09/2016 11:29:31 22/09/2016 12:15:21 22/09/2016 13:01:12 22/09/2016 13:47:02 22/09/2016 14:33:50 22/09/2016 15:19:41		22/09/2016 16:05:31					22/09/2016 16:51:21 22/09/2016 17:37:11					22/09/2016 18:23:01 22/09/2016 19:08:51 22/09/2016 19:54:40 22/09/2016 20:40:30 22/09/2016 21:26:19 22/09/2016 22:12:08 22/09/2016 23:06:44					22/09/2016 23:52:34						23/09/2016 00:39:22					23/09/2016 01:26:09					23/09/2016 02:16:51					23/09/2016 03:02:40					23/09/2016 03:48:29					23/09/2016 04:35:17					23/09/2016 05:21:06					23/09/2016 06:06:54					23/09/2016 06:52:43					23/09/2016 07:41:27					23/09/2016 08:27:16

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Appendix 3: SciDev & Science Developments’ Management

Trevor Jones - Chairman : 30 years experience in the finance industry in Australia, United Kingdom and the USA. During this time, he has held senior executive positions in investment funds management, stockbroking and corporate finance.

Kieran Rodgers - Managing Director: 30+ years experience in mining, minerals process technology, investment banking and finance.

Don Cronin - Non-Executive Director: 20+ years experience in the chemical industry, initially with Sandoz and later with Degussa and BASF. His most recent position was Senior Vice President – Construction Chemicals for BASF with responsibility for Europe, Middle East and Africa.

Heath Roberts – Company Secretary: Heath is a commercial solicitor with over twenty years of listed company experience. He has acted for SciDev in various capacities over the years and brings strong transactional, compliance and capital raising experience to the role.

Paul Pembroke - Technical Director: +30 years chemical industry experience. Developer of OptiFlox® System and SciDev chemical formulations

Brett Salisbury - Business Development Director : 25+ years experience in marketing, sales, business development and planning across a range of products and services for the consumer, industrial and government sectors. This includes nine years in business development and consulting roles in the water and wastewater industry sectors in Australia.

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Appendix 4: Abstract of presentation to ACPS Symposium

OptiFlox® System; Salisbury, B[1] ; Harriman, A [2] & O’Neill, J [3]

Wilpinjong Coal Pty Ltd, a wholly owned subsidiary of Peabody Energy Australia, is trialing a new technology and method to assist CHPP operations in the chemical treatment of fines tailings in conventional thickeners or clarifiers.

CHPP plants continually experience coal fines feeds that do not remain homogeneous. The types and concentrations of the particles in such slurries vary significantly as coal extraction moves from one pit to another within the mine site. This variation in the loading and composition of the material can cause ineffective chemical usage and inadequate control/clarification which cannot be solved by today’s conventional optical sensing devices commonly installed in thickeners.

Highly turbid or ‘blackwater’ events can therefore occur resulting in wash plant’s shutting down and production slowing or ceasing. Substantial losses in productivity and revenue can therefore result. The value of lost revenue due to productivity loses from inadequate wastewater clarification is estimated to range from $1.6M to almost $10M per annum depending on the size of the operation.

Developed by Science Developments Pty Ltd, this OptiFlox® technology addresses this issue by continuously measuring in real time the appropriate particle characteristics of coal tailings. As a result, this technology automatically determines and maintains the optimal coagulant dose rate required even when the characteristics of the slurry feed to the thickener continually change. Optimal flocculation conditions are thereby maintained to enable consistent and reliable clarified water to be produced.

The OptiFlox® System enables coal productivity to be maximised through minimising the number of shutdowns caused by the return of excessively turbid water to the wash plant. Further benefits in the form of increased yields, reduced magnetite consumption, improved underflow dewatering and chemical cost savings may also be realised through optimal thickener performance.

Director – Business Development, Science Developments Pty Ltd. Director – Process Engineering, Peabody Energy Australia. Senior Process Engineer, Peabody Energy Australia.

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