XRF SCIENTIFIC LIMITED — Capital/Financing Update 2012

Apr 26, 2012

==> picture [570 x 124] intentionally omitted <==

27 April 2012

New Automation Joint Venture XRock Automation Pty Ltd

The Board of XRF Scientific Ltd (“XRF”) are pleased to announce that they have reached an agreement, in principle, with Scott Technology Ltd (“Scott”), to enter into a joint venture to develop and promote automated systems for the Mining Sector. Scott, via its 100% subsidiary, Rocklabs Ltd (“Rocklabs”) is a supplier of crushing equipment to laboratories that is used in the sample preparation process. The joint venture will be owned 50/50 and will be known as XRock Automation Pty Ltd (“XRock”).

XRF and Scott are both experiencing an increased demand for automated systems and by combining our underlying resources and expertise into an offering, XRock will provide joint marketing and promotion, along with service and spare parts on a much larger scale than either company can provide.

XRock will become the Australian marketing, sales and service arm for Rocklabs Ltd and will combine XRF Technology’s product range with Scott’s to provide a turn‐key full spectrum sample preparation service to the mining, commercial laboratory and university sectors. XRF and Scott will each contribute equity of $100,000 each to fund the joint venture.

Rocklabs are leading providers of crushing equipment that is used in the x‐ray fluorescence process of mineral analysis. Access to each party’s technologies allows for the provision of “end to end” automated and customised solutions in sample preparation, particularly for analysis conducted in iron ore, nickel, copper and other base metals exploration and mining.

The extensive experience that Scott has in automation will provide new and innovative methods of sample preparation automation, and in other processes conducted in mining laboratories. Scott is highly regarded in their field, and XRock will provide XRF access to their expertise to leverage off this organic growth opportunity.

XRF's Acting CEO, Vance Stazzonelli, said "The JV with Scott Technology will allow XRF to harness its newly developed automated furnace systems and allow us to provide customers with an enhanced offering. We believe the joint venture will ultimately result in increased sales from XRF's Technology division."

Please direct any inquiries to:

Vance Stazzonelli Acting Chief Executive Officer

Tel: +61 8 9244 9600 vance.stazzonelli@xrfscientific.com

==> picture [595 x 69] intentionally omitted <==

About XRF Scientific:

XRF Scientific Limited is an Australian listed company (ASX: XRF) based in Perth, Western Australia. XRF manufactures equipment and chemicals, which are distributed to laboratories in Australia and overseas and used in the preparation of samples for analysis.

XRF has manufacturing, sales and support facilities located in Perth and Melbourne plus a global network and distributors. The Company has representation in the United States, South America, Canada, Europe, Africa, the Middle East and Asia and has a customer base that includes multinational blue‐chip customers such as:‐ BHP Billiton, Rio Tinto, Iluka, Xstrata, Nickel West, Robe River Iron Associates, Alcoa, CSIRO, Intertek, PT Inco, Pilbara Iron, Amdel/Ultratrace, SGS, Campbell Brothers.

XRF’s technology is used to measure the composition and purity of materials and is mainly applied in industrial quality control and in process control for manufacturing processes in industries such as metals and mining, construction materials, chemicals and petrochemicals.

XRF products help customers to improve product quality and performance, increase productivity and yield and reduce downtime and waste. Its businesses have established positions in their specialised markets.

About Scott Technology and Rocklabs:

Scott Technology Ltd is a New Zealand listed company (NZX: SCT) based in Dunedin, New Zealand. Scott is an engineering Company that specialises in the design and manufacture of automated production and process machinery.

The company operates in New Zealand from Dunedin, Christchurch, Wellington and Auckland. Its permanent sales and service offices are located in Dallas‐USA, Bergamo‐Italy, Shanghai‐China, Qingdao‐ China and Sydney‐Australia.

Rocklabs Ltd is a fully owned subsidiary of Scott Technology Ltd, based in Auckland, New Zealand. Rocklabs designs and manufactures laboratory sample preparation equipment primarily for use within the mining industry. Rocklabs exports 98% of its manufactured equipment, with key markets being North and South America, Russia and the former Russian States, South America and Australia.

Rocklabs have traditionally manufactured standalone equipment which is used to crush, split and pulverize a representative sample so that is can then be analysed for its metal content. Following Scott’s acquisition of Rocklabs in 2008, Rocklabs have leveraged off Scotts’ expertise to extend the Rocklabs range of products and automated systems offered. Large automated systems have been previously delivered to the United States, Chile and Australia.

Page 2 of 2