XRF SCIENTIFIC LIMITED — Director's Dealing 2008

Aug 4, 2008

ABN: 80 107 908 314 Telephone +61 8 9244 9600 Facsimile +61 8 9244 9611 sales@xrfscientific.com

5 August 2008

Iill Hewitt Australian Securities Exchange Level 8, Exchange Plaza 2 The Esplanade Perth WA 6000

Dear Ms Hewitt

XRF Scientific Limited (The Company) advises the following in response to your query received today:

• 1. The Company notes that the initial notification of the change in Directors interest was forwarded to the ASX by Mr Kenneth Baxter on 22 July 2008 by facsimile and released to market on that day. The delay in the lodgement of the formal Form 3Y Directors Interest Notice was an oversight.
• 1. The Company reviews its Directors purchases on a regular basis, and the oversight was picked up through this process. An additional reminder has been made to all Directors and the need to ensure compliance with the ASX listing rules.
• 1. The Company believes its current arrangements are adequate. Please note the most recent Director Interest Notice for Mr David Brown that was lodged within the required timeframe.

Yours faithfully,

Vance Stazzonelli Company Secretary

Head Office: 88 Guthrie Street, Osborne Park, Western Australia 6017

www.xrfscientific.com

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Mr V Stazzonelli Company Secretary XRF Scientific Limited 88 Guthrie Street OSBORNE PARK WA 6017

Facsimile: 9228 0706

Dear Vance

XRF Sclentific Limited (the "Company") Appendix 3Y - Change of Director's Interest Notice

We refer to the following:

• The Appendix 3Y lodged by the Company with ASX on 1 August 2008. $\mathbf{1}$ .
• Listing rule 3.19A which requires an entity to tell ASX the following: $2.$
• The notifiable interests of a director of the entity (or in the case of a trust, a director of the 3.19A.1 responsible entity of the trust) at the following times.
  • On 1 January 2002. $\bullet$
  • On the date that the entity is admitted to the official list. $\bullet$
  • On the date that a director is appointed.

The entity must complete Appendix 3X and give it to ASX no more than 5 business days after 1 January 2002 or the entity's admission or a director's appointment.

• A change to a notifiable interest of a director of the entity (or in the case of a trust, a director of the 3.19A.2 responsible entity of the trust). The entity must complete Appendix 3Y and give it to ASX no more than 5 business days after the change occurs.
• The notifiable Interests of a director of the entity (or in the case of a trust, a director of the 3.19A3 responsible entity of the trust) at the date that the director ceases to be a director. The entity must complete Appendix 3Z and give it to ASX no more than 5 business days after the director ceases to be a director.
• Listing rule 3.19B which states as follows. 3.

An entity must make such arrangements as are necessary with a director of the entity (or in the case of a trust, a director of the responsible entity of the trust) to ensure that the director discloses to the entity all the information required by the entity to give ASX completed Appendices 3X, 3Y and 3Z within the time period allowed by listing rule 3.19.A. The entity must enforce the arrangements with the director.

ASX Limited ABN 98 008 624 691 Level 8 Exchange Plaza 2 The Esplanade Perth WA 6000

GPO Box D187 Perth WA 6840

Telephone 61 (08) 9224 0013 Facsimile 61 (D2) 9221 2020 Internet http://www.asx.com.au

The Companies Update dated 27 June 2008, reminding listed entities of their obligation to notify ASX within 5 4. business days of the notifiable interests in securities held by each director and outlining the action that ASX would take in relation to breaches of listings rules 3.19A and 3.19B.

As the Appendix 3Y indicated that a change in the director's relevant interests occurred on 22nd July 2008, it appears that the Appendix 3Y should have been lodged with the ASX by 29 July 2008. As the Appendix 3Y was lodged on 1 August 2008, it appears that the Company may be in breach of listing rules 3.19A and/or 3.19B. It also appears that there may have been a breach of S205G of the Corporations Act by the director concerned.

Please note that ASX is required to record details of breaches of the listing rules by listed companies for its reporting requirements.

ASX reminds the Company of its contract with ASX to comply with the listing rules. In the circumstances ASX considers that it is appropriate that the Company make necessary arrangements to ensure there is not a reoccurrence of a breach of the listing rules.

Having regard to listing rules 3.19A and 3.19B and Guidance Note 22: "Director Disclosure of Interests and Transactions in Securities - Obligations of Listed Entitles", we ask that you answer each of the following questions:

• $1.$ Please explain why the [Appendix / Appendices] were lodged late.
• What arrangements does the Company have in place with its directors to ensure that it is able to meet its $2.$ disclosure obligations under listing rule 3.19A?
• If the current arrangements are inadequate or not being enforced, what additional steps does the Company intend 3 to take to ensure compliance with listing rule 3.19B?

Your response should be sent to me by e-mail at jill hewitt@asx.com.au or by facsimile on facsimile number (08) 9221 2020. It should not be sent to the Company Announcements Office.

A response is requested as soon as possible and, in any event, not later than half an hour before the start of trading (ie before 9.30 a.m. A.E.S.T.) on Wednesday 6 August 2008.

Under listing rule 18.7A, a copy of this query and your response will be released to the market, so your response should be in a form suitable for release and should separately address each of the questions asked. If you have any queries or concems, please contact me immediately

Yours sincerely.

Ť

Jill Hewitt Adviser, Issuers (Perth)