XRF SCIENTIFIC LIMITED — Earnings Release 2011

Jul 26, 2011

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27 July 2011

Profit Upgrade and Preliminary 2011 Results

XRF Scientific Ltd (“XRF” or “The Company”) is pleased to advise a significant upgrade to its guidance for the 2011 financial year, based upon the preliminary unaudited results. XRF previously provided guidance for Profit Before Tax for the 12 months to 30 June 2011 of between $2.6‐$3.0m. Based on the preliminary unaudited results, the Company expects Profit Before Tax of approximately $3.7m.

Preliminary Unaudited Results vs Guidance

Year ended 30 June 2011	2011 Guidance	2011 Preliminary Unaudited Results	Increase (%)
Revenue	$17‐18m	$20.3m	12.7%‐19.4%
Net Profit Before Tax	$2.6‐3.0m	$3.7m	23.3%‐42.3%

The result includes a write‐down of $330k in goodwill in the carrying value of the XRF Technology division, as newer technologies, such as the Company’s electric fusion systems are adopted. Therefore, on a normalised basis, the Profit Before Tax for the 12 months to 30 June 2011 is expected to be approximately $4.0m.

Key trends compared to FY2010 are:

• 63% increase in sales revenue to $20.3m (2010: $12.5m)

• 10x increase in EBIT to $3.8m (2010: $383k)

• 7x increase in Net Profit Before Tax to $3.7m (2010: $522k)

These preliminary results remain subject to final audit confirmation, whereupon full details of the results will be released to the market via the Appendix 4E.

The group experienced robust sales growth throughout the second half of the year, which was generated by increasing strength in the mining sector and consequent demand for the Company’s products.

Managing Director Terry Sweet commented that “The Board is extremely happy to provide shareholders with an upgrade to guidance for the 2011 financial year. The result was achieved on the back of continued growth in sales and efficiencies in the Company’s operations. Laboratories have been recently reporting an increased number of samples being processed through their operations, which should flow through to sales of XRF’s products, and in particular our consumable items.”

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Please direct any inquiries to:

Terry Sweet Managing Director terry.sweet@xrfscientific.com

Vance Stazzonelli Chief Financial Officer vance.stazzonelli@xrfscientific.com

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 specialized markets.

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