INTERVIEW WITH MR. PHILIP WOOD, MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER OF INTEC LTD (INL)

“Annual Report”

http://www.brr.com.au/event/51917

WEDNESDAY, OCTOBER 1, 2008, 10:30 AM.

            BRR    This is Boardroom Radio and today we’ve got Philip Wood, Managing Director and CEO for Intec Ltd on the line.

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                        How’re you going there, Philip?

            INL       Very well, (inaudible). Thank you very much.

            BRR    Intec’s 2008 Annual Report came out overnight, can you give us some of the

15                    highlights?

            INL       Certainly, it’s been a challenging year for Intec as has been evident by the necessity after the completion of the financial year to suspend operations at our Hellyer Zinc Concentrate Project. That has been the dominating activity of the company over the last 12 months. However, during that time, our

20                    operations at Hellyer improved at all measurable levels, however, we were adversely affected by plunging Australian dollar denominated zinc and lead prices and by a relentless rise in mine site cost inputs and the Board, therefore, reluctantly had to come to the view in early September that the operation there was no longer sustainable in the current price regime, and so

25                    we have suspended operations at Hellyer. Having said that, the mill is first class by any standards and remains ready to commence re-operation and there are a number of potential feedstocks to which it might be applied inclusive of the tailings, although the tailings alone would only be reactivated as a program in a much higher price regime. We’ve also got the success

30                    nearby, our Bass Metals in which Intec owned a 23.2% stake and they have just, yesterday in fact, announced the first JORC based resource delineation of the Fossey Zone and combined with the remnants of the Hellyer Mine and also the Que River that it got something in the order of 2.5 million tonnes of medium to high-grade ore, and we view that development by Bass Metals

35                    very positively. So, whilst Hellyer has been difficult, there remains ample scope for optimism going forward.

                        Turning to our technology, our principal focus has been on developing the Intec process in relation to the Intec Metals Recycling Project. We received

40                    our first reports from GHD Australia earlier this calendar year and have since been revisiting the flowsheet with a view to improving the economics beyond of what was substantially attractive economics at that time and that has also recently been supplemented by an opportunity in relation to the Metals Recycling Project that we are currently developing as far as thus we possibly

45                    can.

                        Also in the last year, we have done substantial (inaudible) testwork or a Compass Resources in particular, of which, I’m a Board Member, and also for other third parties notably in Russia, in Sardinia, and in Iran and all of those highlighted in our Annual Report.

                        The bottom line for the Annual Report has been a relatively modest operating

5                      profit for the year. However, there have been impairments to the carrying value of both our stake in Bass Metals. The share price of which has declined in line with a general market decline and also the impairment in the value of the Zeehan slag residues which also have been used in value in line with the decline in metal price. So, what was a marginal operating profit for

10                    the year and has spent into an overall accounting loss of $4 million. The other corporate matter of interest during the year was of course a very successful, albeit small scale, a renounce of a right to do capital raising into June which was (inaudible) 30th of June financial yearend, and that I think, gives you a summary of the Annual Report.

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            BRR    Well, with the 2008 Annual Report aside, what can shareholders look forward to in the coming year?

            INL       Well, as I’ve said earlier, the assets at Hellyer remained in our view of considerable strategic and operational value, the activities of Bass Metals

20                    continue to excite us and we view the next year, both at Hellyer and in relation to Bass Metals activities, very positively. We can only hope for a more positive metal price regime than we’ve had in the past year.

                        In terms of our technology, as I’ve said earlier, we are currently pursuing an

25                    opportunity in relation to the Metals Recycling Project which I am hopeful of being able to publicly announce during this month and I think that the market will see that as a very positive step forward in relation to the commercialisation of our technology. You’ll see in our Annual Report, we actually focused quite strongly on the merits of our technology and you know,

30                    as we enter into the 21st century, I think it’s timely to remind all of our stakeholders that Intec is the world leader in chloride hydrometallurgy that we have strong strategic partnerships with company such as Outotec and that our technology holds every prospect of being commercialised successfully, both in Australia and overseas, notably in China where we have a

35                    representative office that is highly active at the moment and applied in relation to a wide range of feedstocks residues and applied for the production of a wide range of bass and precious metals. So, we look forward this year to continue the dynamic growth in terms of the Intec process itself and in terms of our operating assets.

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            BRR    Thank you, Philip.

                        Investors should note that Boardroom Radio will be broadcasting live audio from Intec’s Annual General Meeting this year. To receive news about this

45                    event and other updates about Intec’s activities, listeners should register for this free service at Intec’s website, www.intec.com.au.

                        Thank you again, Philip Wood, Managing Director and CEO for Intec Ltd.     

INTERVIEW CONCLUDED

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