china update

To: ASX Announcements
Date: 20 April, 2004

Re: China Update

Pond Treatment

Phoslock was applied to a pond adjacent to Lake Dianchi in February, 2003. The Lake Dianchi Authority has confirmed the success of the treatment with the level of phosphorus staying at an acceptable level for the entire period. This confirms one of the critical attributes of Phoslock - it forms an inert compound when combined with phosphorus and does not re-release the phosphorus in the environment.

River Treatment

River treatment commenced 10 days ago on a section of a river near a sewage treatment plant (“STP”) discharge point. The untreated water had a measure of 7.166 ppm soluble phosphorus. The phosphorus level was reduced to .989 ppm after fifteen minutes. A secondary application reduced the level to 0.001 ppm.
STP

Phoslock treatment at a Kunming STP has been confirmed and a Phoslock process will be included in the retrofitting engineering designs of another.

Other Chinese Markets

Professor Sun Peshi of Kunming University Environmental Department is adviser to EPA’s throughout China. Professor Sun was appointed by IMT’s Chinese joint venture partner, Yalong (a Government owned entity), to become an adviser on Phoslock issues. His work has resulted in requests from EPA’s in Shenzhen, Guangzhou and Wuhan to commence planning for Phoslock treatment once production of granules has commenced. All three EPA’s have identified severe damage to rivers, lakes and reservoirs caused by high nutrient inflows from agricultural sources (fertilisers and effluent from cattlesheds and piggeries) and have trialed other remedial technologies from around the world without success. For further details, please contact Brett Crowley, CEO, on 02 96980622.