Ann: Appendix 4C , page-2

Quarter Highlights*EPA Victoria has approved milestone funding of the Phase 2 commercial trials for the galvanising industry project. The focus of activity at Intec's Burnie Research Facility continues to be the preparation for this work.

*Following successful completion of Phase 1 continuous pilot plant trials, Intec has now received all scheduled payments for this phase of the $2.85 million project, under the $780,000 EPA Victoria HazWaste funding support agreement.

*Intec's China based associate, Green Resources, has continued to advance its feasibility studies in respect of industrial solid waste treatment projects in China. It is currently assessing relative predicted returns for the proposed Liuzhou Project against an alternative site in Hunan Province. In a July update to Intec, Green Resources stated that "the decision will be made in three months. The first Green Resources commercial project is scheduled to be commenced by the end of the year".
*Intec's heavy metal recycling operation at Burnie won the "Environmental Solution of the Year Award" at the 7th Annual Manufacturers' Monthly Endeavour Awards, and was a finalist for the July 2010 "Sulo Innovation in Sustainability Award".

*Building on this success, Intec has received samples of mainland electroplating waste to further examine the possibility of adding a low-cost 'bolt-on' chromium recovery capability to the existing Burnie recycling operation.

*Intec has continued to advance its proprietary application of the Intec Process to unlock the value of the Browns Sulphide bulk concentrate, in respect of which technology the company retains full intellectual property rights.

*The 30 June 2010 Extraordinary General Meeting of shareholders approved two resolutions in favour of the La Jolla Cove Investors convertible notes, as well as the consolidation of Intec's share capital on a 1 for 10 basis. This consolidation was completed on 15 July 2010.

*Bass Metals has stated that its Hellyer Mine Project, from which royalties capped at A$5 million are payable to Intec at a rate of $2.50 per tonne throughput, remains on schedule "to be in production and selling concentrates in the December Quarter of this year".
*The Company's total cash available at the end of the quarter was A$192,000.

More info on the most important project for INL
The most recent update from Green Resources (16 July 2010) states that: "The feasibility study of the industrial solid waste treatment project(s) in China is being finalized.

The validation test work on treating 50,00tpa of furnace dust, as a part of the feasibility study is successfully completed, and extractions of 98% zinc, 98% lead and 93% iron are being achieved."

The update goes on to state that: "The extracted metals are recovered in value-added saleable products meeting local end-user requirements with the local industrial specifications. In addition, fine and high-carbon content product is recovered from the leach residue, leaving behind lowcarbonand silica-rich materials for other recycling applications. During the treatment process, high grade calcium sulphate is also produced for either direct sale or further processing into an effective waste water treatment reagent and hence a zero solid waste solution becomes a reality."