ann. out, page-19

Extracts from INL's 26/11/08 Announcement relating to discussion on the Refractory Unit :

"Although Intec has already identified a number of such opportunities, it has decided to proceed with early implementation of zinc recovery from EAF dust. At current prices, Intec’s stockpile of this feedstock contains approximately A$20 million of zinc; and the early recycling of this material would also obviate the need for the current environmental storage bonds, thereby returning approximately A$4.5 million to the Company."

"Importantly, economic modelling shows that long term operation of the Refractory Unit for EAF dust recycling alone (just by itself and excluding the additional value of the other business units on the Newcastle site) fully justifies the capital costs for the acquisition of the entire site, while providing an attractive return on investment for Intec’s shareholders. As such, the early operation of the Refractory Unit represents a clear, low-hurdle value proposition for the Intec Metals Recycling Project even in the current challenging financial and metals prices climate."

Regards

SP