Looking good, hopefully all upside from here on.Re: New US...

Looking good, hopefully all upside from here on.

Re: New US licencee

A leading US company in the environmental technology market has been appointed the
new licencee for Phoslock in the USA.

Background

Purezza Marketing Inc ("Purezza") and its predecessor company were granted the
licence for North, Central and South America in 2001. Since that time Purezza has been
unable to position itself to undertake the commercialization of Phoslock in its licenced
territories.

Earlier this year IMT subscribed for additional capital in Purezza and now holds 51% of
Purezza's issued capital. IMT has on behalf of Purezza been seeking a leading US
company to become a sub-licencee to Purezza.

New Licencee

Colloid Environmental Technologies Company ("Cetco") has been appointed the sub-
licencee by Purezza. Cetco is a wholly owned subsidiary of AMCOL International
Corporation ("AMCOL").

The key features of the licence are: · Territories covered are USA and its territories including American Samoa,
Guam, Northern Mariana Islands, Puerto Rico, and the US Virgin Islands; · Term of three years; and · Payment by Cetco of a substantial licence fee. The first application of Phoslock is currently under negotiation, being the lakes at a
winery, similar to the Poets Corner winery previously treated by IMT in Australia. Small
lakes such as this can be done without any regulatory approval. Larger water bodies will
require approvals. The process to obtain government approvals has commenced. On a
Federal level, a US EPA approval has been obtained, permitting the import of Phoslock
into the US. A "General Consent" is required on a state-by-state basis to apply Phoslock
to water bodies. Consents are in the process of being obtained from the states of Illinois
and Wisconsin, the two states that Cetco has targeted as having urgent need for
Phoslock. Once General Consents are obtained in one or two larger states, most other
states grant consents with little or no further review.

About Cetco and AMCOL

AMCOL is listed on the NYSE market with a market capitalisation of over US$600
million. AMCOL is a significant growth company with revenues and profits as follows:

2004 2003 2002
Gross revenue ($US) 459m 371m 305m
Operating profit ($US) 35m 28m 19m
A significant portion of AMCOL's business involves the use of bentonite based products
for environmental purposes. AMCOL is one of the world's largest suppliers of bentonite
(Phoslock's major component is bentonite) and bentonite is used in a range of their
Environmental Division products. Details of its Environmental and Minerals Divisions are
as follows:
· Environmental ­ Key markets include environmental lining, wastewater
treatment, offshore services and heavy construction industries.CETCO is the leading global producer of geosynthetic clay liners (GCLs) used in
liquid and waste containment applications such as landfills, ponds,
wastewater lagoons, mining leach pads, wetlands, and water supply
channels. GCLs replace constructed clay liners and provide superior
performance, increased installation speed, and lower total cost than clay.

Incorporation of Phoslock into GCLs is an obvious potential enhancement
to the product.
· Mineral - AMCOL is a world-leading producer of bentonite under the
Volclay trademark. The Division is involved in mining, processing and
distributing bentonite products to various industrial and consumer markets
worldwide, including metalcasting, well drilling and cat litter.
Brett Crowley
Managing Director
0411713555