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Dear Sir / Madam Tox Free Solutions Limited – Appendix 4C, Unaudited Half Year EBITDA Result and Financial Year 30 June 2006 EBITDA Forecast. Half Year Result: Tox Free Solution Ltd (“Tox Free”) is pleased to announce an unaudited half yearly EBITDA of $2,011,340. The result to 31 December 2006 was based on sales of $4.96 million, compared with budgeted sales of $4 million. Annualising the result achieved for the first half of the year substantially exceeds the previously announced forecast EBITDA for the financial year ended 30 June 2006 of $3,000,000. It should be noted that the half yearly result excludes any contribution from the recently acquired Delvex operations. The integration of Delvex with Tox Free operations is progressing smoothly, particularly in relation to Tox Free’s Kwinana operations. Tox Free is already seeing the benefits of synergies between the closely aligned services each facility offers. Underpinning future revenue and continued growth, both the Port Hedland and Kwinana operations of Tox Free experience high levels of ongoing demand for their services. Tox Free has previously announced the potential upgrade of the Port Hedland high temperature kiln to improve efficiency and environmental performance. The Company has now engaged engineers to carry out a detailed study and design specification for the upgrade, prior to the commencement of work. The Kwinana upgrades previously announced are due to be completed by the end of February 2006, with the upgrades expected to commence contributing to revenue in the June quarter of 2006.

Considering Tox Free’s half yearly result, expected contribution to earnings from the Delvex operations, increased revenues from plant upgrades combined with continued high demand for each division’s services, the Company expects to significantly exceed the 2006 financial year forecast previously released in August 2005. Tox Free Directors now forecast EBITDA of $4,350,000 for the 2006 financial year. This excludes the benefit of any upgrades or internal growth at its existing operations, and does not allow for possible increases from additional acquisitions opportunities the Company is continually assessing. Cash Reserves: The attached Appendix 4C shows a cash balance at 31 December 2005 of $3,055,000. This cash balance does not include $740,522 which was due from customers during December, which was not received until early January 2006. The balance is also after $400,000 of capital expenditure during the half year. This capital expenditure is part of the $750,000 previously announced to the market. The Company anticipates that on an adjusted basis, as at 31 January 2006 it will be debt free and have cash reserves of approximately $4,000,000. This balance considers earnings during January from its operating divisions (including the recently acquired Delvex operations), the full payment for the Delvex acquisition, repayment of all debt and the exercise of all options (TOXO) expiring on 31 January 2006. This cash reserve provides the Company with a sound base from which to consider further acquisition opportunities and additional upgrades to its facilities to enable the continued growth in revenue and resultant profits. Yours faithfully TOX FREE SOLUTIONS LIMITED