Imdex : Letter to Shareholders

Imdex News

Shareholder Newsletter FY17 / August 2017

Dear shareholders,

I am pleased to provide our shareholder newsletter for the 2017

financial year (FY17) and the final edition of Imdex News in this format.

Following a survey with many of our majority shareholders and a review of our investor communications strategy, we made the decision to provide you with more timely information via our new website and LinkedIn.

IMDEX's LinkedIn pageincludes all of our latest operational news, case studies, images and videos - it also provides notifications of corporate events and market releases.

We will continue to publish our half-yearly Investor Fact Sheet,

which summarises: financial results; our REFLEX rental fleet on hire; shareholder analysis and other key company data. The latest Investor Fact Sheet can be found within the Investor section of our website.

FY17 Results & Highlights

As mentioned in our FY17 results announcement, we had a successful year and remain optimistic about conditions within the global minerals industry - a summary of our financial results and operational highlights are set out below:

Financial

Revenue from continuing operations

$176.2 million, up 23% (FY16: $143.3 million);

EBITDA from continuing operations

$31.5 million, up 55% (FY16: $20.3 million¹);

Net profit after tax of $3.7 million (FY16: a loss of $56.2 million)

Operating cash flow from continuing operations (excluding financing costs) of $20.7 million (FY16: normalised $10.0 million), up 107%;

Strong balance sheet - as at 30 June 2017, net assets increased by $44.2 million and net cash totalled $12.3 million;

Successful capital raising - as announced to the market 5 September 2016; and

Secured a new $30 million Bankwest facility on attractive terms and paid out the Bain Capital facility in full.

Operational

Sale of wholly owned oil and gas businesses - 100% minerals focused business;

Early stages of minerals industry cyclical upswing - increased activity in all major mining regions globally;

42% increase in the number of REFLEX instruments on hire as at 30 June 2017 compared to 30 June 2016;

Continued investment in research and development resulting in the commercialisation of new technologies;

Commenced internal digital transformation project; and Board renewal including the appointment of a new Non-

Executive Chairman (1 July 2016) and Non-Executive Director (6

February 2017).

Kind Regards

Bernie

Imdex Managing Director

Key Areas Of Focus For FY18

For the balance of FY18 we will continue to focus on enhancing the safety of our operations and achieving and exceeding our financial targets. We are also committed to delivering sustainable earnings growth for our shareholders, while increasing our capabilities to deliver our vision.

Morgan Stanley Emerging Companies Conference

On 14 June, we presented to a number of institutional investors at the Morgan Stanley Emerging Companies Conference, held in Sydney (Australia). This was a great opportunity to raise

our company's profile within the investor community. Our presentation can be accessed via the link below.

Morgan Stanley Presentation

Barrick Lab-At-Rig Trial

A Lab-at-Rig trial was conducted at Barrick's site in Nevada, USA. The project was the first official trial of the full Lab-at-Rig system outside of government surveys - it was also the first trial outside of Australia.

The eight week deployment was a joint AMC/REFLEX operation with multiple products being used on site including: an AMC SRU; an AMC BOS™; an AMC designed mud program to maximise fluid recovery in highly fractured ground; and the REFLEX Lab-at-Rig®. Our REFLEX EZ-GYRO, REFLEX EZ-GAMMA and IMDEXHUB-IQ were also used during the trial.

2017 Annual General Meeting

Our AGM will be held on Thursday 19 October at 11:00 am (WST) at the company's Head Office - 216 Balcatta Road, Balcatta, Western Australia.

Our Board and leadership team will be available to discuss IMDEX's performance, operations and

technologies, so we hope to see many of you there.