SciDev : Quarterly Report and Appendix 4C_March 2021

1 All Q3 FY21 financials are on a SciDev Limited standalone basis and include no contribution from Haldon industries.

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to the global polyfluoroalkyl substances (PFAS) problem which is exciting for the Company. Through the Haldon transaction, SciDev now have immediate scale in the water treatment vertical complementing our mining, oil & gas and infrastructure businesses.

SciDev's organic business development continues, the contract with SLN/Eramet and trial with Fortescue extends our presence with blue-chip mining companies. In oil & gas, our team continue to engage with major global exploration and production companies and the provision of professional services and know-how direct to customers continues to deliver growth.

The whole team at SciDev is pleased to see our first material Social project progress where we can improve the learning outcomes of over two hundred students in the Great Victorian Desert through our Schools Plus Programme. We made significant headway in the March quarter on our corporate programmes with Board rejuvenation underway and governance projects progressing.

With our combination of blue chip global growth opportunities, new team members and existing highly skilled work force the growth outlook for SciDev remains exciting for the remainder of 2021 and beyond.'

Financial Review

Following on from a record December quarter, SciDev delivered record cash receipts for the March quarter, reflecting strength across all the company's four sectors.

Overall, group revenue increased 25% on the December quarter following continued sales growth in the Oil sector of 21% and the recommencement of major project activities in Construction. Revenue in Mining was down 30% due to the resupply cycle of major new projects and revenue into Water was 63% up on the December quarter.

The March quarter delivered positive net cashflow from operations of A$1.5m which reflects both the strong gross profit margin of the business and the leverage of cashflow to growing revenue. Primary working capital increased during the quarter, with trade receivables and trade payables broadly in line with the previous quarter. The end of period inventory position was A$3.3m.

With positive cashflow and A$8.1m in net cash at the end of the quarter, SciDev is well positioned to continue to execute on our growth plans.

Operational Report

SciDev continues to be a leader in the development and application of chemistry, professional services and process control focussing on the reduction of wastewater from a range of industrial applications.

Mining & Mineral Processing

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The Company continued to execute supply and services into all major customers such as Iluka, Yancoal, Glencore and Peabody. Business development activities continue across several operations and commodities, including coal, nickel, copper, gold and iron ore.

During the quarter, SciDev announced a trial order from Fortescue Metals Group Limited (Fortescue), one of the world's leading producers of iron ore (ref ASX release 10 March 2021). The field qualification will focus on the performance of MaxiFlox® chemistry under plant operating conditions.

The Company also signed a contract for supply of its MaxiFlox® chemistry with SLN, a subsidiary of Eramet and the world's number one producer of ferronickel, a key raw material input to the stainless steel market (ref ASX release 11 March 2021). The Company's MaxiFlox® chemistry and OptiFlox® technology will be used onsite to improve operational efficiency and water use.

Several producers have confirmed acceptance of SciDev's MaxiFlox® technology to proceed to field validation which the Company anticipates will take place in the next quarter, with other projects now in commercial discussion.

Oil & Gas

The Company is continuing to see activity levels recover within the US Oil & Gas sector, driving increased demand for the company's chemistry and professional services with operators looking to improve extraction and water efficiency.

During the quarter SciDev received a purchase order from ExxonMobil for the provision of professional services to develop a new drilling chemistry, further extending the relationship between the companies. The new purchase order from ExxonMobil is for approximately US$0.5m of professional services and will be over a one-year term.

Following on from several months of field investigation with the SciDev patent pending CatCheck® chemistry, one of the worlds' largest oilfield service companies has now also commenced full scale application of CatCheck® with a major European exploration and production (E&P) customer. Activities in the Canadian oilsands industry remain on track with progress outcomes to be reported in CY21.

Construction & Infrastructure

Following the commencement of the second drive at the Melbourne Metro Tunnel project, SciDev's bespoke MaxiDry® chemistry is being delivered along with the Company's dedicated experts deployed on site.

Several new project opportunities have been progressed following the employment of an expert in North America. Project discussions are advancing with projects in California, Virginia and British Columbia all focus areas for the Company. Additional opportunities are also being actively pursued in Europe and Asia.

The bespoke SciDev approach has been shown to enable more effective dewatering, separation, and disposal of solid waste, known as spoil, as well as the ability to recycle water reducing the overall water consumption rates.

Water & Wastewater

SciDev continues to drive organic development activities in the Water sector with several previously disclosed opportunities progressing at a reduced momentum because of COVID19 sewerage testing.

During the quarter (ref ASX release 29 March 2021) the Company entered into a Business Sale

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Agreement to acquire Haldon Industries Pty Ltd (Haldon), an Australian based environmental engineering and solutions company focussed on the water treatment, remediation and persistent organic pollutant sectors. Haldon has created a strong presence providing innovative solutions in the PFAS market in Australia via their mobile treatment plants.

Haldon's PFAS solution is world-class in removing PFAS to undetectable levels while reducing the waste volume by c.20,000 times, which is 100 times greater than existing commercial alternatives. The Company is encouraged by the recent regulatory focus on PFAS and is now well placed to execute on this emerging market in the Water segment.

Corporate

During the March quarter, SciDev continued with an active corporate programme reflective of the Company's growth aspirations and commitment to continually improve its environmental, social and governance performance.

Governance - Board Rejuvenation

SciDev commenced an active programme of Board rejuvenation ensuring that the Board's skillset and governance structure is fit for purpose.

These initiatives are ongoing, with Mr Dan O'Toole joining the Board in early February 2021, as an independent, non-executive Director (ref ASX announcement 3 February 2021). Mr Trevor Jones, SciDev's non-executive Chair, has resigned from the Board, effective 30 June 2021 or on earlier identification and appointment of a replacement Chair (ref ASX announcement 9 February 2021).

In parallel with the above, an independent review of the Company's Board and Committee structures and systems is being undertaken to optimise performance; the outcomes and recommendations of this review will be considered and implemented as required over the coming quarters.

Social - Schools Plus Programme supporting disadvantaged students

SciDev is supporting Australian national education charity Schools Plus in the delivery of funding to assist disadvantaged communities improve learning outcomes for their students. Since inception, Schools Plus (http://www.schoolsplus.org.au) has added more than $17.8 million into Australia's school system, supporting over 758 schools, over 620 projects and benefiting 183,000 students.

SciDev has provided financial support (A$60,000) to underpin the 'Two Ways Science Programme' at the Oak Valley Cluster of Schools (Amata Anangu, Amata, Tjuntjuntjara, Great Victorian Desert, Yalata Anangu and Yalata). It is estimated that the project will directly benefit 204 students, 67 teachers and 84 community members as the program aims to support the community in building cultural identity, teach science, reinforce literacy and numeracy skills and incorporate technology throughout the 2021 school year.

Highland Fluids Transaction

As a result of COVID19 and global oil prices impacting the performance of HFT in CY20, SciDev renegotiated the terms of escrow placed on the SciDev shares acquired by the HFT vendors. Under the renegotiated terms, a total of 9,738,199 SciDev shares held by HFT vendors will remain in escrow to the end of CY21.

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Several of the HFT vendors remain entitled to the further originally agreed milestone tested consideration of up to US$1m, with consideration payable as cash or SciDev shares at SciDev's election. If SciDev's 10 day VWAP prior to the end of CY21 exceeds A$2.00 US$0.5m becomes due and another US$0.5m is due should HFT revenue exceed US$20m for CY21 at 10% or higher EBITDA.

Tartana Resources Ltd

Tartana Resources Ltd (Tartana) continued towards an ASX backdoor listing during the quarter. Tartana announced a transaction whereby currently suspended R3D (ASX:R3D) would acquire Tartana, raise capital and seek re-listing. This process advanced during the quarter however was ultimately rejected in March 2021. SciDev is informed that actions have been taken to address the causes of the re-listing rejection. A fresh prospectus and re-listing application is being prepared with plans to reapply in the June quarter. Tartana successfully raised capital for interim expenses at $0.16 per share, supporting the re-listing and underpinning the Tartana valuation and SciDev carried value.

Related Party Transactions

Payments to the Directors of the entity, comprising of salaries and fees for Executive and Non- Executive Directors, totalled $330k during the quarter (see section 6 of the Appendix 4C). No other payments were made to any related parties or their associates.

Outlook

Management focus for the remainder of FY21 will be:

• Ongoing focus on the wellbeing, health and safety of all our employees
• Execution of our governance programmes and Board recruitment
• Completion of the Haldon acquisition leading to integration and client project execution
• Driving SciDev's position as a solution provider in Water and growing PFAS market
• Continued focus on increasing sales and cash conversion in all regions
• Progressing commercial discussions post field validation across numerous opportunities
• Continuing discussions with technology partners in North America and Europe
• Ongoing assessment of strategic growth opportunities globally

Lewis Utting

Managing Director & Chief Executive Officer

This release has been approved by the Board of Directors of SciDev Limited.

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