XRF

Scientific

1/12 Farrall Rd, Midvale WA 6070.

23 November 2007

XRF Scientific Limited – Notes for AGM by Managing Director

Good Morning Ladies and Gentlemen,

Firstly I would like to thank those of you who voted in the affirmative to the Resolutions put at this AGM. I can assure you that the Board is working hard to make your company profitable, and all of the Resolutions put to you today have that underlying purpose. 

I would also like to thank those shareholders who participated in the recent Rights Issue, and note with satisfaction that most did participate, indicating a continuing belief in the Companies future...

Due to a continued outflow of working capital, in part because of increased sales, and also in paying out former director/employees contracts, it was deemed necessary to raise some $1.1Million. It was decided to allow shareholders the possibility to “average down” on their investment cost, and so a reasonably low issue price was selected.

I am pleased to say that cash flow is now turning positive, and there are sufficient cash reserves to carry your Company forwards, and to be able to contemplate expansion.

There were many challenges associated with the bringing together of the six companies which constitute XRF Scientific, and these challenges are reflected by the share price, which has steadily declined since listing one year ago.

Optimistically, those challenges, and the declining share price, are now things of the past, and rather than dwell upon the financial year ended July 2007, I would rather focus on the future. I believe that the Company has turned the corner, and I think this can be demonstrated by the first quarter financial results for this year.

In aggregate, XRF Scientific is showing a first quarter estimated after-tax profit of $256,000, which can be compared with last year’s total of $237,000. I must emphasise that this first quarter result is not an audited figure; however I believe it clearly indicates that the financial corner has been turned.

Whilst it is not possible to accurately forecast what the full years profits will be, I am pleased to confirm that what has been achieved generally matches the directors internal budget for the first part of 2008, and we look forwards to a much-improved outlook in what will be XRFS’s first full year of operations.

If this changed momentum can be maintained, then I imagine that the market will develop a different perspective towards XRF Scientific, and the rating of its shares.

This changed perspective will come about not only through organic growth in profitability, but through carefully considered strategic acquisition – whilst I am not presently in a position to announce any specific progress in this area, suffice it to say that your board has a clear objective to deliver on this growth strategy, and hopefully we can bring some good news in this regard soon.

Thanks again for your attendance and interest.

Terry Sweet

Managing Director

RE: RESULTS OF ANNUAL GENERAL MEETING 

Further to the notice forwarded to shareholders on the 22October 2007, we confirm that the Annual General Meeting (“AGM”) was held at the All Seasons Function Centre, 2^nd Floor 15 Robinson Avenue, Northbridge WA, 23 November 2007 at 10.05am and the results were as follows:

Resolution 1                                        Adoption of remuneration report - Carried

Resolution 2                                        Re-election of Director – Mr Kenneth Baxter - Carried

Resolution 3                                        Selective Reduction of Capital - Carried

Resolution 4                                        Issue of Options to Mr Terry Sweet (a Director) - Carried

Resolution 5                                        Removal of Auditor – Carried

Resolution 6                                        Appointment of Auditor - Carried

Proxies held in respect of the above Resolutions were as follows: