NEOMETALS LTD — AGM Information 2013

Nov 19, 2013

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Annual General Meeting 20[th] November 2013 The Celtic Club, West Perth

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Disclaimer

Summary information: This document has been prepared by Reed Resources Ltd (“Reed” or “the Company”) to provide summary information about the Company and its associated entities and their activities current as at the date of this document. The information contained in this document is of general background and does not purport to be complete. It should be read in conjunction with Reed’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au.

Forward-looking information: This document includes certain statements, opinions, projections, forecasts and other forwardlooking information which, while considered reasonable by Reed, are inherently subject to significant uncertainties and contingencies. Many known and unknown factors could cause actual events or results to differ materially from estimated or anticipated events or results included in this document. Recipients of this document are cautioned that forward-looking statements are not guarantees of future performance – they must make their own independent investigations, consideration and evaluation of the opportunity to invest in the Company. By accepting this document, recipients agree that if they proceed further with their investigations, consideration or evaluation of the opportunity to invest in the Company, they will make and rely solely upon their own investigations and enquiries and will not in any way rely upon this document.

Any statements, opinions, projections, forecasts and other forward-looking information contained in this document do not constitute any commitments, representations or warranties by Reed and its associated entities, directors, agents and employees, including any undertaking to update any such information. Except as required by law, and only to the extent so required, directors, agents and employees of Reed shall in no way be liable to any person or body for any loss, claim, demand, damages, costs or expenses of whatsoever nature arising in any way out of, or in connection with, the information contained in this document.

Financial data: All figures in this document are in Australian dollars (AUD) unless stated otherwise.

Competent Persons Statement: Information in this report that relates to Mineral Resources, Scoping and Pre-feasibility Results is based on information compiled by Mr Bill Crossley of Long Reef Pty Ltd a Fellow of the Australasian Institute of Mining and Metallurgy.

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Company Strategy

01 Focus on advanced mineral assets

02 Demonstrate low-cost competitive advantage

03 Co-venture with strong partners to reduce operating and financial risk

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Advanced materials

Lithium

Titanium

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Historic Project Focus

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175
Meekatharra
Mt Marion
150 Barrambie
125
100
75 GFC
50
25
0
Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13
RDR Gold Index (XGD)
Market Capitalisation A$m
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Source: Datastream

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Mount Marion Lithium Project

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Captive Resource Strategic Location Mine Ready

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Development strategy: de-risk with strong partners

RDR RDR X% 70% = + Mine Spodumene Value add into with Mineral Lithium Battery Resources as Materials operators

Target 25-35% Low upfront capital

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Integrated lithium producer

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Megatrend - lithium in rechargeable batteries

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LiOH LI2CO3
11,000 350,000
10,000 300,000
9,000 250,000
8,000 200,000
Current Price
US$7,500
7,000 150,000
6,000 100,000
5,000 50,000
0 0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
LiOH: Lithium hydroxide
Li2CO3: Lithium carbonate
equivalent (LCE)
LiOH Price US$ per tonne
Demand in metric tonnes of lithium carbonate
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Demand & Price Forecast Source: signumBOX

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Operating cost advantage

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Competitors
Input Price Input Price
US$5,000/t US$350/t
Final
Lithium Lithium Final
Lithium Product Chlorination
Carbonate Carbonate Product
Brine LiOH Spodumene Purification
Technical Battery LiOH
6% Li2O Grade Grade Battery Electrolysis (BG)
Grade
Cost Cost
US$5,700/t US$3,900/t
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Sources: SQM (Brine Flowsheet) and Reed internal analysis including 2012 Pre-feasibility Study. All prices are FOB Basis.

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Capital cost advantage

Capital Efficiency (US$/ Production tonne LCE per annum)

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US$/MT 25,000
LiOH
20,000
Plant
15,000
10,000
Li CO
2 3
Plant
5,000
LiOH
Li2CO3
0
Brine-based Brine-based Spodumene-based RIM Capex
expansion new project new project 2012 PFS
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Sources: FMC Corporate Presentation 2011, Reed Pre-feasibility Study 2012, Reed management analysis

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New Feed >> Mature Technology

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Chlor Alkali Conventional process produces NaOH RIM Process Our new process produces Li OH
Li OH
Na OH
POWER Li20 POWER
H+ 2O H2 H Cl + H2
Li Cl
Na Cl Cl2
Cl2
Na Cl
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 Proof of concept pending  Next: Larger scale semi-pilot plant

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Near-term milestones

Prove Semi Pilot Engineering Operating concept Plant Cost Study & Capital and Testwork Costs product Anticipated quality Continue to prove technical feasibility, product quality and potential economics Attract LiOH JV Partner November 2013 Subject to RIM board approval June 2014

November 2013

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Barrambie Titanium Project

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Attractive market

Ilmenite Spot Price

Rutile Spot Price

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Source: Consensus Estimates

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Barrambie - the world’s 2[nd] highest grade TiO2 deposit

2 3 34% 22% 18% Lac Tio Barrambie Tellnes

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Sources: company reports

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Potential lowest quarter operating costs

Competitors

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X1.2t
Final
Chlorination Product
Rutile
& Purification Fine
Pigment
Cost
US$2,300 -
2,500/t
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Input Price
US$150/t
X 4t
Final
ROM Chlorination Product
Ore & Purification Fine
Pigment
Cost
US$1,214/t
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 Proven at Lab scale Next: Mini-pilot

Source: Snowden Scoping Study 2013 and Reed management analysis

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Commercialisation timeline

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Test Work 2013/2014 2014/2015
1. 3. 5.
Bench scale Mini-pilot Pilot
Economic 2. 4. 6.
Scoping Pre Definitive
Study Feasibility Feasibility
Study Study
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Subject to board approval

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Near-term milestones

Scoping Study +/- 35% accuracy

Obtain Mini-pilot technology plant licence and Pre Feasibility Study

Pre Feasibility Study Results

Dec Q2013

Mar Q2014

Sept Q2014

Subject to board approval

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Nickel

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http://www.reedresources.com/video/mtfinnerty.html

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Asset realisation Rebuilding the balance sheet

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Asset realisation process

Meekatharra Sale Process concluding

Comet Vale Sale Process in progress

Mt Finnerty Iron & Gold Sale Process commenced

Gas Transmission Sell/Assign Contract Reduce performance guarantee amount

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Focus

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Realise inherent value of assets

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175
Mt Marion
Meekatharra
Barrambie
150
125
100
75
50
25
0
Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13
A$m
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Thank you

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