NEOMETALS LTD — AGM Information 2014

Nov 30, 2014

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AGM 2014

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Titanium

Lithium

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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 forward-looking 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.

Not financial product advice: This document is for information purposes only and is not financial product or investment advice, nor a recommendation to acquire securities in Reed. It has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making any investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction.

Investment risk: An investment in securities in Reed is subject to investment and other known and unknown risks, some of which are beyond the control of Reed. The Company does not guarantee any particular rate of return or the performance of Reed. Investors should have regard to the risk factors outlined in this document.

Competent Persons Statement:

The information in this document that relates to “Barrambie Scoping Study Results”, “Mt Marion test work results”, “Barrambie Mineral Resource Estimates”, “Mt Marion Mineral Resource Estimates” and Mt Marion – Successful Semi-Pilot Plant Results is extracted from ASX Releases set out below. The Company confirms that it is not aware of any new information or data that materially affects the information included in the ASX Releases set out below, and in the case of estimates of mineral resources, that all material assumptions and technical parameters underpinning the estimates in those ASX Releases continue to apply and have not materially changed.

13/11/2013	Barrambie - Scoping Study Results
2/12/2013	Mt Marion – Breakthrough test work results
6/12/2013	Barrambie – Amended JORC 2012 Mineral Resource Estimate
9/12/2013	Mt Marion – JORC 2012 Mineral Resource Estimate
30/6/2014	Mt Marion – Successful Semi-Pilot Plant

The Company confirms that all the material assumptions underpinning the production target and the forecast financial information derived from the production targets in the Barrambie Scoping Study and Mt Marion Pre-feasiblity Study continue to apply and have not materially changed.

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Corporate

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Company Strategy

RDR is a specialist resource developer which generates shareholder value by identifying, securing and value adding to mining interests with strategic resources having long-term fundamentals aligned to 21[st] century commodity demands.

RDR aspires to co-venture the development of its core assets with strong partners to reduce operating and financial risk.

RDR seeks to maintain its focus on its core lithium and titanium assets.

RDR is committed to the expeditious realisation of its non-core assets to strengthen its balance sheet and give cash flow for funding of its core projects

RDR is committed to re-establishing a key small team of executives and board members to give it an appropriate/critical mass and skill/experience base to drive its endeavours.

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Group structure chart

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Process Minerals Int’l
Reed Resources Ltd
Pty Ltd (Mineral
Resources Ltd)
30%
70%
Australian Reed
Barrambie Reed
Mount Finnerty Vanadium Industrial
Gas Exploration
Pty Ltd Corporation Minerals
Pty Ltd Pty Ltd
(Holdings) Pty Ltd Pty Ltd
DBNGP Barrambie Mount Marion
Mount Finnerty Nickel
Transmission Titanium Lithium
Iron Exploration
Contract Project Project
Active Core
Divestment
Process
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Minerals for the 21[st] Century

Lithium Titanium

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Achievements FY2014

Mt Marion

• Patented flowsheet

• • Proved in semi-pilot plant

• • Partner selection in progress

Barrambie

• Licenced flowsheet

• • Proved in mini-pilot plant

• • Commenced PFS

Cash at Bank A$13.1M 30 June 2014*

Project divestments

• Reduce gas bond $2.7M

• • Divested gold assets • Meekatharra $5.1M **

• • Comet Vale $1.9M

*** Includes $6.2M of restricted access term deposits**

** Includes cancellation of 24M RDR shares ~ $500k value

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Goals 2015

Mt Marion

• Offtake for concentrates

• Partner for LiOH

• • Final investment decision

Build a new business, Neometals Increase share price

• Barrambie • Complete Pre-feasiblity Study

• • Procure industry partner

• • Commence pilot plant

• Project divestments • Reduce gas bond further

• • Divest non-core assets • Yilgarn nickel

• • Mt Finnerty iron

NOTE: FORWARD LOOKING STATEMENTS

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Capital Structure

ASX Code: RDR OTC: RDRUY	ASX Code: RDR OTC: RDRUY	ASX Code: RDR OTC: RDRUY		Major shareholders	Major shareholders
Last close ( 27 Nov 2014)	$	0.028
				Melaid Holding Inc	8.6%
Shares on issue	M	499.4
				David Reed (*)	5.4%
Cash (30 Sept 2014)	$m	11.7
Incl Restricted Term Deposit	$m	6.2
Market capitalisation	$m	15		Top 20 (5 Nov 2014)	34%

Institutional overhang removed

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(*) Excludes $2M convertible note at 3 cents

Board and Management

Board

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David Reed OAM Non-executive Chairman

Steven Cole Independent Director

Chris Reed Managing Director/CEO

Management

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Jason Carone Company Secretary Financial Controller

Bill Crossley Mining Engineer

Mike Tamlin Project Manager Lithium

Mike Spratt Project Manager Titanium

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Mount Marion Lithium Project

RDR 70%, MIN 30% (Fund and operate)

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Secure Lithium Mineral Supply

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Captive Resource Infrastructure Mine Ready

www.reedresources.com

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Note: Mineral Resource Estimate (JORC2012) on Page 43

Strong Partner for upstream

Mineral Resources Limited are an ASX100 Listed Company worth +A$2 Billion (ASX: MIN), are Australian largest contract processor of minerals

Fund ‘sunk’ costs to Final Investment Decision, then construct and operate project from mine-to-port, with no upfront capital cost

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Development strategy: de-risk with strong partners

RDR RDR X% 70% = + Produce Lithium Value add into Mineral Lithium Battery Concentrates with Materials (LiOH) partner MIN with Partners

Target 30-40% Low upfront capital

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Integrated lithium producer

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Strong lithium concentrate prices

Chinese spodumene imports from Australia (CIF basis)

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500
AUD$470 @
450 US$0.85c FX
Current Price
400
US$400/t
350
300
250
USD/ton
200 AUD/ton
150
100
50
0
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Sources: signumBOX, Reed management analysis

Low Cost Strategy

Developing the Competitive Edge in Lithium Hydroxide

RIM and Partner

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Proprietary, patented adaptation of a Mature Technology – Chlor Alkali

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Chlor Alkali Conventional process produces NaOH RIM Process Our new process produces LiOH
LiOH
Na OH
POWER Li20 POWER
H+ 2O H2 HCl + H2
LiCl
Na Cl Cl2
Cl2
Na Cl
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• Step 1: Proof of concept

• Top quality - 99.9% LiOH

• Very efficient - 90% recovery

• Semi-pilot scale testing in USA

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Operating cost advantage Flowsheet process

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Competitors
Input Price Input Price
US$5,000/t US$350/t
x 1 x 7.5
Final
Lithium Lithium Final
Product Chlorination
Lithium Carbonate Carbonate Product
LiOH Spodumene Purification
Brine Technical Battery LiOH
Battery Electrolysis
Grade Grade (BG)
Grade
Cost Cost
US$5,700/t US$3,900/t
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www.reedresources.com

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Sources: SQM (Brine Flowsheet) and Reed internal analysis including 2012 Pre-feasibility Study. All prices are FOB Basis.

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

Lithium Hydroxide Pricing

LiOH LI2CO3 Li2CO3

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11,000 350,000
10,000 300,000
9,000 Roskill 250,000
Forecast
US$10,000
8,000 200,000
7,000 Current 150,000
Median Price
US$7,600
6,000 100,000
5,000 50,000
0 0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
LiOH: Lithium hydroxide
Li2CO3: Lithium carbonate
LiOH Price US$ per tonne
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---- Demand & Price Forecast Source: signumBOX, Current Price: Industrial Minerals, 31 July 2014, Forecast Price: Roskill 2013

Lithium is the only real alternative to gasoline

					Prac Theo	tical retical

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Sources: Roskill

Milestones

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Proof Semi Pilot Complete Extended Operating
Of Plant Semi Pilot Testwork & Capital
Concept Testwork Plant Feasibility Costs
Testwork Study Refined
Continue to prove technical feasibility, product quality Discussions with potential LiOH JV Partners
Nov 2013 March 2014 June Q2 ‘14 Sept Q3 ‘14 Mar Q ‘15
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LiOH Commercialisation Plan

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Demonstrate Demonstrate
Partner Commercial-
Technical Consistent
Agreement isation
Feasibility Quality
2015 2015-2017
2014 2014
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Barrambie Titanium Project

100% RDR

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Secure Raw Material Supply

2 3 47Mt @ 34% 22% TiO 2 18% Lac Tio Barrambie (*) Tellnes

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Sources: company reports

*** Mineral Resource Estimate (JORC2012) on page 44**

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Simple feedstock production

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Development strategy: de-risk with strong partner

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RDR
RDR X%
100%
=
+
Mine, Concentrate, JV with Ti
Truck industry partner
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Target 30- 40% Low upfront capital

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Integrated titanium producer

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Low Cost Strategy

Transforming Titanium processing

RDR and Partner

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Licenced Downstream Flowsheet

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Potential lowest quarter operating costs

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Competitors
Input Price Input Price
US$1,000/t US$150/t
X1.2t X 4t
Final Final
Chlorination Product ROM Chlorination Product
Rutile
& Purification Fine Ore & Purification Fine
Pigment Pigment
Cost
US$2,100 - Cost
2,300/t US$1,214/t
 Step 1: Proof of concept
 High purity - 99.9% TiO2
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• Mini-pilot scale testing in Canada

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Source: Snowden Scoping Study 2013 and Reed management analysis

Potential lowest quarter operating costs

Relative Standard-Plant Cash Operating Costs (US$ per tonne delivered) vs. Reed Scoping Study

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250
200
150
100
50
0
NA Chloride EU Sulfate China Sulfate RDR Scoping Study
Disclaimer: The TZMI costs (NA, EU, China) are for standard plant models in each location.
They are not specific plant costs, neither are they averages of the costs for a location. Q4 2103
TZMI information and RDR scoping study performed separately and may not be ‘like-for-like’ analysis
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www.reedresources.com

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Source: TZMI, Snowden Scoping Study 2013 for Reed Resources Ltd

Strong Ti Demand and Price

TiO Demand vs Price 2

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Global Demand ()volume tonnes
2
TiO
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12000 4000
3500
10000
3000
8000
2500
TiO2 Price
6000 2000
1500
4000 TiO2 Demand
1000
2000
500
0 0
1980 1985 1990 1995 2000 2005 2010 2012 2013
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Source: US Geological Survey, Industrial Minerals (Price) and TZMI Data (Demand)

Strong long term fundamentals

Developing Economies Pigment Use Growing with GDP

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5
4
North America
3
Europe
2
Japan
China
1
Global
India
Asia
0
5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000
REAL GDP/CAPITA (US$)
Pigment (Kg) Person
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Source: Iluka

Milestones

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Scoping Obtain Mini-pilot Commence Pre
Study technology plant Pre- Feasibility
licence feasibility Study
+/- 35%
accuracy Study Results
Attract JV Partner
Nov 2013 Dec 2013 Apr– Aug 2014 Sep 2014 MarQ 2015
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Commercialisation Plan

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Test Work 2012 2013 2014 2015 - 2016
1. 3. 5.
Bench scale Mini-pilot Pilot
Evaluation
2. 4. 6.
Scoping Pre Definitive
Study Feasibility Feasibility
Study Study
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Subject to Board Approval

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Yilgarn Nickel Project

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Acquire, add value, realise value

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4 projects, 3 confirmed Ni-S bearing

Greenfields NiS discovery at LJ in sole RC hole, DDH identifies thick sequence of high MgO ultramafic

Dissem NiS discoveries on Barranco Option, deep DDH confirms basal footwall intact

Historical massive NiS at QVR, Geophysical/geochem review

Forrestania blue chip brownfields location – adjoining Flying Fox

Decision to divest through farm-out or trade sale.

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Focus

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A growth story for coming year

 03 02 01 Obtain Demonstrate + Demonstrate = Strong technical economic partners feasibility viability to commercialise

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Lithium peer comparison

Market Cap (A$M) per tonne of contained Li2O resource

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$600
$500
$400
Average $315/t
$300
$200
$100
$0
RB Energy Talison Critical Elements Nemaska Reed Resources
(70% Equity)
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Sources: Company websites http://strialithium.com/, http://www.rb-e.com/s/home.asp , http://www.talisonlithium.com/, http://www.cecorp.ca/en/projects/rose-tantalum-lithium.html http://www.nemaskalithium.com/en/ at 21 August 2014

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Titanium/VTM peer comparison

Market Cap (A$M) per tonne of contained TiO2 resource

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$35
$30
Average $24/t
$25
$20
$15
$10
$5
$0
Argex Titanium China VTM Mining TNG Limited Reed Resources
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Sources: Company websites , Argex using Measured and Indicated (NI43-101), China VTM Mining using Reserve (non JORC), TNG using Measured and Indicated (JORC) Reed using Indicated (JORC) Valid 29 July 2014

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Thank you

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Mineral Resource Estimates

Mineral Resource Estimate for the Mt Marion Lithium deposit, as at July 2011, for a block cut-off grade of 0.3% Li2O

Project Area	Material type	Measured	Measured	Measured	Indicated	Indicated	Indicated	Inferred	Inferred	Inferred	Total	Total	Total
		Tonnes	Li~~2~~O%	Fe~~2~~O~~3~~%	Tonnes	Li~~2~~O%	Fe~~2~~O~~3~~%	Tonnes	Li~~2~~O%	Fe~~2~~O~~3~~%	Tonnes	Li~~2~~O%	Fe~~2~~O~~3~~%
Area1	Oxide	60,000	1.19	0.67	144,000	1.26	0.82	179,000	1.2	1.0	383,000	1.2	0.9
	Transitional	658,000	1.44	0.79	727,000	1.41	1.14	353,000	1.3	1.4	1,739,000	1.4	1.1
	Fresh	666,000	1.54	0.98	1,051,000	1.41	1.31	1,379,000	1.3	1.4	3,096,000	1.4	1.3
	Subtotal	1,384,000	1.48	0.88	1,923,000	1.40	1.21	1,911,000	1.3	1.4	5,218,000	1.4	1.2
Area2	Oxide	-	0.00	0.00	-	1.64	1.19	18,000	1.3	1.1	18,000	1.3	1.1
	Transitional	-	0.00	0.00	19,000	1.42	1.50	215,000	1.3	1.4	234,000	1.3	1.4
	Fresh	64,000	1.31	1.41	385,000	1.35	1.59	833,000	1.3	1.5	1,281,000	1.3	1.5
	Subtotal	64,000	1.31	1.41	404,000	1.35	1.59	1,065,000	1.3	1.5	1,532,000	1.3	1.5
Area2W	Oxide	-	0.00	0.00	6,000	0.90	0.92	33,000	0.9	1.0	39,000	0.9	1.0
	Transitional	2,000	1.23	1.19	56,000	1.09	1.11	210,000	1.1	1.1	268,000	1.1	1.1
	Fresh	433,000	1.38	0.97	1,554,000	1.39	1.12	2,669,000	1.3	1.1	4,655,000	1.3	1.1
	Subtotal	435,000	1.38	0.97	1,616,000	1.38	1.12	2,911,000	1.3	1.1	4,963,000	1.3	1.1
Area4	Oxide	-	0.00	0.00	-	0.00	0.00	4,000	0.8	1.6	4,000	0.8	1.6
	Transitional	17,000	1.31	1.43	182,000	1.22	1.35	251,000	1.1	1.5	450,000	1.1	1.4
	Fresh	28,000	1.47	1.26	223,000	1.32	1.34	397,000	1.3	1.3	648,000	1.3	1.3
	Subtotal	45,000	1.41	1.33	405,000	1.28	1.34	652,000	1.2	1.4	1,102,000	1.2	1.3
Area5	Oxide	-	0.00	0.00	-	0.00	0.00	22,000	1.1	2.2	22,000	1.1	2.2
	Transitional	-	0.00	0.00	2,000	1.41	1.82	102,000	1.3	2.4	104,000	1.3	2.4
	Fresh	-	0.00	0.00	9,000	1.44	2.24	216,000	1.3	2.2	226,000	1.3	2.2
	Subtotal	-	0.00	0.00	11,000	1.43	2.17	340,000	1.3	2.3	351,000	1.3	2.3
Area6	Oxide	-	0.00	0.00	2,000	1.57	1.36	55,000	1.6	1.7	58,000	1.6	1.7
	Transitional	16,000	1.57	1.12	208,000	1.53	1.24	663,000	1.4	1.4	887,000	1.4	1.3
	Fresh	71,000	1.59	0.98	200,000	1.54	1.15	485,000	1.5	1.2	756,000	1.5	1.1
	Subtotal	87,000	1.59	1.01	411,000	1.54	1.20	1,203,000	1.5	1.3	1,701,000	1.5	1.3
Project	Total	2,015,000	1.45	0.93	4,769,000	1.39	1.22	8,082,000	1.3	1.3	14,866,000	1.30	1.2

NOTE : Figures may not sum due to rounding. Significant figures do not imply an added level of precision.

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Mineral Resource Estimates

Mineral Resource estimates for the Barrambie Ti-V deposit, as at September 2013, for a block cut-off grade of 15% TiO2

Classification	Zone	Oxidation	MTonnes	Density (t/m3)	TiO2 (%)	V2O5 (%)	Fe2O3 (%)	Al2O3 (%)	SiO2 (%)
Indicated	Eastern	Oxide	18.7	2.82	23.29	0.59	42.93	10.70	16.36
		Transition	8.7	3.52	23.11	0.61	50.80	7.34	12.99
		Fresh	2.4	3.85	21.77	0.56	52.90	5.99	12.84
		Sub-total	29.8	3.10	23.11	0.60	46.02	9.35	15.10
	Central	Oxide	3.5	2.95	16.84	0.92	49.82	11.06	14.91
		Transition	1.3	3.50	17.39	0.89	54.76	8.49	12.15
		Fresh	0.1	4.04	15.59	0.88	59.93	7.22	10.96
		Sub-total	4.9	3.12	16.95	0.91	51.40	10.28	14.08
		Total	34.7	3.11	22.25	0.64	46.77	9.48	14.95
Inferred	Eastern	Oxide	2.6	2.71	20.88	0.48	40.00	12.20	19.42
		Transition	3.3	3.29	23.04	0.59	47.51	8.62	14.45
		Fresh	5.5	3.71	22.82	0.57	47.50	8.39	14.57
		Sub-total	11.4	3.36	22.44	0.55	45.78	9.33	15.65
	Central	Oxide	0.1	3.07	16.64	0.98	53.63	9.96	13.33
		Transition	0.4	3.47	18.36	0.86	54.15	8.79	12.43
		Fresh	0.7	3.86	17.30	0.91	53.48	9.44	13.17
		Sub-total	1.2	3.64	17.55	0.90	53.71	9.30	12.96
		Total	12.5	3.38	21.99	0.58	46.51	9.32	15.40
		Grand Total	47.2	3.18	22.18	0.63	46.70	9.44	15.07

NOTE:

Figures may not sum due to rounding Significant figures do not imply an added level of precision.

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