NEOMETALS LTD — Annual Report 2015

Dec 14, 2015

ASX RELEASE

15 December 2015

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Annual Mineral Resource and Ore Reserve Statement

Neometals Ltd (ASX: NMT) ( Neometals or Company ), hereby provides its Mineral Resource and Ore Reserve Statement following the Company’s annual review of its mineral resources and ore reserves. The statement is given as at 26 October 2015.

MINERAL RESOURCES

Mt Marion	Category	Tonnes (Mt)	Li2O (%)	FE2O3 (%)
1, 2, 2W, 4, 5, 6	Indicated	10.05	1.45	1.33
	Inferred	13.19	1.34	1.50
Total		23.24	1.39	1.43
Barrambie	Category	Tonnes (Mt)	TiO2 (%)	V2O5 (%)
Barrambie	Indicated	34.7	22.25	0.64
	Inferred	12.5	21.99	0.58
Total		47.2	22.2	0.63

ORE RESERVES

Barrambie	Category	Tonnage (Mt)	TiO2 (%)	V2O5 (%)	Fe2O3
Barrambie	Probable	10.762	25.18	0.6	42.5

Mineral Resources are inclusive of Ore Reserves

The mineral resources for the following projects have changed from the Company’s Mineral Resource Statement as at 30 June 2014 (given in the Company’s 2014 Annual Report) as follows:

• A revised resource estimate for the Mt Marion Project prepared by Snowden Mining Industry Consultants was announced to ASX on 21 September 2015. This re‐estimated the former 14.9 Mt @ 1.35% resource (across measured, indicated and inferred categories) at a cut‐off grade of 0.3% Li2O, as a 23.24 Mt @ 1.39% resource estimate at a cut‐off grade of 0% Li2O. This represents a substantial increase in the size of the mineral resource, equating to a 66%

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increase in the total contained lithium at the project. The zero cut‐off grade reflects the strategy of mining to the lithium‐bearing pegmatite contacts. This change occurred subsequent to 30 June 2015.

• The Company ceased to hold the Mt Finnerty iron resource as a result of the Mt Finnerty tenements being surrendered during the financial year ended 30 June 2015.

The resource estimate for the Barrambie Project is unchanged from the Company’s Mineral Resource Statement as at 30 June 2014.

The Ore Reserve for the Barrambie Project was announced to ASX on 25 August 2015. The ore reserve estimate was identified by Snowden Mining Industry Consultants. Snowden identified a mining inventory based in the 2013 Mineral Resource estimate that was reported in accordance with the JORC Code 2012. Snowden’s Ore Reserves are estimated using a 17.5% TiO2 cut‐off grade. This change occurred subsequent to 30 June 2015.

COMPETENT PERSONS STATEMENT

The Mineral Resource and Ore Reserves Statement above is based on, and fairly represents, information and supporting documentation prepared by Competent Persons.

The Mineral Resource and Ore Reserves Statement as a whole has been approved by Mr Christopher Reed, a full time employee of Neometals Ltd and Member of the Australian Institute of Mining And Metallurgy (210541). Mr Reed has sufficient experience relevant to the style of mineralisation and type of deposits under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the JORC Code 2012. Mr Reed consents to the inclusion in this report of the Mineral Resource and Ore Reserves Statement in the form and context in which it appears.

In relation to these mineral resource and ore reserve estimates, the Company confirms that it is not aware of any new information or data that materially affects the information included in the following ASX announcements in which the information was first presented and that all material assumptions and technical parameters underpinning the mineral resource and ore reserve estimates in the following ASX announcements continue to apply and have not materially changed.

6/12/2013	Barrambie ‐ Amended JORC 2012 Mineral Resource Estimate
25/8/2015	Barrambie Pre‐Feasibility Study Results
21/9/2015	Mt Marion Lithium Project – New Mineral Resource Estimate and Exploration Target

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GOVERNANCE AND INTERNAL CONTROLS

The Company has put in place governance arrangements and internal controls with respect to its estimates of reserves and resources and the estimation process including:

• The Company used third party consultants to estimate its mineral resources and ore reserves in accordance with the 2012 JORC Code for the Barrambie and Mt Marion projects (see ASX releases dated 6 December 2013, 25 August 2015 and 21 September 2015).

• Oversight and approval of each annual statement by employees that are Competent Persons as defined by the 2012 JORC Code.

ENDS

For further information please contact :

Chris Reed

Managing Director Neometals Ltd T: +61 8 9322 1182 E: info@neometals.com.au

Media

Richard Glass / John Gardner Citadel MAGNUS T: +61 8 6160 4900

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