NEOMETALS LTD — Capital/Financing Update 2002

Nov 12, 2002

FACSIMILE TRANSMITTAL SHEET

TO:		FROM:
	Company Announcements Office		Chris Reed
COMPANY		DATE:
	Australian Stock Exchange Ltd		13 November 2002
FAX NUMBER:	1 300 300 021		TOTAL NO. OF PAGES INCLUDING COVER
PHONE NUMBER:			SENDER'S REFERENCE NUMBER:
RE:	Comet Vale Drilling Results		YOUR REFERENCE NUMBER.
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NOTES/COMMENTS:

REED RESOURCES LTD (ASX: RDR) - COMET VALE DRILLING RESULTS & RESOURCE ESTIMATES

Please find following announcement.

If you have any queries please do not hesitate to contact me on 08 9322 1182.

Kind regards

Cheed

C J Reed DIRECTOR

706 Murray Street, West Perth WA 6005 . Tel: +61 8 9322 1182 . Fax: + 61 9321 0556

COMET VALE DRILLING RESULTS & RESOURCE ESTIMATES

The Company informs the market of initial results from the first hole in a four hole diamond core drilling program at the Sand George prospect and of a revised resource estimate for the Sand George deposit.

Preliminary Diamond Core Drilling Results

The initial results from diamond drill hole RD001 are:

Hole ID	Collar	Collar	From	То	Intersection $\vert$ Grade (2)
(DDH)	Northing (1)	Easting $(1)$	m	m		g/t Au
RD001	13175	7720	25.50	26.15	0.65	2 10
			147.35	148.77	1.42	32.80
			149.00	149.50	0.50	1.60
			161.70	163.30	1.60	30.01

$1.$ Collar coordinates are for a local grid.

$2.$ All samples analysed by Fire assay with an AAS finish (FA50/AAS) and calculated as a weighted average.

The two high grade gold intersections are an extension of the Sand George lodes and appear to duplicate two intersections at a similar spacing in RC drill hole DRC084. The intersections are about 30 m down dip below the intersections in DRC084, at a depth equivalent to 4 Level in the Sand Queen mine.

Two other drill holes (RD002 and RD003) have intersected lodes in equivalent structural positions to the lodes in RD001, but assays are pending. A fourth hole is still in progress.

Sand George Resource

The Company's consultants have completed a revision of the Mineral Resource at Comet Vale, based on an additional 19 RC drill holes covering the Sand George prospect that were drilled during May-August 2002. The previous resource estimate was completed in February 2001, as reported in the Company's Prospectus.

The updated Mineral Resource estimate for the Sand George C lode is:

Lode	Category* (Mineral	Tonnes	Grade g/t Au
	Resource) INDICATED	84,585	11 7
	INFFRRFD	'Z.791.

√

The Indicated Mineral Resource in the C1 lode has been upgraded from an Inferred Mineral Resource category. The Inferred Resource in the C2 lode has been upgraded from a previously 'unclassified' resource. The total Indicated and Inferred Resources for the C1 and C2 lodes is 117,376 tonnes at an average grade of 10.1 g/t Au.

The revised Mineral Resource estimate for the C lode does not include results from the deeper diamond drilling results outlined above.

In addition to upgrading of the Mineral Resource in the C lode, the B lode, north, and D lode east of the main C lode have been redefined and upgraded from a previously 'unclassified' resource. There are an additional 33,000 tonnes of Inferred Resource in the B lode and 15,400 tonnes of Inferred Resource in the D lode, but at lower gold grades.

D J Reed

EXECUTIVE CHAIRMAN

Indicated and Inferred Mineral Resources detailed in this statement are in accordance with the JORC Code for Reporting of Mineral Resources and Ore Reserves and have been compiled by Lenore Jepson (Maxwell Geoservices) and Isobel Algar (Maxwell Geoservices) who have relevant experience to qualify as a Competent Persons under the Code.

Dr P Collins (BSc (Hons), PhD, MAIG), an employee of Curtin Consultancy Services Ltd has compiled the technical aspects of this report. Dr Collins has sufficient experience which is relevant to the style of mineralistaion and type of deposit under consideration and to the activity which is being reported on to qualify as a Competent Person as defined in the 1999 Edition of the Australasian Code for Reporting of Mineral Resources and Ore Reserves. Dr Collins consents to the inclusion in the report of the matters in the form and context in which it appears.