NEOMETALS LTD — Capital/Financing Update 2008

Oct 6, 2008

Reed Resources Ltd

ABN 89 099 116 631

97 Outram Street West Perth WA 6005 Tel: + 61 8 9322 1182 Fax: + 61 8 9321 0556

COMET VALE GOLD 7 OCTOBER 2008 RECORD PRODUCTION

Highlights

• Record quarterly gold production, ~4,300 estimated contained ounces.

• +12,000t ore toll-treated/sold with Grade Control estimates of 11.1 g/t Au.

• Successful completion of near-mine exploration targeting additional resources both along strike and beneath underground workings.

The Company and Joint Venture partner Kingsrose Mining Limited (ASX:KRM) are pleased to advise of record quarterly gold production of an estimated ~4,300 contained ounces from its Sand Queen Gold Mine, 100km North of Kalgoorlie (Figure 1).

The financial results from the quarters gold production are expected to be available by the end of October.

The Company’s geological team has completed a drilling program designed to infill and extend existing resources which stood at 360,205 tonnes @ 11.8 g/t Au (136,500 ounces of gold) before mining commenced in March 2006 (Figure 2). The majority of core has been submitted for assay, with results expected to be released in the coming weeks.

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Chris Reed MANAGING DIRECTOR

Competent Persons

The information in this report that relates to Exploration Results is based on information complied Mr David Potter who is a member of the Australian Institute of Geoscientists.

Mr David Potter (BSc, Dip FAI, MAIG), an full time employee of Reed Resources Ltd. Mr Potter has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is being undertaken to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results Mineral Resources and Ore Reserves’. Mr Potter consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

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Figure 1 Location and Tenement Plan

Figure 2 Long Section of drill targets area for completed RC/Diamond drill programme

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