NEOMETALS LTD — Capital/Financing Update 2008

Aug 31, 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

1 September 2008

The Manager ASX Company Announcement Platform PO Box H224 Australian Square SYDNEY NSW 2000

FOR RELEASE

Dear Sir

ISSUE OF SECURITIES

NOTIFICATION PURSUANT TO SECTION 708A(5)(e) OF THE CORPORATIONS ACT 2001

Reed Resources Ltd ( Company ) advises that, on 1 September 2008, it granted 2,000,000 fully paid ordinary shares in the Company to Prime Minerals Limited (ACN 120 658 497), a sophisticated and professional investor for the purposes of Part 6D.2 of the Corporations Act 2001.

The Company notifies ASX that:

• 1 The Company issued the Securities without disclosure to investors under Part 6D.2 of the Corporations Act 2001 (the Act );

• 2 This notice is given pursuant to paragraph (5)(e) of Section 708A of the Act;

• 3 As at the date of this notice the Company has complied with:

  • (a) the provisions of the Chapter 2M of the Act as they apply to the Company; and

  • (b) section 674 of the Act; and

• 4 As at the date of this notice there is no excluded information (as defined in section 708A(7) and (8) of the Act) which is required to be disclosed by the Company.

For and on behalf of the Board REED RESOURCES LTD

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Christopher John Reed Company Secretary

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