NEOMETALS LTD — Capital/Financing Update 2009

Aug 30, 2009

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

31 August 2009

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 (the Company ) advises that pursuant to a placement, details of which were announced on 25 August 2009, on 28 August 2009, it issued 19,500,000 fully paid ordinary shares in the Company to various sophisticated and professional investors for the purposes of Part 6D.2 of the Corporations Act 2001 (Cth) (the Act ) (the New Securities ).

Accordingly, in accordance with section 708A(5) of the Act, the Company notifies ASX that:

• 1 the Company issued the New Securities without disclosure to investors under Part 6D.2 of the Act;

• 2 this notice is given pursuant to Section 708A(5)(e) 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 sections 708A(7) and 708A(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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JASON CARONE Company Secretary

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