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NEOMETALS LTD Capital/Financing Update 2009

Jul 15, 2009

65430_rns_2009-07-15_434df417-6b5e-44df-9583-0f240ad65109.pdf

Capital/Financing Update

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==> picture [155 x 51] intentionally omitted <==

16 July 2009

SALE OF BREAKAWAY'S MT FINNERTY JOINT VENTURE EARN-IN RIGHTS TO REED RESOURCES LTD

KEY POINTS

Sale of non-core nickel asset for 500,000 Reed Resources Ltd shares
Reinforces Breakaway’s strategy of focussing future exploration efforts on priority North Eastern Goldfields projects

Breakaway Resources Limited (ASX:BRW) wishes to advise that it has sold its Earn-In Rights for the Mt Finnerty Joint Venture to Reed Resources Ltd (ASX:RDR) for a total consideration of 500,000 fully paid ordinary shares in RDR (12 month trading range of $0.165 - $0.905 per share). The shares are not escrowed.

In 2006, Breakaway entered into the Mt Finnerty Joint Venture with privately listed Barranco Resources NL to earn a 60% interest in the project by spending $2 million over 4 years. Located 400 kilometres eastnortheast of Perth, between the towns of Coolgardie and Southern Cross, the project, while possessing nickel prospectivity, is considered to be of a greenfields nature.

Given Breakaway’s previously announced strategy of focussing its future exploration activities on its priority projects, and maximising shareholder value for non – core assets, the decision was made to dispose of BRW’s interest in the project, whilst retaining exposure to any future upside through a shareholding in RDR.

ENDS

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