NEOMETALS LTD — Capital/Financing Update 2009

Jul 15, 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

15 July 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, on 15 July 2009, it granted 500,000 fully paid ordinary shares in the Company to Breakaway Resources Limited (ACN 061 595 051), a sophisticated and professional investor for the purposes of Part 6D.2 of the Corporations Act 2001 (Cth) (the Act ) and that on 15 July 2009, it granted 400,000 fully paid ordinary shares in the Company to Lennonville Pty Ltd (ACN 075 867 515) as trustee for the Lennonville Trust, a sophisticated and professional investor for the purposes of Part 6D.2 of 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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