NEOMETALS LTD — Capital/Financing Update 2010

Dec 8, 2010

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

ASX RELEASE

9 December 2010

Update on Approaches Received for Mount Marion Lithium Project

 Reed Resources Ltd has been approached by a range of local and international partners  Gresham Advisory Partners appointed as corporate advisers.

Australian diversified resources company Reed Resources Ltd (ASX:RDR) (“the Company” or “Reed”) wishes to update shareholders on recent discussions with potential local and international partners in relation to the downstream opportunities for the Mount Marion Lithium Project, located near Kalgoorlie, Western Australia.

As noted in the Company’s report on activities for the quarter ended 30 September 2010, Reed is currently focused on the development of its Mount Marion Lithium Project, which when commissioned, will be the world’s second largest source of spodumene (lithium oxide) production.

Continued strong underlying market fundamentals, reflecting the growing strategic importance of chemical‐grade lithium to developed economies, has led to increased interest in the Company and the Mount Marion Lithium Project from a range of industry participants. The Company has received approaches from parties proposing various transaction structures ranging from downstream toll treatment and/or joint ventures through to outright acquisition of the upstream (spodumene concentrate) operations.

In light of these developments, Reed has appointed leading independent Australian investment bank Gresham Advisory Partners Limited to assist the company in considering its strategic alternatives in relation to Mount Marion Lithium Project, with a view to ensuring maximisation of shareholder value.

It should be stressed that discussions remain preliminary and there can be no assurance that a binding proposal will emerge. In the meantime, Reed remains focused on obtaining approval of the mining proposal from the Department of Mines and Petroleum and will keep the market informed of future developments.

Ends

For further information contact:

Reed Resources Gresham Advisory Partners Limited Chris Reed Justin Mannolini / Darren Martin Managing Director Managing Director / Director – Corporate Finance Tel: +61 8 9322 1182 Tel: + 61 8 9486 7077

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About Reed Resources

Reed Resources Ltd (ASX: RDR, OTC: RDRUY) is a diversified mining and exploration Company based in Western Australia. Reed’s American Depositary Receipts (ADR’s) trade under the code RDRUY (CUSIP Number: 758254106). Each Reed ADR is equivalent to 10 ordinary shares of Reed as traded on the ASX. The Bank of New York Mellon is the depository bank.

Reed Resources has five main projects (all in Western Australia) including:

• Mount Marion – High‐grade Lithium project located about 40km south of Kalgoorlie in JV with Mineral Resources Limited. First production planned by end March 2011.

• Barrambie – Definitive Feasibility Study completed on a Ferrovanadium operation to produce 6300t of vanadium per annum. Currently in approvals process. MOU with China Nonferrous Metals for EPC & Financing assistance.

• Comet Vale – Evaluating recommencement of high‐grade underground gold production and refurbishment of processing plant, both currently on care & maintenance.

• Mount Finnerty – Iron ore JV with Cliffs Natural Resources & Nickel Farm‐in with Barranco Resources NL.

• Bell Rock Range – Grassroots Nickel‐Copper‐PGM Exploration.

Website: www.reedresources.com