NEOMETALS LTD — Capital/Financing Update 2010

Oct 13, 2010

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

14 October 2010

Company Announcements Office ASX Limited via Electronic Lodgement

Dear Sirs

AMMENDMENT TO PROPOSED ISSUE OF OPTIONS TO DIRECTORS

On 20 August 2010, Reed Resources Ltd (ASX: RDR) ( Company ) announced that the board had approved, subject to shareholder approval at the Company’s 2010 annual general meeting, the grant of 4,000,000 options in aggregate to its directors as part of the Company’s long‐term incentive arrangements.

The Company advises that the directors have resolved to shorten the proposed exercise period of the options so that it ends on 1 July 2012, rather than 1 July 2013.

Further details of the terms of the proposed options will be contained in the notice of meeting and explanatory memorandum to be dispatched to shareholders later this month.

Yours faithfully

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Jason Carone

COMPANY SECRETARY

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