NEOMETALS LTD — Capital/Financing Update 2010

Jul 18, 2010

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

19 July 2010

Company Announcements Office ASX Limited via Electronic Lodgement

Dear Sirs

PROPOSED ISSUE OF OPTIONS

The Company wishes to advise that pursuant to the terms of the employment contract of one of its key employees, and in accordance with the rules of the Reed Resources Employee Share Option Plan, the Board has resolved to offer that employee 750,000 unlisted options (each to acquire 1 fully paid ordinary share of the Company).

The options will have an exercise price of $1.00 and an expiry date for exercise of 1 July 2013. The options are offered for no additional consideration in accordance with the employee’s remuneration entitlements.

Yours faithfully

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Jason Carone

COMPANY SECRETARY

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