NEOMETALS LTD — Capital/Financing Update 2010

Jun 30, 2010

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

ASX Announcement

1 July 2010

REED RESOURCES LTD ANNOUNCES SPONSORED AMERICAN DEPOSITARY RECEIPT (ADR) PROGRAM

Australian diversified resources company Reed Resources Ltd ( ASX: RDR ) (“Reed”) is pleased to announce the establishment of a sponsored American Depositary Receipt (ADR) Program.

The establishment of a sponsored ADR program creates a broader secondary market for Reed securities to trade, particularly in the United States and enables US investors to trade in Reed securities without the hazards or inconveniences of cross‐currency transactions.

The Company’s decision to proceed with the ADR program follows the recent developments to progress Reed’s Mt Marion Lithium Project and discussions with China Non‐ferrous Metal Industry’s Foreign Engineering and Construction Co (NFC) on the development of the Company’s Barrambie Vanadium Project.

The ADRs will be tradable via licensed U.S. brokers in the ordinary course of trading in the Over‐The Counter (OTC) Market in the United States.

Reed has appointed The Bank of New York Mellon (BNYM) as the Depositary Bank to establish the ADR facility. Particulars for the United States sponsored ADR program are as follows;

US Trading Platform: OTC CUSIP No: 758254106 ISIN No: US7582541063 Ratio: 1: 10 (1 ADR : 10 Ordinary Shares)

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Any queries in relation to the ADR facility should be directed to BNYM;

www.adrbnymellon.com

Toll Free # for Domestic Calls: 1 888 BNY ADRS or ‐ 1888 269 2377 International Calls: 1 201 680 6825

For more information please contact:

Reed Resources Ltd Media Chris Reed Karen Oswald Managing Director Professional Public Relations Tel: 08 9322 1182 Tel: 08 9388 0944

About Reed Resources

Reed Resources Ltd is a diversified mining and exploration Company based in Western Australia. It has modest gold production and is expanding and diversifying its production base. 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 Ltd. First production planned by January 2011.

• Comet Vale – High‐grade underground gold mine.

• Barrambie – Definitive Feasibility Study completed on a Ferrovanadium operation to produce 6300t of vanadium per annum. Currently in approvals process.

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

• Bell Rock Range – Nickel‐Copper‐PGM Farm‐out to Anglo American Exploration.

Website: www.reedresources.com

ASX code: RDR