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NEOMETALS LTD Capital/Financing Update 2011

Feb 23, 2011

65430_rns_2011-02-23_c29dca16-c3f7-4012-b356-ca2e7c934fd7.pdf

Capital/Financing Update

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MARKET RELEASE

24 February 2011

Reed Resources Limited

SUSPENSION FROM OFFICIAL QUOTATION

The securities of Reed Resources Limited (the "Company") will be suspended from quotation immediately, at the request of the Company, pending the release of an announcement.

Security Code: RDR

of Heiner

Jill Hewitt Senior Adviser Listings (Perth)

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

24 February 2011

Mr James Rowe ASX Limited Exchange Plaza 2 The Esplanade PERTH WA 6000

BY FAX: 9221 2020

Dear James,

REQUEST FOR VOLUNTARY SUSPENSION

Reed Resources Ltd (ASX Code: RDR) (Company) refers to its request on 21 February 2011 for a trading halt in relation to its securities, pending an announcement regarding a capital raising.

Pursuant to ASX Listing Rule 17.2, the Company requests an immediate voluntary suspension on the trading of its securities. The suspension is necessary as details of the capital raising are currently being finalised.

The Company requests the suspension until such time as an announcement regarding the capital raising is made. The Company anticipates being able to make an announcement prior to the commencement of trading on Friday, 25 February 2011. The Company expects that the voluntary suspension will end on release of the announcement referred to above.

The Company is not aware of any reason why the voluntary suspension should not be granted or of any information necessary to inform the market about the suspension.

Yours sincerely

Jason Carene COMPANY SECRETARY