NEOMETALS LTD — Capital/Financing Update 2012

Sep 30, 2012

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Level 1, 672 Murray St West Perth WA 6005 Locked Bag 8 West Perth WA 6872 Tel: +61 8 9322 1182 Fax: +61 8 9321 0556

ASX RELEASE

1 October 2012

Reed Awards Meekatharra Mining Contract

HIGHLIGHTS

• Minepower awarded Meekatharra Gold Project Mining Contract

• Mr Chris Mardon appointed General Manager – Meekatharra Gold Project

Reed Resources Ltd ( ASX: RDR ) ( “Reed” ) is pleased to announce that Infinite Corp Pty Ltd t/a Minepower ( “Minepower” ) has been awarded the Stage 1 Mining Contact at Reed’s 100% owned Meekatharra Gold Project located in the Murchison region of Western Australia.

Minepower is a Western Australian owned business specialising in open pit mining and earthmoving solutions. Minepower will commence mobilising to site from 1 October 2012 with mining of the Bluebird Open Pit to commence shortly thereafter.

In announcing the appointment of Meekatharra Gold Project’s mining contractor, Reed’s Managing Director Luke Tonkin commented on the operation’s transition from construction and refurbishment to production.

“The construction and refurbishment works program at Meekatharra is nearing completion with all the major work packages being completed as scheduled and within estimated cost. The award of the mining contract is a significant milestone for Reed, the Meekatharra community and the State as it clearly signals the commencement of production activity and associated benefits that flow from gold production.”

“Reed is successfully transitioning to a producer and will continue to execute Reed’s disciplined and staged exploitation of Meekatharra’s Mineral Resource and Reserve base targeting growth in gold production, longer life and lower costs,” he said.

Reed is also pleased to announce the appointment of Mr Chris Mardon as General Manager of the Meekatharra Gold Project.

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Chris has had over 20 years of mining and resources experience having graduated from the Western Australian School of Mines with a Bachelor of Engineering in 1990. Chris holds a First Class Mine Managers Certificate and has held senior management roles in resources companies including Modun Resources, Delta Gold, Croesus Mining and Tanami Gold/Jabiru Metals. He has also operated as an independent mining consultant. Chris has held key roles in mine feasibilities, project development and management of mining operations both domestically and internationally. Chris has relevant exposure to gold, base metals, iron ore and coal operations and has surface and underground mining experience.

Commenting on Chris Mardon’s appointment Mr Tonkin said “Reed is fortunate to have attracted a mining professional of Chris’s calibre after an extensive search. Chris has the appropriate skills, knowledge, experience, temperament, values and capacity to lead the Meekatharra team whilst establishing a strong foundation for Reed’s growth in the Meekatharra region.”

For further information please contact :

Luke Tonkin John Gardner Reed Resources Ltd MAGNUS Investor Relations T: +61 89322 1182 T: +61 413 355 997 E: enquiries@reedresources.com E: jgardner@magnus.net.au

About Reed Resources

Reed Resources Ltd (ASX: RDR, OTC: RDRUY) is an emerging Western Australian gold producer focused on bringing its flagship Meekatharra Gold Project into production in the second half of 2012.

Reed Resources’ wholly owned Meekatharra Gold Project is located in the prolific Murchison region of Western Australia and has existing infrastructure including a 3 Mtpa processing plant.

Reed Resources’ other projects include:

• Mount Marion – High-grade lithium project located 40km south of Kalgoorlie in JV with Mineral Resources Limited (ASX: MIN).

• Barrambie – Definitive Feasibility Study completed on the production 6300t of vanadium per annum. Currently in approvals process and evaluating recovery of titanium slag and pig iron as co-products.

• Comet Vale – Currently on care & maintenance.

• Mount Finnerty Iron Ore – Iron ore JV with Cliffs Natural Resources and nickel option with Barranco Resources NL.

Reed Resources’ American Depositary Receipts (ADR’s) trade under the code RDRUY (CUSIP Number: 758254106). Each Reed Resources ADR is equivalent to 10 ordinary shares of Reed Resources as traded on the ASX. The Bank of New York Mellon is the depository bank.

Website: www.reedresources.com