NEOMETALS LTD — Capital/Financing Update 2012

Jul 10, 2012

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ABN 89 099 116 631
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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 11 July 2012

Financing Announcement – Meekatharra Gold Project

Commitment Letter confirms credit approval of $23m revolving credit and

performance bond facilities

Emerging Australian gold producer Reed Resources Ltd ( ASX: RDR ) ( Reed ) announced in May 2012 that Barclays Bank PLC ( Barclays ) was to act as arranger of a debt financing facility of up to $23 million for the Meekatharra Gold Project’s working capital and performance bond requirements.

Reed is pleased to announce the receipt of a Commitment Letter from Barclays confirming credit approval for the debt facility and mandatory hedging program. The commitment is subject to conditions including execution of formal documentation and completion of final due diligence. The key condition precedent to drawdown of the facility is Department of Mines and Petroleum mining approval for Stage 1 open pits Batavia, Whangamata and Surprise with the 86,200 ounce Bluebird open pit already approved. All mining approvals are scheduled for the end of August 2012 with mining scheduled to commence in September 2012. The facility also provides the ability to increase both debt and hedging limits as additional Reserves are added to the Life of Mine that satisfy Barclays debt and hedging criteria. The formal financing agreement is expected to be completed and executed in the coming weeks.

Reed has purchased Puts over 70,000 ounces with a strike price of A$1560/ounce expiring in September 2012 under an Early Access Hedging Facility with Barclays. The number of Puts is directly related to protecting the floor price received in the mandatory hedge from volatile movements in the period between signing the mandate and drawing down funds which is expected in October.

ENDS

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

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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 December quarter of 2012.

Reed Resources’ wholly owned Meekatharra Gold Project is located in the prolific Murchison region of Western Australia and currently has 3.59Moz of gold in JORC resources and existing infrastructure including the 3 Mtpa Bluebird 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). Currently under construction.

• Barrambie: Definitive Feasibility Study completed on the production of 6300t of vanadium per annum. Currently in approvals process and evaluating recovery of titanium and iron units.

• Comet Vale: Currently on care & maintenance. High grade JORC resource of 186,000 oz at 10.8 g/t Au.

• Mount Finnerty: 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

COMPETENT PERSONS STATEMENT

Geological aspects of this report have been compiled by Mr Craig Fawcett (MAIMM), a full time employee of Reed Resources Ltd. Mr Fawcett has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which is being reported on to qualify as a Competent Person as defined in the Code for Reporting of Mineral Resources and Ore Reserves (2004). Mr Fawcett consents to the inclusion in this report of the matters in the form and context in which it appears.