NEOMETALS LTD — Capital/Financing Update 2012

Apr 1, 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

2 April 2012

Company Announcements Office ASX Limited Via Electronic Lodgement

Dear Sirs

Notice to Option Holders – Non-Renounceable pro rata entitlement offer

Please see attached a notice to be sent to Company option holders today.

Yours faithfully

Darren Wates COMPANY SECRETARY

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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

2 April 2012

Dear Option Holder

Reed Resources Ltd – Non-renounceable pro rata entitlement offer

As announced today, Reed Resources Ltd ( Reed ) is undertaking a non-renounceable pro rata entitlement offer of 3 new fully paid ordinary shares in Reed ( New Shares ) for every 4 ordinary shares held at 5.00pm (Perth time) on 13 April 2012 ( Record Date ) at an offer price of A$0.20 per New Share ( Entitlement Offer ).

The terms and conditions of your options do not entitle you to participate in the Entitlement Offer unless you exercise some or all of your options into ordinary shares in Reed ( Shares ) and are entered onto Reed’s share register before the Record Date.

The purpose of this letter is to give you notice of the Entitlement Offer before the Record Date to allow you to exercise your options should you wish to participate in the Entitlement Offer.

If you wish to participate in the Entitlement Offer in respect of Shares that would be issued to you on exercise of your options, then your notice of exercise, together with a cheque for the relevant exercise price, must be received by the Company Secretary no later than 5.00pm (Perth time) on Tuesday, 10 April 2012 in order to ensure that your Shares are allotted prior to the Record Date. Any Shares to be issued under a notice of exercise received after this date cannot be assured of being allotted before the Record Date.

If you do not wish to participate in the Entitlement Offer in respect of your options, then you do not need to take any action.

Details of the Entitlement Offer are contained in the prospectus lodged with ASIC and ASX today, and available at www.asx.com.au. If you have any questions about the Entitlement Offer that are not answered in the prospectus, or you are in any doubt as to the action you should take in response to this letter, you should consult your accountant, stockbroker, lawyer or other professional adviser.

Please not that this letter is not an offer or an invitation to acquire Shares or to participate in the Entitlement Offer.

Yours faithfully

Darren Wates COMPANY SECRETARY

This letter has been prepared for publication in Australia and may not be released or distributed in the United States. This letter does not constitute an offer of securities for sale in the United States or any other jurisdiction. Any securities described in this letter may not be offered or sold in the United States absent registration under the US Securities Act of 1933 or an exemption from registration.

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