NEOMETALS LTD — Capital/Financing Update 2013

Oct 3, 2013

Level 1, 672 Murray St West Perth WA 6005

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----- Start of picture text ----- ABN 89 099 116 631----- End of picture text -----

Locked Bag 8 West Perth WA 6872 Tel: +61 8 9322 1182 Fax: +61 8 9321 0556

ASX RELEASE

4 October 2013

Barrambie Scoping Study Commences

HIGHLIGHTS

• Snowden Mining Industry Consultants to complete a Scoping Study to produce highpurity titanium and vanadium chemicals direct from Barrambie ore using proprietary flow-sheet.

• Scoping Study to be completed in November 2013

• Recent Mineral Resource estimate confirms Barrambie as world’s second highest grade titanium deposits at 22% TiO2.

Reed Resources Ltd ( ASX: RDR ) ( “Reed” ) is pleased to report the commencement of a scoping study on its Barrambie Titanium Project. The purpose of the Scoping Study is to assess the potential viability of the development of a hard rock titanium mining and processing operation against a set of key commercial parameters.

Laboratory scale test work using a proprietary flow-sheet has produced 99.9% TiO2 direct from Barrambie ore at recoveries in excess of 90%. The Company is currently negotiating a technology transfer agreement for the process.

The Barrambie Titanium Project contains total Indicated and Inferred Mineral Resources of 47.2Mt at 22.2% TiO2 , 0.63% V2O5 , and 46.7% Fe2O3, at a cut-off grade of 15% TiO2 (Appendix A), making it the world’s second highest grade hard-rock titanium deposit (Appendix A).

ENDS

For further information please contact :

Chris Reed

Reed Resources Ltd

T: +61 89322 1182

• E: enquiries@reedresources.com

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Competent Persons Statement

Information in this report that relates to Mineral Resources is based on information compiled by Mr Andrew Ross, a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM), and Dr Bryan Smith a Member of the Australian Institute of Geoscientists (AIG).

Mr Andrew Ross, Senior Principal Consultant, is employed by Snowden and compiled the resource estimate report. Mr Ross has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results Mineral Resources and Ore Reserves”. Mr Ross consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Dr Bryan Smith (Bryan Smith Geosciences), employed as a consultant geologist by Reed Resources Ltd, has compiled and provided drilling results and geological interpretations for Mineral Resource estimates. Dr Smith has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results Mineral Resources and Ore Reserves”. Dr Smith consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Appendix A Barrambie Mineral Resource Estimate for 15% TiO2 cut-off

Category(JORC,2004)
	Tonnage(Mt)	TiO2(%)	V2O5(%)	Fe2O3(%)	Al2O3(%)	SiO2(%)
Indicated	34.7	22.25	0.64	46.77	9.48	14.95
Inferred	12.5	21.99	0.58	46.51	9.32	15.40
Total	47.2	22.18	0.63	46.70	9.44	15.07

All tonnage and grade figures have been rounded down to two or three significant figures, respectively; slight errors may occur due to rounding of values.

About Reed Resources

Reed Resources Ltd (ASX: RDR, OTC: RDRUY) is a Western Australian resource developer.

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