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

Geological aspects of this report that relate to Exploration Results have been compiled by Dr Bryan Smith (MAIG and MAIMM), a consultant to Reed Resources Ltd. Dr Smith 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 appears.Resources and Ore Reserves. Dr Smith consents to the inclusion in the report of the matters in the form and context in which it

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