NEOMETALS LTD — Capital/Financing Update 2013

Jul 9, 2013

==> picture [284 x 62] intentionally omitted <==

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

9 July 2013

Meekatharra Gold Operation Update

• Mine to mill variation in June attributed to tightly constraining Bluebird’s northern ore blocks

• Bluebird’s remaining depleted Resource estimate confirmed by recently updated Bluebird Grade Control model

• 84% of the remaining ounces to be mined from Bluebird are contained within the higher grade southern ore blocks

• Total unit cash expenditure for the remaining Bluebird life of mine is estimated at approximately A$1,000/oz

• Retirement of bonds increases available cash by approximately $3 million

Western Australian gold producer, Reed Resources Ltd (ASX: RDR) ( Reed or Company ), provides the following update regarding its Meekatharra Gold Operation ( MGO ).

Mine to Mill Ounces Reconciliation

On 20 June 2013 Reed announced that the mine to mill ounces reconciliation at MGO had declined materially from that previously achieved.

As previously announced the Company performed an external and independent review ( Review ) of both the MGO grade control processes and reconciliation processes in April and early May 2013. The review recommended some areas for improvement however concluded that the work at Bluebird in general is being carried out within typical Australian open pit mining standards. The recommended improvements were implemented promptly. As recommended, immediate action was taken to tighten up ore block interpretations to exclude as much as practicable, marginal material and increase the feed grade to the processing facility.

During June MGO tightly constrained the northern ore blocks, interpreting assay data sets as discrete higher grade mineralised zones within readily identifiable shears. Although the continuity of gold distribution within the northern lodes is not readily identifiable in the geological data, the northern ore zones appear to present as dispersed and disparate gold accumulations within identifiable shear zones and anomalous gold accumulations between shear zones. This completely

==> picture [61 x 57] intentionally omitted <==

contrasts with the southern Bluebird ore lodes which are clearly identifiable within the stratigraphy with very little dissemination either side of the ore grade intercepts. MGO’s implementation of the Review recommendation to tightly constrain the northern Bluebird ore lodes may have exacerbated the variance between mined and milled ounces in June.

Revised geological interpretation indicates that the northern Bluebird ore lodes appear to present quite differently to the southern Bluebird ore lodes. A significant geological feature cutting through the Bluebird pit appears to create a structural boundary between the southern and northern lode systems.

MGO has performed further grade control drilling in the northern and southern Bluebird ore lodes in the second half of June which has been combined with face sampling, blast-hole definition sampling and existing geological data to better define the ore blocks remaining to be mined from Bluebird.

Early indications through July are that this change to ore block interpretations has improved the mine to mill reconciliation.

Bluebird Resource Validation

The Bluebird Resource estimate ( Estimate ) was independently and externally prepared for Reed by Resource estimation specialists ( Specialists ). The drill hole database, survey data base and estimation parameters adopted by the Specialists to compile the Estimate has been internally reviewed and Reed believes that it retains its original integrity albeit the Estimate included ounces previously depleted by the legacy Bluebird pits. The depletion was quantified by Reed in its 20 June announcement.

Although not definitive, Reed has compared the depleted Estimate with MGO’s grade control model ( GC Model ) which incorporates both historic and recent grade control data below the 400mRL, and represents the approximate location of the Bluebird pit floor at the end of June.

The GC Model and Estimate confirm that approximately 58,500 ounces remain to be mined from below the 400mRL at a 0.6g/t cut off. MGO will continue to update the GC model as new grade control data is gathered.

Estimate	Estimate	Estimate	Estimate	Estimate	GC Model	GC Model	GC Model	GC Model	GC Model
	Volume	Tonnes	Cut Au	Ounces		Volume	Tonnes	Au	Ounces
Grand Total	310,413	828,000	2.19	58,300	Grand Total	357,270	961,862	1.891	58,479

Table 1: Bluebird Estimate versus Bluebird GC Model @ 0.6g/t cut off below the 400mRL

Approximately 84% of the remaining ounces to be mined from Bluebird are contained within the southern high grade ore zone. Much of Bluebird’s production in July and August will be sourced from the higher grade southern ore zones.

	GC Model	GC Model	GC Model	GC Model	GC Model	GC Model
	NORTH						SOUTH
	Volume	Tonnes	Au	Ounces		Volume	Tonnes	Au	Ounces
Grand Total	83,816	200,912	1.49	9,650	Grand Total	273,453	760,950	2.00	48,832

Table 2: GC Model estimated ounces contribution from the northern and southern Bluebird ore lodes @ 0.6g/t cut off below the 400mRL

2

Given the current mine plan and cost assumptions the estimated total cash expenditure per ounce to complete the Bluebird pit is approximately A$1,000/oz.

Environmental Performance Bonds

The Company is pleased to announce that the Western Australian Department of Mines and Petroleum has retired all of the Company’s environmental performance bonds pertaining to the Meekatharra Gold Operation, following the Company opting in to the new Mining Rehabilitation Fund. The retirement of these bonds has released approximately $3 million previously held in restricted use term deposits as security for the bonds.

ENDS

For further information please contact :

Luke Tonkin Reed Resources Ltd T: +61 8 9322 1182 E: enquiries@reedresources.com

About Reed Resources

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

Reed Resources’ wholly owned Meekatharra Gold Operation is located in the prolific Murchison region of Western Australia and includes the 3Mtpa Bluebird processing plant.

Reed Resources’ other projects include:

• Mount Marion: High-grade lithium project located 40km south of Kalgoorlie, owned 70:30 with Mineral Resources Limited (ASX: MIN). Currently undertaking continuous-scale test work to prove wholly-owned processing route to produce lithium hydroxide and lithium carbonate.

• Barrambie: Currently evaluating recovery of titanium, vanadium and iron units via a proprietary hydrometallurgical processing route.

• Comet Vale: Currently on care & maintenance. High grade gold resource.

• 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 they appear.

3