NEOMETALS LTD — Capital/Financing Update 2013

Apr 18, 2013

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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

19 April 2013

Hedge book closure yields $27 million – All debt retired

• $27 million cash realised on closure of hedge book

• Credit Suisse debt facility to be fully repaid and group security released

• Company cash balance to increase by $7.7 million

• Meekatharra Gold Operation continues to be economically viable at current gold price

• Bluebird Mining Operations to continue as planned

Western Australian gold producer, Reed Resources Ltd ( ASX: RDR ) ( “Reed” or “the Company” ), is pleased to announce that it has closed its hedge book to realise its inherent financial value and strengthen the Company’s balance sheet during this period of gold price weakness.

As announced to ASX on 17 April 2013, Reed’s participating forward hedging structure enabled Reed to achieve a floor price of approximately A$1,626 per ounce over 110,000 hedged ounces, mitigating risk should an unexpected gold price downturn occur. In light of the recent and significant fall in the Australian dollar gold price to its lowest price in two years, the Company has taken advantage of the gold price weakness by realising the value of the hedge book immediately at approximately $A1,330 per ounce, yielding the Company $27.135 million.

The Company has arranged to repay Credit Suisse all amounts owing under the $19 million debt facility established in November 2012. Credit Suisse is in the process of finalising the documentation for the release of its security over the Reed group. The closure of the hedge book will increase Reed’s working capital by approximately $7.7 million. The release of Credit Suisse security will also enable the Company to explore other opportunities to generate working capital through the release of restricted use term deposits securing performance bond facilities.

The Company has completed a review of its Stage 1 Life of Mine Plan, which shows that at a gold price of approximately A$1,300 the current Bluebird, Batavia and Surprise pits continue to be economically viable. The Whangamata pit is uneconomic at prevailing gold prices. With respect to the Bluebird open pit, which is currently being mined, 53% of the planned total material movement has already been mined to the end of March whilst only 12% of the Ore Reserve has been extracted, as the bulk of the pre-stripping and waste movement has been completed.

The Company is revising the production plan based largely around re-sequencing of ore sources at the Meekatharra Gold Operation ( MGO ) to manage capital development expenditures, whilst preserving the potential or optionality to return to higher mining and processing rates subject to an improvement in the gold price.

Reed Managing Director, Luke Tonkin, said: “The closure of the hedge book is a prudent decision that alleviates significant financial risk. It simplifies and strengthens the Company’s balance sheet through the retirement of the Credit Suisse debt and increased cash reserves. The Board considers this to be an excellent outcome in a volatile gold price environment.”

“Our operational review demonstrates that the Bluebird open pit remains highly economic in the current depressed gold price environment. Furthermore, the MGO is now at the point of accessing higher grade ore from the Bluebird open pit.”

Future Strategic Intent

In addition to the review of the MGO, the Board is planning a formal review of options to increase shareholder value from the assets of the Company, which will be unencumbered following release of the Credit Suisse security, including its non-core exploration assets.

ENDS

For further information please contact :

Luke Tonkin John Gardner Reed Resources Ltd MAGNUS Investor Relations T: +61 8 9322 1182 T: +61 413 355 997 E: enquiries@reedresources.com E: jgardner@magnus.net.au

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 in JV with Mineral Resources Limited (ASX: MIN).

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

• Comet Vale: Currently on care & maintenance. High grade resource. Conditional sale pending.

• 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

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