NEOMETALS LTD — Capital/Financing Update 2013

Mar 19, 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

20 March 2013

$6 million Cash Sale of Comet Vale Project

• $6 million conditional sale of Comet Vale Project to Crest Minerals Ltd

• Sale includes 1% zinc royalty over MacPhersons Resources Ltd’s Nimbus Project

• Consistent with Reed’s strategy of focusing on its Meekatharra Gold Operation and realising value for its suite of non-core assets

Western Australian gold producer, Reed Resources Ltd ( ASX: RDR ) ( Reed or Company ), is pleased to announce that it has executed a binding memorandum of understanding ( MOU ) for the conditional sale of its subsidiary Sand Queen Gold Mines Pty Ltd ( SQGM ) to Crest Minerals Ltd ( Crest ) (ASX: CTT). SQGM holds Reed’s Comet Vale Gold Project near Kalgoorlie.

Under the transaction Crest will pay Reed $6 million cash, including a non-refundable deposit of $100,000. The sale includes Reed’s 1% zinc net smelter royalty over the Nimbus Project, which Reed divested to MacPhersons Resources Ltd ( MRP ) in 2011, subject to MRP not exercising its preemptive right to purchase the royalty.

The sale is subject to Crest completing its due diligence enquiries within 2 months, Crest completing a capital raising of at least $13,000,000 and Crest receiving any necessary regulatory and shareholder approvals prior to the end of June 2013. The transaction is also conditional on Reed obtaining any necessary third party consents, approvals and waivers, together with any necessary governmental authorisations or approvals.

Commenting on the sale, Reed Managing Director, Luke Tonkin, said: “With the Company fully focused on its now producing Meekatharra Gold Operation, it is the appropriate time to sell Comet Vale. This is consistent with the Company’s strategy of realising value for its suite of attractive noncore assets, and concentrating on delivering solid cash flows from Reed’s Meekatharra Gold Operation.”

ENDS

For further information please contact :

Luke Tonkin John Gardner Reed Resources Ltd MAGNUS Investor Relations T: +61 89322 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 in approvals process and 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

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