NEOMETALS LTD — Director's Dealing 2006

Sep 21, 2006

97 Outram Street West Perth WA 6005 Tel: + 61 8 9322 1182 Fax: + 61 8 9321 0556

22 September 2006

Company Announcements Office Australian Stock Exchange Limited Via Electronic Lodgement

Dear Sirs,

EXERCISE OF EMPLOYEE OPTIONS CHANGE OF DIRECTOR'S INTEREST

Please find attached an Appendix 3B and an Appendix 3Y Notice.

Yours faithfully,

GReed

Christopher Reed Executive Director Company Secretary

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 177/96. Origin: Appendix 5. Amended 177/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003.

Name of entity

Reed Resources Ltd

ABN

89 099 116 631

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

$\mathbf{1}$ ⁺Class of ⁺securities issued or to be Fully paid ordinary shares issued

• Number of 'securities issued or to $\overline{2}$ be issued (if known) or maximum number which may be issued
• 3 Principal terms of the "securities (eg, if options, exercise price and expiry date; if partly paid *securities, the amount outstanding and due dates for payment; if securities, *convertible the conversion price and dates for conversion)

Fully paid ordinary shares

250.000

• See chapter 19 for defined terms. lztp A0107442330v1 605080661

4	Do the securities rank equally in all respects from the date of allotment with an existing "class of quoted securities?	Yes
	If the additional securities do not rank equally, please state: the date from which they do extent to which the they participate for the next dividend, οf (in the. case trust, a distribution) or interest payment the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment
5	Issue price or consideration	\$0.35 each (\$87,500 total)
6	Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets)	Exercise of employee share options
7	Dates of entering "securities into uncertificated holdings or despatch of certificates	Immediately upon allotment
		Number	+ Class
8	Number class οf all and securities quoted ASX on (including the securities in clause 2 if applicable)	80,350,000	fully Ordinary paid shares

⁺ See chapter 19 for defined terms.

Unlisted

exercisable at \$0.75 each, expiry 30/6/2011

options

expiry

options

options

• Number $\overline{\text{Class}}$ $\overline{9}$ ⁺class of all 2,300,000 Number and Unlisted *securities not quoted on ASX exercisable at \$0.35 (including the securities in clause each, 2 if applicable) 31/12/2008 1,000,000 Unlisted exercisable at \$0.50 each, expiry 1/7/2010
• $10$ Dividend policy (in the case of a $\left[$ trust, distribution policy) on the increased capital (interests)

No change in existing policy

700,000

Part 2 - Bonus issue or pro rata issue

11	approval holder security Is required?	Not applicable
12	Is the issue renounceable or non- renounceable?	Not applicable
13	Ratio in which the "securities will be offered	Not applicable
14	Class of securities to which the offer relates	Not applicable
15	*Record determine date to entitlements	Not applicable
16	Will holdings on different registers (or subregisters) be aggregated for calculating entitlements?	Not applicable
17	Policy for deciding entitlements in relation to fractions	Not applicable
18	Names of countries in which the entity has *security holders who will not he sent issue new documents Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7.	Not applicable

⁺ See chapter 19 for defined terms.

19	Closing date for receipt οf acceptances or renunciations	Not applicable
20	Names of any underwriters	Not applicable
21	Amount of any underwriting fee or commission	Not applicable
22.	Names of any brokers to the issue	Not applicable
23	Fee or commission payable to the broker to the issue	Not applicable
24	of any handling fee Amount payable to brokers who lodge acceptances or renunciations on behalf of *security holders	Not applicable
25.	If the issue is contingent on *security holders' approval, the date of the meeting	Not applicable
26	Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled	Not applicable
27.	If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders	Not applicable
28	Date rights trading will begin (if applicable)	Not applicable
29	Date rights trading will end (if applicable)	Not applicable
30	How do *security holders sell their entitlements in full through a broker?	Not applicable
31	How do *security holders sell part of their entitlements through a broker and accept for the balance?	Not applicable

⁺ See chapter 19 for defined terms.

• 32 How do *security holders dispose of their entitlements (except by sale through a broker)?
• 33 *Despatch date

Not applicable

Not applicable

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

• 34 Type of securities (tick one)
• Securities described in Part 1 $(a)$

$(b)$

All other securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

35

37

If the *securities are *equity securities, the names of the 20 largest holders of the additional *securities, and the number and percentage of additional *securities held by those holders

If the *securities are *equity securities, a distribution schedule of the additional 36 *securities setting out the number of holders in the categories $1 - 1,000$ $1,001 - 5,000$ $5,001 - 10,000$ $10,001 - 100,000$ 100,001 and over

A copy of any trust deed for the additional *securities

⁺ See chapter 19 for defined terms.

Entities that have ticked box 34(b)

38.	Number of securities for which Not applicable *quotation is sought
39.	Class of *securities for which Not applicable quotation is sought
40.	Do the "securities rank equally in all respects from the date of allotment with an existing "class of quoted *securities?	Not applicable
	If the additional securities do not rank equally, please state: the date from which they do extent to which they the $\bullet$ participate for the next dividend, $(in$ the case a trust, of - distribution) or interest payment the extent to which they do not $\bullet$ rank equally, other than in relation to the next dividend, distribution or interest payment
41	Reason for request for quotation now Example: In the case of restricted securities, end of restriction period (if issued upon conversion of another security, clearly identify that other security)	Not applicable
42	Number and + class of all + securities quoted on ASX (including the securities in clause 38)	Number Not applicable	+ Class Not applicable

⁺ See chapter 19 for defined terms.

Ouotation agreement

• *Quotation of our additional *securities is in ASX's absolute discretion. ASX may $\mathbf{I}$ quote the *securities on any conditions it decides.
• $\overline{2}$ We warrant the following to ASX.
• The issue of the *securities to be quoted complies with the law and is not for an illegal purpose.
• There is no reason why those *securities should not be granted *quotation.
• An offer of the "securities for sale within 12 months after their issue will not require disclosure under section $707(3)$ or section $1012C(6)$ of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any *securities to be quoted and that no-one has any right to return any 'securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the "securities be quoted.
• We warrant that if confirmation is required under section 1017F of the Corporations Act in relation to the *securities to be quoted, it has been provided at the time that we request that the *securities be quoted.
• If we are a trust, we warrant that no person has the right to return the *securities to be quoted under section 1019B of the Corporations Act at the time that we request that the *securities be quoted.
• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.
• 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before +quotation of the *securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

22 September 2006

GReed

Sign here:

Date: (Director/Company secretary)

Print name:

Christopher John Reed

= ....................................

⁺ See chapter 19 for defined terms.

Appendix 3Y

Rule 3.19A.2

Change of Director's Interest Notice

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 30/9/2001.

	Name of entity Reed Resources Ltd
lACN	89 099 116 631

We (the entity) give ASX the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act.

Name of Director	Ian Courtney Junk
Date of last notice	31 July 2006

Part 1 - Change of director's relevant interests in securities

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Note: In the case of a company, interests which come within paragraph (i) of the definition of "notifiable interest of a director" should be disclosed in this part.

Direct or indirect interest	Direct
Nature of indirect interest
(including registered holder) Note: Provide details of the circumstances giving rise to the relevant interest.
Date of change	21 September 2006
No. of securities held prior to change
Ian Courtney Junk	$(i)$ 500,000 Unlisted Options
Aurora Prospects Pty Ltd	(ii) 750,000 Ordinary Fully Paid
Class	Fully paid ordinary shares
Number acquired	(i) 250,000 Ordinary Fully Paid
Number disposed	(i) 250,000 Unlisted Options
Value/Consideration Note: If consideration is non-cash, provide details and estimated valuation	\$87,500

⁺ See chapter 19 for defined terms.

No. of securities held after change Ian Courtney Junk	(i) 250,000 Unlisted Options (i) 250,000 Ordinary Fully Paid
Aurora Prospects Pty Ltd	(ii) 750,000 Ordinary Fully Paid
Nature of change Example: on-market trade, off-market trade, exercise of options, issue of securities under dividend reinvestment plan, participation in buy-back	unlisted Exercise options 250,000 of exercisable at \$0.35 each

Part 2 - Change of director's interests in contracts

Note: In the case of a company, interests which come within paragraph (ii) of the definition of "notifiable interest of a director" should be disclosed in this part.

Detail of contract
Nature of interest
Name of registered holder
(if issued securities)
Date of change
No. and class of securities to
which interest related prior to change Note: Details are only required for a contract in relation to which the interest has changed
Interest acquired
Interest disposed
Value/Consideration Note: If consideration is non-cash, provide details and an estimated valuation
Interest after change

⁺ See chapter 19 for defined terms.