NEOMETALS LTD — Interim / Quarterly Report 2009

Jul 30, 2009

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity
REED RESOURCES LTD
ABN 89 099 116 631Consolidated statement of cash flows	Quarter ended (“currentquarter”)
	30 June 2009

Consolidated statement of cash flows
Cash flows related to operating activities1.1Receipts from product sales and related debtors1.2Payments for(a) exploration and evaluation(b) development(c) production(d) administration1.3Dividends received1.4Interest and other items of a similar naturereceived1.5Interest and other costs of finance paid1.6Income taxes paid (R&D Refund)1.7OtherNet Operating Cash Flows	Current quarter$A	Year to date(12..months)$A
	1,776,926(981,556)(54,593)(47,204)(729,477)75,482---	4,484,605(8,037,518)(740,634)(3,080,234)(3,460,965)907,049-323,53542,085
	39,578	( 9,562,077)
Cash flows related to investing activities1.8Payment for purchases of:(a) prospects(b) equity investments(c) other fixed assets1.9Proceeds from sale of:(a) prospects(b) equity investments(c) other fixed assets1.10Loans to other entities1.11Loans repaid by other entities1.12Other (cash on hand subsidiaries acquiredSept08 and Dec08 quarters)Net investing cash flows1.13Total operating and investing cash flows(carried forward)	-----15,000---	(1,000,000)-(40,196)--37,429--1,001
	15,000	(1,001,766)
	54,578	(10,563,843)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13Total operating and investing cash flows(brought forward)Cash flows related to financing activities1.14Proceeds from issues of shares, options, etc.1.15Proceeds from sale of forfeited shares1.16Proceeds from borrowings1.17Repayment of borrowings1.18Dividends paid1.19Other – Capital raising costsNet financing cash flowsNet increase (decrease) in cash held1.20Cash at beginning of quarter/year to date1.21Exchange rate adjustments to item 1.201.22Cash at end of quarter	54,578	(10,563,843)
		-
		-
		-
		(21,511)
		-
		(100,000)
		(121,511)
	54,578	(10,685,354)
	9,233,077	19,973,009
	9,287,655	9,287,655

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.231.24	Aggregate amount of payments to the parties included in item 1.2Aggregate amount of loans to the parties included in item 1.10	Current quarterA$
		154,920
		-
1.25	Explanation necessaryfor an understandingof the transactions
	Salary and superannuation payable to directors: $102,741Rent and service fees paid to a related party: $52,179

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1Loan facilities3.2Credit standby arrangements	Amount available $A	Amount used $A
	-	-
	-	-

Estimated cash outflows for next quarter

$A 4.1 Exploration and evaluation 500,000 4.2 Development 500,000 Total Reconciliation of cash Reconciliation of cash at the end of the quarter (as Current quarter Previous quarter shown in the consolidated statement of cash flows) to the $A $A related items in the accounts is as follows. 5.1 Cash on hand and at bank 522,655 468,077 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (term deposits) 8,765,000 8,765,000 9,287,655 9,233,077 Total: cash at end of quarter (item 1.22)

Changes in interests in mining tenements

6.1Interests in miningtenements relinquished,reduced or lapsed6.2Interests in miningtenements acquired orincreased	Tenementreference	Nature of interest(note (2))	Interest atbeginningofquarter	Interest at endof quarter

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price persecurity (see note3) (cents)	Amount paid up persecurity (see note 3)(cents)
7.1Preference+securities(description)7.2Changes duringquarter(a) Increasesthrough issues(b) Decreasesthrough returnsof capital, buy-backs,redemptions
7.3+Ordinarysecurities7.4Changes duringquarter(a) Increasesthrough issues(b) Decreasesthrough returnsof capital, buy-backs	137,650,000	137,650,000
7.5+Convertibledebt securities(description)7.6Changes duringquarter(a) Increasesthrough issues(b) Decreasesthroughsecuritiesmatured,converted
7.7Options(description andconversionfactor)7.8Issued duringquarter7.9Exercised duringquarter7.10Expired duringquarter	2,500,0001,000,0002,700,000500,0001,700,0001,333,333850,0001,250,000	NilNilNilNilNilNilNilNil	Exercise price$0.78$0.50$0.75$0.85$0.85$1.08$1.20$1.20	Expiry date31/12/200901/07/201030/06/201126/11/201231/12/201230/06/201031/12/201331/12/2013
	2,000,000	Nil	$0.60	31/05/2009

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

7.11Debentures(totals only)
7.12Unsecurednotes(totalsonly)

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does /does not* ( delete one) give a true and fair view of the matters disclosed.

==> picture [86 x 54] intentionally omitted <==

Sign here: Company Secretary Date: 31 July 2009 Print name: Jason Carone

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

  • = == == == ==

• See chapter 19 for defined terms.

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