NEOMETALS LTD — Interim / Quarterly Report 2011

Apr 28, 2011

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, 01/06/10.

Name of entity

Reed Resources Ltd

ABN 89 099 116 631	Quarter ended (“current quarter”)
89 099 116 631	31 March 2011

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows	Current quarter $A’000	Year to date (9months) $A’000
	- (711) (447) - (1,014) - 204 (65) -	1,843 (2,760) (591) (1,304) (3,954) - 685 (130) - 438
	(2,033)	(5,773)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (Option Fee for Tenements) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	(6,011) (11,155) - - - - - -	(6,011) (11,357) - - 232 - - -
	(17,166)	(17,136)
	(19,199)	(22,909)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(19,199)	(22,909)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (capital raising costs) Net financing cash flows	18,074 - - - - (1,034)	25,574 - - - - (1,447)
	17,040	24,127
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	(2,159) 13,430	1,218 10,053
	11,271	11,271

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

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		141.7
		-
1.25	Explanation necessaryfor an understandingof the transactions
	Directors’ fees and superannuation: $95,529 Rent & Service charge: $46,121

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

On 12 January 2011 the Company agreed to acquire the Meekatharra gold project for $28M. As a result the Company made two payments during the quarter and is obligated to pay a further $8M in cash and holding costs to complete the transaction on or before 30 June 2011. The Company’s recent $40M capital raising, partly to fund this asset purchase, was finalised in April 2011.

• 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

n/a

• 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.

3.1 Loan facilities 3.2 Credit standby arrangements

	Amount available	Amount used
	$A’000	$A’000
	-	-
	-	-

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	2,500
	-
	-
	700
Total	3,200

Reconciliation of cash

Total Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (term deposits)	2,242	3,405
	-	1,000
	-	-
	9,029	9,025
Total: cash at end of quarter(item 1.22)	11,271	13,430

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	P29/1764	Expired 01/02/2011	100%	0%
	L26/252 L26/32 L15/321	Granted 21/03/2011 Granted 21/03/2011 Lodged 09/02/2011	100% 100% 0%	100% 100% 100%

• See chapter 19 for defined terms.

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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 per security (see note3) (cents)	Amount paid up per security (see note3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
	37,558,788	37,558,788
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	229,830,556	229,830,556
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter	2,700,000 1,800,000 1,850,000 2,450,000 4,500,000 3,150,000 4,000,000	Nil Nil Nil Nil Nil Nil Nil	Exercise price $0.75 $0.85 $1.20 $0.80 $0.80 $1.00 $1.00	Expiry date 30/06/2011 31/12/2012 30/06/2013 31/12/2013 30/06/2012 01/07/2013 01/07/2012

• See chapter 19 for defined terms.

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7.10 Expired during quarter
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

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 [91 x 57] intentionally omitted <==

Sign here: ............................................................ Date: 29 April 2011 Company secretary

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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