NEOMETALS LTD — Interim / Quarterly Report 2012

Oct 24, 2012

Appendix 5B Mining exploration entity quarterly report

Appendix 5B

Mining exploration entity quarterly report

Name of entity

Reed Resources Ltd

	ABN 89 099 116 631		Quarter ended (“current quarter”) 30 September 2012	Quarter ended (“current quarter”) 30 September 2012
			30 September 2012
	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 (R&D refund and EMD Grant) Net Operating Cash Flows
		Current quarter $A’000		Year to date (3months) $A’000
		- - - - (2,486) - 193 - - -		- - - - (2,486) - 193 - - -
		(2,293)		(2,293)
	Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets (d) exploration & evaluation 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets (d) subsidiaries 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (tenement acquisition option fee) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - (9,502) (1,525) - - - - - - -		- - (9,502) (1,525) - - - - - - -
		(11,027)		(11,027)
		(13,320)		(13,320)

Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(13,320)	(13,320)
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	- - - (48) - -	- - - (48) - -
	(48)	(48)
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	(13,368) 40,309 -	(13,368) 40,309 -
	26,941	26,941

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

Payments to related entities of the entity and associates of entities	the related
1.23 Aggregate amount of payments to the parties included in item 1.2 1.24 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A
	370,503
	-

• 1.25 Explanation necessary for an understanding of the transactions

Directors’ fees and superannuation: $370,503

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

n/a

• 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

Financing facilities available

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	-	-
	-	-

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Appendix 5B Mining exploration entity quarterly report

Estimated cash outflows for next quarter*

Estimated cash outflows for next quarter*
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration**	$A’000
	360
	14,700
	9,500
	7,300
Total	31,860

• Estimated cash outflows are based on the completion of the $10M capital raising announced on 22 October 2012 and the execution and drawdown of the $19M Credit Suisse debt facility announced on 28 September 2012. ** Includes cost of finance facilities.

Reconciliation of cash

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 (restricted deposits)	12,143	25,646
	-	-
	-	-
	14,798	14,663
Total: cash at end of quarter(item 1.22)	26,941	40,309

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	Interest at beginning of quarter	Interest at end of quarter
	P15/5556 P15/5557 P51/1903 P51/160	Surrendered 02/07/2012 Surrendered 20/07/2012 Expired 31/08/2012 Expired 31/08/2012	100% 100% 100% 100%	0% 0% 0% 0%
	E16/448 E51/1496 M51/0679 M51/0561 M51/0871	Application 12/09/2012 Lease granted 31/07/2012 Lease granted 31/08/2012 Lease granted 31/08/2012 Application 03/08/2012	0% 0% 0% 0% 0%	100% 100% 100% 100% 100%

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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.

7.6		Total number	Number quoted	Issue price per security (cents)	Amount paid up per security (cents)
	7.1 Preference securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
	7.3 Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	464,112,073	464,112,073
		1,410,500	1,410,500
	7.5 Convertible debt securities (description) Changes during quarter (a) Increases through issues (b) Decreases through securities matured,converted
7.7 7.8	Options (description and conversion factor) Issued during quarter	1,800,000 1,850,000 2,450,000 3,000,000 500,000	Nil Nil Nil Nil Nil	Exercise price $0.834 $1.184 $0.784 $0.984 $0.984	Expiry date 31/12/2012 30/06/2013 31/12/2013 01/07/2013 01/07/2014

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Appendix 5B Mining exploration entity quarterly report

7.9 Exercised during quarter 7.10 Expired during quarter
	4,000,000	Nil	$0.984	01/07/2012
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.

• 2 This statement does give a true and fair view of the matters disclosed.

==> picture [95 x 46] intentionally omitted <==

Sign here: ............................................................ Date: 25 October 2012 Company secretary

Print name: Jason Carone

Appendix 5B Page 5