NEOMETALS LTD — Interim / Quarterly Report 2012

Jul 29, 2012

Appendix 5B Mining exploration entity quarterly report

Appendix 5B

Mining exploration entity quarterly report

Name of entity

Reed Resources Ltd

ABN Quarter ended (“current quarter”) 89 099 116 631 30 June 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 (12months) $A’000
	- (1,140) - - (2,327) - 131 (204) - 222	- (10,368) - - (7,919) - 306 (368) - 222
	(3,318)	(18,127)
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 (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)	- (505) (2,517) - - - - - - -	- (505) (7,927) - 1,306 10 3,134 - - (148)
	(3,022)	(4,130)
	(6,340)	(22,257)

Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(6,340)	(22,257)
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	39,592 - 960 (1,332) - (2,495)	39,592 - 1,260 (1,403) - (2,555)
	36,725	36,894
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	30,385 9,924 -	14,637 25,672 -
	40,309	40,309

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	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
	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
		374,148
		-

• 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

• 1.25 Explanation necessary for an understanding of the transactions

Directors’ fees and superannuation: $360,254 Rent & Service charge: $13,894

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

During the quarter, GMK Exploration Pty Ltd, a wholly owned subsidiary of Reed Resources Ltd, acquired a deferred premium put option expiring on 19 September 2012. $3,048,904 of the put option premium is payable on 21 September 2012.

• 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

Amount available Amount used $A’000 $A’000 3.1 Loan facilities - -

Appendix 5B Page 2

Appendix 5B Mining exploration entity quarterly report

3.2 Credit standby arrangements

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
		600
		2,300
		-
		1,600
Total		4,500
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)	25,646	768
	-	-
	-	-
	14,663	9,156
Total: cash at end of quarter(item 1.22)	40,309	9,924

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
	E16/261	Surrendered 16/05/2012	100%	0%

Appendix 5B Page 3

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	462,701,573	462,701,573
		197,959,072	197,959,072
	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 4,000,000 500,000	Nil Nil Nil Nil Nil Nil	Exercise price $0.834 $1.184 $0.784 $0.984 $0.984 $0.984	Expiry date 31/12/2012 30/06/2013 31/12/2013 01/07/2013 01/07/2012 01/07/2014

Appendix 5B Page 4

Appendix 5B Mining exploration entity quarterly report

7.9 Exercised during quarter 7.10 Expired during quarter
	4,500,000	Nil	$0.784	30/06/2012
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: 30 July 2012 Company secretary

Print name: Jason Carone

Appendix 5B Page 5