NEOMETALS LTD — Interim / Quarterly Report 2012

Jan 23, 2013

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 31 December 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 and 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) - Option Premium Net Operating Cash Flows
	Current quarter $A’000	Year to date (6months) $A’000
	1,296 - - (4,765) (4,507) - - - - - (3,058)	1,296 - - (4,765) (6,993) - - - - - (3,058)
	(11,034)	(13,520)
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 to other entities 1.12 Other (provide details if material) - Interest and other items of similar nature received - Exploration & evaluation Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - (10,115) - - - - - 15 (1,578)	- - (19,617) - - - - - 208 (3,103)
	(11,678)	(22,512)
	(22,712)	(36,032)

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(22,712)	(36,032)
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 (provide details if material) - Share issue costs - Interest paid / Establishment costs Net financing cash flows	10,000 - 19,000 - - (445) (1,592)	10,000 - 19,000 (48) - (445) (1,592)
	26,963	26,915
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	4,251 26,941 -	(9,117) 40,309 -
	31,192	31,192

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
		$345,356
		-
1.25	Explanation necessary for an understanding of the transactions
	Directors’ salaries, fees, superannuation and office rent: $345,356

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 December quarter the Consolidated Entity entered into a series of transactions to hedge 110,000 ounces of gold production from the company’s Meekatharra Gold Operation. 70,000 of these ounces are forward gold contracts requiring physical delivery of gold bullion to settle the commitment. The balance of the hedged ounces are put options which are exercisable at the company’s discretion. These puts have an exercise price of A$1,600 per ounce.

On 16 October 2012, the Company executed a shareholders’ agreement pursuant to which 30% of the issued capital of Reed Industrial Minerals Pty Ltd ( RIM ) was issued to Process Minerals International Pty Ltd ( PMI ). RIM is the 100% owner of the Mt Marion Lithium Project.

• 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

PMI was issued 30% of the issued capital in RIM in consideration of execution of the shareholders’ agreement.

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

		Amount available	Amount used
		$A’000	$A’000
3.1	Loan facilities	19,000	19,000
3.2	Credit standby arrangements	-	-

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	735
	-
	22,711
	1,813
Total	25,259

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)	19,248	12,143
	-	-
	-	-
	11,944	14,798
Total: cash at end of quarter(item 1.22)	31,192	26,941

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Appendix 5B Mining exploration entity quarterly report

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed	Tenement Reference	Nature of Interest	Interest at beginning of quarter	Interest at end of quarter
	P15/4818 P15/4819 L53/166(a) E15/1190 E15/1191 M15/999 M15/1000 L15/315 L15/316 L15/317 L15/321 P51/1646 P51/1606 P51/1628 P51/1647 P51/1637 P51/1650 P51/1649 P51/1583 P51/1607 P51/1581 P51/1648 P51/1656 P51/1657 P51/1642 P51/1582 P51/1991 P51/1732 P51/1788 P51/1755 P51/1717 P51/1723 P51/1789 P51/1818 P51/1907 P51/1760 P51/1719 P51/1750 P51/1718 P51/1721 P51/1720 P51/2082 P51/2061 P51/2062 P51/2056 P51/2058 P51/2081 P51/2057	Expired/Amalgamated Expired/Amalgamated Application withdrawn Net interest in these eight tenements 100% held by RIM, was reduced by entry into Shareholders’ Agreement Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%	0% 0% 0% 70% 70% 70% 70% 70% 70% 70% 70% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

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Appendix 5B Mining exploration entity quarterly report

6.2 Interests in mining tenements acquired or increased	P51/2185 P51/2189 P51/1925 P51/1820 P51/1908 P51/2059 P51/2036 P51/1909 P51/1910 P51/1904 P51/1992 P51/1990 P51/2024 P51/1764	Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired Expired	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%	0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
	M51/0557 M51/0568 M51/0569 M51/0570 M51/0571 M51/0573 M51/0575 M51/0576 M51/0581 M51/0582 M51/0637 M51/0613 M51/0587 M51/0586 M51/0677 M51/0644 M51/0645 M51/0640 M51/0628 M51/0674 M51/0584 M51/0783 M51/0782 M51/0811 M51/0834 M51/0784 M51/0678 M51/0680 M51/0688 M51/0718 M51/0737 M51/0740 M51/0758 M51/0780 M51/0638 M51/0639 M20/0421 M51/0675 M51/0746 M51/0757 M20/0420 M51/0871	Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted	0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 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.

	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	519,666,564	519,666,564
	55,554,491	55,554,491	$0.18	$0.18
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	1,850,000 2,450,000 3,000,000 500,000 1,000,000	Nil Nil Nil Nil Nil	Exercise price $1.184 $0.784 $0.984 $0.984 $1.00	Expiry date 30/06/2013 31/12/2013 01/07/2013 01/07/2014 31/12/2014
	1,000,000	Nil	$1.00	31/12/2014

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Appendix 5B Mining exploration entity quarterly report

7.9 Exercised during quarter 7.10 Expired during quarter
	1,800,000	Nil	$0.834	31/12/2012
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.

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Sign here: ............................................................ Date: 24 January 2013 Company secretary

Print name: Jason Carone

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