NEOMETALS LTD — Interim / Quarterly Report 2013

Jan 23, 2013

Level 1, 672 Murray St West Perth WA 6005

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ABN 89 099 116 631
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Locked Bag 8 West Perth WA 6872 Tel: +61 8 9322 1182 Fax: +61 8 9321 0556

ASX Release 24 January 2013

REED RESOURCES LTD QUARTERLY ACTIVITIES REPORT For the quarter ended 31 December 2012

Highlights:

Meekatharra Gold Operation

• Meekatharra Gold Project’s capital works program completed

• Commenced wet commissioning of the 3Mtpa Bluebird Gold Processing Plant

• Mining of the Bluebird open pit well established and on schedule

• Infill and extensional exploration drilling commenced

Mt Marion Lithium Project

• Mineral Resources Ltd issued 30% equity interest in Reed Industrial Minerals Pty Ltd (“ RIM ”) which holds 100% of the Mt Marion Project, on execution of Shareholder Agreement

• Pre-feasibility Study to produce Lithium Hydroxide demonstrates robust economics (NPV12% $321m) and lowest quartile costs (US$3,877/t)

Barrambie Fe-Ti-V Project

• Successful laboratory scale production of high-purity titanium dioxide from proprietary hydrometallurgical technology

Corporate

• As of 31 December 2012, Reed had $31.19 million in cash and term deposits, including $11.94 million in restricted use term deposits supporting performance bonds and other contractual obligations

• Finalised a $19 million debt facility with Credit Suisse

• Activated gold hedging facility which comprises 70,000 ounces in forward delivery contracts and 40,000 ounces in bought puts that will achieve a gold floor price of approximately A$1,626/oz (net of put premium costs) over 110,000 hedged ounces

• Completed an $8 million placement and $2m underwritten share purchase plan to augment cash reserves

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CORPORATE

Equity

On 22 October Reed Resources Ltd (ASX: RDR) (the “ Company ” or “ Reed ”) announced a $10 million capital raising through a Placement and Share Purchase Plan (“ SPP ”). An issue price of $0.18 per Share was fixed for both raisings.

The $8 million Placement was settled with institutional and sophisticated investors on 25 October whilst the $2 million SPP closed on 16 November heavily oversubscribed.

Debt

As announced on 28 November 2012, Reed finalised a $19 million debt facility with Credit Suisse.

The key features of the facility are summarised as follows:

• A$19 million Senior Term Loan Facility.

• Repayment in 12 months from first utilisation, with an option for Reed to extend by a further six months.

• A hedging facility which includes 70,000 ounces in forward delivery contracts and 40,000 ounces in bought puts.

Under the agreed hedging structure, Reed will mitigate its risk should an unexpected gold price downturn occur whilst retaining some upside participation should the gold price increase. Reed will achieve a gold floor price of approximately A$1,626/oz (net of put premium costs) over 110,000 hedged ounces.

Finances (unaudited)

Cash and term deposits on hand as of 31 December 2012 totalled $31.19 million, including $11.94 million in restricted use term deposits supporting performance bonds and other contractual obligations.

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MEEKATHARRA GOLD OPERATION

(Reed 100%)

The Meekatharra Gold Operation, centred on the Bluebird processing plant, is located 640km northeast of Perth and 10 km south of Meekatharra, in the Murchison Region of Western Australia.

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Figure 1: Location of tenement holdings overlain on bedrock geology of the Meekatharra – Mt Magnet region of the Murchison Province showing gold production from key Reed Resources mining districts and the location of other mining camps in the area.

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Meekatharra Gold Operation Strategy

Within the Meekatharra Gold Operation (“ MGO ”) tenements Reed has a Resource inventory of 3.6Moz and a Reserve inventory of 752koz ounces (refer to Annexure A). Reed has a 3 staged strategy to exploit the Reserve, Resource and inventory base of the extensive Meekatharra Gold assets which includes producing 134,000 ounces from its Stage 1 open pit ore sources that are within 6.5km of Reed’s Bluebird processing facility. Stage 2 will exploit the remaining 618,000 ounces of Reserves predominantly from Paddys Flat, Yaloginda and Reedy project areas with production sourced from open pits and underground. Stage 3 of Reed’s strategy at Meekatharra will be executed concurrently with Stage’s 1 and 2 and utilise the latest targeting and exploration techniques converting as many of the 2.8M Resource ounces to Reserves as possible whilst defining further Resources and Reserves with the ultimate aim of delivering a sustainable 10 year mine life from the Meekatharra Project area generating between 100,000 to 150,000 ounces per annum at a total cost below $1000/ounce.

Safety

No lost time injuries occurred during the quarter.

Operations

Mining

The mining contactor, Minepower, commenced mobilising to site on 1 October and started mining the Bluebird open pit on 10 October. Continuous shift mining operations commenced on 15 October concurrently with drill and blast activities. All equipment required to meet Reed’s initial production requirements from Bluebird were mobilised to site by mid-November.

Total material movement from the Bluebird open pit was 1.35 million BCM for the quarter. Ore mined from the Bluebird open pit was 38,787 tonnes at 1.32g/t for 1,642oz. Both total material mined and ore mined from Bluebird open pit were in line with forecast.

Meekatharra	Units	Dec Qtr 2012	Full Year 12/13
Bluebird
Total Material Movement	BCM	1,347,045	1,347,045
Ore tonnes mined	tonnes	38,787	38,787
Mined grade	g/t	1.32	1.32
Containedgold in ore	oz	1,642	1,642
Total Material Movement	BCM	1,347,045	1,347,045
Total ore tonnes mined	tonnes	38,787	38,787
Minedgrade	g/t	1.32	1.32
Total containedgold in ore	oz	1,642	1,642

Table 1: Meekatharra Gold Operation mine production statistics.

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Figure 2: Pit floor of the Bluebird open pit mining the 440_ORE_6 block with grade control and blasthole drilling in the background.

Processing

The wet commissioning of Bluebird Gold Processing Plant (“ Bluebird ”) effectively completed the $23.8 million capital works program at Reed’s Meekatharra Gold Operation.

To establish both gold in circuit inventory and plant operating parameters the Bluebird plant was fed stockpiled low grade ore and mineralised waste.

Ore feed to the Bluebird plant from 20 December 2012 through to the end of the quarter totalled 39,033 tonnes at 0.74g/t for 929oz. Gold produced was 668 ounces.

Establishing the plant operating parameters will continue throughout January with Reed continuing to feed low grade stockpiles. Metallurgical recovery will steadily increase to expected levels, given the nature and type of ore feed, throughout January as Bluebird’s physical and chemical specifications are achieved. Run of mine from the Bluebird open pit will be fed to the plant once steady state in the plant is achieved which is expected in late January.

The mill throughput rate for the March quarter is scheduled at approximately 100,000 tonnes per month which Bluebird has comfortably achieved during wet commissioning.

Reed will commence gold production and sales from the MGO in January 2013.

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Bluebird Mill	Units	DecQtr 2012	Full Year 2013
Ore tonnes milled	tonnes	39,033	39,033
Headgrade	g/t	0.74	0.74
Containedgold in ore	oz	929	929
Recovery	%	72	72
Goldproduced	oz	668	668
Gold refined & sold	oz	0	0

Table 2: Meekatharra Gold Operation Bluebird mill production statistics.

Exploration and Development

During the quarter Reed commenced an RC program of Reserve conversion and extension drilling at the Whangamata deposit, and extensional drilling at the Surprise deposit.

Whangamata

The Whangamata deposit is scheduled to be mined in 2014 as part of the MGO’s Stage 1 operations. The deposit is located 7km north of the Bluebird Processing Plant and contains a Reserve of 259kt at 1.4g/t. Within the optimal pit design there are areas of inferred mineralisation that Reed have targeted with the recent drilling, as well as closing off mineralisation to the north of the resource area (Figure 3). Results have identified a shallow high grade supergene zone in the northwest quadrant of the proposed pit that is significantly higher in grade than identified in deeper drilling (Figure 4). The high grade zone has a minimum strike length of 85m and extends to within 10m of surface. The near surface zone has a true width (“ TW ”) of 5–10m and includes down hole intersections of 8m @ 7.0g/t (TW 6m, 12WHRC018) including 3m @ 11.3g/t, 13m @ 4.2g/t (TW 10m, 12WHRC024) including 7m @ 6.8g/t, and 9m @ 3.6g/t (TW 7m, 12WHRC025) including 2m @ 10.8 g/t. Mineralisation at depth included intersections of 16m at 2.4g/t from 50m (12m TW, 12WHRC020), 11m @ 2.5g/t from 58m (TW 8m, 12WHRC036) including 1m @ 13.7g/t, and 7m @ 5.7g/t (TW 5m, 12WHRC038). Any northern extension to the deposit has been closed off by drilling. A list of significant intersections is shown in Table 3.

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Hole ID	From	To	Width	TW	Grade#	East	North	RL*
12WHRC014	19	28	9	7	1.9	643478	7050572	470.3
12WHRC017	89	91	2	2	1.2	643501	7050560	412.8
	95	98	3	2	2.1	643498	7050562	407.2
	7	15	8	6	7.0	643478	7050556	481.1
12WHRC018		inc.	3	2	11.3
	16	18	2	2	1.3	643475	7050557	475.9
12WHRC019	26	29	3	2	2.6	643488	7050549	466.3
	35	37	2	2	1.0	643484	7050551	458.8
	50	66	16	12	2.4	643495	7050547	440.6
12WHRC020
		inc.	2	2	8.7
12WHRC022	10	13	3	2	2.9	643486	7050537	480.6
	5	18	13	10	4.2	643503	7050510	480.3
		inc.	7	5	6.8
12WHRC024
	22	26	4	3	4.2	643497	7050512	469.3
		inc.	2	2	7.4
12WHRC025	2	7	5	4	3.8	643512	7050484	486.3
		inc.	2	2	7.3
	18	27	9	7	3.6	643506	7050487	473.2
		inc.	2	2	10.8
	21	23	2	2	3.8	643523	7050480	470.9
12WHRC026	38	40	2	2	1.3	643516	7050482	455.8
	48	54	6	5	2.0	643511	7050484	445.2
12WHRC028	43	45	2	2	1.1	643537	7050459	451.1
	56	58	2	2	1.1	643531	7050461	439.5
	2	4	2	2	1.4	643534	7050441	487.5
12WHRC029
	31	35	4	3	1.3	643520	7050445	461.3
12WHRC030	27	31	4	3	2.0	643540	7050438	464.7
	47	51	4	3	1.7	643532	7050441	447.0
12WHRC031	75	79	4	3	4.7	643540	7050436	421.7
12WHRC033	47	51	4	3	1.2	643564	7050386	446.9

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Hole ID	From	To	Width	TW	Grade#	East	North	RL*
	54	59	5	4	1.2	643561	7050387	440.2
	70	78	8	6	1.1	643554	7050389	424.4
	19	22	3	2	1.2	643560	7050366	472.1
12WHRC035	29	31	2	2	1.6	643556	7050368	463.8
	33	39	6	5	1.3	643554	7050369	458.4
12WHRC036	58	69	11	8	2.5	643561	7050366	433.6
		inc.	1	1	13.7
12WHRC037	20	22	2	2	4.7	643554	7050352	471.9
12WHRC038	39	47	8	6	1.0	643580	7050316	452.5
	71	78	7	5	5.7	643567	7050320	426.5
12WHRC041	68	71	3	2	1.5	643573	7050297	429.0
12WHRC044	13	17	4	3	1.0	643575	7050254	477.3
12WHRC045	42	45	3	2	1.2	643580	7050251	452.0
	54	59	5	4	1.8	643575	7050253	441.8
12WHRC049	69	71	2	2	1.0	643576	7050190	428.7

Table 3: Whangamata significant drill intersections.

• Determined by 50g fire assay with AAS analysis by Genalysis Laboratory Services. Composite grades generated using 0.5g/t lower cut, minimum composite grade of 1.0g/t and minimum width of 2m.

• Surface at 490mRL

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Figure 3: Plan view of the Whangamata area showing the open pit design and surface projection of the mineralisation.

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Figure 4: A cross-section of the Whangamata mineralisation showing the high-grade near-surface mineralisation (Section line shown on Figure 3).

Rhens

During the quarter, a small RC drilling program consisting of 32 holes for 1200m commenced at the Rhens deposit located 3km north of the Bluebird plant. Twenty eight holes were completed prior to termination of the program due to poor weather. The program is designed to infill drill on 20m sections and to investigate the possibility of extension to mineralisation in the northwest of the area. Drilling provided little evidence of an extension to mineralisation to the northwest of the deposit. A complete list of significant intersections is shown in Table 4. The Rhens deposit is currently being reinterpreted and a new resource model will be completed during the March quarter.

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Hole ID	From	To	Width	TW	Grade	East	North	RL
12RHRC017	0	2	2	2	1.0	642674	7047862	487.1
12RHRC018	30	32	2	2	1.2	642669	7047864	461.1
	38	40	2	2	1.6	642665	7047865	454.1
12RHRC024	34	36	2	2	1.0	642648	7047708	454.4
12RHRC025	37	40	3	3	1.9	642666	7047702	451.0
12RHRC027	24	27	3	3	1.3	642709	7047687	462.7
12RHRC031	14	20	6	6	1.1	642614	7047678	471.3
	27	29	2	2	1.2	642715	7047475	459.7
12RHRC048	34	36	2	2	2.0	642711	7047476	453.6
	38	40	2	2	1.2	642709	7047477	450.1
12RHRC049	38	40	2	2	1.6	642718	7047474	450.7

Table 4: Rhens significant drill intersections.

• Determined by 50g fire assay with AAS analysis by Genalysis Laboratory Services. Composite grades generated using 0.5g/t lower cut, minimum composite grade of 1.0g/t and minimum width of 2m.

• Surface at 490mRL

Surprise

Extensional drilling performed at the Surprise deposit, located 1.5km north of the Bluebird plant, delineated a shallow (3–6m) sub-horizontal zone of enrichment that is up to 7m thick at the base of the surface laterite (Figure 5). Results include 7m @ 1.1g/t (12SSRC049), 5m @ 1.2 g/t (12SSRC055) and 4m @ 1.9g/t (12SSRC038), and a complete list of intersections is presented in Table 5. The drilling has been used to generate a resource model covering the area of enrichment that does not encroach on the Great Northern Highway. The resource estimate suggests that the shallow zone of enrichment contains 183,000t at 0.75g/t for 4,400oz of gold in the Indicated category at a 0.5g/t lower cut-off. The resource was optimised at a $1,600/oz gold price using current mining and processing costs and a pit design generated. Results indicate a probable reserve of 74,700t @ 0.9g/t for 2,150oz.

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Figure 5: A cross-section of the Surprise Laterite zone showing typical intersections.

Hole ID	From	To	Width	Grade	East	North	RL
12SSRC002	14	15	1	0.5	643125	7045803	459.6
12SSRC003	9	10	1	0.4	643163	7045790	464.7
12SSRC008	4	5	1	0.4	643131	7045761	469.5
12SSRC009	16	17	1	0.4	643149	7045754	457.5
	5	6	1	0.4	643134	7045737	468.6
12SSRC016
	9	10	1	0.4	643134	7045737	464.6
12SSRC019	6	7	1	0.6	643191	7045718	467.7
12SSRC020	7	8	1	5.3	643215	7045710	466.7
12SSRC025	3	5	2	0.6	643118	7045722	470.0
12SSRC026	4	8	4	0.6	643130	7045717	468.04
12SSRC027	4	10	6	0.5	643163	7045708	467.04
	11	12	1	0.4	643163	7045708	462.5
	5	9	4	0.7	643175	7045702	467.0
12SSRC028
	19	23	4	1.1	643175	7045702	453.0
12SSRC029	5	10	5	0.9	643190	7045698	466.7
12SSRC029	14	15	1	62.1	643190	7045698	459.7
12SSRC030	4	5	1	1.6	643213	7045690	469.7
	6	10	4	1.0	643213	7045690	466.2
	26	28	2	1.6	643213	7045690	447.2

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Hole ID	From	To	Width	Grade	East	North	RL
12SSRC031	6	11	5	0.6	643232	7045683	465.6
12SSRC035	3	5	2	0.9	643120	7045700	469.9
	4	8	4	1.1	643178	7045680	467.9
12SSRC037
	16	17	1	0.5	643178	7045680	457.4
12SSRC038	4	8	4	1.9	643197	7045674	468.2
	16	18	2	1.0	643197	7045674	457.2
	2	3	1	0.5	643235	7045661	471.6
12SSRC039
	5	10	5	0.8	643235	7045661	466.6
12SSRC042	4	5	1	0.5	643086	7045690	469.4
12SSRC045	4	6	2	1.0	643143	7045672	469.2
12SSRC046	3	8	5	0.8	643162	7045664	468.6
12SSRC047	3	6	3	0.9	643187	7045655	469.5
12SSRC048	4	8	4	1.1	643200	7045652	468.0
	4	11	7	1.1	643219	7045645	466.5
12SSRC049
	15	16	1	0.5	643219	7045645	458.5
12SSRC052	3	5	2	0.5	643133	7045653	470.1
12SSRC053	4	5	1	0.7	643146	7045649	469.4
12SSRC054	4	8	4	0.7	643162	7045644	468.1
	3	8	5	1.2	643203	7045629	468.4
12SSRC055
	9	10	1	0.6	643203	7045629	464.4
12SSRC056	4	8	4	0.9	643222	7045623	468.0
12SSRC063	3	4	1	6.7	643130	7045634	470.2
12SSRC065	3	6	3	1.0	643167	7045620	469.5
12SSRC066	4	7	3	0.5	643187	7045614	468.5
12SSRC067	3	7	4	0.7	643208	7045610	469.0
12SSRC068	3	5	2	0.4	643159	7045602	469.9
12SSRC075	17	18	1	3.2	643134	7045589	456.6
Table 5: Surprise significant drill intersections.

• Determined by 25g aqua regia digest with AAS analysis by RDR’s onsite assay laboratory. Composite grades generated using 0.4g/t lower cut, minimum composite grade of 0.5g/t.

• Surface at 473mRL

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Projects

Bluebird Gold Processing Plant Wet Commissioning

On 20 December Reed announced that wet commissioning of the 3Mtpa Bluebird Gold Processing Plant (“ Bluebird ”) at its Meekatharra Gold Operation had commenced.

Initial plant feed predominantly comprised stockpiled low grade ore and mineralised waste which has established Bluebird’s gold in circuit and allowed the establishment of plants steady state operating parameters.

The wet commissioning of Bluebird effectively completed the $23.8 million capital works program at Reed’s Meekatharra Gold Operation which comprised the following work packages:

**Work Package **	Expenditure A$ million
Primarycrusher replacement	2.5
Village upgrade and refurbishment	7.5
Capital equipment	1.6
Infrastructure	1.0
Mill refurbishment	11.1

Table 6: Meekatharra Gold Project Capital Works expenditure packages.

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Figure 6: Crusher circuit commissioning showing crushed ore stockpiles being formed in the background and mill scats ore stockpiles in the foreground

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Meekatharra Gold Project Milestones

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Figure 7: Meekatharra Gold Project key milestones.

The commencement of milling operations at Reed’s Meekatharra Gold Operation effectively completes the capital works program and establishes the commencement of operations.

MT MARION LITHIUM PROJECT

(Reed 70%, Mineral Resources Limited 30%)

During the quarter Reed together with Mineral Resources Ltd (“ MRL ”) continued to advance the Mt Marion Lithium Project (“ Mt Marion ”). Reed and MRL are continuing to assess the most effective production profile and optimal timing for the commencement of operations at Mt Marion. All project approvals for Mt Marion have been received.

On 17 October the parties announced the signing of the shareholders agreement to formalise the 70:30 shareholding of the project’s special purpose vehicle, Reed Industrial Minerals Pty Ltd (“ RIM ”). Under the agreement MRL will continue to fund and operate Mt Marion with MRL’s previous right to earn profits from the operation converted into a 30% interest of issued share capital of RIM.

RIM was formed to ensure the appropriate financial, technical and human resources for Mt Marion, including the downstream processing into high-purity lithium battery feedstocks, could be managed and accessed.

The formation of RIM is consistent with Reed’s primary objective of becoming a mid-tier gold producer, whilst seeking to optimise and achieve value enhancement opportunities for Reed’s non-gold assets.

Lithium carbonate and in turn spodumene prices have recovered from the price war of 2010-11 and have resumed an upward trend (up +25% in 2012). The recent acquisition of Talison Lithium by

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China’s largest lithium producer, Tianqi, for C$800 million demonstrates the strategic value in captive sources of spodumene production in lower-risk mining jurisdictions like Australia.

Reed and MRL are exploring opportunities for RIM to become an independently financed, advanced minerals company.

Lithium Down-streaming Strategy

The results of a Pre-feasibility Study (“ PFS ”) announced on 17 October, indicate robust financial returns and endorsed an integrated down-streaming strategy to maximise Mt Marion’s value. A summary of results, based on RIM’s proprietary process flowsheet, is shown in Table 7.

During the quarter four diamond drill holes were completed to prepare lithium concentrates for future metallurgical testwork utilising RIM’s proprietary processing technology.

Operating Parameters	Quantity
Spodumene Concentrate Feed	147,100 tpa
Spodumene Concentrate Grade	6.0 % Li2O
Lithium Hydroxide/Lithium Carbonate Production	10,000/8,810 tpa
PFS Highlights
Life of Mine (LOM) Production	200,000t LiOH 176,200t Li2CO3
LOM Revenue	US$3.15 billion
Pre-tax Cashflow	US$1.19 billion
Pre-tax NPV 12%	US$321 million
Pre-tax Internal Rate of Return	94%
Average Costper tonne of LiOH	US$3,878
Average Costper tonne of Li2CO3	US$4,538
Total initial capital costs	US$83 million

Table 7: Key metrics of Reed’s Lithium down-streaming PFS.

BARRAMBIE FE-TI-V PROJECT

(Reed 100%)

During the quarter Reed continued its evaluation of a proprietary hydrometallurgical technology to produce high-purity titanium from the Eastern Band of the Barrambie Fe-Ti-V deposit.

Barrambie’s Eastern Band is one of the highest grade hard rock titanium deposits globally and contains a 2005 Mineral Resource of 48Mt @ 22% TiO2.

Formal laboratory scale test work in Canada has confirmed high-purity titanium dioxide can be precipitated selectively from a leach solution at recoveries greater than 90%.

Process simulation as part of a preliminary economic evaluation supports the validation of the process flowsheet at a continuous scale (mini-pilot) is warranted. A continuous scale mini plant processing trial is planned once appropriate resources and funding become available.

An updated Resource estimate for Barrambie will be prepared once cut-off grades are supported by results generated from mini plant trials of this prospective technology.

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Figure 8: An indication of the size of the Eastern Band at Barrambie and its grade in comparison with two of the world’s highest grade titanium deposits.

COMET VALE GOLD PROJECT

(Reed 100%)

The Sand Queen mine remains on care and maintenance.

The project has combined underground and open-pitable Resources of 792Kt @ 8.2g/t Au for 208,000oz.

The project’s special purpose vehicle, Sand Queen Gold Mines Pty Ltd (“ SQGM ”) is party to an agreement with MacPhersons Resources Limited (“ MRP ”) which requires MRP to treat up to 70,000tpa for four years at its Nimbus Processing Plant, commencing at SQGM’s discretion any time after the plant is recommissioned.

Discussions continue with third parties in relation to divesting SQGM. Discussions remain preliminary and there can be no assurance that a binding proposal will emerge.

MT FINNERTY PROJECT

The Mt Finnerty Project located about 65km east of Koolyanobbing is currently being explored for iron ore in joint venture with Cliffs Natural Resources (“ Cliffs ”) and nickel mineralisation in its own right.

Iron Ore (Cliffs 80%, Reed 20%)

During the quarter Cliffs tested a magnetite banded-iron target (FIN5) with a single diamond drill hole, assays are pending.

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Nickel (Barranco 100%, Reed option to acquire 100%)

A review of previous exploration carried out by Western Mining Services confirms a large cumulatetextured high-magnesium ultramafic body is present within the project area.

Re-modelling of geophysical data indicates previous drilling in 2010 ineffectively tested IP targets within high-magnesium ultramafic rocks. Approvals for a drill program to effectively test the IP targets are progressing.

Reed was successful in obtaining an offer for $75,000 under the WA State Government Co-funded Exploration Program for this drill program.

ROYALTY INTERESTS

Reed holds a 1% Net Smelter Royalty on all zinc extracted and recovered from M26/0490 and M26/0598, containing MRP’s Nimbus Silver-Gold-Zinc mine. MRP has reported to ASX that the mine has combined Resources of 4.4Mt @ 82g/t Ag, 0.23 g/t Au and 1.1% Zn, containing 48,800 tonnes of zinc, and that processing is planned to commence in first half of 2014.

ENDS

COMPETENT PERSONS STATEMENT

Geological aspects of this report have been compiled by Mr Craig Fawcett (MAIMM), a full time employee of Reed Resources Ltd. Mr Fawcett has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which is being reported on to qualify as a Competent Person as defined in the Code for Reporting of Mineral Resources and Ore Reserves (2004). Mr Fawcett consents to the inclusion in this report of the matters in the form and context in which they appear.

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APPENDIX A: MEEKATHARRA GOLD PROJECT RESOURCES & RESERVES AS AT 30 JUNE 2012

MINERAL RESOURCE INVENTORY

Project	Category	Tonnes(Mt)	Au(g/t)	Au(koz)
Meekatharra North	Indicated	1.2	1.8	66
	Inferred	0.2	1.6	9
Nannine	Indicated	0.6	1.6	31
	Inferred	0.2	1.6	13
Paddy's Flat	Indicated	25.2	1.6	1,281
	Inferred	13.4	1.6	670
Yaloginda	Indicated	10.1	1.7	564
	Inferred	6.2	1.7	347
Reedys	Indicated	2.7	3.1	276
	Inferred	4.0	2.7	338
	Indicated	39.8	1.7	2,217
TOTAL	Inferred	24.1	1.8	1,377
	TOTAL	63.9	1.8	3,594

ORE RESERVE INVENTORY (31[ST] Mar, 2012)

Project	Category	Tonnes (Mt)	Au (g/t)	Au (koz)
Bluebird	Probable	1.39	1.9	86.2
Prohibition	Probable	1.11	2.7	96.0
MickeyDoolan	Probable	3.31	1.1	121.7
Maid Marion	Probable	0.2	1.4	8.6
South Junction	Probable	0.1	1.5	4.5
Surprise	Probable	0.1	3.0	13.0
Batavia	Probable	0.2	2.4	14.0
Whangamata	Probable	0.3	1.4	11.9
GNH	Probable	0.9	1.3	35.6
Aladdin	Probable	0.4	1.7	21.4
Jack Ryan	Probable	0.2	3.1	21.8
Callisto	Probable	0.1	3.1	7.2
Rand	Probable	0.1	2.4	7.6
South Emu	Probable	0.1	4.7	13.9
TOTT	Probable	0.5	1.8	29.4
Total(Open Pit)	Probable	9.0	21.7	492.9
Prohibition	Probable	1.3	2.4	104.1
Vivian/Consols	Probable	0.3	7.7	63.6
Fatts/Mudlode	Probable	0.4	4.7	57.2
South Emu	Probable	0.2	4.3	34.2
Sub-Total	Probable	2.2	3.6	259.1
Total	Probable	11.2	2.1	752

Notes:

1. Resources and Reserves comply with the Australian JORC Code (2004) reporting guidelines. 2. Resources are inclusive of Reserves.

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