NEOMETALS LTD — Interim / Quarterly Report 2014

Jan 30, 2014

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

Name of entity

Reed Resources Ltd

ABN 89 099 116 631

Quarter ended (“current quarter”) 31 December 2013

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 – gold (d) gas transmission (e) 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) (a) option premium (b) Hedge closure proceeds Net Operating Cash Flows	Current quarter $A’000	Year to date (6months) $A’000
	206 - - - (284) (1,296) - - - - - -	13,275 - - (20,577) (572) (2,021) - - - - - -
	(1,374)	(9,895)
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 (provide details if material) (a) Interest and other items of similar nature received (b) exploration & evaluation Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - (1) - 185 - 3 82 (350)	- - (16) - 185 - 16 127 (901)
	(81)	(589)
	(1,455)	(10,484)

• 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)	(1,455)	(10,484)
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) (a) share issue costs (b) Interest paid / borrowing costs Net financing cash flows	- - 2,000 (6) - - (242)	- - 2,000 (200) - - (242)
	1,752	1,558
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	297 9,818 -	(8,926) 19,041 -
	10,115	10,115

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
		158
		3
1.25	Explanation necessaryfor an understandingof the transactions
	At 1.20 the Cash at the beginning of the year to date has been adjusted from that reported in the previous quarter to reflect all cash on hand at the beginning of the period including restricted term deposits. In addition, an adjustment was made at 1.2(c) Year to date (6 months) $A’000 (increase of $2,968) from that reported in the previous quarter due to a movement in the restricted term deposit that was expended on the Meekatharra gold project prior to GMK Exploration Pty Ltd (Administrators Appointed) being placed in voluntary administration on 16 August 2013. Re. 1.19 (b) – $35,931 in interest was paid to the Chairman pursuant to a working capital finance facility. Re.1.23 - During the quarter $157,700 was paid to directors of the entity. Re.1.24 - a loan of $2,934.31 was advanced to related entity Reed Industrial Minerals Pty Ltd.

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 reportingentityhas 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 $A’000	Amount used $A’000
	2,000	2,000
	-	-

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	700
	-
	-
	800
Total	1,500

Reconciliation of cash

Total Reconciliation of cash		1,500
Reconciliation of cash at the end of the quarter (as	Current quarter	Previous quarter
shown in the consolidated statement of cash flows)	$A’000	$A’000
to the related items in the accounts is as follows.
5.1 Cash on hand and at bank	3,956	959
5.2 Deposits at call	-	-
5.3 Bank overdraft	-	-
5.4 Other (restricted deposits)	6,159	8,859
Total: cash at end of quarter(item 1.22)	10,115	9,818

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	E15/1191 L57/0029 E16/0384 E15/1189	Surrendered-09/12/2013 Surrendered-09/12/2013 Surrendered-13/11/2013 Surrendered-13/11/2013	100% 100% 20% 20%	0% 0% 0% 0%

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

6.2 Interests in mining tenements acquired or increased	P16/2823 P16/2824 E16/0455 E15/1408	Applied for 13/11/2013 Applied for 13/11/2013 Applied for 13/11/2013 Applied for 13/11/2013	100% 100% 100% 100%	100% 100% 100% 100%

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 note 3) (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	523,453,895	523,453,895
	722,831	722,831	nil cash
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured,converted	Convertible notes (conversion price of $0.03, redemption date of 22 November 2014).	Nil	$1.00	$1.00
	2,000,000	Nil	$1.00	$1.00
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	500,000 1,000,000	Nil Nil	Exercise price $0.984 $1.000	Expiry date 22/01/2014 31/12/2014
7.11 Debentures (totals only)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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 5).

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

Sign here: ............................................................ Company secretary

Date: 31 January 2014

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 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting 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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