NEOMETALS LTD — Investor Presentation 2005

Aug 11, 2005

Diggers Presentation August 2005

OUTLINE

• Corporate Information $\bullet$
• Business Strategy $\bullet$
• · Project Overview
• · Comet Vale
• · Mt Finnerty
• · Barrambie
• Opportunities $\bullet$

Drill core from Sand George Lode

CORPORATE INFORMATION

• Established December 2001
• Floated July 2002 (raised \$6M)
• Directors

David Reed OAM - Executive Chairman FCPA

Chris Reed - Executive Director/ Secretary BCom, GradCertMinEcon (WASM) ASA MAusIMM

Peter Collins - Non-Executive Director BSc(Hons) PhD MAIG

Ian Junk - Non-Executive Director B.Eng (Hons) MAusIMM

Reed Resources Ltd

CORPORATE INFORMATION

• Capital Structure \$
• Issued Shares
• Options

Market Cap (@22c)

Cash (June 05)

70 M shares

\$15 M

\$2.3 M

2.45 M @ 35c

BUSINESS STRATEGY

• Develop high-grade gold deposits at Comet Vale
• Explore for other metals (Fe, Ti, V, Ni) in existing tenements
• Selective acquisition of new ventures to broaden resource base

EXPLORATION PROJECTS

Reed Resources Ltd

Barrambie Murchison province Vanadium Titanium Comet Vale Eastern Goldfields province Gold Nickel Mt Finnerty Southern Cross province Iron Ore Nickel Gold

COMET VALE PROJECT

PROJECT STRATEGY:

• $\triangleright$ Low risk cashflow from Production JV with Kingsrose over of Sand George Deposit.
• Extend and upgrade resources along strike

• Define resources on known quartz reefs.

• Develop nickel laterite resource

• $\triangleright$ Test base metal and PGE potential

COMET VALE Production Joint Venture

Kingsrose

• Development & Production Costs
• to earn 50% gold down to 243m
• to earn 60% gold below 243m
• 50% Equity in leases after 25,000 oz
• Min. Expend \$2,000,000

Reed

• -Transport & Treatment Costs
• -Budgeted \$33/tonne (sub\$200/oz)
• -Retains open-pit gold resource
  • \$4m p.a net cash flow for 3.5years

COMET VALE + Cold Inventory (5 g/t Cutoff)

	Reed Resources Ltd		6,500 tonnes @ 19.7 g/t Au - (4,100 Ounces
TOTAL		167,800 SAND QUEEN SOUTH	12.2	65,700
	Sub-Total	21,600	12.0	8,350
SG 2	Inferred	10,200	14.8	4,900
SG 1	Inferred	11,400	9.4	3,450
	Sub-Total	146,000	11.9	55,800
SG 2	Indicated	68,000	13.0	27,000
SG1	Indicated	78,000	11.5	28,800
VEIN	CATEGORY	TONNES	GRADE	OUNCES

COMET VALE - Depth Potential

Reed Resources Ltd

Long Section Looking West

Sand Queen Potential - Old vs New

Sand Queen historical production

• 250,000t @ 22.7g/t for ~ 185,500 oz equating to $~1750$ oz per Vm.

• $\triangleright$ Leaching of tailings (1980's) yield 2.7g/t
• Sand George Resource
• $> 350m$ strike length

Southern Extensions

Quartz reef intersected over 1250m further to the South

COMET VALE - Regional Cold Contours

+20km of untested gold anomalous structures

Reed Resources Ltd

COMET VALE - Sand Prince West

COMET VALE - Nickel

TARGET

• 1. High-grade Ni Laterite resource in welldeveloped lateritic profile
• 1. Komatiite-hosted massive nickel sulphides

Reed Resources Ltd

• Tenements host extensive sequence of ultramafic lithologies over 4.8km strike.
• .Walter Williams Form · Siberia Komatiite

COMET VALE - Regional Geology

COMET VALES Regional Mckel Contours

MT ENNERTY PROJECT

• Brown-fields exploration project
• 45 km of Watt Hills G/B $\bullet$
• Known high-grade gold and $\bullet$ BIF-hosted Fe ore (hematite)
• 20 km of prospective Nisulphide hosting Ultramafic
• Exploration Targets:
• · BIF-hosted iron ore
• Ni Sulphides $\bullet$

Reed Resources Ltd

• Archaean lode gold

Reed Resources Ltd

Reed Resources Ltd

MIT FINNERTY-TON Ore JV

• Portman earning 80% Fe rights by spending
• \$300,000 over three years
• $-$ \$100,000 in first year
• Reed can:
• Contribute to 20%
• Revert to 10% free-carried to DTM
• At DTM contribute or revert to royalty

65 km east of Koolyanobbing Trans-Australian Railway Access

MT FINNERTY - Nickel

Airborne geophysical survey

• 8,248 line km at 100 m line spacing, 30 m sensor height

Preliminary results:

• Extensive ultramafic sequence, along strike from nickel sulphide occurrences.
• Several gold targets (shear $\bullet$ zones, jogs, dislocations)

Rock Chip Sampling (Dec 04) 0.53% Ni, 11 ppm Cu, 0.31% Cr 0.61% Ni, 11 ppm Cu, 0.37% Cr 0.41% Ni, 5 ppm Cu, 0.26% Cr 0.19% Ni, 71 ppm Cu, 0.41% Cr 0.26% Ni, 181 ppm Cu, 0.5% Cr 0.21% Ni, 119 ppm Cu, 0.45% Cr

BARRAMBIE PROJECT

Advanced exploration project acquired April 2003 Magmatic Ti-Fe±V oxide deposit in anorthosite-gabbro RDR Testwork produces high quality Titanium feedstock Now focusing on recovery of Vanadium (Price US\$11/lb) PGMs, gold & nickel potential 11 km strike length within mining lease M57/173 LOW COST ENTRY INTO WORLD-CLASS DEPOSIT

Reed Resources Ltd

BARRAMBIE - RESOURCES

2500m

6960000ra N

Indicated 23 Mt @ $0.43\%$ V₂O₅ Inferred 17 Mt @ 0.35% $V₂O₅$ Gulf Central (Snowden 1999) Inferred 60 Mt @ 0.30% $V_2O_5$

BARRAMBIE - Process Flowsheet

1990 - Johann Barns

BARRAMBIE - Concentrate Testwork

Method (Laboratory, Year)	Size	Recovery Mass%	$V_2O_5$ Recovery%	V 2 O 5 Grade%	SiO 2 Grade%
Gravity (AMMTEC, 2005)	106	25.9	30.5	0.85	1.80
Gravity (AMMTEC, 2005)	250	37.3	42.8	0.83	2.43
GAMMATIIMS (GENOGO KOTA)	PA	EETA	7636	K
GRAVIDAVITIMS Alveoreto Hun EISKOPA	76	282	GYA:	125
Gravity/WHIMS (AMMTEC, 2005)	150	awaiting	results
Reed Resources Ltd			Currently confirming previous testwork which • recovers +70% V2O5 in concentrate • recovers +80% V2O5 con $\rightarrow$ final product

SUMMARY

Mt Finnerty (iron ore, nickel, gold)

• JV with local producer Portman. RC Drilling Dec Q '05
• Nickel Exploration (Auger, EM survey, RAB drilling) in progress

Barrambie (vanadium, titanium)

• Pre-Feasibility Study on production of vanadium pentoxide flake from major vanadium-titanium resource
• Previous Testwork produced vanadium pentoxide flake (80% recovery) from salt roast-leach of gravity concentrate.
• Current Testwork to recover vanadium using same flowsheet as Windimurra (prod.cost US\$1.60/lb) nearing completion.

Comet Vale (nickel)

Resource delineating Ni-laterite and testing Ni-sulphide potential at Comet Vale

Comet Vale (gold)

Indicated Mineral Resource (at 5 g/t Au cut off)

• Sand George prospect: 167,800 tonnes @ 12.2 g/t Au (65,700 ounces gold)
• Sand Queen South: 6,500 tonnes $@$ 19.7 g/t Au $(4,100$ ounces gold)

Exploration Potential

• Extension of SG 1 & 2 lodes at depth, along strike
• Sand George deep lodes (SG 3, 4 & 5 Lodes) $\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c$
• Extension of Sand Queen lode at depth
• Extention of Sand Prince West Deposit
• Repetition of Comet Vale Lodes along strike

OPPORTUNITIES

• Low Risk Cashflow from Production Joint Venture for development of Sand George deposit (est. Annualised CF of A\$4m)
• JV with local iron ore producer Portman
• PFS Study on world-class vanadium deposit
• Exploration success from highly mineralised projects
• · Diversified commodity base