NEOMETALS LTD — Investor Presentation 2005

Feb 20, 2005

Reed Resources Ltd

RIU Explorers Conference Eeorgery 2005

OUTLINE

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

Reel Resources Ltd

Drill core from Sand George Lode

CORPORATE INFORMATION

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

David Reed OAM - Executive Chairman FCPA

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

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 \$
• Vendor shares $\bullet$
• Seed capital
• Shares issued
• Barrambie acquisition $\bullet$
• Consolidated Minerals $\bullet$
• · Total issue

Reed Resources Ltd

Market Cap (@26c) Cash (Jan 05)

15M @ 20c 4M @ 10c $30M$ $@$ $20c$ $0.75M$ @ 20c 12.3M @ 25c 62 M shares \$16 M

\$1.1 M

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

Reed Resources Ltd

Near-mine gold exploration

PROJECT STRATEGY:

• Riskless Cashflow from $\bullet$ Production JV with Kingsrose over of Sand George Deposit
• Extend and upgrade $\bullet$ resources along strike
• Test regional Au targets $\bullet$
• Test nickel sulphide $\bullet$ potential

COMETVALE Production Joint Venture

Reed Resources Ltd

Kingsrose

- Development & Production Costs

• 50% gold down to 243m (6L)
• 60% below 243m
• 50% Equity in leases after 25,000 oz
• Min. Expend \$2,000,000

Reed

• Transport & Treatment Costs
• -Budgeted \$30/tonne
• -Retains open-pit gold resources
  • -Retains Strike extensions
  • -Retains regional exploration

MINERAL RESOURCES

VEIN	CATEGORY	TONNES	GRADE	OUNCES
SG1	Indicated	136,000	9.6	42,000
SG2	Indicated	131,000	6.5	27,000
	Sub-Total	267,000	8.1	70,000
SG1	Inferred	41,000	6.8	9,000
SG2	Inferred	59,000	7.1	13,000
	Sub-Total	101,000	7.0	22,000
TOTAL		368,000	7.8	92,000
	and Prince West Lode
	7,000 tonnes @ 3.9 g/t Au	(Unclassified, 1 g/t Au lower cut)

3

COMET VALE - Depth Potential

COMET VALE - Nickel

• Target komatiite-hosted massive nickel sulphides
• Tenements host extensive $\bullet$ sequence of ultramafic lithologies over 5km strike.
• Siberia Komatiite
• Walter Williams Form
• Potential high-grade Ni $\bullet$ Laterite resource in welldeveloped lateritic profile
• Limited previous exploration $\bullet$
• $-8m \omega$ 1.48 % Ni (RC drill hole ELC5)
• inc. 5m @ 2.2 % Ni

Reed Resources Ltd

MEENNERTY PROJECT

• Brown-fields exploration project
• 45 km of Watt Hills G/B
• 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

Reed Resources Ltd

Archaean lode gold

MT FINNERTY-Iron Ore JV

• Portman earning 80% Fe rights $\bullet$ by spending
• $-$ \$300,000 over three years
• $-$ \$100,000 in first year
• Reed can: $\bullet$ .
• $-$ 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 zones, jogs, dislocations)
• Rock Chip Sampling (Dec 03) 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

Reed Resources Ltd

• Advanced exploration project acquired April 2003
• Magmatic Ti-Fe±V oxide deposit in anorthosite-gabbro
• Conducted testwork on recovery $\bullet$ of Titanium
• Now focussing on recovery of Vanadium (Price US\$10/lb)
• PGMs, gold & nickel potential
• 11 km strike length within mining lease M57/173
• LOW COST ENTRY INTO ۵ WORLD-CLASS DEPOSIT

BARRAWBIE - Vanadium Market

SURPLUS WORLDWIDE INVENTORY VANADIUM CONSUMPTION EXCEEDS PRODUCTION & PRODUCTION VS. CONSUMPTION 200 180 $\frac{\partial \mathbf{p}}{\partial \mathbf{p}}$ Production per Year $105$ $200\,$ 160 $25 -$ All Others Millions of Lbs. of V₂O₅ per Year All Others Ш 140 Consumption 23 -- FeU/CIS $25$ $|60|$ USA or V₂O_s 120 Noth₁ 和 M China America 100 $|20|$ SALL OF THE LIST Western 80 $\frac{M}{2}$ $\boldsymbol{v}$ Russia Europe $\frac{1}{20}$ 60 Ŵ 40 China Surplus South W 40 Africa 20 apid
Alim Other Asia Ů Vanadium Pentoxide Equivalent ľ -10 Production Consumption 1998 1999 2000 2001 2002 2003 2004 Reel Resources Ltd

BARRAMBIE - Pre-Feasibility Study

SUMMARY

Reel Resources Ltd

Mt Finnerty (iron ore, nickel, gold)

• UV with local producer Portman
• Nickel Exploration planned for May
• Barrambie (vanadium, titanium)
• Pre-Feasibility Study on Major vanadium-titanium resource (124mt @ 0.58%V2O5)
• Initial Metallurgical Testwork produces high-quality feedstock (55% TiO2)
• Current Testwork to recover vanadium Comet Vale (nickel)
• Untested Ni-laterite and Ni-sulphide potential at Comet $\Box$ Vale

SUMMARY

Comet Vale (gold)

Indicated Mineral Resource (at 2 g/t Au cut off)

• Sand George prospect: 267,000 tonnes @ 8.1 g/t Au (70,000 ounces gold)
• Sand Queen South: 6,500 tonnes $@$ 19.7 g/t Au $(4, 100$ ounces gold)

Exploration Potential

Reel Resources Ltd

• Upgrading Inferred Resource of 101,000 tonnes @ 7.0 g/t Au $(22,000 \text{ oz})$
• Sand George deep lodes (SG 3, 4 & 5 Lodes)
• Extension of Sand Queen lode at depth
• Sand Prince West Lode (77,600 tonnes at 3.9 g/t Au)
• Repetition of Comet Vale Lodes along strike

OPPORTUNITIES

• Riskless Cashflow from Production Joint Venture for development of Sand George deposit
• JV with local iron ore producer Portman
• PFS Study on world-class vanadium deposit
• Exploration success from highly mineralised $\bullet$ projects
• Diversified commodity base

Reel Resources Ltd