NEOMETALS LTD — Investor Presentation 2006

Aug 7, 2006

Reed Resources Ltd

Diciers Presentation Aucust 2006

CORPORATE INFORMATION

Capital Structure

Issued Shares 80.1 M 4.25 M Options

David Reed OAM - Executive Chairman Chris Reed - Executive Director/ Secretary Dr Peter Collins - Non-Executive Director Ian Junk - Non-Executive Director

Market Cap (@50c) \$40 M Cash (June 06) \$1.6M

COMET VALE PROJECT

PROJECT HIGHLIGHTS:

$\triangleright$ Low risk cashflow from Production JV with Kingsrose Mining over Sand George Deposit. $\triangleright$ First gold in June 2006 $\triangleright$ Extend and upgrade resources from 65,000 to 136,000 oz in last yr $\triangleright$ Evaluating increasing production levels Regional Exploration confirms gold and base metal potential

COMETVALE Production Joint Venture

Reed Resources Ltd

Kingsrose

- Development & Production Costs

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

Reed

-Transport & Treatment Costs

-Budgeted \$50/tonne (~\$230/oz)

• -Retains open-pit gold resource
• +\$5m p.a net cash flow at current production level.

COMET VALES Excansion Potential

COMET VALE - Regional Cold Contours

+20km of untested gold anomalous structures

COMET VALE AIGKS

TARGET

High-grade Ni Laterite resource in well-developed lateritic profile

Tenements host over 4.8km Strike of Walter Williams Form

DRILL RESULTS (unscreened)

• 12m at 0.83% N from 17
• 60m at 0.60% Ni from 5 $\bullet$
• 36m at 0.69% Ni from 33 $\bullet$
• 35m at 0.61 % Ni from 4 $\bullet$
• 26m at 0.62% Ni from 15

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

WEEINNERTY PROJECT

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

Reed Resources Ltd

Archaean lode gold

William FEBRAT Ø. Communisty OP ME KS2010 $\hbar n$ Tanoniakon kuasinkin LYSSE anameus Cristica Pincia All Alliances élose (prince) Subscription and industrial con-The Countinent A Dia man see Paj Argus a wannan
A Coostala Ma M Finnerty m Callie L an ang i $-6.800$ (K)) ก็อะมันเข้าในทั้ง FOUND The College levišek lasta Koušchuse El Stimon Discovery Wrang Vous : no series in Seem Sections and the LDAG Aligic Georgian 0.580 000 m/s 不分的 10 km iśnil in m

MT EINNERTY-Iron Ore

Portman earning 80% Fe rights

Utilise existing plant and infrastructure

• Reduces lead time
• Reduces critical size for development

Exploration Results Enriched BIF over +30km

• Grades up to 68% Fe
• Widths up to 15m $\bullet$
• Attractive P Levels ideal for $\bullet$ blending

MT FINNERTY - Portman Scout Drilling

WITHNNERTY- FIN9 Cross Sections

BARRAMBIE - Vanadium/Fitanium Deposit

Resources

Indicated 42 Mt @ 0.45% $V_2O_5$ Inferred 97 Mt @ 0.35% $V₂O₅$

PFS - Eastern Band Oxidised to 60m True Width >20m

Optimised Pits 25 Mt @ $0.53\%V₂O₅$ to 50m

Strip Ratio 0.6:1

$\mathcal{C}(\cdot)$ 脇	豐	聯	膠 J	₩	- 52		鎏
纝	臀	€ à.	B 龝	嚼	.	mm		K.
				,,,,,,,,,,

$\frac{1}{2}$

		Concentrate Grade % $V_2O_5$		Concentrate Recovery $%$ mass	Process Recover У $\frac{0}{0}$
		1.37		36	$90+$
		Mining Costs A\$/lb $V_2O_5$		Plant, Infrastructure & Admin Costs A\$/lb $V_2O_5$
		0.17			2.50
$NPV_{12} - AS379m$	Plant Direct (Processing plant & Infrastructure)		A\$ 174.8 m
$IRR - 40\%$ Payback - 4 yrs	Plant Indirect (EPCM and Contingency allowance)				61.7 m A\$
		Natural gas turn key package
	Total
Reed Resources Ltd

SUMMARY

Mt Finnerty (iron ore, nickel, gold)

Portman JV. Iron ore enrichment over 30km outcrop.

Barrambie (vanadium, titanium)

• Pre-Feasibility Study results NPV₁₂ A\$379 million

Comet Vale (gold, nickel)

• High Margin, Low Risk Gold Production 20koz pa
• First Gold June 2006
• Resources Increased +136,000 oz @ 12 g/t $\Box$ Evaluating Increasing Production to 40 koz pa
• Exciting Regional Potential