NEOMETALS LTD — Investor Presentation 2006

Feb 21, 2006

RIU Explorers Presentation February 2006

OUTLINE

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

Reed Resources Ltd

New Headframe Sand Queen Main Shaft

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

Rect Reconces 50

CORPORATE INFORMATION

• · Capital Structure
• · Issued Shares
• Options

Market Cap (@24c)

Cash (Dec 05)

Reed Resources Ltd

75 M shares 2.45 M @ 35c 1 M $@$ 50c

\$18M

\$1.6 M

BUSINESS STRATEGY

• Develop high-grade gold deposits at Comet Vale
• Explore for other metals (Fe, 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 Mining over Sand George Deposit.
• $\triangleright$ 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

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 for 3.5 years

COMET VALE Excapsion Potential

Reed Resources Ltd

Long Section Looking West

COMET VALE - Regional Cold Contours

+20km of untested gold anomalous structures

COMETYALE - Niekel

TARGET

• High-grade Ni Laterite $1.$ 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
• Menzies O Heron Resources Wastarik Menzies Shear Highway prospect Australia 85Mt @ 0.72% Ni C Comet Vale Yunndagai Жù Seedb REED RESOURCES LTD COMET VALE Heron Resources PROJECT Goongarrie Hill Prospect 51Mt @ 0.67% Ni Goongarne (Au)⁽ Heron Resources Goongarrie South Prospect 78Mt @ 0.78% Ni АÓ XYScota 繈 OMG Cawse Nickel Operations $\circledcirc$ (X) AMX Golden Cities Ora Banda [Au] Ultramatic / (%)
  Paddington Granite Mt Pleasant Greenstone (Au) Fault/Shear Shear Zone Mine/Project 20 km

COMET VALE - Regional Nickel Contours

MTFINNERTY PROJECT

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

Reed Resources Ltd

• Archaean lode gold

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Mt Finnerty

Reed Resources Ltd

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MT FINNERTY - Iron Ore

Portman earning 80% Fe rights by spending

$-$ \$300,000 over three years

Reed can:

• Contribute to 20% or 10% free-carried to DTM
• At DTM contribute or revert to royalty

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
• Attractive P Levels ideal for blending

Trans-Australian Railway Access Full Native Title Agreement Completed Flora/Fauna Study - no nasty bushes

MT FINNERTY - Nickel

Preliminary results:

Extensive ultramafic sequence, along strike from nickel sulphide occurrences.

Exploration Results 2005

Soil Sampling - up to 0.5% Ni and
125ppm Cu - 4 anomalies from 3 areas tested

RAB Drilling - up to 1.0% Ni and $400$ ppm $\tilde{C}$ u – confirms soil anomalies

Ground $EM-9$ areas tested $-9$ conductors - confirms anomalies $RC$ Drilling $-$ trace to disseminated barren sulphides, only 1 ultramafic/basalt contact tested

BARRAMBIE PROJECT

Reed Resources Ltd

Advanced exploration project acquired April 2003 Magmatic Ti-Fe±V oxide deposit in anorthosite-gabbro PGMs, gold & nickel potential Completed PFS on production of 20M lbs $V_2O_5$ NPV₁₂ A\$379 million

• IRR 40%
• OPEX US\$2/lb
  • Market Price US\$10/lb
• · Study Price US\$6/lb LOW COST ENTRY INTO

WORLD-CLASS DEPOSIT

BARRAMBIE VANADIUM PROJECT

BARRAMBIE PFS

Eastern Band (2005)

Indicated 19 Mt @ 0.48% $V_2O_5$ Inferred 20 Mt @ 0.50% $V_2O_5$ Bay-Cove Central (BFP 2000) Indicated 23 Mt @ $0.43\%$ V₂O₅ Inferred $\sqrt{17}$ Mt @ 0.35% $V_2O_5$ Gulf Central (Snowden 1999) Inferred 60 Mt @ 0.30% $V_2O_5$

Optimised Pits 25 Mt @ $0.53\%V_2O_5$ to 50m

Strip Ratio 0.6:1

BARRAWBIELDES

	Concentrate Grade % $V_2O_5$		Concentrate Recovery $%$ mass	Process Recovery $\%$
	1.37		36	$90+$
	Mining Costs A\$/lb $V_2O_5$ 0.17		Plant, Infrastructure & Admin Costs A\$/lb $V_2O_5$
			2.50
Plant Direct (Processing plant & Infrastructure)		A\$ 174.8 m
Plant Indirect (EPCM, commissioning, first fill and Contingency allowance)		61.7 m A\$
Natural gas turn key package		$A\$ 19.5 m
Total			A\$ 256.0 m

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SUMMARY

Mt Finnerty (Iron ore, nickel, gold)

• UV with local producer Portman. Extensive iron ore enrichment over 30km outcrop. RC Drilling late March Q06
• Nickel Exploration RC Drilling confirms prospective ultramafics

Barrambie (vanadium, titanium)

• Pre-Feasibility Study results indicate highly competitive operation.
• Currently evaluating funding options for DFS Comet Vale (nickel)
• Delineating Ni-Laterite resource and testing Ni-sulphide potential at Comet Vale at present

Comet Vale (gold)

Expansion/Exploration Potential

• Extension of SG 1 & 2 lodes at depth, along strike
• Sand George deep lodes (SG 3, 4 & 5 Lodes)
• Extension of Sand Queen lode below 6L $\begin{tabular}{|c|c|} \hline \quad \quad & \quad \quad \ \hline \quad \quad & \quad \quad \ \hline \quad \quad & \quad \quad \ \hline \end{tabular}$
• Extension of Sand Prince West Deposit
• Repetition of Comet Vale Lodes along strike
• 20km untested Au soil anomalies
• Au/Cu quartz reefs

OPPORTUNITIES

• Low Risk Cashflow from Production Joint Venture for development of Sand George deposit (est. Annualised CF of A\$5m)
• JV with local iron ore producer Portman
• PFS Study on world-class vanadium deposit
• Exploration success from highly mineralised $\bullet$ projects
• · Diversified commodity base