NEOMETALS LTD — Investor Presentation 2007

Nov 1, 2007

Reed Resources Ltd Mining 2007 Presentation Nov 2007

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Important Notice

Disclaimer

This document has been prepared by Reed Resources Ltd (“Reed” or “the Company”) in conjunction with its corporate and financial adviser Transocean Securities Pty Ltd new (“Transocean”) to provide an update of the Company to investors and potential shareholders.

Any statements, opinions, projections, forecasts or other material contained in this document do not constitute any commitments, representations or warranties by Reed or Transocean and associated entities or its directors, agents and employees. Except as required by law, and only to the extent so required, directors, agents and employees of Reed or Transocean shall in no way be liable to any person or body for any loss, claim, demand, damages, costs or expenses of whatsoever nature arising in any way out of, or in connection with, the information contained in the document.

This document includes certain statements, opinions, projections, forecasts and other material, which reflect various assumptions. The assumptions may or may not prove to be correct. Recipients of the document must make their own independent investigations, consideration and evaluation of the opportunity to invest in the Company. By accepting this document the recipient agrees that if it proceeds further with its investigations, consideration

Management

David Reed - Executive Chairman and Founder

• Over 40 years mining and capital markets experience

• Founded Mt Martin Gold Mines NL which co-developed the +4Moz New Celebration Gold Project

• Fellow of Certified Practicing Accountants Australia

• Order of Australia Medal recipient in 2002

Christopher Reed - Executive Director and Founder

• Over 17 years mining experience, VP of Association of Mining and Exploration Companies

• Previously held positions across in legal, stockbroking and investment banking industries

• Holds a Bachelor of Commerce in Accounting and graduate qualification in Mineral Economics

• Member of the Australian Institute of Mining and Metallurgy

Peter Collins - Non-Executive Director

• Over 25 years mining experience as a geologist

• Responsible for the Sand George Deposit discovery at Comet Vale

• Holds a Doctorate in Geology and lectures economic geology at university

• Member of the Australian Institute of Geoscientists

Ian Junk - Non-Executive Director

• Highly respected mining engineer specialising in underground mining and project development

• Instrumental in the purchase of the Miitel and Wannaway nickel mines from WMC for Clough

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Corporate Information

Capital Structure

Shares on Issue (post AGM) 122m Share Price ( 1-Nov-07 ) $0.84 Market Capitalisation (post AGM) $+100m Cash ( post AGM ) $+17m Debt $0m

Substantial Shareholders

30 Management % RAB Capital PLC ( Special Situations Fund ) 6%

Relative Performance: Reed vs. Gold Price

Relative Performance: Reed vs. S&P/ASX Metals & Mining

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Project Locations

Reed has established an exciting portfolio of projects in highly prospective mining areas with excellent infrastructure and easy access to roads, rail and ports

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VANADIUM

• Barrambie

GOLD

• Comet Vale

IRON ORE

• Mt Finnerty

NICKEL SULPHIDE

• Mt Finnerty

• Bell Rock

NICKEL LATERITE

Barrambie Vanadium Project

Project Highlights

• 100% owned

• Completed PFS in 2006

• �Low operating costs

• �NPV of A$379 million on production of

  • 20Mlbs V2O5 p.a. over 12yr minelife, using prices much lower than spot

• FS due for completion by June 2008

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Perth
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Slides

• Market Attractiveness

• Sales & Marketing Agmt

• Highest Grade Resource

Vanadium Market

Why Vanadium?

• Vanadium is highly valued as a hardening agent for steel

• Leading price indicator is steel demand

• �Current Price US$7.90/lb Average last 4yrs ~ US$8/lb

• Increasing intensity of use by China/CIS

• Russians (EVRAZ) purchased

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Vanadium Market

The future?

• Increasing levels of steel production

• Increasing intensity of use by China/CIS

• � Demand growth predicted at 6% p.a.

• No stockpiles

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Marketing and Sales Agreement

Highlights

� One of world’s leading commodity traders, dominant in vanadium market

• Guarantee to sell first 10 years production, subject to completion of FS by June 2008

• � RDR retains right to sell to third party if higher price if available

• Counterparty will guarantee payment if required

Resources

Project Highlights

• Granted Mining Lease

• Initial resource estimate by Snowdens confirms huge resources 80Mt @ 0.5% V O 2 5 over 4.6km of 11km strike.

• Selective mining – visual grade control delivers 24Mt @ 0.82 % V2O5 (0.5% cut), mainly in Bay and Cove (2.5km).

• +10,000 m RC/Diamond Program commenced September.

• Extend and Upgrade resource

• Geotech/Variability Samples from additonal 14 PQTT holes

• Final resource/reserve estimate by

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Resources

Geology

• Discarded historical drill database, poor drilling and assay methods.

• Stage 1 Resource Definition Drilling Completed 272 RC/ 8 Diamond holes, over 10km strike

• Exceptional continuity and consistent thickness

• Visually distinguish ore

CENTRAL ZONE

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• 2-12m bands av > 0.9% V O 2 5

• using 0.6% cutoff

EASTERN ZONE

• +20m thick band av > 0.8% V O 2 5

• • 27% TiO 2

Metallurgical Testwork Results

Concentrate Grade drives operating costs

PFS PFS Mining Costs Plant, Infrastructure & A$/lb V2O5 Admin Costs A$/lb V2O5 0.17 2.50

Robust Flowsheet Grind 150um Single Pass RED at 6,000 gauss

Test	Recovery mass %	V2O5 mass %
PFS (East)	36.1	1.37
Eastern Band	45.7	1.30

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HIGHER CONCENTRATE GRADE

� LESS TONNES ROASTED

• SMALLER KILN (& COSTS)

Vanadium

	Definitive Feasibility	Study Program
	Action	Status	Expected Completion Date
	Stage 1 Resource Definition Drilling	COMPLETED	Jan - Mar 2007
	Calweld / Diamond Drilling - Metallurgy, Density and Confirmation	COMPLETED	Feb - Apr 2007
	Stage 2 Resource Infill Drilling	COMPLETED	May - Jun 2007
	Confirmation Testwork	IN PROGRESS	August 2007
	Resource Estimate - Snowdens	COMPLETED	August 2007
	Pilot Plant Testwork	IN PROGRESS	Oct - Jan 2008
	Reserve Estimate - Snowdens	Pending	Jan - Feb 2008
	Stage 2 Engineering Design and PEP - Sinclair Knight Merz	IN PROGRESS	Sep 07 - Mar 2008
	Water and Environmental Studies	IN PROGRESS	Mar 07 - Feb 08
	Bankable Feasibility Study Completed		June 2008
	Order Long Lead Items Commissioning	Pending Pending	2nd Half 2008 End 2010/2011

Gold

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Project Highlights

• High-grade underground operation with low risk production

• First gold in June ‘06

• Full production by Sept Qtr ‘07

• Target cash costs (sub A$300/oz)

• Expansion committed 1 Nov 07

• Regional exploration underway

Production JV

• Kingrose to earn 50% down to 243m depth by paying for development and production costs

• Reed pays for transport and

Gold

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Key Information

• Stage 1 – 65,000oz over next 3 years to net Reed 10,000oz p.a.

• net cashflow to Reed ~ $5m p.a. from 2007/08

• Recently doubled resource base to 136,000oz and is open at depth, along strike

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Gold
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Iron Ore

Project Highlights

• JV with Australia’s third largest iron ore exporter

• Portman 80%/RDR 20%

• +35km of enriched BIF

• Original target 5-10Mt of DSO within trucking distance of Portman’s Koolyanobbing Mine

• Exploration indicates potential for multiples of original target

• Utilising Portman’s existing plant, rail and port infrastructure

• JV has allowed

Exploration

• +400m long, up to 25m wide, targeting 3-4Mt

• Maiden RC results

• 21m @ 60% Fe

• 12m @ 60% Fe

• 10m @ 60% Fe

• Average P < 0.08%, suitable for blending

Iron Ore

Portman Exploration Results

� Additional surface enriched iron formation targets, FIN10 and FIN11. Portman’s rock chip samples from FIN11 ranged between 56-61% Fe.

• �Significant new styles of targets

• Widespread palaeochannels may contain detrital iron ore mineralisation , potential for large Channel Iron Deposits.

• Concealed enriched iron

• formation (Structural) targets from airborne magnetic survey.

Forward Work Program 251 RAB, 19 RC and 70km ground

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Nickel

Nickel Sulphide

• WSA earning 65% by spending $3m

• $1.5m for 51% within 3 years

• $1.5m for additional 14% within 2 years

• Multiple high MgO ultramafics over 45km

• WSA Exploration identifies 4 high order soil geochemical anomalies coincident with basal ultramafic/basalt contact, over 10km of strike

• High impact exploration planned for this quarter.

• EM/IP surveys on 4 targets to

• refine angled RC holes

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Summary

Reed is a WA-based emerging multi-commodity mining house developing projects in gold, vanadium, nickel and iron ore and offers strong exposure to the rapidly expanding Asian steel industry

• Producing gold from its high grade Comet Vale mine

• JV with experienced underground mining contractors

• 20,000oz p.a. (RDR 50%) over 3.5 years, expansion announced yesterday

• Current resource base of 136,000oz @ 12 g/t Au, unhedged

• Targeting +500,000 oz within 5 years

• Developing a world class vanadium deposit

• 100% owned Barrambie Project

• Initial resource calculation by Snowdens confirms highest grade in Aust.

• PFS – technically feasible and economically viable to develop a long-life low-cost operation producing 20M/lbs p.a. of Vanadium Pentoxide

• BFS due for completion by June 2008

• Pursuing further growth opportunities with experienced JV partners