NEOMETALS LTD — Investor Presentation 2007

Aug 7, 2007

Reed Resources Ltd Diggers Presentation August 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

Corporate Information

Capital Structure Substantial Shareholders

Shares on Issue 97m Management 30% Share Price ( 7 August 07 ) $0.60 RAB Capital PLC Market Capitalisation $58m ( Special Situations Fund ) 6% Cash ( 30 June 07 ) $4.3m

Debt $0m

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Relative Performance: Reed vs. Gold Price

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

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$7.50/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 - Grade is still King!

Project Highlights

• Granted Mining Lease

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

• Selective mining – visual grade control delivers 24Mt @ 0.82 % V2O5 (0.5% cut)

• 10,000 m RC/Diamond Program commenced today.

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Geology

• Extend and Upgrade resource

• Geotech/Variability Samples

– Stage 1 Resource Definition Drilling

• Completed 152 holes over 10km strike – Feb 07

  • Exceptional continuity and consistent thickness

• Final resource/reserve estimate by Snowdens February 2008.

Central Zone

• 2-12m bands av > 0.9% V O 2 5 using 0.6% cutoff

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)

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

• Low cash costs (sub A$300/oz)

• Expansion drilling continues

• Open-Pit Study 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

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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228000 230000 232000 228000 230000 232000
6588000 6588000
6586000 6586000
6584000 6584000
6582000 6582000
Ni Cu
2492.83 547.25
297.00 6580000 97.82 6580000
173.26 74.06
114.80 56.72
26.00 WESTERN AREAS NL 8.00 WESTERN AREAS NL
Mt FINNERTY JV Mt FINNERTY JV
0 1000 2000 3000 SOIL GEOCHEM - Ni 0 1000 2000 3000 SOIL GEOCHEM - Cu
Scale 1:50000 Scale 1:50000
GRID: GDA84/ 51 SCALE 1:50000 REPORT: GRID: GDA84/ 51 SCALE 1:50000 REPORT:
DRAWN: DATE :31/07/2007 PLAN: MF003 DRAWN: DATE :31/07/2007 PLAN: MF004
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227000 227500 228000 228500
6590000
6589500
PINK +1,000ppm
6589000
6588500
6588000
6587500
6587000
WESTERN AREAS NL
Histogram Bin Maxima MT FINNERTY JV
REGOLITH MAP
0 200 400 600 Ni SOIL GEOCHEM & MAG HIGHS
Scale 1:10000
GRID: GDA84/ 51 SCALE 1:10000 REPORT:
COLOUR = Ni DRAWN: DATE :31/07/2007 PLAN: MF002
88.063 153.125
218.188
26 283.25 348.313 413.375 478.438 543.5 608.563 673.625 738.688 803.75 868.813 933.875 998.938 1064
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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 the next three years

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

• Targeting +500,000 oz

• Developing a world class vanadium deposit

• 100% owned Barrambie Project

• Initial resource calculation by Snowdens due in September Qtr ‘07

• 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