NEOMETALS LTD — Investor Presentation 2008

Aug 3, 2008

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Diggers n Dealers August 2008

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Important Notice

Disclaimer

This document has been prepared by Reed Resources Ltd (“Reed” or “the new Company”) 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 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 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 or evaluation of the opportunity to invest in the Company it shall make and rely solely upon its own investigations and inquiries and will not in any way rely upon the document.

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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

• Order of Australia Medal recipient in 2002

Christopher Reed - Managing Director and Founder

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

• 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

Ian Junk - Non-Executive Director

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

• National finalist in the 2003 Ernst & Young - Young Entrepreneur of the Year Award

• Member of the Australian Institute of Mining and Metallurgy

Steven Cole - Non-Executive Director, Deputy Chairman

• Highly respected commercial lawyer

• Chairman of Emerson Stewart and VP of Professional Standards Council

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Corporate Information

Substantial Shareholders

Capital Structure Shares on Issue 135m Management 20% Share Price ( 1 August ) $0.85 UBS Nominees 9% Market Capitalisation ~$115m Cash (est) ~$18m RAB Special Situations 7% Debt $0m

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Relative Performance: Reed vs. S&P/ASX Metals & Mining
500
400
300
200
100
0
Jan-06 May-06 Sep-06 Jan-07 May-07 Sep-07 Jan-08 May-08
Reed S&P/ASX Metals & Mining
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Project Locations

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VANADIUM
GOLD
IRON
ORE
LATERITIC
NICKEL
NICKEL
SULPHIDE
NICKEL
SULPHIDE
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Vanadium Market

Why Vanadium?

• �Vanadium hardens steel

• Steel production drives price

• Ever increasing steel production

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�
�
�EVRAZ led market consolidation
�Current Price FeV US$70/kg
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• Increasing intensity of use by China/CIS

• Price inelastic, dollars per tonne

• �EVRAZ led market consolidation

• �Current Price FeV US$70/kg Current Price V2O5 US$15/lb

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Source: Stratcor Presentation March 2007 (IISI, Macquarie Research, MB, Roskill, MBR, CRU)

Vanadium Market

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Vanadium growing in importance in various cutting edge battery technologies

Subaru trialling a Lithium Vanadium based battery with 200km range and 15 minute recharge to 80% capacity. Running costs 10% of petrol equivalent

Power utilities beginning to use Vanadium redox technology to store off-peak load or even-out fluctuations from renewable sources

Vanadium fuel cell battery with twice the practical energy density of petrol

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Definitive Feasibility Study

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• Highest grade vanadium deposit in Australia 36Mt @ 0.82 % V2O5 (<40% strike)

• Sales and Marketing Agreement for 10yrs

• Baseload Gas/Transmission secured

Process Plant Design

• Throughput 3.2Mt @ 0.7% V2O5

• � Output 5,000t V as FeV80

Mine Planning

• Indicated Resource 24Mt @ 0.82% V2O5

• Mining Inventory 21.4Mt @ 0.80% V2O5

Result - Redesign back end to � output +30%

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Definitive Feasibility Study

Revenue & Cost Initiatives

• Process Central Bands – Increases grade 0.83 % vs current design 0.7%

• • Associated mass + con grade increases output of V by 30%

• Fines recovery circuit to further increase mass recovery

• Move Ferrovanadium furnace to Kwinana

• Reduce salt use by 30%

	Completion Program
	Action	Status	Expected Completion Date
	DFS Stage 3	Pending	Jan - Dec 2008
	Stage 3 30,000m RC/Diamond Drilling Program	COMPLETE	May - July 2008
	Stage 3 Resource Estimate - Snowdens	Pending	October 2008
	Stage 3 Reserve Estimate - Snowdens	Pending	December 2008
	Order Long Lead Items	Pending	December Q 2008
	Optimised CAPEX, OPEX and Financial Model	Pending	January 2009
	Decision to Mine	Pending	March Q 2009
	Commissioning	Pending	1st Half 2011

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Gold

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Project Highlights

• High-grade -136,000oz @ 12g/t Au

• Low risk Production JV with

• Kingsrose Mining Limited

• Low cost CY08 av C1 = A$358/oz

• Record production last quarter

• 7,556t at 12.1 g/t Au including

• 5,672t @ 13.8 g/t Au

• Targeting 20,000 oz in FY08/09 rising to 35,000 oz pa in CY09/10

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Gold

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Forward Work

• Commence +5,000m ‘near mine’ diamond drilling program to increase

• resources along strike, down dip and parallel to existing operation

• Expand production rates following arrival of new S.457 miners

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Iron Ore

Project Highlights

• JV with Australia’s third largest iron ore exporter

• Portman 80%/RDR 20%

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

• RC Drilling Results

Koolyanobbing

Esperance

• FIN9 - 21,12 & 10m @ 60% Fe FIN10 - 12 @ 63%, 11 @ 61% and 10 @ 60% Fe

• � Potentially utilising Portman’s existing plant, rail and port infrastructure

• Reduction in critical size needed for development

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Iron Ore

Initial results indicate very low phosphorus (0.009%)

Initial test work show screening, magnetic and flotation upgrades iron

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Nickel

Nickel Sulphide

• WSA earning 65% by spending $3m

• Multiple formations of high MgO ultramafics over 45km strike length

• Geochemical anomalies coincident with basal ultramafic/basalt contact, over 10km of strike

• Latest RAB results include 25m @ 0.91% Ni +Pt/Pd

• Exploration planned for this quarter.

• Angled RC holes on IP/Gravity/Geochemical anomalies starting next week

• EM survey and ~300 RAB holes over western ultramafic contact

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Nickel
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•
30km strike of Bell Rock Range mafic/ultramafic intrusion
• Rio/Delta considered “highly prospective for massive Ni-Cu sulphides + PGM’s”
• Surrendered by Rio after failure to secure ground access
• Tenement granted. Access agreement nearing completion
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Initial Exploration →Airborne Geophysics →30km basal ultramafic contact

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Summary

Emerging multi-commodity miner offers strong exposure to the rapidly expanding Asian steel industry

• Developing a world class vanadium deposit

• Compelling market fundamentals

• Highest grade deposit in Australia

• Targeting lowest quartile operating costs

• Curtis syndicate to assist in advancement

• Producing gold from its high grade Comet Vale mine � Low-risk, low-cost, unhedged gold production

• Pursuing further growth opportunities with experienced JV partners � Iron Ore � Portman JV budget +900 holes this half year

• Nickel Sulphide � Western Areas RC this month and +300 RAB holes this half

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Competent Person

Geological aspects of this report have been compiled by Dr Peter Collins (MAIG), a Director of Reed Resources Ltd. Dr Collins has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which is being reported on to qualify as a Competent Person as defined in the Code for Reporting of Mineral Resources and Ore Reserves. Dr Collins consents to the inclusion in the report of the matters in the form and context in which it appears.

References to Exploration/Production targets and Potential

While the company remains optimistic it will report increases in resources and reserves in the future, any discussion in relation to exploration targets, resource potential, reserves or ‘ore’ is only conceptual in nature, and it is uncertain if further exploration will result in the determination of a Mineral Resources and Reserves

All references to Dollars are Australia Dollars unless otherwise stated.

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