NEOMETALS LTD — Investor Presentation 2010

Sep 7, 2010

Introducing the next world-class Spodumene MineChris Reed, Reed Resources Ltd

Mineral Resources Group

September 2010

Contents

• 1. Flythrough
• 1. Project Overview
• 1. Mt Marion JV Partners
• 1. Resource Estimates & Potential
• 1. Geology Characteristics & Comparisons
• 1. Project Layout &Infrastructure
• 1. Development Plans & Timetable
• 1. Marketing Concepts

• •100% Reed Resources Ltd (ASX:RDR)
• • Production JV with Mineral Resources Ltd (ASX:MIN)(ASX Top 200)
• • Initial Output - 200,000 tpa of +6.5% Li ²O. World's 2nd largest Spodumene producer
• • JV Terms - Mineral Resources will :
• •Operate project
• •Fund Evaluation and Development Costs
• •Build-Own-Operate Processing Plant
• •Decision to Mine - 16 July 2010
• •Commercial Production by 31 Mar 2011
• •Earn 40% of EBIT.
• • RDR retain 60% EBIT and right to offtake

Reed Resources – Company Snapshot

Mineral Resources – Company Snapshot

Resource Estimates

Exploration Potential

Potential for significant addition to the current resource base.

Currently all 5 Deposits are open along strike and at depth

Explored 1 of 3 Pegmatite Groups.

Additional Exploration Target 10-15 MT of 1.1 – 1.4% Li 2O

Orebody Characteristics

• •Thick
• •Shallow
• •Gently dipping
• •Ore virtually fresh from surface
• • Ore visually distinguished (white)= Simple Open Pit Mining

Lithium – Deposit Comparisons

Talison - Greenbushes

• •Incline vein pegmatite
• • Head Grade 3%Li 2O
• •Glass, Ceramic, Chemical Grade
• •Strip Ratio 5.6 :1 (*)

Mt Marion

• •Flat lying vein pegmatite
• • Head Grade 1.3%Li 2O
• •Only Chemical Grade
• •Strip Ratio 3.3:1

Galaxy - Mt Cattlin

• •Flat lying pegmatite
• • Head Grade 1%Li 2O
• •Only Chemical Grade
• •Strip Ratio 2.4:1 (*)

Site Layout

Crushing Circuit Layout

Beneficiation Plant -

Logistics – Container - Fremantle

Logistics – Bulk – Esperance Berth 2

Lithium Strategy – Integrated Producer

Stage 1 - Development Timetable

Lithium Carbonate Pre-Feasibility Study 2010

Robust Economics and highly leveraged to the growth in electric vehicles

I t n p u :	2 0, 0 0 0 f 6. L i2 O 1 5 % t o
O t t u p u :	1 7, 0 0 0 f 9 9. 5 % t o p u r e L i h i C b t t u m a r o n a e
C t o s :	S \$ C U 6 3 i P R h i m n n a U S \$ i M l i 7 0 m n a a y s a
N P V :	S \$ U 4 0 4 i 1 2 % m s n g u
I R R :	6 8 %
P b k a y a c :	~2 y e a r s

Implies additional value in conversion = US\$270/t of spodumene concentrate

Comparison – Australian Lithium Mineral Producers

	h S a r e i P r e c \$ A	k M t a r e C a p \$ A m	i E t n e r p r s e l V a e u \$ A m	d i P t r o c o n u C K L E t p a	/ d i E V P t r o c o n u \$ / C A L E t
l i T a s o n i L C t t o n c e n r a e d P r o u c e r	3. 8 0	2 6 0	( ) 2 9 1 4	( ) 2 4 1. 8	7, 1 7 7	\$ A 2 3 0 m
i L i J V M M t a r o n			?	3 2. 1	?
l G a a x y d i I L C t t n e g r a e l D e v e o p e r	1. 0 5	2 0 0	( 3 ) 2 7 5	( ) 4 2 0. 3	1 3, 5 4 6	\$ A 4 3 5 m

Using Hatch Study + A\$750m

Assumptions

• (1) Talison : Converted using 1 A\$ = 0.92 C\$, debt C\$31 (2) Production 2010: 260,000t @ 6.5% Li2O
• (3) Galaxy : Enterprise Value = Mkt Cap Cash at Commencement of Production + Project Loan Facility
• (4) Production CY 2011 : 137,000t @ 6.5% Li2O Source ASX Announcement 2 June 2010.

LITHIUM PRODUCTION CAPACITY

Mineral Producers - New World Order

Brine Producers

Marketing Concepts

China now largest producer of Li batteriesChina sources <10% from BrineChina committed to Mineral ConversionNo Mt Marion production forward sold

Downstream

• •Strong Balance Sheets
• •Diversity of Supply
• • In discussions with 5 Domestic andInternational Companies.
• • Proposals for toll-conversions and/orLithium Carbonate JV due 30 September

This document has been prepared by Reed Resources Ltd ("Reed" or "the Company") to provide an update of the Company to investors and potential new 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 theCompany. 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.

JORC Statement

Competent Persons/ Exploration Results in General

The information in this report that relates to exploration results is based on information compiled by Craig Fawcett (MAUSIMM), an employee of Reed Resources Ltd. Craig Fawcett 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. Craig Fawcett 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, there has been insufficient exploration to define a Mineral Reserves and resources and it is uncertain if further exploration will result in the determination of a Mineral reserves and resources.

Mt Marion Lithium Project – Mineral Resource Estimate

Reed reported on the 12 August 2010 a resource of 10.5Mt @ 1.4% Li2O for the Mt Marion Deposits. While the Company intends to do further exploration on the Mt Marion Project tenements and remains optimistic it will report additional resources in the future, any discussion in relation to targets, resources, reserves or 'ore' over and above the resource of 10.5Mt @ 1.4% Li2O is only conceptual in nature. There has been insufficient explorations to define a Mineral Resources over and above the resource of 10.5Mt @ 1.4% Li2O, and it is uncertain if further exploration will result in the determination of a Mineral Resource over and above the resource of 10.5Mt @ 1.4% Li2O.

The information in this report that relates to Mineral Resources (at Mt Marion) is based on information compiled by Mr. Robert Spiers who is a full time employee of Hellman & Schofield Pty Ltd and who is a Member of the Australian Institute of Geoscientists. Mr. Spiers has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Spiers consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.