NEOMETALS LTD — Investor Presentation 2011

Aug 1, 2011

ASX:�RDR

DIGGERS�PRESENTATION

AUGUST�2011

Chris�Reed�– Managing�Director

www.reedresources.com

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Page�1

Important�Notice

Disclaimer

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�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.

All�figures�in�this�document�are�in�Australian�dollars�(AUD)�unless�stated�otherwise.

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Reed�Corporate�Snapshot

Background

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• Reed�Resources�Ltd�( ASX:�RDR )�is�a� WA�focused�resource�developer

• Proven�strategy�to� acquire�and� develop�undervalued�assets across� varying�commodities�

• 3�company�making�projects across� gold,�lithium�and�vanadium

Market�Capitalisation

Lastprice_(29�July�11)_	$	0.44
Sharesonissue	$	262.2
Marketcapitalisation	$m	115
Cash_(est.endJuly)_	$m	16.6
Debt	$m	0.0
Enterprisevalue	$m	~100

12�Month�Share�Price

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Substantial�Shareholders

DavidReed	8%
M&G/Vanguard	5%
SGHiscock	5%

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Project�Summary

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	100%	70%		100%	100%
	GOLD	LITHIUM		VANADIUM	OtherAssets
Strategy	Productionby Dec�12	Stand�alone SPV		Stand�alone SPV	Incubate& Develop
Resource	2.75Moz(contained)	14.9Mt@1.3%Li2O		65.2Mt@0.82%V2O5	Ironore(Reed20%)
					�JVwithCliffsNatural
JVPartners	n/a	MineralResources (ASX:MIN)		ChinaNonferrous MetalIndustry(NFC)	ResourcesforDSOatMt Finnerty
					�MaidenJORCresource
Total Funding	$33million(toDTM) $6m remaining	$40million(inc.BOO)		TBA	4.7Mt@53.5%Fe Nickel(Reed60%)
					�JVwithBarranco
ReedShare	100%	0%		TBA	ResourcesatMtFinnerty
					�Prospectivefornickel
Target Production	DecemberQtr,2012	DecemberQtr,2011		2014	sulphide Other(Cu,Au)
					Page4

Meekatharra�Gold�Project�Update�(Reed�100%)

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Resource�Inventory NOW 48Mt�@�1.7g/t� 2.75Moz Reserve�Inventory NOW 4.2Mt�@�3.4g/t 559Koz

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• 3�Mtpa�processing�plant

• � 180�man�camp � Low�Capex�re�start

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Page�5

Gold�Peer�Comparisons

$�Market�Cap�/�Resource�oz

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$120
Average�$56/oz
$100
$80
$60
$40
Reed�acq.�$11/oz
$20
$0
DRM SLR FML RMS SAR SBM RDR WGR CRE AXM NGF NAV RDR
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Source:� IRESS,�ASX,�company�reports

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Regional�Location

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Meekatharra�Fly�Through

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Bluebird�Pit

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Prohibition�Pit

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Paddys�Flat�Underground

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Reedys

Southern�Group�Long�Section

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Reedys	Tonnes	Grade	Gold
	(Mt)	(g/t)	(koz)
Resource	4.9	2.5	395
Reserve(o/p)	0.4	2.9	37

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Reed�Turnaround�Strategy

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Results�to�Date

Results	Feb2011	Aug2011	Increase
Resource	2.5Moz	2.8Moz	�12%
Reserve	420koz	559koz	�32%
Reserve(o/p)	114koz	250koz	�119%

Target

Initial�4�5�year� sustainable� production�profile� � 100�– 120Kozpa

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Meekatharra�Summary

Reed�is�re�establishing�the�integrity,� credibility�and�value�of�the�� Meekatharra�Gold�Project

�

Careful�planning�and�compliance

�

Detailed�evaluation�and�feasibility�studies

�

Reliable�development�schedules

�

Sustainable�operations

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Mt�Marion�Fly�Through

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Lithium�Strategy�– Integrated�Producer

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Lithium�Resource�Estimate

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MtMarion	Tonnes	LiGrade	FeGrade
(100%basis)	(Mt)	(%Li2O)	(%Fe2O3)
Measured	2.0	1.45	0.9
Indicated	4.8	1.39	1.2
Inferred	8.1	1.3	1.3
Total	14.9	1.3	1.2

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Comparison�– Australian�Lithium�Mineral�Producers

• Deposit�Comparisons

• Talison�� Greenbushes Reed/MIN�– Mt�Marion Galaxy�– Mt�Cattlin

• �Incline�vein�pegmatite � Flat�lying�vein�pegmatite �Flat�lying�pegmatite �Head�grade�3%�Li2O � Head�grade�1.3%�Li2O �Head�grade�1%�Li2O �Glass,�ceramic,�chemical� � Chemical�grade �Chemical�grade grade � Strip�ratio�3.3:1 �Strip�ratio�2.4:1� �Strip�ratio�5.6:1

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Source:� Reed�Resources�Ltd

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Barrambie�Fly�Through

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Vanadium�Market�– Strong�Long�Term�Fundamentals

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$75
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Titanium�Vanadium�Alloys

• �Increasing�intensity�of�use� in�aerospace

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+
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+

Lithium�Vanadium�EV�Batteries

• �Highest�voltage�� POWER

• �Highest�energy�density��� RANGE

• �Contains� 4kg�Li,�20kg�of�V

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=��?�
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Vanadium�Redox�(Liquid)�Batteries

• �Renewable�energy�storage,�peak�shaving,�load� leveling,�backup

• �High�efficiency,�long�life�>20yrs

• �Variable�input/fixed�output

• �Power�(cell)�and�capacity�(concentration�and� volume)�varied�to�suit�application

• 1MWh�storage�=� 9t�of�V2O5

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The�2011�CRU�Commodity�Price�Ladder:

• 1.�Vanadium

• 2.�Manganese

• 3.�Cobalt

• 4.�Molybdenum

• 5.�Nickel

• 6.�Copper

• 7.�Iron�Ore

• 8.�Uranium

• 9.�Sulfur

10.�Alumina

• 11.�Lead

• 12.�Zinc

• 13.�Tin

• 14.�Silver

• 15.�Coking�Coal

• 16.�Metallurgical�Coke

• 17.�Aluminium

• 18.�Palladium

• 19.�Gold

• 20.�Tungsten

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Vanadium�Peer�Comparisons�

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EV�/�Resource�Multiple�($/t�V2O5)
$800
$700
Potential�valuation�range�of�
$600 $100��400/t�V2O5
$500
$400
$300 Mean $251/t V2O5
$200
$100
$0
Largo American� Atlantic Apella TNG Energizer Sino� Yellow�
Vanadium Vanadium Rock
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Based�on�EV/resource�benchmarking�of�listed�
vanadium�peers,�Barrambie�has�an�implied�
valuation�of�$53��$214m
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Source:� Bloomberg,�ASX,�company�reports

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Board and Senior Management

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David Reed FCPA, OAM Executive Chairman

Steven Cole

Llb(Hons), FAICD Non-Executive Director

Dr Peter Collins

BSc(Hons), PhD, MAIG Non-Executive Director

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Chris Reed BCom, GradCertMinEcon, MAusIMM Managing Director and CEO

Dr Vanessa Guthrie BSc (Hons), PhD, GDBM Non-Executive Director

Ian Junk

BEng(Hons), MAusIMM Non-Executive Director

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Jason Carone

BCom, CA Financial Controller and Company Secretary

Darren Wates Legal Counsel and Company Secretary

Craig Fawcett

BSc(Hons), GDipMining General Manager - Gold

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Reed Technical Staff

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Bill Crossley Project Manager – Lithium/Vanadium

James Lawrence Resource Geologist Underground

Dr Bryan Smith Consultant Geologist Lithium/Vanadium/Nickel

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Elizabeth Jones Snr Planning Engineer

Matt Schembri Resource Geologist Open Pit

Tony Simpson Consultant Vanadium

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Jeremy Watkins Project Manager – Gold

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David Hollingsworth Senior Exploration Geologist

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Dudley Kingsnorth Consultant Lithium

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Summary

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� Staged�production�profile�with�Mt� Marion�on�line�March�Qtr�2012 � Diversified�cash�flows�across�3�strategic� commodities�with�strong�price�outlook � Well�funded�with�experienced� management�team � Trades�at�a�significant�discount�to�peers� across�all�projects�(current�price�$0.44)

*�Subject�to�Decision�to�Mine

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Appendix�1

JORC�Statement

COMPETENT�PERSONS�STATEMENT

Geological�aspects�of�this�report�have�been�compiled�by�Mr�Craig Fawcett�(MAIMM),�a�full�time�employee�of�Reed�Resources�Ltd.�Mr 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�(2004). Mr�Fawcett�consents�to�the� inclusion�in�this�report�of�the�matters�in�the�form�and�context�in�which�it�appears.

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Appendix�2

Reed�Resource�and�Reserve�Inventory

MtMarion Category Tonnes (Mt) Li2O(%) Li2O(kt)			Meekatharra Category Tonnes (Mt) Grade(g/t) Gold(koz)
1,2,2W,4,5,6 Measured 2.0 1.45 29.2 Indicated 4.8 1.39 66.3 Inferred 8.1 1.3 105.1			Bluebird Probable 1.4 1.9 87.0 SouthJunct. Probable 0.1 1.5 4.5 Prohibition Probable 1.1 2.7 96.0 Surprise Probable 0.1 3.0 13.0 Batavia Probable 0.2 2.4 14.0 JackRyan Probable 0.2 3.1 21.8 Callisto Probable 0.1 3.1 7.2 Rand Probable 0.1 2.4 7.6
Total 10.5 1.4 193.7
			Total(o/p) Probable 3.3 2.3 251.1
			Prohibition Probable 1.4 4.1 179.0 Vivian/Cons. Probable 0.3 10.4 83.0 Fatts/Mud. Probable 0.4 4.0 46.0
			Total(u/g) Probable 2.0 4.8 308.0
			Total Probable 5.3 3.3 559.1
			Barrambie Category Tonnes (Mt) V2O5 (%) TiO2 (%)
			Barrambie Probable 39.7 0.82 15.7
			Total 39.7 0.82 15.7
			Notes : 1.ResourcesandReservescomplywiththeAustralianJORCreporting guidelines 2.ResourcesareinclusiveofReserves

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