NEOMETALS LTD — Investor Presentation 2011

Jun 28, 2011

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ASX: RDR

INVESTOR PRESENTATION 28 June 2011 Chris Reed – Managing Director

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www.reedresources.com

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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Page 2

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 world class projects across gold, lithium and vanadium

• $40 million raising in February 2011 to fund the purchase and feasibility study of the 2.7Moz Meekatharra gold project

• Re-optimisation has since yielded a second million tonne open pit reserve and a 32% increase in total reserve base to 559koz prior to start of drilling campaign

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• Mt Marion lithium (Reed 70%) – constructing the world’s 2[nd] largest spodumene producer, commissioning Dec Qtr 2011

• Barrambie vanadium (Reed 100%) – Australia’s highest grade reserve now in approvals/financing stages, new capex/opex under review

Market Capitalisation Last price (28-June-11) $ 0.52 Shares on issue $ 262.2 Market capitalisation $m 136 Cash (est. end May) $m 27.0 Debt (due 30-Jun-11) $m 9.0 Enterprise value $m 118 12 Month Share Price $0.80 $0.70 $0.60 $0.50 $0.40 May-10 Aug-10 Nov-10 Feb-11 May-11 Directors David Reed Executive Chairman Chris Reed Managing Director Steven Cole Non-Executive Director Peter Collins Non-Executive Director Ian Junk Non-Executive Director Vanessa Guthrie Non-Executive Director

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Page 3

Reed Project Snapshot

	LITHIUM		GOLD		VANADIUM		Exploration
	Mt Marion, 70%		Meekatharra, 100%		Barrambie, 100%		Au, Fe, Ni
Resource	**10.5Mt @ 1.4% Li2O **		2.7Moz (contained)		**65.2Mt @ 0.82% V2O5 **		Gold (Reed 100%)
							High grade Sand
Asset Stage	Under construction		Care & maintenance		Financing/Approvals		Queen mine on
							production hiatus
JV Partners	Mineral Resources (ASX: MIN)		Reed to fully fund and develop		China Nonferrous Metal Industry (NFC)		pending suitable toll treat arrangement
	MIN fully funding evaluation, construction and further exploration		Near ready production with 3Mtpa mill and camp		Chinese-listed industrials company with a market cap of A$3.2bn		MoU sale of Nimbus processing plant for $4.5m plus toll- treatment and royalty
	Earning 30% on				MOU for fixed price
	completion of plant				EPC and financing		Iron ore (Reed 20%)
Total Funding	$40 million (inc. BOO)		$33 million (to DTM)		July 2011		JV with Cliffs Natural Resources for DSO at Mt Finnerty
Cost to Reed	0%		100%		TBA		Maiden JORC resource 4.7Mt @ 53.5% Fe
Target	December Qtr, 2011		December Qtr, 2012		Est. 2014		Nickel (RDR earning 60%)
Production	200ktpa +6% Li2O Mining approval		+120koz pa and 4-5 year production plan		US$110m EBITDA pa Fixed price EPC		JV with Barranco Resources at Mt
	granted (Feb 2011)		BFS underway		estimate from NFC		Finnerty
	Assessing		Reserve re-		due June 2011		Prospective for nickel
	downstream		optimisation and		Final approvals		sulphide
	processing options		new drilling program		September Qtr 2011

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Page 4

Mt Marion Fly Through

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Page 5

Mt Marion Lithium Project Update (Reed 70%)

Joint Venture (MIN earning 30%)

• Incorporated JV with Mineral Resources ( ASX: MIN ), an ASX 200 diversified contractor with a $2.1 billion market cap

• Under the JV terms, MIN will:

• » Operate the project

• » Fully fund evaluation and development costs

• » BOO processing plant - construction underway

• » Complete wet commissioning by 15 December 2011

Operations

• Initial output 200,000 tpa of +6% Li2O (chemical grade)

• » First shipment March Qtr 2012

• » By-products include mica and tantalum

• Mt Marion will be the world’s 2[nd] largest spodumene producer

Financial

• Lithium carbonate PFS completed by Hatch in 2010 indicating:

• » NPV of US$404 million (12% discount) and IRR of 68% providing a <2 year pay back

• » Capital cost US$63m (China) - US$70m (Malaysia)

• Downstream processing options/partial sale – under consideration

Construction and site preparation underway at Mt Marion: [1] part of the tertiary rolls crusher (top) and [2] administration office pad (foreground) and site construction offices (at rear)

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Clearing – Deposit 1

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Lithium Strategy – Integrated Producer

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Page 8

Lithium Resource Estimate

Mt Marion	Tonnes	Li Grade	Fe Grade
(100% basis)	(Mt)	(% Li2O)	**(% Fe2O3) **
Measured	2.1	1.5	1.1
Indicated	3.9	1.4	1.2
Inferred	4.5	1.3	1.9
Total	10.5	1.4	1.4

• 5 deposits all open along strike and at depth

• Potential for significant addition to current resource base

• » Only 1 of 3 pegmatite groups have been explored

• Currently drilling with an additional exploration target of 10-15Mt @ 1.1 –1.4% Li2O

» Average intercept first 50 drill holes 10m @ 1.44% Li2O

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Comparison – Australian Lithium Mineral Producers

Mt Marion project valuation (EV) using: Talison = $182m Galaxy = $286m Hatch study >$600m

Assumptions

1. 1 AUD = 1.03 CAD

2. Talison net cash based on results reported for the period ending 31 March 2011

3. Talison production annualised based on 37,500t LCE for 9 months to 31 March 2011

4. Galaxy net cash based on $185 million cash (presentation 24 May 2011) and loan facilities of $89.7 million and convertible debt of $61.5 million (reported 31 March 2011)

5. Galaxy production based on planned annual production from Mt Cattlin of 137,000t @ 6% Li2O for 20,325t LCE

	Australian Lithium	Market Cap	Net Cash	EV	(1) Prodn	(2) EV/Prod	Implied
	Mineral Producers Talison Lithium (TSX: TLH)	$m	$m	$m	kt pa LCE	$/t LCE	EV (1x2)
	Greenbushes	387	82	306	50.0	6,111	$182m
	Concentrate producer
	Reed Resources (ASX: RDR) Mt Marion			?	29.7
	LiC developer
	Galaxy Resources (ASX: GXY)
	Mt Cattlin	230	34	196	20.3	9,633	$286m
	Integrated LiC developer

Deposit Comparisons

• Talison - Greenbushes Reed – 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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Page 10

Meekatharra Gold Project Update (Reed 100%)

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Resource Upgrade

Feb 2011 44Mt @ 1.7g/t 2.5Moz  NOW 48Mt @ 1.7g/t 2.7Moz Reserve Upgrade Feb 2011 3.8Mt @ 3.4g/t 420Koz  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 11

Project Background

Geology

• Located 640km northeast of Perth and 10km south of Meekatharra, in the Murchison Region of Western Australia

• 800km[2] tenement holding covering over 100km strike length over prolific Murchison greenstone belt, a proven fertile greenstone

• » Past production >13Moz

• » Hosts multi-million ounce deposits at Mt Magnet, Big Bell, Tuckabianna, Reedys, Yaloginda and Paddys Flat

• » Reed’s project area past production circa 4.5Moz

History

• Previously owned by Mercator, who purchased Meekatharra from St Barbara Mines in 2004

• Mercator spent $26m to establish a JORC resource of 2.5Moz and reserve of 0.4Moz by 2007

• Mercator spent $6m refurbishing Bluebird mill to produce 120koz pa

• Mining commenced in 2007 and produced 44,000 ounces prior to suspension of operations in October 2008

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Page 12

Reed Turnaround Strategy

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In Progress
Advanced
Advanced
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First Steps

Results to Date

Target

Re-modelling and reestimation of resources using  current economic parameters



Commenced BFS –   due Feb 2012

Dedicated gold team in place led by Reed’s chief geologist and GM – Gold, Craig Fawcett

Intensive evaluation of historical open-pit and underground ore bodies

Substantial Initial 4-5 year   increases in grade and/or  sustainable production profile tonnes – 120Kozpa

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Gold Peer Comparisons

Australian Gold Peers (*close to Reed project area) Apex Minerals NL Crescent Gold Limited	ASX Code AXM CRE	Shares (m) 5,550.2 1,100.8	Price ($) 0.01 0.05	Mkt Cap ($m) 38.9 58.3	Resource (Moz) 2.2 2.8	Mkt Cap/Res ($/oz) 17.5 21.0
Doray Minerals Limited*	DRM	61.8	0.79	48.5	0.1	348.7
Focus Minerals Ltd	FML	3,440.5	0.07	234.0	2.3	104.0
Navigator Resources Limited	NAV	465.8	0.04	16.8	1.7	10.0
Norton Gold Fields Limited	NGF	685.9	0.13	89.2	6.1	14.7
Ramelius Resources Limited*	RMS	291.8	1.21	353.0	3.5	101.6
Saracen Mineral Holdings Limited	SAR	492.3	0.55	268.3	3.3	81.3
Silver Lake Resources Limited*	SLR	178.9	1.78	318.4	3.0	107.3
St Barbara Limited	SBM	325.6	1.80	584.5	7.7	75.9
Westgold Resources Limited	WGR	414.2	0.21	87.0	3.0	29.0
Average (ex Doray) Reed Resources Ltd	RDR	262.2	0.50	131.1	2.9	56.2 44.6
Meekatharra acquisition(January 2011)	*RDR			28.5	2.5	11.0

• Meekatharra represents a world class project that can develop into a strong long term producer of gold

• Reed is acquiring 100% of the Meekatharra project from Mercator for $28.5m with no outstanding obligations being passed onto Reed (refer ASX release 12 January 2011)

• Highly attractive pricing with an acquisition cost of $11/oz resource inclusive of +A$100m infrastructure

• Current peer median of $56 market cap per contained resource ounce

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$ Market Cap / Resource oz
$120
$100
$80
$60
$40
$20
$0
DRM SLR FML RMS SAR SBM RDR WGR CRE AXM NGF NAV RDR
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Average $56/oz

Reed acq. $11/oz

Source: IRESS, ASX, company reports

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Page 14

Project Area 1 - Paddys Flat

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“Old Mill”
Area
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Paddy’s Flat	Tonnes	Grade	Gold
	(Mt)	(g/t)	(koz)
Resource	28.6	1.7	1,550
Reserve (u/g)	2.0	4.8	308
Reserve (o/p)	1.1	2.7	96

Historical Production

• 1.5Moz open pit mining 1989-2004

• 0.8Moz underground pre-1985

Forward Work

• Resource conversion at Red Spider/Fenian West

• Metallurgical test work on 600koz Mickey Doolan/Phar Lap

• Exploration at “Old Mill” - fold axis defined by magnetics

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Project Area 1 - Paddys Flat

Prohibition Open Pit

Probable Reserve 1.1 Mt @ 2.7 g/t Au for 96,000 ozs

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Project Area 1 - Paddys Flat

Underground Reserve Location

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Project Area 2 – Yaloginda

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• 3 Mtpa Bluebird processing plant

• 18 historical open pits and

• 3 underground operations

• Probable o/p reserves of 1.7 Mt @ 2 g/t for 114,000 ounces

• Evaluating re-modelling and estimation of South Junction (o/p) and Gibraltar (u/g)

• New (?) copper-gold discovery at Chunderloo

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Project Area 2 – Yaloginda

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Bluebird Pit

• Reserve (o/p) of 1.4 Mt @

• 1.9 g/t for 87,000 ounces

• De-risked through previous mining

• Porphyry/felsic host (~ 30m wide)

• Projected cash cost $885/oz

• Additional inferred 13Koz in planned pit

• Target cash cost $700750/oz

• Potential for bulk underground operations post open-pit phase

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Project Area 2 – Yaloginda

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Chunderloo Copper-Gold Prospect

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Project Area 3 - Reedys

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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

Historical Production

• 230,000 ounces Triton Underground 1937-48

• 750,000 ounces Metana/Homestake 1990’s

• Closed in 1997 when gold price was US$300/oz

Exploration Potential

• Significant open pit and underground reserve conversion/expansion potential

• High priority targets:

• » Jack Ryan Repeats

• » Cullculli Line

• » South Emu

• Underground mining evaluation to be undertaken

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Project Area 3 - Reedys

Southern Group Long Section

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Emu, Triton, Rand (o/p) Tonnes (Mt) Grade (g/t) Gold (koz)		Jack Ryan (o/p) Tonnes (Mt) Grade (g/t) Gold (koz)		Callisto (o/p) Tonnes (Mt) Grade (g/t) Gold (koz)
Resource 2.8 2.6 234		Resource 1.0 2.5 79		Resource
Indicated 0.6 2.4 49		Indicated 0.3 2.9 32		Indicated
Reserve 0.1 2.4 8		Reserve 0.2 3.1 22		Reserve 0.1 3.1 7

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Project Area 3 - Reedys

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• CONTINUITY  Structure  Geology  Grade  Depth

Underground Potential

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Meekatharra Summary

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



[Careful planning and compliance ]



[Disciplined and thorough exploration ]



[Detailed evaluation and feasibility studies ]



[Reliable development schedules ]



[Sustainable operations ]

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Barrambie Fly Through

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Barrambie Vanadium Project Update (Reed 100%)

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Location of the Barrambie vanadium project showing proximity to the Windimurra vanadium project and key infrastructure including the Midwest gas pipeline and Geraldton port

Joint Venture

• MOU signed with Sino construction giant NFC

• » Shenzhen-listed, market cap of +US3.2B

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• » Construct international non-ferrous metal projects

• Fixed price EPC arrangements and financing assistance

• » Significant savings on DFS and next step towards successful development

Operations

• 65.2Mt @ 0.82% V2O5 JORC resource includes highest grade vanadium reserves in Australia

• Environmental Approval expected in September Qtr 2011

• Native Title Agreement in place

• Significant exploration upside along strike and at depth with potential to add to existing resources and extend project life

	Barrambie	Tonnes	V2O5 (%)	TiO2 (%)
	(100% basis)	(Mt)
	Indicated	49.2	0.82	17.3
	Inferred	16.0	0.81	17.2
	Total resource	65.2	0.82	17.3
	Probable reserve	39.7	0.82	15.7
	Total reserve	39.7	0.82	15.7

Financial

• DFS completed in May 2009 indicating total capex of A$630m for an initial 12.5 year mine life

• US$110 m annual EBITDA at five year average vanadium price

• Reed and NFC currently in discussions with lenders and potential equity financing partners

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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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+

Lithium Vanadium EV Batteries

• Highest voltage → POWER

• Highest energy density → RANGE

• Contains 4kg Li, 20kg of V

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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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Vanadium Peer Comparisons

$0 $100 $200 $300 $400 $500 $600 $700 $800	Largo American Vanadium Atlantic Apella TNG Energizer Sino Vanadium Yellow Rock EV / Resource Multiple ($/t V2O5) Potential valuation range of $100 - 400/t V2O5 **Mean $251/t V2O5 **	Based on EV/resource benchmarking of listed vanadium peers, Barrambie has an implied valuation of $53 - $214m
		Potential Valuation Low Mid High
		Multiple ($/t V2O5) 100 251 400 Barrambie (Mt V2O5) 0.53 0.53 0.53
		Implied value ($m) 53 133 214
		Source:Bloomberg, ASX, company reports
Company Exchange/Code Project/Ownership		Resource
American Vanadium TSX-V: AVC Gibellini, USA (100%)		20.8Mt @ 0.33% V2O5
Apella Resources TSX-V: APA Iron-T, Canada (100%) Lac Dore, Canada (100%)		11.6Mt @ 0.40% V2O5 102.0Mt @ 0.45% V2O5(non NI 43-101)
Atlantic ASX: ATI Windimurra, Western Australia (100%) 210.0Mt @ 0.47% V2O5
Energizer Resources TSX-V: EGZ Green Giant, Madagascar (100%) 59.2Mt @ 0.68% V2O5
Largo Resources TSX-V: LGO Maracas, Brazil (90%) Campo Alegre, Brazil (100%) 23.2Mt @ 1.27% V2O5 133.0Mt @ 0.75% V2O5(non NI 43-101)
Sino Vanadium TSX-V: SVX Daquan, China (100%) 34.2 @ 0.93% V2O5
TNG ASX: TNG Mount Peake, Northern Territory (100%) 139.1Mt @ 0.29% V2O5
Yellow Rock Resources ASX: YRR Gabanintha, Western Australia (100%) 125.8Mt @ 0.70% V2O5

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Reed 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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Page 30

Summary

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 Staged production profile with Mt Marion on line December Qtr 2011  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 $0.52)

• Subject to Decision to Mine

	Reed Valuation ($m)	Median Peer
	Lithium(70%, Concentrate Only) Gold(EV/Resource Oz)	130 154
	Vanadium(Ev/Resource t) Total	133 417
	RDR shares on issue (m) Implied RDR share value	262.2 $1.59

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Page 31

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.

MINERAL RESOURCE ESTIMATES 2011

Information in this report that relates to Indicates and Inferred Mineral Resources for 2011 is based upon geological domains constructed by Reed Resources internal geological team (under Craig Fawcett BSc MAusIMM – General Manager Gold) and estimates prepared by J Graindorge Bsc MAusIMM(CP) of Snowden Mining Industry Consultants Pty Ltd. Both Mr Fawcett and Mr Graindorge have 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). Both Mr Fawcett and Mr Graindorge consent to the inclusion in this report of the matters in the form and context in which it appears.

ORE RESERVE ESTIMATES 2011

Information in this report that relates to the Surface Ore Reserves was compiled by Gary McCrae, a full time employee of Minecomp Pty Ltd which is a corporate member of the Australian Institute of Mining and Metallurgy. Gary McCrae is a qualified mining engineer who has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent person as defined in the Code for Reporting of Mineral Resources and Ore Reserves (2004). Gary McCrae consents to the inclusion in the report of the matters based upon the information in the form and context in which it appears.

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Appendix 2

Reed Resource and Reserve Inventory

Mt Marion	Category	Tonnes (Mt)	Li2O (%)	Li2O (kt)		Meekatharra	Category	Tonnes (Mt)	Grade (g/t)	Gold (koz)
1, 2, 2W, 5	Measured	2.1	1.5	32.0		Bluebird	Probable	1.4	1.9	87.0
	Indicated	3.9	1.5	55.5		South Junct.	Probable	0.1	1.5	4.5
	Inferred	4.5	1.3	58.8		Prohibition	Probable	1.1	2.7	96.0
Total		10.5	1.4	146.5		Surprise	Probable	0.1	3.0	13.0
Meekatharra	Category	Tonnes (Mt)	Grade (g/t)	Gold (koz)		Batavia	Probable	0.2	2.4	14.0
Meek. North	Indicated	0.7	1.3	29.0		Jack Ryan	Probable	0.2	3.1	21.8
	Inferred	0.2	1.2	6.0		Callisto	Probable	0.1	3.1	7.2
Paddys Flat	Indicated	19.1	1.7	1,047.9		Rand	Probable	0.1	2.4	7.6
	Inferred	9.5	1.	437.3		Total (o/p)	Probable	3.3	2.3	251.1
Yaloginda	Indicated	9.7	1.7	536.3		Prohibition	Probable	1.4	4.1	179.0
	Inferred	3.9	1.7	240.4		Vivian/Cons.	Probable	0.3	10.4	83.0
Reedys	Indicated	1.8	2.7	153.4		Fatts/Mud.	Probable	0.4	4.0	46.0
	Inferred	3.1	2.4	241.2		Total (u/g)	Probable	2.0	4.8	308.0
Total		48.6	1.7	2,754.8		Total	Probable	5.3	3.3	559.1
Barrambie	Category	Tonnes (Mt)	V2O5 (%)	TiO2 (%)		Barrambie	Category	Tonnes (Mt)	V2O5 (%)	TiO2 (%)
Barrambie	Indicated	49.2	0.82	17.3		Barrambie	Probable	39.7	0.82	15.7
	Inferred	16.0	0.81	17.2		Total		39.7	0.82	15.7
Total		65.2	0.82	17.3
						Notes:

Notes:

Comet Vale	Category	Tonnes (Mt)	Grade (g/t)	Gold (koz)
Comet Vale	Indicated	0.2	10.8	82.5
	Inferred	0.3	10.9	103.5
Total		0.5	10.8	186.0

1. Resources and Reserves comply with the Australian JORC reporting guidelines

2. Resources are inclusive of Reserves

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