NEOMETALS LTD — Investor Presentation 2012

Apr 18, 2012

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ASX: RDR

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Paydirt Gold Conference Presentation April 2012

www.reedresources.com

Agenda

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1

Reed Resources: Company Overview

2

Meekatharra Gold Project

3

Mt Marion Lithium Project

4

5

Barrambie Titanium-Vanadium Project Conclusion

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Disclaimer

Summary information: This document has been prepared by Reed Resources Ltd (“Reed” or “the Company”) to provide summary information about the Company and its associated entities and their activities current as at the date of this document. The information contained in this document is of general background and does not purport to be complete. It should be read in conjunction with Reed’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au.

Not a prospectus: This document is not a prospectus or a product disclosure statement under the Corporations Act 2001 (Cth) (“Corporations Act”) and has not been lodged with the Australian Securities and Investment Commission. This document does not constitute an offer, invitation or recommendation to subscribe for or purchase any security and neither this document nor anything contained in it shall form the basis of any contract or commitment.

The distribution of this document in jurisdictions outside Australia may be restricted by law and any such restrictions should be observed. Any failure to comply with such restrictions may constitute a violation of applicable securities laws. In particular, this document may not be released or distributed in the United States. This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. Any securities described in this document have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from, or not subject to, registration under the US Securities Act and applicable US state securities law.

Not financial product advice: This document is for information purposes only and is not financial product or investment advice, nor a recommendation to acquire securities in Reed. It has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. Cooling off rights do not apply to an investment in securities in Reed.

Investment risk: An investment in securities in Reed is subject to investment and other known and unknown risks, some of which are beyond the control of Reed. The Company does not guarantee any particular rate of return or the performance of Reed. Investors should have regard to the risk factors outlined in this document.

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Forward-looking information: This document includes certain statements, opinions, projections, forecasts and other forward-looking information which, while considered reasonable by Reed, are inherently subject to significant uncertainties and contingencies. Many known and unknown factors could cause actual events or results to differ materially from estimated or anticipated events or results included in this document. Recipients of this document are cautioned that forward-looking statements are not guarantees of future performance – they must make their own independent investigations, consideration and evaluation of the opportunity to invest in the Company. By accepting this document, recipients agree that if they proceed further with their investigations, consideration or evaluation of the opportunity to invest in the Company, they will make and rely solely upon their own investigations and enquiries and will not in any way rely upon this document.

Any statements, opinions, projections, forecasts and other forward-looking information contained in this document do not constitute any commitments, representations or warranties by Reed and its associated entities, directors, agents and employees, including any undertaking to update any such information. 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 this document.

Financial data: All figures in this document are in Australian dollars (AUD) unless stated otherwise.

Competent person’s statement

Unless otherwise indicated, mineral exploration, resource and reserve estimates contained in this document have been prepared in accordance with the 2004 edition of the Joint Ore Reserves Committee’s Australasian Code for Reporting of Mineral Resources and Ore Reserves (“JORC Code”).

The information in this document that relates to Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Mr Craig Fawcett (MAIMM), a full time employee of Reed. Mr Fawcett has sufficient experience 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 JORC Code. Mr Fawcett consents to the inclusion in this document of the matters based on his information in the form and context in which it appears.

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Company Overview

www.reedresources.com

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Corporate Overview

	ASX CODE: RDR	ASX CODE: RDR
	Last close_(18-April-12)_	$	0.21
	Shares on issue (*)	m	463.3
	Market capitalisation	$m	97
	Cash_(31-Dec-2011) (**)_	$m	47
	Debt_(31-Dec-2011)_	$m	0.0
	Enterprise value	$m	50

12 MONTH SHARE PRICE

		DIRECTORS
	David Reed	Chairman
	Chris Reed	Managing Director & CEO
	Steven Cole	Deputy Chairman
	Dr Vanessa Guthrie	Non Executive Director
	Dr Peter Collins	Non Executive Director
	Ian Junk	Non Executive Director

		MAJOR	SHAREHOLDERS
		M&G / Vanguard	9.0%
		David Reed	8.2%
		SG Hiscock	<5%
		Top 20(8-Feb-12)	46.2%

• Post 3:4 Rights Issue announced 2 April 2012 ** Proforma Post Rights Issue completion and Includes A$9.0m in restricted access term deposits

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Executive Team

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David Reed

FCPA, OAM

Executive Chairman

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Chris Reed

BCom, GradCertMinEcon, MAusIMM Managing Director and CEO

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David Lim

BCom, CA Chief Financial Officer Commences March 2012

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Steven Cole Llb(Hons), FAICD

Non-Executive Director

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Dr Vanessa Guthrie

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

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Jason Carone

BCom, CA

Financial Controller and Company Secretary

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Ian Junk

Dr Peter Collins

Darren Wates

BEng(Hons), MAusIMM Non-Executive Director

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

LLB, BCom, GradDipAppFin Legal Counsel and Company Secretary

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Investment Highlights



Reed 100% focussed on bringing MGP into production



~3.6 Moz resources and 752 Koz reserves



Low risk multiple open pit only mine plan (Stage 1)



Targeting production in DecQ 2012 at ~100,000oz p.a.  Firming Production/Development Timelines for Li + Ti  Significant discount to peers on all projects

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Meekatharra Gold Project Overview

www.reedresources.com

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Meekatharra Gold Project (100%)

• 3.3Moz resource in historic green stone belt with past production of 4.5Moz →

• Project  Purchased at $11/oz resource including plant and facilities ( replacement +$100M )

• BFS Completion ~ Feb 2012

• Timing  Commence mining ~ Sep 2012  Commence commissioning ~ Nov 2012

• STAGE 1: Low risk start-up  Steady state production ~ 100,000oz p.a.  Initial 2 year mine life from open pits only

• Strategy STAGE 2: Increase production profile  Target +160,000oz p.a.  Multiple open pit & underground options

 Snowden – resource estimates 3[rd] Party  Minecomp – reserve calculations Technical  GR Engineering – plant capex

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Project Strategy

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PRE-PRODUCTION
2011
New resource estimates &
Feasibility Study Recruit owners team
reserve calculations
STAGE 1
2012-2014
Low risk open-pit start-up ~100 koz per annum Sustainable production profile
STAGE 2
2012 →
Multiple open-pit and
Feasibility Study Underway +160 koz per annum
underground options
EXPLORATION
2012 →
Ongoing evaluation of legacy Near-mine and greenfields
LOM extension
database exploration
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Inventory (@$1,300/oz)

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Resource (Moz)
3.5
3.31
3.27
3.0
2.75
2.5
2.52
2.0
Mar-11 Sep-11 Nov-11 Jan-12
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Reserves (koz)
800
600
493
400
114 251 309
200
308
259
225 225
0
Mar-11 Sep-11 Nov-11 Jan-12
Underground Open Pit
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32% increase in resource base since project acquisition – now at 3.59 Moz



 Strong upside given limited exploration on majority of Reed’s 1000km[2] tenement area  Minimum $4M p.a. exploration budget committed to further proving up MGP

 Total reserves (including underground) now at 752,000oz – majority in open pits

331% increase in open pit reserves since project acquisition





Includes two 1 million tonne open pits

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Results Delivery & Timeline

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CY 2011 CY 2012
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Data Evaluation & Initial Studies 
Development Plan & Economic Assessment 
Resource-Reserve Conversion (drilling) 
Resource Remodel & Reserve Recalculation 
Mining, Metallurgy & Processing Studies
Bankable Feasibility Study – February 2012
Decision to Mine – February/March 2012
Finance Window
Mill Refurbishment
Mining
Milling
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Open Pit Mining Strategy

Stage 1 Extension Stage 2	Reserve Location1 Tonnage (kt) Grade (g/t) Contained Gold (oz) 2 Recovery (%) Strip Ratio Mining & Milling ($/t)
	Bluebird 1,390 1.9 86,200 94 8:1 878
	Batavia 200 2.4 14,000 95 11:1 736
	Whangamata 259 1.4 11,900 90 7:1 1007
	Surprise 136 3.0 13,000 94 2:1 375
	GNH 880 1.3 35,600 94 2:1 974
	Sth Junction 97 1.5 4,500 93 7:1 938
	Prohibition 1,110 2.7 96,000 90 21:1 1084
	Mickey Doolan 3,312 1.1 121,700 88 3:1 1129
	Aladdin 384 1.7 21,500 94 5:1 850
	Maid Marion 192 1.4 8,700 94 5:1 996
	TOTT 505 1.8 29,400 96 7.5:1 910
	Jack Ryan 222.5 3.1 21,800 96 19:1 1086
	Callisto 72.5 3.1 7,200 96 14:1 811
	Rand 100 2.4 7,600 96 14:1 939
	South Emu 91.1 4.7 13,800 92 25:1 839
	Total 8,951 1.7 492,900 92 7.5:1 984

1 Reserves correct as of 31 January 2012

2 One Troy ounce equal to 31.10348 grams

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BFS Results

		Inputs - Operations					Outputs - Operations
		Construction capex ($m)	24				Total gold recovered (koz)	134
		Timing – con / min / mill (months)	8 / 21 /19				Total revenue @ A$1,520 ($m)	205
		Total ore mined (Mt)	2.3				Total expenses ($m)	155
		Total ore milled (Mt)	2.4				→ C1 cash costs ($/oz)	1,076
		Recovery rate (%)	94.0				CFADS ($m)	66
		Recovered grade (g/t)	1.77				Principal ($m)	20.0
		Fixed opex ($m p.a.)	30.8				Interest ($m)	1.5
		Av. mining costs (inc. waste & prelims) ($/bcm)	9.33				Cashflow available for equity ($m)	45
		Variable milling costs ($/t)	11.69				Outputs – Valuation
		Royalty (%)	4.5
							Equity NPV (12% discount) ($m)	1.7
		Inputs - Financial					Equity IRR (%)	17.5
		Gold price (floor) ($/oz)	1,520				Min DSCR (x)	0.84
		FX (AUDUSD) (average)	1:1
							Min LLCR (x)	1.99
		Debt ($m)	20.0
		Cost of debt (base rate + margin) (% p.a.)	7.0				Stage 1 NPV assumes Zero Residual value
		Equity ($m)	40.0				for Plant and Infrastructure

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Open-Pit Inventory Sensitivity

Stage 1

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Total (Includes Stage 1)

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A$1500 and above Inventories are Optimised Indicated Resources not formal Reserves

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Use of Funds

			Use of Funds
			Application ($M)
		Accommodation facilities upgrade	6.8
		Plant refurbishment	12.0
		Infrastructure	2.3
Equity		Pre-commissioning Owners costs	11.4
		Capital raising costs	2.0
		Allowances	3.0
		Working Capital	2.2
		SUB-TOTAL CAPEX	39.7
			Application ($M)
Debt		Operating costs - 30 days	8.0
Facility		Working Capital	12.0
		SUB-TOTAL DEBT FACILITY	20.0

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TOTAL FUNDING 59.7

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Construction Workpackages

3Mtpa (Oxide) CIL Circuit

• On care and maintenance since Oct 2008

• New ‘hard rock’ jaw crusher to be installed

• Plant  Refurbish existing milling/leach circuit (done in-house)

• EPC contract for jaw crusher

184 man camp

• New dining facility to be built

• Camp  Refurbishment of existing accommodation  80 additional rooms to be installed

• 72 old rooms to be decommissioned

Milling plant power supply

• Contract BOO model

• Power  Diesel powered at estimated $0.30/kWh  Existing plant as back-up  Contract ready for execution

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BFS: Key Sensitivities

			Low nugget ore bodies
	Head Grade		Geologically simplistic Estimated by Snowden Historical reconciliations
			Previous mining
	Mining		Historical production
	and		Traditional milling circuit
	Milling		Competitive mining
	Costs		tender (10 parties)
	Ore		Mill optimised for ore type
	Mined		Historical rates of +3Mtpa
	and		Low risk ore bodies
	Milled		Mill centrally located

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Gold Price		A$1,520/oz Effective floor price achievable 50% Participating Forward preferred structure

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Stage 1: Baseload

BLUEBIRD PIT EXTENSION & CUTBACK Probable Reserve 1.4Mt @ 1.9g/t Au for 87,000oz

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BATAVIA PIT

Probable Reserve 200Kt @ 2.4g/t Au for 14,000oz

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Stage 1: Blending

WHANGAMATA EXTENSION & CUTBACK Probable Reserve 259Kt @ 1.4g/t Au for 11,900oz

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Stage 1: Blending

SURPRISE PIT

Probable Reserve 136Kt @ 3.0g/t Au for 13,000oz

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Flythrough

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Expansion Options: Stage 2

MEEKATHARRA SUPER PIT Resource 35.3Mt @ 1.6g/t Au for 1,763,000 oz

MICKEY DOOLAN CUTBACK Probable Reserve 3.3Mt @ 1.1g/t Au for 121,700oz

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Expansion Options: Stage 2

PROHIBITION PIT EXTENSION & CUTBACK Probable Reserve 1.1Mt @ 2.7g/t Au for 96,000oz

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Expansion Options: Stage 2

PADDYS FLAT UNDERGROUND

Probable Reserve 2Mt @ 3.6g/t Au for 225,000oz

(+1,250 oz/vm)

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Growth Strategy

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Immediate Opportunity

Brown field, near mill exploration to add shortterm ounces



Resource evaluation and modelling of historic prospects



Possible extensions of existing resources using limited along strike drilling





$4M p.a. committed exploration budget

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Resources (Moz) Released Per Year in Meekatharra
Mount Magnet Greenstone Belt
8 40
6 30
4 20
2 10
0 0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Annual Additions (LHS) Cummulative (RHS)
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Longer-Term Potential

Reed holds a 110km long continuous land package over highly prospective greenstone



Extensive exploration over rich historic mining centres, limited exploration elsewhere



Reed’s 1000km[2] tenement area largely unexplored



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Comparative Upside

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$EV/Resource Oz
300
250
200
150
Peer Average $114
100
50
$11
0
RRL IGR EVN SAR SBM FML NGF RDR -
MGP
Source: IRESS, company reports
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$EV/Reserve Oz
900
800
700
600
500
400 Peer Average $393
300
200
100 $66
0
IGR RRL EVN SAR FML SBM NGF RDR -
MGP
Source: IRESS, company reports
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



WA producers av. trading multiple $114/oz MGP acquisition price only $11/oz resource

 WA producers a v.trading multiple $393/oz



MGP acquisition price only $66/oz reserve

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MGP Project Team

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Craig Fawcett

BSc(Hons), GDipMining

General Manager - Gold

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Geoffrey Cheong

B AppdSc(Metallurgy), Dip(Bus) Processing Manager

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BSc(Hons) Exploration Manager

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Jeremy Watkins BA(Hons) Project Manager

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Elizabeth Jones

BEng

Senior Planning Engineer

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Matthew Schembri

BSc(Hons), GradCert(Bus) Project Geologist

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Bill Crossley B AppdSc.Mining Technical Project Manager

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Ken Fairless

Maintenance Superintendent

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James Lawrence

BSc(Hons) Project Geologist

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Mt Marion Project: Building the worlds 2[nd] largest hard-rock lithium mine

www.reedresources.com

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Lithium

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• Reed Industrial Minerals P/L SPV - 70% RDR /30% MIN

• MIN construct and commission processing plant on BOO basis

• MIN fund ‘sunk’ costs

• 1.2 Mtpa throughput to produce

• 200Ktpa Spodumene

• 60Ktpa Muscovite Mica

• 30tpa Tantalite

• Revising production profile

• Investigating becoming ‘independent’ industrial minerals company

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• Hatch completed PFS on Lithium Carbonate Plant to produce 17,000tpa of Battery Grade LiC

• NPV $+400m using 12%.

• Preferred site is Malaysia

• Applications lodged with Malaysian Industrial Development Authority

• Continued discussions with potential partners – no assurance a binding proposal will emerge

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Lithium

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Australian Lithium	Market Cap	Net Cash	EV	(1) Prodn	(2) EV/Prod	Implied
Mineral Producers	$m	$m	$m	LCE ktpa	$/t LCE	EV (1x2)
Talison Lithium (TSX: TLH)
Greenbushes	371	56	315	51.6	6,106	$181m
Concentrate producer
Reed Resources (ASX: RDR)
Mt Marion			?	29.7
LiC developer
Galaxy Resources (ASX: GXY)
Mt Cattlin	268	-82	350	20.3	17,204	$511m
Integrated LiC developer

The Battle for China

• Aggressive Pricing by SQM sees prices down 20% in 10/11

• Chemetall/FMC prices increase 20% from July 1, 2011

• Talison increase prices 15% from 1 January 2012

• Roskill base case growth 7.5% YoY to 2020.

Source: IRESS, company reports - Valid 18 April 2012

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Resource

Mt	Tonnes	Li Grade	Fe Grade
Marion	(Mt)	(% Li2O)	**(% Fe2O3) **
(100%
basis)
Measured	2.0	1.45	0.9
Indicated	4.8	1.39	1.2
Inferred	8.1	1.30	1.3
Total	14.9	1.35	1.2

• Potential for significant addition to current resource base

• 5 deposits all open along strike and at depth

• New Exploration Target

• 10-15Mt @ 1.1–1.4% Li2O

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Barrambie Project: One of the world’s highest-grade titanium/vanadium deposits

www.reedresources.com

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Barrambie Fe-Ti-V

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100% RDR

• Australia’s Highest grade V reserve

• A$15m DFS completed 2007-2009

• Fixed price EPC contract from China’s NFC

• • Price stagnant – substitution

• Short- medium term outlook flat

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Barrambie Fe-Ti-V

High grade hard-rock titanium DFS produces High Ti concentrates

Concept Study underway

1. Produce High Ti con and export 2. Recover Ti – Fe – V from

2. Smelting (Slags) or

3. Acid Leach/SX

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Conclusion

www.reedresources.com

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Investment Highlights



Reed 100% focussed on bringing MGP into production



~3.6 Moz resources and 752 Koz reserves



Low risk multiple open pit only mine plan (Stage 1)



Targeting production in DecQ 2012 at ~100,000oz p.a.  Firming Production/Development Timelines for Li + Ti  Significant discount to peers on all projects

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Thank you

For further information on Reed Resources, please contact:

Chris Reed Reed Resources Ltd T: +61 89322 1182

E: chris@reedresources.com

www.reedresources.com

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Appendices

www.reedresources.com

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Appendix 1: Reserve & Resource

		Deposit	Resource Category	Tonnage (Mt)	Au (g/t)	Au (koz)			Deposit	Reserve Category	Tonnage (Mt)	Au (g/t)	Au (koz)
									Bluebird	Probable	1.4	1.9	86.0
		Meek. North	Indicated	1.2	1.8	65.7
									South Junct.	Probable	0.1	1.5	4.5
			Inferred	0.2	1.6	9.3			Prohibition	Probable	1.1	2.7	96.0
		Paddys Flat	Indicated	25.2	1.6	1,280.7			Surprise	Probable	0.1	3.0	13.0
			Inferred	13.4	1.6	670.0			Batavia	Probable	0.2	2.4	14.0
		Yaloginda	Indicated	10.0	1.7	563.6			Whangamata	Probable	0.3	1.4	11.9
			Inferred	6.3	1.7	346.9			GNH	Probable	0.9	1.3	35.6
		Nannine	Indicated	0.6	1.6	30.9			Jack Ryan	Probable	0.2	3.1	21.8
									Callisto	Probable	0.1	3.1	7.2
			Inferred	0.2	1.6	12.7
									Rand	Probable	0.1	2.4	7.6
		Reedys	Indicated	2.7	3.1	276.4			Mickey Doolan	Probable	3.3	1.1	121.7
			Inferred	4.0	2.7	337.9			Maid Marion	Probable	0.2	1.4	8.7
		Total		63.9	1.8	3,594.1			Aladdin	Probable	0.4	1.7	21.5
									South Emu	Probable	0.1	4.7	13.9
									TOTT	Probable	0.5	1.8	29.4
									Sub Total (O/Pit)	Probable	8.9	1.7	492.9
									Prohibition	Probable	1.3	2.4	104.1
									Vivian/Cons.	Probable	0.3	7.7	63.6
		1. Resources and reserves comply with the Australian reporting guidelines				JORC Code			Fatts/Mud.	Probable	0.4	4.7	57.2
									South Emu	Probable	0.2	4.3	34.2
		2. Resources are inclusive of reserves
									Sub Total (U/G)	Probable	2.2	3.6	259.1
									Total	Probable	11.2	2.1	752.0
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Appendix 1: Reserve & Resource

	Mt Marion	Category	Tonnes (Mt)	Li2O (%)	Li2O (kt)
	1, 2, 2W, 4,5,6	Measured	2.0	1.45	29.2
		Indicated	4.8	1.39	66.3
		Inferred	8.1	1.30	105.1
	Total		14.9	1.35	200.7
	Barrambie	Category	Tonnes (Mt)	V2O5 (%)	TiO2 (%)
	Barrambie	Indicated	49.2	0.82	17.3
		Inferred	16.0	0.81	17.2
	Total		65.2	0.82	17.3

Barrambie	Category	Tonnes (Mt)	V2O5 (%)	TiO2 (%)
Barrambie	Probable	39.7	0.82	15.7
Total		39.7	0.82	15.7

Comet Vale	Category	Tonnes (Mt)	Au (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 Code reporting guidelines

2. Resources are inclusive of reserves

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