NEOMETALS LTD — Investor Presentation 2013

Aug 6, 2013

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ASX: RDR

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Diggers & Dealers Forum – August 2013

www.reedresources.com

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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”). Resources are inclusive of Reserves.

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 consultant to 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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Corporate Overview

	ASX CODE: RDR	ASX CODE: RDR
	Last close_(August 2, 2013)_	$	0.054
	Shares on issue	M	521.9
	Cash (June 30, 2013)	$m	19
	Incl Restricted Term Deposit	$m	(11.9)
	Market capitalisation	$m	28

6 MONTH SHARE PRICE

			DIRECTORS	MAJOR SHAREHOLDERS	MAJOR SHAREHOLDERS
		David Reed	Non Executive Chairman	M&G / Vanguard	14.6%
		Luke Tonkin	Managing Director & CEO	JP Morgan Asset Management	5.3%
		Chris Reed	Executive Director	Global X Lithium ETF	5.3%
		Steven Cole	Non Executive Deputy Chairman	Top 20(June 30, 2013)	51.6%
		Dr Vanessa Guthrie	Non Executive Director
		Dr Peter Collins	Non Executive Director
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Meekatharra Gold Operation

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• Outstanding address

• 800km[2] & 110 km of strike

• Historically significant mining centres producing 4.5 million oz

• Multiple open pit and underground exploration targets

Project

• Infrastructure & facilities (replacement +$100M)

• 3.55 Moz Resource

• 730 koz Reserve

• Purchase completed – July 2011

• Decision to mine – Feb 2012

• $40 million Underwritten Entitlement Offer – May 2012

• $19 million debt facility – November 2012

Milestones

• Capital works completed – Dec 2012

• Gold production – Jan 2013

• Closed hedge book repaying debt – April 2013

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Project Strategy

PRE - PRODUCTION New resource estimates & reserve Feasibility Study Recruit owners team calculations STAGE 1 Low risk open-pit start-up ≈100 koz per annum Sustainable production profile STAGE 2 Multiple open-pit and underground Expansion Feasibility Study +160 koz per annum options EXPLORATION Near-mine and green-fields Ongoing evaluation of legacy database LOM extension exploration

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Operating Plan

PRE - PRODUCTION

New resource estimates & reserve Feasibility Study Recruit owners team calculations STAGE 1

Low risk open-pit start-up ≈100 koz per annum Sustainable production profile

STAGE 2

Amongst other things a sustained increase in the Expansion Feasibility Study Defer gold price & an improvement in market sentiment

EXPLORATION Defer exploration. rationalise tenure Ongoing evaluation of legacy database Defer & divest non-core projects

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Meekatharra Gold Operation

Meekatharra Strategy Stage 1 – Available mining Stage 1 inventory in 2013/14 of ≈93,000oz Bluebird Bluebird Stage 2 Surprise Batavia Strong cash-flow Low strip ratio Stage 3 Whangamata

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Meekatharra – Stage 1

Bluebird

Tonnes •1.14 Mt Grade •1.61 g/t Ounces •58,700 oz Cost •≈A$1,000 / oz

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Meekatharra – Stage 1

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Additional Ore Sources
Surprise Batavia
•
Tonnes 0.52 Mt
•
Grade 2.07 g/t
•
Ounces 34,500 oz
Whangamata
•
Cost ≈A$1,230 / oz
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Project

• 70% RDR, 30% MIN

• Fully permitted

• MIN funded ‘sunk’ costs to date

• MIN mine to port solution

• MIN BOO processing plant

• 1.2Mtpa – 200ktpa spodumene, 60ktpa mica, 30tpa tantalite

Advanced Minerals – Mt Marion

Work Program

Objective

• Attract strategic &/or financial partner

• Project approvals in place

• Concentrator designed

• Low cost, capital efficient, long life asset

• Crushing plant materially complete

• Benefit from a forecast 700% ↑ in LiOH demand by 2017

• <250 days to construct

• Down stream concentrate processing Li2CO3 – Li2OH

• Targeting DFS for IPO to fund downstream processing

• Applying Reed’s proprietary leach process

• PFS demonstrates compelling financial returns

• Fully funded test work to verify flow-sheet at SGS - Murdoch

Mount Marion site

LiOH price forecast

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Advanced Minerals – Barrambie

Project

Work Program

Objective

• 100% RDR

• World’s second highest grade hard rock Titanium Resource 48Mt @ 22% TiO2

• Australia’s highest grade V2O5 Reserve

• • Differentiating metallurgy

• Lab scale +99% TiO2, +90% recovery & 98% V recovery

• Potential game changer

• Secure exclusive licences to produce TiV-Fe & Al

• Staged low cost evaluation

• Attract strategic &/or financial partner

• DFS

• Large, low cost, long life asset

• Ti-V-Fe & Al producer which is scalable and expandable

• Prove technology on a continuous basis

• Complete pre-feasibility study

• Commercialise through demonstration plant

Barrambie site

Barrambie TiO +99% 2

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Asset Rationalisation

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Divest Comet Vale

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Divest DBP contract Divest Mt Finnerty

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Key Message

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•
Focus on the cash generating assets
1
•
Commercialise the Advanced Minerals assets
2
•
Divest non-core assets
3
•
Rationalise existing assets
4
•
Work within the balance sheet
5
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Thank you

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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	0.41	7.2	96.9
	Inferred	0.43	8.1	112.6
Total		0.85	7.6	209.5

1. Resources and reserves comply with the Australian JORC Code reporting guidelines

2. Resources are inclusive of reserves as at 30 June 2012

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Appendix 1: Reserve & Resource

Resources

Reserves

		Project	Category	Tonnes (Mt)	Au (g/t)	Au (koz)	Au (koz)		Project Bluebird	Category Probable	Tonnes(Mt) 1.39	Au(g/t) 1.9	Au(koz) 86.2
		Meekatharra	Indicated	1.2	1.8	66			Prohibition	Probable	1.11	2.7	96
		North	Inferred	0.2	1.6	9			Mickey Doolan	Probable	3.31	1.1	121.7
									Maid Marion	Probable	0.2	1.4	8.6
		Paddy's Flat	Indicated Inferred	25.2 13.4	1.6 1.6	1,281 670			South Junction Surprise	Probable Probable	0.1 0.1	1.5 3	4.5 13
			Indicated	10.1	1.7	564			Batavia	Probable	0.2	2.4	14
		Yaloginda	Inferred	6.2	1.7	347			Whangamata	Probable	0.3	1.4	11.9
									GNH	Probable	0.9	1.3	35.6
		Reedys	Indicated	2.7	3.1	276			Jack Ryan	Probable	0.2	3.1	21.8
			Inferred	4	2.7	338			Callisto	Probable	0.1	3.1	7.2
			Indicated	39.2	1.7	2,187			Rand	Probable	0.1	2.4	7.6
									South Emu	Probable	0.1	4.7	13.9
		TOTAL	Inferred	23.8	1.8	1,364			TOTT	Probable	0.5	1.8	29.4
			TOTAL	63.0	1.8	3,551			Total (Open Pit)	Probable	8.6	1.7	471.4
									Prohibition	Probable	1.3	2.4	104.1
									Vivian/Consols	Probable	0.3	7.7	63.6
		1. Resources and reserves comply with the Australian JORC Code							Fatts/Mudlode	Probable	0.4	4.7	57.2
		reporting guidelines							South Emu	Probable	0.2	4.3	34.2
		2. Resources are inclusive of reserves as at 30 June 2012							Sub-Total	Probable	2.2	3.6	259.1
									Total	Probable	10.8	2.1	730.5
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