NEOMETALS LTD — M&A Activity 2005

Dec 4, 2005

97 Outram Street West Perth WA 6005 Tel: + 61 8 9322 1182 Fax: + 61 8 9321 0556

TITAN RESOURCES LIMITED

The Company announced on 15 September 2005 that it had been granted a call option by Consolidated Nickel Pty Ltd to acquire 60 million shares in ASX listed Titan Resources Limited (Titan) and that the call option was exercisable in whole or in part in the event that Reed Resources makes an off-market bid to acquire all of the issued share capital of Titan.

The Company further announced on 11 October 2005 that a reciprocal Confidentiality Agreement had been entered into between Reed Resources and Titan. The Board of Titan provided Reed Resources with access to information and relevant personnel so that Reed Resources could determine whether or not to make a bid for Titan.

The Board of Reed Resources has now determined that presently it does not intend to make a bid for Titan or exercise the call option. The call option expires on 14 December 2005.

David Reed EXECUTIVE CHAIRMAN

5 December 2005