NEOMETALS LTD — M&A Activity 2005

Oct 10, 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 it intended to approach the Board of Titan to discuss any opportunities and to conduct due diligence.

The approach to the Board of Titan has now been made and the Board of Titan has indicated that it will provide Reed Resources with access to information and relevant personnel so that Reed Resources can determine whether or not to make a bid for Titan. In turn, Reed Resources intends to provide access to its information and relevant personnel to Titan.

A Confidentiality Agreement has been entered into between Reed Resources and Titan which, in addition to the usual obligations of confidentiality, imposes a 6 months standstill on acquisitions by Reed Resources and Titan of the other's securities. The standstill ceases to apply in certain circumstances, including if a bid is made for the other's securities.

The Board of Reed Resources has not determined whether or not it will make a bid for Titan and remains in the early stages of evaluating its position.

David Reed EXECUTIVE CHAIRMAN

11 October 2005