NEOMETALS LTD — Management Reports 2011

Nov 14, 2011

15 November 2011

Dear Shareholders

The previous financial year has been one of the most volatile and challenging in over a decade. We’ve seen gold producers’ share prices increase substantially as the gold spot price has reached historic highs; however aspiring gold producers like Reed Resources have not received the market recognition I think we deserve. With our Meekatharra Gold operations due to come into production in the fourth quarter of 2012, I feel we will be in for a substantial re-rating in 2012. It is our intention to start production at a rate of 100,000 ounces of gold per annum from open pits while we evaluate our expansion options to increase to 200,000 ounces per annum by 2014.

The reason I feel confident this can be achieved is, as has been announced today, we have 3.27 million ounces in Resources and more than 530,000 ounces in Reserves, all calculated at a gold spot price of A$1,300 per ounce. A number of recent research reports and commodity price forecasts suggest that the gold spot price may exceed $2,000 per ounce in 2012, and this should help gold producers generate substantial operating margins.

Looking at our tenements in and around Meekatharra, I see a series of shallow pits over a strike in excess of 7 km. Meekatharra today reminds me of Kalgoorlie and the Golden Mile some 30 years ago. With further exploration at depth and between these smaller pits, there is a strong possibility that Reed Resources could develop a new “Super Pit” gold mining operation at Meekatharra.

Our Comet Vale underground gold mine is currently under care and maintenance. Our objective is to re-commence operations utilising the 70,000 tpa milling allocation the Company retained in the sale of its Nimbus Processing Plant to MacPhersons Reward Gold Limited. Nimbus is undergoing refurbishment at present and is planned to be in operation in 2012.

In recognition of our transition from diversified explorer to gold producer, the Company is examining options to extract value for our shareholders from our Mt Marion lithium and Barrambie vanadium projects. The Company remains confident that both projects have significant value and outstanding potential, and is working with its partners at the best means of maximising the value of these projects, without drawing management focus or financial resources away from our primary focus; the development of the Meekatharra Gold Project.

In closing, I must thank the Managing Director, our executive management team and our valued corporate staff for their excellent contributions throughout this very busy year, and for their dedication and hard work to place Reed Resources in a position to become a substantial gold producer in the year ahead. I must also thank my fellow Board members for their valuable input and contributions into our Company on behalf of our shareholders.

Yours faithfully

David Reed EXECUTIVE CHAIRMAN