NEOMETALS LTD - Regulatory Filings 2004

NEW IRON ORE DISCOVERY

Recent geological mapping has identified an extensive surface outcrop of hematite iron oxide mineralisation at the Company's wholly owned Mount Finnerty Project, 70 kilometres east of Koolyanobbing.

Assays of between 58 to 60% Fe have been recorded in channel samples of an iron-enriched banded iron formation (BIF) unit which has been mapped over a strike length of at least 600 metres and has a width of at least 15 metres. The southern end of the BIF is covered by colluvium, geophysical data and aerial photography indicate the host unit continues north of the mapped area. The outcrop is within about 100 metres of the Standard Gauge Trans-Australian Railway. Other BIF units in the close proximity have yet to be sampled. The mineralisation is within E15/621, which has been endorsed under section 111 of the Mining Act for iron ore and mining lease applications are being prepared.

The iron-enriched BIF is part of the group of BIF units that traverse the Mt. Finnerty tenements and are contiguous with BIF that hosts iron ore deposits at Mt. Walton (2.5 Mt $@$ 60.5% Fe), which is immediately to the north of the Mt. Finnerty tenements, and at Bungalbin (65.7 Mt $\omega$ 57.9% Fe), which is located 20 km northwest of the Mt. Finnerty tenements.

The iron-enriched BIF was discovered whilst Geology students from Curtin University were undertaking a geological mapping project at the southern end of the Mt Finnerty tenements, under the supervision of Reed Resources Director. Dr Peter Collins. Previous surface rock-chip sampling of the prominent BIF ridges to the north of Mt. Finnerty has returned values of 57 to 66% Fe (highest values from outcropping specular hematite) but this is the first occurrence of iron enrichment over a considerable strike length.

As part of the Strategic Alliance between Consolidated Minerals Limited (ASX: CSM) and Reed Resources, Consolidated Minerals plan to mobilize an RC rig to site as soon as possible to test the extent of the high-grade zone identified at surface. Consolidated Minerals has an option to form a joint venture with Reed Resources for the exploration, development and mining of Iron Ore within the Mount Finnerty Project.

D J Reed EXECUTIVE CHAIRMAN

Technical aspects of this announcement have been compiled by Dr.Peter Colline MAIG. Dr Collins has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which is being reported on to qualify as a Competent Person as defined in the 1999 Edition of the Australasian Code for Reporting of Mineral Resources and Ore Reserves. Dr Collins consents to the inclusion in the announcement of the matters in the form and context in which it appears.