NEOMETALS LTD — Share Issue/Capital Change 2005

Mar 17, 2005

97 Outram Street West Perth WA 6005 Tel: + 61 8 9322 1182 $Fax: + 61893210556$

18 March 2005

The Manager ASX Company Announcement Platform PO Box H224 Australian Square SYDNEY NSW 2000

FOR RELEASE

Dear Sirs

ISSUE OF SHARES - NOTIFICATION PURSUANT TO SECTION 708A (5)(e) OF THE CORPORATIONS ACT 2001

Reed Resources Limited (the Company) advises that, on 18 March 2005, it issued eight million (8,000,000) ordinary fully paid shares (the Securities) at 26 cents pursuant to a placement to sophisticated and professional investors for the purpose of raising working capital and arranged by Intersuisse Corporate Pty Ltd and is subject to settlement.

The Company notifies ASX that:

• $\mathbf{1}$ . The Company issued the Securities without disclosure to investors under Part 6D.2 of the Corporations Act 2001 (the Act):
• This notice is given pursuant to paragraph (5)(e) of Section 708A of the Act: $2.$
• 1. As at the date of this notice the Company has complied with:
• the provisions of the Chapter 2M of the Act as they apply to the Company; and $(a)$
• $(b)$ section 674 of the Act.
• As at the date of this notice there is no excluded information (as defined in section 708A(7) 4. and (8) of the Act) which is required to be disclosed by the Company.

For and on behalf of the Board REED RESOURCES LIMITED

David Reed Executive Chairman