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INVESTOR PRESENTATION

28 June 2011

Chris Reed – Managing Director

ASX: RDR

www.reedresources.com

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Important Notice

Disclaimer

This document has been prepared by Reed Resources Ltd (“Reed” or “the Company”) to provide an update of the Company to investors and potential new shareholders.

Any statements, opinions, projections, forecasts or other material contained in this document do not constitute any commitments, representations or warranties by Reed and associated entities or its directors, agents and employees. Except as required by law, and only to the extent so required, directors, agents and employees of Reed shall in no way be liable to any person or body for any loss, claim, demand, damages, costs or expenses of whatsoever nature arising in any way out of, or in connection with, the information contained in the document.

This document includes certain statements, opinions, projections, forecasts and other material, which reflect various assumptions. The assumptions may or may not prove to be correct. Recipients of the document must make their own independent investigations, consideration and evaluation of the opportunity to invest in the Company. By accepting this document the recipient agrees that if it proceeds further with its investigations, consideration or evaluation of the opportunity to invest in the Company it shall make and rely solely upon its own investigations and inquiries and will not in any way rely upon the document.

All figures in this document are in Australian dollars (AUD) unless stated otherwise.

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Market Capitalisation

Last price (28-June-11) $ 0.52

Shares on issue $ 262.2

Market capitalisation $m 136

Cash (est. end May) $m 27.0

Debt (due 30-Jun-11) $m 9.0

Enterprise value $m 118

Directors

David Reed Executive Chairman

Chris Reed Managing Director

Steven Cole Non-Executive Director

Peter Collins Non-Executive Director

Ian Junk Non-Executive Director

Vanessa Guthrie Non-Executive Director

Reed Resources Ltd (ASX: RDR) is a WA-focused resource developer

Proven strategy to acquire and develop undervalued assets across varying commodities

3 world class projects across gold, lithium and vanadium

$40 million raising in February 2011 to fund the purchase and feasibility study of the 2.7Moz Meekatharra gold project

Re-optimisation has since yielded a second million tonne open pit reserve and a 32% increase in total reserve base to 559koz prior to start of drilling campaign

Mt Marion lithium (Reed 70%) – constructing the world’s 2nd largest spodumene producer, commissioning Dec Qtr 2011

Barrambie vanadium (Reed 100%) – Australia’s highest grade reserve now in approvals/financing stages, new capex/opex under review

12 Month Share Price

Background

Reed Corporate Snapshot

$0.40

$0.50

$0.60

$0.70

$0.80

May-10 Aug-10 Nov-10 Feb-11 May-11

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Reed Project Snapshot

LITHIUM Mt Marion, 70%

GOLD Meekatharra, 100%

VANADIUM Barrambie, 100%

Exploration Au, Fe, Ni

Asset Stage

Resource 10.5Mt @ 1.4% Li2O 2.7Moz (contained) 65.2Mt @ 0.82% V2O5

Under construction Care & maintenance Financing/Approvals

JV Partners Mineral Resources (ASX: MIN) MIN fully funding

evaluation, construction and further exploration

Earning 30% on completion of plant

China Nonferrous Metal Industry (NFC) Chinese-listed

industrials company with a market cap of A$3.2bn

MOU for fixed price EPC and financing

Gold (Reed 100%) High grade Sand

Queen mine on production hiatus pending suitable toll treat arrangement

MoU sale of Nimbus processing plant for $4.5m plus toll-treatment and royalty

Iron ore (Reed 20%)

JV with Cliffs Natural Resources for DSO at Mt Finnerty

Maiden JORC resource 4.7Mt @ 53.5% Fe

Nickel (RDR earning 60%) JV with Barranco

Resources at Mt Finnerty

Prospective for nickel sulphide

Cost to Reed

Target Production

0%

December Qtr, 2011 200ktpa +6% Li2O Mining approval

granted (Feb 2011) Assessing

downstream processing options

$33 million (to DTM)

December Qtr, 2012 +120koz pa and 4-5

year production plan BFS underway Reserve re-

optimisation and new drilling program

July 2011

Est. 2014 US$110m EBITDA pa Fixed price EPC

estimate from NFC due June 2011

Final approvals September Qtr 2011

Reed to fully fund and develop

Near ready production with 3Mtpa mill and camp

Total Funding

$40 million (inc. BOO)

100% TBA

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Mt Marion Fly Through

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Mt Marion Lithium Project Update (Reed 70%)

Joint Venture (MIN earning 30%) Incorporated JV with Mineral Resources (ASX: MIN), an ASX

200 diversified contractor with a $2.1 billion market cap

Under the JV terms, MIN will:

» Operate the project

» Fully fund evaluation and development costs

» BOO processing plant - construction underway

» Complete wet commissioning by 15 December 2011

Operations Initial output 200,000 tpa of +6% Li2O (chemical grade)

» First shipment March Qtr 2012

» By-products include mica and tantalum

Mt Marion will be the world’s 2nd largest spodumene producer

Financial Lithium carbonate PFS completed by Hatch in 2010 indicating:

» NPV of US$404 million (12% discount) and IRR of 68% providing a <2 year pay back

» Capital cost US$63m (China) - US$70m (Malaysia)

Downstream processing options/partial sale – under consideration

Construction and site preparation underway at Mt Marion: [1] part of the tertiary rolls crusher (top) and [2] administration office pad (foreground) and site construction offices (at rear)

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Clearing – Deposit 1

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Lithium Strategy – Integrated Producer

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Lithium Resource Estimate

5 deposits all open along strike and at depth

Potential for significant addition to current resource base

» Only 1 of 3 pegmatite groups have been explored

Currently drilling with an additional exploration target of 10-15Mt @ 1.1 –1.4% Li2O

» Average intercept first 50 drill holes 10m @ 1.44% Li2O

Mt Marion (100% basis)

Tonnes (Mt)

Li Grade (% Li2O)

Fe Grade (% Fe2O3)

Measured 2.1 1.5 1.1

Indicated 3.9 1.4 1.2

Inferred 4.5 1.3 1.9

Total 10.5 1.4 1.4

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Comparison – Australian Lithium Mineral Producers

Source: Reed Resources Ltd

Assumptions

1. 1 AUD = 1.03 CAD

2. Talison net cash based on results reported for the period ending 31 March 2011

3. Talison production annualised based on 37,500t LCE for 9 months to 31 March 2011

4. Galaxy net cash based on $185 million cash (presentation 24 May 2011) and loan facilities of $89.7 million and convertible debt of $61.5 million (reported 31 March 2011)

5. Galaxy production based on planned annual production from Mt Cattlin of 137,000t @ 6% Li2O for 20,325t LCE

Talison - Greenbushes

Incline vein pegmatite

Head grade 3% Li2O

Glass, ceramic, chemical grade

Strip ratio 5.6 :1

Mt Marion project valuation (EV) using: Talison = $182m Galaxy = $286m Hatch study >$600m

Deposit Comparisons Reed – Mt Marion

Flat lying vein pegmatite

Head grade 1.3% Li2O

Chemical grade

Strip ratio 3.3:1

Galaxy – Mt Cattlin

Flat lying pegmatite

Head grade 1% Li2O

Chemical grade

Strip ratio 2.4:1

Source: Reed Resources Ltd

Australian Lithium Market Cap Net Cash EV (1) Prodn (2) EV/Prod ImpliedMineral Producers $m $m $m kt pa LCE $/t LCE EV (1x2)Talison Lithium (TSX: TLH)Greenbushes 387 82 306 50.0 6,111 $182mConcentrate producerReed Resources (ASX: RDR)Mt Marion ? 29.7LiC developerGalaxy Resources (ASX: GXY)Mt Cattlin 230 34 196 20.3 9,633 $286mIntegrated LiC developer

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Meekatharra Gold Project Update (Reed 100%)

3 Mtpa processing plant

180 man camp

Low Capex re-start

Resource Upgrade Feb 2011 44Mt @ 1.7g/t 2.5Moz

NOW 48Mt @ 1.7g/t 2.7Moz

Reserve Upgrade Feb 2011 3.8Mt @ 3.4g/t 420Koz

NOW 4.2Mt @ 3.4g/t 559Koz

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Project Background

Geology Located 640km northeast of Perth and 10km south of

Meekatharra, in the Murchison Region of Western Australia

800km2 tenement holding covering over 100km strike length over prolific Murchison greenstone belt, a proven fertile greenstone

» Past production >13Moz

» Hosts multi-million ounce deposits at Mt Magnet, Big Bell, Tuckabianna, Reedys, Yaloginda and Paddys Flat

» Reed’s project area past production circa 4.5Moz

History Previously owned by Mercator, who purchased Meekatharra

from St Barbara Mines in 2004

Mercator spent $26m to establish a JORC resource of 2.5Moz and reserve of 0.4Moz by 2007

Mercator spent $6m refurbishing Bluebird mill to produce 120koz pa

Mining commenced in 2007 and produced 44,000 ounces prior to suspension of operations in October 2008

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In Progress

Advanced

Advanced

Reed Turnaround Strategy

Initial 4-5 year sustainable production profile – 120Kozpa

Re-modelling and re-estimation of resources using current economic parameters

Commenced BFS – due Feb 2012

First Steps

Dedicated gold team in place led by Reed’s chief geologist and GM – Gold, Craig Fawcett

Intensive evaluation of historical open-pit and underground ore bodies

Results to Date Target

Substantial increases in grade and/or tonnes

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$0

$20

$40

$60

$80

$100

$120

DRM SLR FML RMS SAR SBM RDR WGR CRE AXM NGF NAV *RDR

$ Market Cap / Resource oz

Gold Peer Comparisons

Meekatharra represents a world class project that can develop into a strong long term producer of gold

Reed is acquiring 100% of the Meekatharra project from Mercator for $28.5m with no outstanding obligations being passed onto Reed (refer ASX release 12 January 2011)

Highly attractive pricing with an acquisition cost of $11/oz resource inclusive of +A$100m infrastructure

Current peer median of $56 market cap per contained resource ounce

Average $56/oz

Reed acq. $11/oz

Source: IRESS, ASX, company reports

Australian Gold Peers ASX Shares Price Mkt Cap Resource Mkt Cap/Res(*close to Reed project area) Code (m) ($) ($m) (Moz) ($/oz)Apex Minerals NL AXM 5,550.2 0.01 38.9 2.2 17.5Crescent Gold Limited CRE 1,100.8 0.05 58.3 2.8 21.0Doray Minerals Limited* DRM 61.8 0.79 48.5 0.1 348.7Focus Minerals Ltd FML 3,440.5 0.07 234.0 2.3 104.0Navigator Resources Limited NAV 465.8 0.04 16.8 1.7 10.0Norton Gold Fields Limited NGF 685.9 0.13 89.2 6.1 14.7Ramelius Resources Limited* RMS 291.8 1.21 353.0 3.5 101.6Saracen Mineral Holdings Limited SAR 492.3 0.55 268.3 3.3 81.3Silver Lake Resources Limited* SLR 178.9 1.78 318.4 3.0 107.3St Barbara Limited SBM 325.6 1.80 584.5 7.7 75.9Westgold Resources Limited WGR 414.2 0.21 87.0 3.0 29.0Average (ex Doray) 56.2Reed Resources Ltd RDR 262.2 0.50 131.1 2.9 44.6Meekatharra acquisition (January 2011) *RDR 28.5 2.5 11.0

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Project Area 1 - Paddys Flat

Historical Production 1.5Moz open pit mining 1989-2004

0.8Moz underground pre-1985

Forward Work Resource conversion at Red Spider/Fenian West

Metallurgical test work on 600koz Mickey Doolan/Phar Lap

Exploration at “Old Mill” - fold axis defined by magnetics “Old Mill” Area

Paddy’s Flat Tonnes (Mt)

Grade (g/t)

Gold (koz)

Resource 28.6 1.7 1,550

Reserve (u/g) 2.0 4.8 308

Reserve (o/p) 1.1 2.7 96

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Prohibition Open Pit Project Area 1 - Paddys Flat

Probable Reserve 1.1 Mt @ 2.7 g/t Au for 96,000 ozs

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Project Area 1 - Paddys Flat Underground Reserve Location

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Project Area 2 – Yaloginda

3 Mtpa Bluebird processing plant

18 historical open pits and 3 underground operations

Probable o/p reserves of 1.7 Mt @ 2 g/t for 114,000 ounces

Evaluating re-modelling and estimation of South Junction (o/p) and Gibraltar (u/g)

New (?) copper-gold discovery at Chunderloo

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Bluebird Pit

Reserve (o/p) of 1.4 Mt @ 1.9 g/t for 87,000 ounces

De-risked through previous mining

Porphyry/felsic host (~ 30m wide)

Projected cash cost $885/oz

Additional inferred 13Koz in planned pit

Target cash cost $700-750/oz

Potential for bulk underground operations post open-pit phase

Project Area 2 – Yaloginda

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Chunderloo Copper-Gold Prospect Project Area 2 – Yaloginda

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Project Area 3 - Reedys

Historical Production 230,000 ounces Triton Underground 1937-48

750,000 ounces Metana/Homestake 1990’s

Closed in 1997 when gold price was US$300/oz

Exploration Potential Significant open pit and underground reserve

conversion/expansion potential

High priority targets:

» Jack Ryan Repeats

» Cullculli Line

» South Emu

Underground mining evaluation to be undertaken

Reedys Tonnes (Mt)

Grade (g/t)

Gold (koz)

Resource 4.9 2.5 395

Reserve (o/p) 0.4 2.9 37

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Southern Group Long Section Project Area 3 - Reedys

Emu, Triton, Rand (o/p)

Tonnes (Mt)

Grade (g/t)

Gold (koz)

Resource 2.8 2.6 234

Indicated 0.6 2.4 49

Reserve 0.1 2.4 8

Jack Ryan (o/p)

Tonnes (Mt)

Grade (g/t)

Gold (koz)

Resource 1.0 2.5 79

Indicated 0.3 2.9 32

Reserve 0.2 3.1 22

Callisto (o/p)

Tonnes (Mt)

Grade (g/t)

Gold (koz)

Resource

Indicated

Reserve 0.1 3.1 7

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Underground Potential

CONTINUITY

Structure

Geology

Grade

Depth

Project Area 3 - Reedys

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Meekatharra Summary

Reed is quickly re-establishing the integrity, credibility and value of the

Meekatharra Gold Project

Careful planning and compliance

Disciplined and thorough exploration

Detailed evaluation and feasibility studies

Reliable development schedules

Sustainable operations

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Barrambie Fly Through

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Barrambie Vanadium Project Update (Reed 100%)

Location of the Barrambie vanadium project showing proximity to the Windimurra vanadium project and key infrastructure including the Midwest gas pipeline and Geraldton port

Joint Venture MOU signed with Sino construction giant NFC

» Shenzhen-listed, market cap of +US3.2B

» Construct international non-ferrous metal projects

Fixed price EPC arrangements and financing assistance

» Significant savings on DFS and next step towards successful development

Operations 65.2Mt @ 0.82% V2O5 JORC resource includes highest grade

vanadium reserves in Australia

Environmental Approval expected in September Qtr 2011

Native Title Agreement in place

Significant exploration upside along strike and at depth with potential to add to existing resources and extend project life

Financial DFS completed in May 2009 indicating total capex of A$630m

for an initial 12.5 year mine life

US$110 m annual EBITDA at five year average vanadium price

Reed and NFC currently in discussions with lenders and potential equity financing partners

Barrambie (100% basis)

Tonnes (Mt)

V2O5 (%) TiO2 (%)

Indicated 49.2 0.82 17.3

Inferred 16.0 0.81 17.2

Total resource 65.2 0.82 17.3

Probable reserve 39.7 0.82 15.7

Total reserve 39.7 0.82 15.7

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Vanadium Market – Strong Long Term Fundamentals

+ = ? Vanadium Redox (Liquid) Batteries Renewable energy storage, peak shaving, load

leveling, backup High efficiency, long life >20yrs Variable input/fixed output Power (cell) and capacity (concentration and

volume) varied to suit application 1MWh storage = 9t of V2O5

+ Lithium Vanadium EV Batteries Highest voltage → POWER Highest energy density → RANGE Contains 4kg Li, 20kg of V

Titanium-Vanadium Alloys Increasing intensity of

use in aerospace

$75

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$0

$100

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$400

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$600

$700

$800

Largo American Vanadium

Atlantic Apella TNG Energizer Sino Vanadium

Yellow Rock

EV / Resource Multiple ($/t V2O5)

Company Exchange/Code Project/Ownership Resource

American Vanadium TSX-V: AVC Gibellini, USA (100%) 20.8Mt @ 0.33% V2O5

Apella Resources TSX-V: APA Iron-T, Canada (100%) Lac Dore, Canada (100%)

11.6Mt @ 0.40% V2O5 102.0Mt @ 0.45% V2O5 (non NI 43-101)

Atlantic ASX: ATI Windimurra, Western Australia (100%) 210.0Mt @ 0.47% V2O5

Energizer Resources TSX-V: EGZ Green Giant, Madagascar (100%) 59.2Mt @ 0.68% V2O5

Largo Resources TSX-V: LGO Maracas, Brazil (90%) Campo Alegre, Brazil (100%)

23.2Mt @ 1.27% V2O5 133.0Mt @ 0.75% V2O5 (non NI 43-101)

Sino Vanadium TSX-V: SVX Daquan, China (100%) 34.2 @ 0.93% V2O5

TNG ASX: TNG Mount Peake, Northern Territory (100%) 139.1Mt @ 0.29% V2O5

Yellow Rock Resources ASX: YRR Gabanintha, Western Australia (100%) 125.8Mt @ 0.70% V2O5

Vanadium Peer Comparisons

Potential valuation range of $100 - 400/t V2O5

Based on EV/resource benchmarking of listed vanadium peers, Barrambie has an implied

valuation of $53 - $214m

Mean $251/t V2O5

Source: Bloomberg, ASX, company reports

Potential Valuation Low Mid High

Multiple ($/t V2O5) 100 251 400

Barrambie (Mt V2O5) 0.53 0.53 0.53

Implied value ($m) 53 133 214

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Reed Board and Senior Management

David Reed FCPA, OAM Executive Chairman

Steven Cole Llb(Hons), FAICD Non-Executive Director

Dr Peter Collins BSc(Hons), PhD, MAIG Non-Executive Director

Chris Reed BCom, GradCertMinEcon, MAusIMM Managing Director and CEO

Craig Fawcett BSc(Hons), GDipMining General Manager - Gold

Ian Junk BEng(Hons), MAusIMM Non-Executive Director

Jason Carone BCom, CA Financial Controller and Company Secretary

Dr Vanessa Guthrie BSc (Hons), PhD, GDBM Non-Executive Director

Darren Wates Legal Counsel and Company Secretary

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Reed Technical Staff

David Hollingsworth Senior Exploration Geologist

Elizabeth Jones Snr Planning Engineer

Matt Schembri Resource Geologist Open Pit

James Lawrence Resource Geologist Underground

Jeremy Watkins Project Manager – Gold

Dudley Kingsnorth Consultant Lithium

Tony Simpson Consultant Vanadium

Dr Bryan Smith Consultant Geologist Lithium/Vanadium/Nickel

Bill Crossley Project Manager – Lithium/Vanadium

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Summary

Staged production profile with Mt Marion on line December Qtr 2011

Diversified cash flows across 3 strategic commodities with strong price outlook

Well funded with experienced management team

Trades at a significant discount to peers across all projects (current price $0.52)

Reed Valuation ($m) Median Peer

Lithium (70%, Concentrate Only) 130

Gold (EV/Resource Oz) 154

Vanadium (Ev/Resource t) 133

Total 417

RDR shares on issue (m) 262.2

Implied RDR share value $1.59 * Subject to Decision to Mine

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Appendix 1

COMPETENT PERSONS STATEMENT Geological aspects of this report have been compiled by Mr Craig Fawcett (MAIMM), a full time employee of Reed Resources Ltd. Mr Fawcett 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 Code for Reporting of Mineral Resources and Ore Reserves (2004). Mr Fawcett consents to the inclusion in this report of the matters in the form and context in which it appears.

MINERAL RESOURCE ESTIMATES 2011 Information in this report that relates to Indicates and Inferred Mineral Resources for 2011 is based upon geological domains constructed by Reed Resources internal geological team (under Craig Fawcett BSc MAusIMM – General Manager Gold) and estimates prepared by J Graindorge Bsc MAusIMM(CP) of Snowden Mining Industry Consultants Pty Ltd. Both Mr Fawcett and Mr Graindorge have 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 Code for Reporting of Mineral Resources and Ore Reserves (2004). Both Mr Fawcett and Mr Graindorge consent to the inclusion in this report of the matters in the form and context in which it appears.

ORE RESERVE ESTIMATES 2011 Information in this report that relates to the Surface Ore Reserves was compiled by Gary McCrae, a full time employee of Minecomp Pty Ltd which is a corporate member of the Australian Institute of Mining and Metallurgy. Gary McCrae is a qualified mining engineer who has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent person as defined in the Code for Reporting of Mineral Resources and Ore Reserves (2004). Gary McCrae consents to the inclusion in the report of the matters based upon the information in the form and context in which it appears.

JORC Statement

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Appendix 2

Notes:

1. Resources and Reserves comply with the Australian JORC reporting guidelines

2. Resources are inclusive of Reserves

Reed Resource and Reserve Inventory

Meekatharra Category Tonnes (Mt) Grade (g/t) Gold (koz)

Meek. North Indicated 0.7 1.3 29.0

Inferred 0.2 1.2 6.0

Paddys Flat Indicated 19.1 1.7 1,047.9

Inferred 9.5 1. 437.3

Yaloginda Indicated 9.7 1.7 536.3

Inferred 3.9 1.7 240.4

Reedys Indicated 1.8 2.7 153.4

Inferred 3.1 2.4 241.2

Total 48.6 1.7 2,754.8

Comet Vale Category Tonnes (Mt) Grade (g/t) Gold (koz)

Comet Vale Indicated 0.2 10.8 82.5

Inferred 0.3 10.9 103.5

Total 0.5 10.8 186.0

Mt Marion Category Tonnes (Mt) Li2O (%) Li2O (kt)

1, 2, 2W, 5 Measured 2.1 1.5 32.0

Indicated 3.9 1.5 55.5

Inferred 4.5 1.3 58.8

Total 10.5 1.4 146.5

Barrambie Category Tonnes (Mt) V2O5 (%) TiO2 (%)

Barrambie Indicated 49.2 0.82 17.3

Inferred 16.0 0.81 17.2

Total 65.2 0.82 17.3

Meekatharra Category Tonnes (Mt) Grade (g/t) Gold (koz)

Bluebird Probable 1.4 1.9 87.0

South Junct. Probable 0.1 1.5 4.5

Prohibition Probable 1.1 2.7 96.0

Surprise Probable 0.1 3.0 13.0

Batavia Probable 0.2 2.4 14.0

Jack Ryan Probable 0.2 3.1 21.8

Callisto Probable 0.1 3.1 7.2

Rand Probable 0.1 2.4 7.6

Total (o/p) Probable 3.3 2.3 251.1

Prohibition Probable 1.4 4.1 179.0

Vivian/Cons. Probable 0.3 10.4 83.0

Fatts/Mud. Probable 0.4 4.0 46.0

Total (u/g) Probable 2.0 4.8 308.0

Total Probable 5.3 3.3 559.1

Barrambie Category Tonnes (Mt) V2O5 (%) TiO2 (%)

Barrambie Probable 39.7 0.82 15.7

Total 39.7 0.82 15.7