reed resources may 2011 roadshow presentation

INVESTOR PRESENTATION MAY 2011

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.

Outline

1 Corporate Snapshot, Structure and Management

Meekatharra Gold Project

2

3

4

Mt Marion Lithium Project

Barrambie Vanadium Project

5 Summary

Reed Corporate Snapshot

Background Market Capitalisation

12 Month Share Price

* RDR also has 20.5m unlisted executive options on issue (exercisable between $0.75 and $1.20)

Reed Resources Ltd (ASX: RDR) is a WA-focused exploration and mining company, listed in 2002

3 main projects across gold, lithium and vanadium - proven strategy to acquire and develop undervalued assets across varying commodities

Completed $40 million raising in February 2011 to fund the purchase and feasibility study of 2.5 Moz Meekatharra gold project in Murchison region of WA

Continuing to advance two world-class projects:

» Mt Marion lithium (Reed 70%) - poised to be the world’s 2nd largest spodumene producer in 2012

» Barrambie vanadium (Reed 100%) – project has the highest grade reserves in Australia and is forecast to produce +US$110 million EBITDA per year in operation

Last price (27-Apr-11) $ 0.57Shares on issue (27-Apr-11) * m 262.2Market capitalisation $m 149.5Cash (estimate end Apri $m 31.0Debt (due 30-Jun-11) $m 9.0Enterprise value $m 127.5

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Reed Project Snapshot

LITHIUM Mt Marion, 100%

GOLD Meekatharra, 100%

VANADIUM Barrambie, 100%

Other Au, Fe, Ni

Asset Stage

Resource 10.5Mt @ 1.4% Li2O 2.5Moz (contained) 65.2Mt @ 0.82% V2O5

Under construction Care & maintenance Financing/Approvals

JV Partners Mineral Resources Incorporated JV with MIN

who are fully funding evaluation, construction and further exploration MIN earning 30% on

completion of plant

China Nonferrous Metal Industry (NFC) MOU with NFC for fixed

price EPC and financing NFC are a Chinese-listed

industrials company with a market cap of A$3.2bn

Gold – care & maintenance Reed 100% Includes the high grade

Comet Vale mine and 250ktpa Nimbus plant

Iron ore (DSO) – exploration Reed 20% JV with Cliffs Natural

Resources at Mt Finnerty Maiden JORC resource

4.7Mt @ 53.5% Fe

Nickel – exploration Reed earning 60% JV with Barranco

Resources at Mt Finnerty Prospective for massive

nickel sulphide mineralisation

Cost to Reed

Production

0%

December Qtr, 2011 200,000 tpa of +6% Li2O Mining approval granted

(February 2011) Assessing downstream

processing options

$33 million (to DTM)

Target late 2012 Target 120-150koz pa and

4-5 year production plan BFS underway Resource re-estimates,

optimise reserves

TBA

Target 2014 US$110m EBITDA pa Fixed price EPC estimate

from NFC due May 2011 NTA in place, PER lodged,

EA by June Qtr 2011

Reed to fully fund and develop the project Near ready production

with 3Mtpa mill and camp ($100m replacement cost) Assets may merge into

wider gold play

Total Funding $40 million (inc. BOO)

100% TBA

Reed Board and Senior Management

David Reed FCPA, OAM Executive Chairman Fellow member of CPA Australia with 40 years experience in stockbroking. Extensive public company experience and has a long history in the gold mining industry, including chairman of fund raising for the Australian Prospectors and Miners Hall of Fame and a founder of the Diggers and Dealers forum in Kalgoorlie

Chris Reed BCom, GradCertMinEcon, MAusIMM Managing Director and CEO Over 15 years experience in the mineral exploration and mining industry and is currently Vice-President of the Association of Mining and Exploration Companies. Graduated from the University of Notre Dame and holds a Graduate Certificate in Mineral Economics from the WA School of Mines. Also an Associate Member of CPA Australia

Peter Collins BSc(Hons), PhD, MAIG Non-Executive Director Over 35 years experience as a geologist and has been an economic geologist and tin-tungsten commodity specialist with the Tasmanian Geological Survey. Has lectured in geology at Curtin University of Technology since 1987 and has been widely active in the investigation of mineral deposits in Western Australia

Ian Junk BEng(Hons), MAusIMM Non-Executive Director Highly respected mining engineer with considerable experience in narrow vein underground mining and project development, having managed several private mining companies and commissioned various mining operations. National finalist in the Ernst & Young –Entrepreneur of the Year awards

Steven Cole Llb(Hons), FAICD Non-Executive Director 35 years of professional, corporate and business experience through senior legal consultancy, as well as a range of executive management and non-executive appointments. Extensive experience across the industrial, financial, educational, professional services, health and resources sectors

Jason Carone BCom, CA Financial Controller and Company Secretary Member of the Institute of Chartered Accountants since 2000. Joined Reed in September 2007 as Financial Controller and in March 2009 was appointed joint Company Secretary. Over 10 years experience working in various professional and corporate capacities in Australia and South East Asia

Bill Crossley BApdSc, WA 1st Class Mine Manager Project Manager – Lithium/Gold Mining engineer with over 35 years experience in the management of mines. Previously Project Manager of the Barrambie Vanadium Project for Reed Resources, General Manager of the Macraes Gold Mine in NZ and Operations Manager for Dominion Mining in the Northern Territory. Fellow of both AusIMM and AICD

Craig Fawcett BSc(Hons), GDipMining General Manager – Gold Qualified geologist and engineer who has previously held the positions of Chief Mine Geologist at Tanami Gold and Avoca Resources during both of their respective start-up phase of operations. Also held the position of Geology & Mining Manager at Apex’s Wiluna Gold Mine during their re-start of operations

Mt Marion Lithium Project

Mt Marion Lithium Project Update

Mt Marion (Reed 70%) Incorporated JV with Mineral Resources (ASX 200: MIN)

» MIN is a diversified contractor with +A$2 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 Dec 2011

Initial output 200,000 tpa of +6% Li2O (chemical grade) – Mt Marion will be the world’s 2nd largest spodumene producer

» First shipment March Q 2012

» By-products include mica and tantalum

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) - $70m (Malaysia)

Gresham appointed December 2010 to advise on downstream processing options, partial/full sale – several under consideration

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

Lithium Resource Estimate

Resource Tonnes Li Grade Fe GradeClassification (Mt) % Li2O % Fe2O3

Measured 2.1 1.5 1.1Indicated 3.9 1.4 1.2Inferred 4.5 1.3 1.9Total 10.5 1.4 1.4

» All 5 deposits 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 additional exploration

target : 10-15Mt @1.1 –1.4% Li2O

Lithium Strategy – Integrated Producer

Comparison – Australian Lithium Mineral Producers

Source: Reed Resources Ltd

Assumptions

[1] 1 AUD = 1.03 CAD

[2] Talison net cash position based on net debt of $2.6m as at Dec-10 and cash raise of C$80m in Feb-11

[3] Talison production annualised based on 36,600t LCE for the 9 months to 31-Mar-11

[4] Galaxy net cash position based on $91.5m raising (Nov-10), $120m raising (Apr-11), restricted cash of $48.1m (Dec-10) less bank debt and convertible bonds totalling $166.1m

[5] Galaxy production based on planned annual production from Mt Cattlin of 137,000t @ 6% Li2O

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 = $261m Galaxy = $398m 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 504 75 429 48.8 8,781 $261mConcentrate producerReed Resources (ASX: RDR)Mt Marion ? 29.7LiC developerGalaxy Resources (ASX: GXY)Mt Cattlin 362 89 273 20.3 13,417 $398mIntegrated LiC developer


Geology 800km2 tenement holding covering

> 100km strike length over Murchison greenstone belt

Proven, fertile greenstone

Past production > 13 Moz

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

Project area past production circa 4.5Moz

History

Mercator purchased the Meekatharra interests from St.Barbara Mines in 2004

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

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

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


RESOURCE 44MT @ 1.7g/t 2.5Moz RESERVE 3.8MT @ 3.4g/t 420Koz

3 Mtpa Processing Plant 180 Man Camp Freshwater Bore Field Immediate Mining Reserves

In Progress

Advanced

Advanced

First steps Dedicated gold team led

by Reed’s chief geologist and GM–Gold, Craig Fawcett. Full team is now in place.

Intensive evaluation of 18 open-pit and underground ore bodies

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

Commenced BFS – due Feb 2012

Reed Turnaround Strategy

Target Initial 4-5 year sustainable production profile

RESULTS - Substantial increases in grade and/or tonnes

Project Area 1 - Paddys Flat

Historical Production 1.5 Moz Open pit mining 1989-2004 0.8 Moz Underground pre-1985

Resources

25.8 Mt @ 1.6 g/t = 1.34 Moz

Reserves (U/G)

1.99 Mt @ 4.8 g/t = 308 Koz

Significant upside on current known orebodies

Secondary Targets: • Northern Corridor

• “Old Mill”

• Fold axis defined by magnetics

• Mickey Doolan Metallurgical recovery work

“Old Mill” Area

Northern Corridor

Project Area 1 - Paddys Flat Prohibition Long Section

Probable U/G Reserve

1.37 Mt @ 4.1 g/t = 179,000 oz

Ready for new Resource then Reserve Estimation this month

Excellent widths x grades = immediate low-risk open-pit cutback

Stacked parallel lode system (25-30m) is open at depth

Consols-Vivians Long Section Project Area 1 - Paddys Flat

Probable U/G Reserve

256,000t @ 10.4 g/t = 83,000 oz

Resource model good

Re-optimisation for both open-pit and underground exploitation

Narrow Quartz Vein Lode (2-3m wide) system is open at depth

Potential higher grade blending material

Project Area 1 - Paddys Flat Mudlode Long Section

MUDLODE

Total Resource

390,000t @ 5.5 g/t = 68,800 oz

Continuation of historic Alberts Mine

Quartz Veins (~ 5-6m wide)

FATTS

Total Resource

710,000t @ 2.75 g/t = 63,000 oz

Massive plunging stockwork mineralisation (~40m wide)

Combined Mudlode/Fatts Reserve

362,000 t @ 4.0 g/t = 46,000 oz

Project Area 2 – Yaloginda

3 Mtpa Bluebird Process Plant

18 historical open pits 3 underground operations

Probable O/P Reserves 1.75 Mt @ 2 g/t = 114,000 oz

Evaluating re-modelling and estimation of South Juntion (O/P) and Gibraltar (U/G)

New (?) Copper-Gold Discovery at Chunderloo

Bluebird Cross Section Project Area 2 – Yaloginda

Reserve (O/P)

1.4 Mt @ 1.92 g/t =

87,000 oz

Porphyry/Felsic Host (~ 30m wide)

De-risked through previous mining

Projected cash cost A$885/oz

Infill drilling planned to capture additional inferred 13,000 oz.

Target Cash Cost A$700-750/oz

Potential for bulk underground operations post open-pit phase

Surprise Pit Project Area 2 – Yaloginda

Reserve (O/P)

136,000t @ 3 g/t =

13,000 oz

Quartz/Porphyry Host (~ 20m wide)


New resource/reserve estimate to evaluate cutback to capture Jess (was under highway)

Potential for underground operations post open-pit phase

Chunderloo Copper-Gold Prospect Project Area 2 – Yaloginda

Project Area 3 - Reedys

Historical Production

~230,000 oz Triton Underground 1937-48

~750,000 oz Metana/Homestake 1990’s

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

Total Resources

4.89 Mt @ 2.5 g/t = 395,000 oz

Reserve Estimation in progress

Initial review of southern 5 pits indicate significant immediate open pit and underground reserve conversion

Targets: • Jack Ryan Repeats • Culcilli Line • South Emu

• Underground mining evaluation to be undertaken

Southern Group Long Section Project Area 3 - Reedys

Project Area 3 - Reedys Jack Ryan Long Section

Total Resource

1 Mt @ 2.5 g/t = 79,600 oz

Grade up 34%

Indicated Resource

341 Kt @ 2.9 g/t = 32,000oz

Grade up 38%

Felsic Host (~ 25m wide)


Planned infill drilling to upgrade Inferred resources


Project Area 3 - Reedys Rand Long Section

Total Resource 2.79 Mt @ 2.6 g/t = 233,600 oz Grade up 10% Ounces up 23% Indicated Resource 642 Kt @ 2.4 g/t = 49,400oz Grade up 26%


Planned infill drilling to upgrade Inferred resources


Project Area 3 - Reedys Underground Potential

CONTINUITY

Structure

Geology

Tenor (Grade)

Depth

Gold Peer Comparisons

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

$ Market Cap / Resource oz

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 $74 market cap per resource ounce

Average $74/oz

Reed acq. $11/oz

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 61.1 2.2 27.5Crescent Gold Limited CRE 1,077.9 0.06 60.4 2.1 29.1Doray Minerals Limited* DRM 61.8 0.93 57.2 0.1 410.9Focus Minerals Ltd FML 3,414.5 0.08 283.4 2.1 138.2Navigator Resources Limited NAV 465.8 0.19 88.5 1.7 52.6Norton Gold Fields Limited NGF 685.9 0.17 113.2 6.1 18.6Ramelius Resources Limited* RMS 291.7 1.37 399.6 3.5 115.0Saracen Mineral Holdings Limited SAR 492.2 0.74 364.2 3.3 110.4Silver Lake Resources Limited* SLR 178.9 2.20 393.5 3.0 132.6St Barbara Limited SBM 325.6 2.24 729.4 7.7 94.7Westgold Resources Limited WGR 394.3 0.29 114.3 3.0 38.1Average (ex Doray) 73.7Reed Resources Ltd RDR 262.2 0.57 149.5 2.7 56.4Reed Resources Ltd - Meekatharra only 28.5 2.5 11.0

Re-establishing the Integrity and Credibility of Meekatharra

• Careful planning and compliance • Disciplined and thorough exploration • Detailed evaluation and feasibility studies • Reliable development schedules • Sustainable operations


Barrambie (Reed 100%) Located 125km north-east of the Windimurra Vanadium Project

in the Murchison region of WA, Barrambie has the highest grade vanadium reserves in Australia

DFS completed in May 2009 indicating total capex of A$630m, initial 12.5 year mine life and US$110 m annual EBITDA at five year average vanadium price

Native Title Agreement in place and PER lodged, with Environmental Approval expected in June Quarter 2011

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

JORC ResourcesProject Classification Tonnes (Mt) V2O5 (%) TiO2 (%)Barrambie Indicated 49.2 0.82 17.3

Inferred 16.0 0.81 17.2TOTAL INDICATED & INFERRED 65.2 0.82 17.3

JORC ReserveProject Classification Tonnes (Mt) V2O5 (%) TiO2 (%)Barrambie Probable 39.7 0.82 15.7TOTAL PROBABLE 39.7 0.82 15.7

NFC are a Chinese company, listed on Shenzhen stock exchange with a market capitalisation of +$3.2bn - primarily engaged in international projects including construction and development of non-ferrous metal resources and the manufacture and sale of non-ferrous metal products

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

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

MOU signed with Chinese conglomerate NFC covering fixed price EPC arrangements and financing of the project (expected to deliver significant savings on DFS) - represents the next step towards the successful development of Barrambie

Vanadium Market – Strong Long Term Fundamentals

+ + = ? Vanadium Redox (Liquid) Batteries Renewable energy storage, peak shaving, load levelling, backup High efficiency, long life >20yrs Variable input/fixed output Power (cell) and capacity (concentration and volume) varied to suit application. 1MWh storage = 9 t of V2O5

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

Titanium-Vanadium Alloys Increasing intenisy of use in aerospace

$75

• Deliberately diversified • World-class projects • Strategic commodity base • Strong management • Well-funded

• Significant discount to peer comparisons on all projects

Summary

Appendix 1 JORC Statement

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. HISTORICAL RESOURCES – PAGE 8 Information in this report that relates to Indicated and Inferred Resources at Reedys was published in the St Barbara Mines Ltd 2005 Annual Report and is based upon reports prepared by Cube Consulting Pty Ltd who were commissioned by St Barbara Mines Ltd in July 2005 and its consultant Ms Ruth Vernon to undertake a new resource estimation for the Reedys Project. Information in this report that relates to Indicated and Inferred Resources at Meekatharra was published by Mercator Gold Ltd in 2007 and is based upon information reports prepared by Snowden Consulting Pty Ltd who were commissioned by Mercator Gold Ltd to undertake a new resource estimation of the Bluebird Pit and several select orebodies from the Paddy’s Flat area near Meekatharra. HISTORICAL RESERVES – PAGE 8 Information in this report that relates to Probable Reserves at Meekatharra was published by Mercator Gold Ltd in 2007 and is based upon information reports prepared by Snowden Consulting Pty Ltd who were commissioned by Mercator Gold Ltd to undertake a reserve estimate of the ore around the Bluebird Pit and Paddy’s Flat revised resource estimate. MINERAL RESOURCE ESTIMATES 2011 Information in this report that relates to Indicates and Inferred Mineral Resources for 2011 at Reedys (Rand, Jack Ryan and Callisto) 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 at Reedys (Rand, Jack Ryan) 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.

Appendix 2 Meekatharra Mineral Resources and Ore Reserves

ProjectResource

ClassificationTonnes

Gold Grade (g/t)

Total Ounces

Indicated 706,000 1.3 29,000Inferred 174,000 1.2 6,000Sub-Total 880,000 1.3 35,000Indicated 17,879,000 1.7 986,000Inferred 7,925,000 1.4 349,000Sub-Total 25,804,000 1.6 1,335,000Indicated 9,693,000 1.7 528,000Inferred 3,856,000 1.8 227,000Sub-Total 13,549,000 1.7 755,000Indicated 1,794,000 2.7 153,400Inferred 3,095,000 2.4 241,200Sub-Total 4,889,000 2.5 394,600Indicated 30,072,000 1.7 1,696,400Inferred 15,050,000 1.7 823,200TOTAL 45,122,000 1.7 2,519,600

Meekatharra North

Paddy's Flat

Yaloginda

Reedys

TOTAL

Type ProjectReserve

ClassificationTonnes

Gold Grade (g/t)

Total Ounces

Open Pit Bluebird Probable 1,410,000 1.9 87,000Surprise Probable 136,000 3.0 13,000Batavia Probable 200,000 2.4 14,000Sub-Total Probable 1,746,000 2.0 114,000

Underground Prohbition Probable 1,372,000 4.1 179,000Vivian/Consols Probable 256,000 10.4 83,000Fatts/Mudlode Probable 362,000 4.0 46,000Sub-Total Probable 1,990,000 4.8 308,000

3,736,000 3.51 422,000Meekatharra Package - TOTAL

reed resources may 2011 roadshow presentation

Documents

reed resources

employees of reed

barrambie vanadium reed

mt marion lithium reed

moz meekatharra gold

gold meekatharra

vanadium barrambie

mining company