Reed Resources

Construction and Financing Update - Meekatharra Gold Project

~$40m underwritten Rights Issue closed.

Mandate for $23m debt and hedging facility signed with Barclays.

70,000oz of gold put options (A$1,560 strike) purchased.

Plant refurbishment on schedule and within budget.

Notice of change of interests of substantial holder

Form 604 Change of interests of sub holder

Becoming a substantial holder

Change in substantial holding

Entitlement Offer - Close and Shortfall

Quarterly Cashflow Report

Quarterly Activities Report

Meekatharra Gold Project

Mineral Resources Increase 11% to 3.59 Moz, Ore Reserves Increase by 40% to 752 Koz Au,

Stage 1 Bankable Feasibility Study completed, A$66m Net Cashflow over 19 months,

Board makes Decision to Mine, subject to equity and debt financing arrangements,

Project execution commenced, on track for first gold production in December Q 2012.

Mt Marion Lithium Project

Reviewing timing/production profile pending evaluation of mica production.

Barrambie Fe-Ti-V Project

Expanded Concept Study to recover titanium and vanadium units from concentrates.

Corporate Update

As of 31 March 2012, the Company had $9.9 million in cash and term deposits, including $9 million in restricted use term deposits supporting performance bonds,

Subsequent to the end of the quarter, on 2 April 2012, Reed Resources launched an underwritten, non-renounceable A$40 million entitlement offer to primarily fund the development of its 100%-owned Meekatharra Gold Project in Western Australia.

Debt Funding - Meekatharra Gold Project

Barclays Bank PLC have been mandated to act as arranger in providing finance of up to $23 million for the Meekatharra Gold Project by way of a $20 million Revolving Working Capital Facility and a $3 million Performance Bond Facility.

Together with Reed’s $40 million underwritten rights issue, the working capital facility will provide the funding required for ongoing production and general development activities at Meekatharra.

Change in substantial holding