Page�1

DIGGERS�PRESENTATION

AUGUST�2011

Chris�Reed�– Managing�Director

ASX:�RDR

www.reedresources.com

Page�2

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.

Page�3

Market�Capitalisation

Last�price�(29�July�11) $ 0.44

Shares�on�issue $ 262.2

Market�capitalisation $m 115

Cash�(est.�end�July) $m 16.6

Debt $m 0.0

Enterprise�value $m ~100

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

� Proven�strategy�to�acquire�and�develop�undervalued�assets across�varying�commodities�

� 3�company�making�projects across�gold,�lithium�and�vanadium

12�Month�Share�Price

Background

Reed�Corporate�Snapshot

Substantial�Shareholders

David�Reed 8%

M�&�G/Vanguard 5%

SG�Hiscock 5%

Page�4

Project�Summary

GOLD LITHIUM VANADIUM Other�Assets

100% 70% 100%100%

Production�by�Dec�12

Stand�aloneSPV

Stand�aloneSPV

Incubate�&�Develop

Resource

JV�Partners

Reed�Share

Target�Production

TotalFunding

14.9Mt�@�1.3%�Li2O2.75Moz�(contained) 65.2Mt�@�0.82%�V2O5

Mineral�Resources�(ASX:�MIN)

China�Nonferrous�Metal�Industry�(NFC)

Iron�ore�(Reed�20%)

�JV�with�Cliffs�Natural�Resources�for�DSO�at�Mt�Finnerty

�Maiden�JORC�resource�4.7Mt�@�53.5%�Fe

Nickel�(Reed�60%)

�JV�with�Barranco�Resources�at�Mt�Finnerty

�Prospective�for�nickel�sulphide

Other�(Cu,�Au)

n/a

$40�million�(inc.�BOO)$33�million�(to�DTM)

$6m remaining

TBA

100% 0% TBA

December�Qtr,�2011December�Qtr,�2012 2014

Strategy

Page�5

Meekatharra�Gold�Project�Update�(Reed�100%)

� 3�Mtpa�processing�plant

� 180�man�camp

� Low�Capex�re�start

Resource�Inventory

NOW 48Mt�@�1.7g/t� 2.75Moz

Reserve�Inventory

NOW 4.2Mt�@�3.4g/t 559Koz

Page�6

$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

Average�$56/oz

Reed�acq.�$11/oz

Source:�IRESS,�ASX,�company�reports

Page�7

Regional�Location

Page�8

Meekatharra�Fly�Through

Page�9

Bluebird�Pit

Page�10

Prohibition�Pit

Page�11

Paddys�Flat�Underground

Page�12

Southern�Group�Long�SectionReedys

Reedys Tonnes(Mt)

Grade(g/t)

Gold(koz)

Resource 4.9 2.5 395

Reserve�(o/p) 0.4 2.9 37

Page�13

Reed�Turnaround�Strategy

Initial�4�5�year�sustainable�production�profile�100�– 120Kozpa

Results�to�Date Target

�Results Feb�2011 Aug�2011 IncreaseResource 2.5Moz 2.8Moz �12%

Reserve 420koz 559koz �32%

Reserve�(o/p) 114koz 250koz �119%

Page�14

Meekatharra�Summary

Reed�is�re�establishing�the�integrity,�credibility�and�value�of�the��Meekatharra�Gold�Project

� Careful�planning�and�compliance

� Detailed�evaluation�and�feasibility�studies

� Reliable�development�schedules

� Sustainable�operations

Page�15

Mt�Marion�Fly�Through

Page�16

Lithium�Strategy�– Integrated�Producer

Page�17

Lithium�Resource�Estimate

Mt�Marion�(100%�basis)

Tonnes(Mt)

Li�Grade(%�Li2O)

Fe�Grade(%�Fe2O3)

Measured 2.0 1.45 0.9

Indicated 4.8 1.39 1.2

Inferred 8.1 1.3 1.3

Total 14.9 1.3 1.2

Page�18

Comparison�– Australian�Lithium�Mineral�Producers

Source:�Reed�Resources�Ltd

Talison�� Greenbushes

�Incline�vein�pegmatite

�Head�grade�3%�Li2O

�Glass,�ceramic,�chemical�grade

�Strip�ratio�5.6:1

Deposit�Comparisons

Reed/MIN�– 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

Page�19

Barrambie�Fly�Through

Page�20

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

Page�21

The�2011�CRU�Commodity�Price�Ladder:

1.�Vanadium2.�Manganese3.�Cobalt4.�Molybdenum5.�Nickel6.�Copper7.�Iron�Ore8.�Uranium9.�Sulfur10.�Alumina11.�Lead12.�Zinc13.�Tin14.�Silver15.�Coking�Coal16.�Metallurgical�Coke17.�Aluminium18.�Palladium19.�Gold20.�Tungsten

Page�22

$0

$100

$200

$300

$400

$500

$600

$700

$800

Largo American�Vanadium

Atlantic Apella TNG Energizer Sino�Vanadium

Yellow�Rock

EV�/�Resource�Multiple�($/t�V2O5)

Potential�valuation�range�of�$100�� 400/t�V2O5

Mean $251/t V2O5

Vanadium�Peer�Comparisons�

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

valuation�of�$53�� $214mSource:�Bloomberg,�ASX,�company�reports

Page�23

Board and Senior Management

David ReedFCPA, OAM Executive Chairman

Steven ColeLlb(Hons), FAICDNon-Executive Director

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

Chris ReedBCom, GradCertMinEcon, MAusIMMManaging Director and CEO

Craig Fawcett BSc(Hons), GDipMiningGeneral Manager - Gold

Ian Junk BEng(Hons), MAusIMMNon-Executive Director

Jason Carone BCom, CAFinancial Controller and Company Secretary

Dr Vanessa GuthrieBSc (Hons), PhD, GDBMNon-Executive Director

Darren WatesLegal Counsel and Company Secretary

Page�24

Reed Technical Staff

David HollingsworthSenior Exploration Geologist

Elizabeth Jones Snr Planning Engineer

Matt SchembriResource Geologist Open Pit

James LawrenceResource Geologist Underground

Jeremy WatkinsProject Manager – Gold

Dudley KingsnorthConsultant Lithium

Tony SimpsonConsultant Vanadium

Dr Bryan SmithConsultant GeologistLithium/Vanadium/Nickel

Bill Crossley Project Manager – Lithium/Vanadium

Page�25

Summary

� Staged�production�profile�with�Mt�Marion�on�line�March�Qtr�2012

� 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�$0.44)

*�Subject�to�Decision�to�Mine

Page�26

Appendix�1

COMPETENT�PERSONS�STATEMENTGeological�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.

JORC�Statement

Page�27

Appendix�2

Notes:

1.Resources� and� Reserves� comply�with� the� Australian� JORC� reportingguidelines

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,�4,5,6 Measured 2.0 1.45 29.2

Indicated 4.8 1.39 66.3

Inferred 8.1 1.3 105.1

Total 10.5 1.4 193.7

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