Presentation to Lithuim Supply & Markets Conference 2014

1 www.reedresources.com

LSM 2014 Presentation

Chris Reed, Managing Director


Summary information: This document has been prepared by Reed Resources Ltd (Reed or the Company) to provide summary information about the Company and its associated entities and their activities current as at the date of this document. The information contained in this document is of general background and does not purport to be complete. It should be read in conjunction with Reeds other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au. Forward-looking information: This document includes certain statements, opinions, projections, forecasts and other forward-looking information which, while considered reasonable by Reed, are inherently subject to significant uncertainties and contingencies. Many known and unknown factors could cause actual events or results to differ materially from estimated or anticipated events or results included in this document. Recipients of this document are cautioned that forward-looking statements are not guarantees of future performance they must make their own independent investigations, consideration and evaluation of the opportunity to invest in the Company. By accepting this document, recipients agree that if they proceed further with their investigations, consideration or evaluation of the opportunity to invest in the Company, they will make and rely solely upon their own investigations and enquiries and will not in any way rely upon this document. Any statements, opinions, projections, forecasts and other forward-looking information contained in this document do not constitute any commitments, representations or warranties by Reed and its associated entities, directors, agents and employees, including any undertaking to update any such information. 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 this document. Financial data: All figures in this document are in Australian dollars (AUD) unless stated otherwise. Not financial product advice: This document is for information purposes only and is not financial product or investment advice, nor a recommendation to acquire securities in Reed. It has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making any investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction.

Investment risk: An investment in securities in Reed is subject to investment and other known and unknown risks, some of which are beyond the control of Reed. The Company does not guarantee any particular rate of return or the performance of Reed. Investors should have regard to the risk factors outlined in this document.

Competent Persons Statement: The information in this document that relates to Barrambie Scoping Study Results, Mt Marion test work results, Barrambie Mineral Resource Estimates and Mt Marion Mineral Resource Estimates is extracted from ASX Releases set out below. The Company confirms that it is not aware of any new information or data that materially affects the information included in the ASX Releases set out below, and in the case of estimates of mineral resources, that all material assumptions and technical parameters underpinning the estimates in those ASX Releases continue to apply and have not materially changed. The Company confirms that all the material assumptions underpinning the production target and the forecast financial information derived from the production target in the Barrambie Scoping Study continue to apply and have not materially changed.

Disclaimer


Company Strategy

01 02 03

Focus on advanced mineral assets

Demonstrate low-cost competitive advantage

Co-venture with strong partners to reduce operating and financial risk


Mount Marion Lithium Project RDR 70%, MIN 30% (Fund and operate)


Flythrough


Captive Resource Strategic Location Mine Ready


Development strategy: de-risk with strong partners

+ =RDR70%

RDR X%

Target 30-40% Low upfront

capital

Mine Spodumene with Mineral

Resources as operators

Value add into Lithium Battery

Materials

Integrated lithium producer


Strong Partner for upstream

Construct processing plant on Build-Own-Operate (BOO) basis, no upfront cost to Reed

Whole of mine lifecycle services

Fund sunk costs to Final Investment Decision (FID) and operate project from mine-to-port

Mineral Resources Ltd are an ASX100 Listed Company worth +A$2 Billion (ASX: MIN)


Scaling Up a New feed for a Mature Technology

Proof of concept Semi-pilot in progress

RIM Process Chlor Alkali Conventional process produces NaOH Our new process produces Li OH

H2O

Na Cl

+

POWER

Na Cl

Na OH

H2

Cl2

Li20 +

POWER

Li Cl

Li OH

H2

Cl2

H Cl


RIM Process Membrane Electrolysis

Ion Exchange

Lithium Chloride Solution

Primary Impurity Removal

Secondary impurity Removal

Ion Exchange

Lithium Hydroxide Solution

Remove Fe, Al, Si

Remove Ca, Mg

Remove trace impurities to


Chlor-alkali Cell


Proof of Concept Results

Items FMC RIM Results LiOH.H2O % Min 56.5 57 Fe ppm 5 3 Na ppm 20 8 K ppm 10 3 Cl ppm 20 15 Ca ppm 15 9 Al ppm 10 1 Ni ppm 10 10 Si ppm 30


Competitors

Input Price US$5,000/t

x 1

Cost US$5,700/t

Input Price US$350/t

x 7.5

Cost US$3,900/t

Sources: SQM (Brine Flowsheet) and Reed internal analysis including 2012 Pre-feasibility Study. All prices are FOB Basis.

Lithium Brine

Lithium Carbonate Technical Grade

Lithium Carbonate Battery Grade

Final Product LiOH Battery Grade

Spodumene Chlorination Purification Electrolysis

Final Product LiOH (BG)

Flowsheet process Operating cost advantage


Pre-feasibility Study Results

All analysis is in US dollars and assumes a selling price of US$ 6,900/t for battery-grade lithium hydroxide and lithium carbonate, a spodumene input cost of US$ 350/t CIF, an AUD exchange rate of US$1.05 and a MYR exchange rate of US$ 0.32. Operating Revenues and Costs are both escalated at 2% per annum. Capital Costs are valid at September 2012 with an indicative accuracy of 35% and a 15% contingency.

Annual Production 10,000t LiOH 8,800t Li2CO3

Life of Mine (LOM) 20 years Life of Mine (LOM) Revenue US$ 3.15 Billion

Pre-tax Cashflow US$ 1.19 Billion

Pre-tax NPV (12% discount rate) US$ 321 million

Pre-tax Internal Rate of Return 94%

Average Net Operating Cost per tonne of recovered LiOH US$ 3,878

Total initial capital costs US$ 83 million

Payback of capital costs 2 years


0

5,000

10,000

15,000

20,000

25,000

Brine-basedexpansion

Brine-basednew project

Spodumene-basednew project

RIM Capex2012 PFS

US$/MT

Capital cost advantage Capital Efficiency (US$/ Production tonne LCE per annum)

LiOH Plant

LiOH

Li2CO3

Li2CO3 Plant

Sources: FMC Corporate Presentation 2011, Reed Pre-feasibility Study 2012, Reed management analysis


Near-term milestones

Nov 2013 March 2014

Proof Of Concept

Operating & Capital Costs Anticipated

Commence Engineering Cost Study

Subject to RIM board approval

Complete Semi Pilot Plant Testwork

June Q2014 Dec Q2014

Commence Semi Pilot Plant Testwork

Continue to prove technical feasibility, product quality Attract LiOH JV Partner

17 www.reedresources.com www.reedresources.com

Financial Resources


Rebuilding the Balance Sheet

Cash at Bank $8.7M [31 March 2014]*

Comet Vale $2M cash sale, majority settlement est before end June 14

Market Cap $13M @ 2.5 per share

Meekatharra $3.4 M cash + cancellation of 24M RDR shares**, settlement est 30 June Mt Finnerty Iron underway

* Includes $6.2M of restricted access term deposits ** Subject to creditor and shareholder approval


Focus


Downstream Strategy

Commerc- ialisation

Partner Qualification

Demonstrate Consistent Quality

Demonstrate Technical Feasibility

21 www.reedresources.com www.reedresources.com

Thank you

Slide Number 1DisclaimerCompany StrategySlide Number 4Flythrough Slide Number 6Development strategy:de-risk with strong partnersStrong Partner for upstreamScaling Up a New feed for a Mature TechnologyRIM ProcessChlor-alkali CellProof of Concept ResultsOperating cost advantagePre-feasibility Study ResultsCapital cost advantageNear-term milestonesSlide Number 17Rebuilding the Balance SheetSlide Number 19Slide Number 20Slide Number 21

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Presentation to Lithuim Supply & Markets Conference 2014