Company Update

May 2012

Reward Minerals Limited

ASX:RWD

Disclaimer

1

This Presentation is provided on the basis that neither the Company nor its respective

officers, shareholders, related bodies corporate, partners, affiliates, employees,

representatives and advisers, make any representation or warranty (express or implied) as

to the accuracy, reliability, relevance or completeness of the material contained in this

Presentation and nothing contained in the Presentation is, or may be relied upon, as a

promise, representation or warranty, whether as to the past or the future. The Company

hereby excludes all warranties that can be excluded by law.

The Presentation contains prospective financial material which is predictive in nature and

may be affected by inaccurate assumptions or by known or unknown risks and

uncertainties and may differ materially from results ultimately achieved.

All persons should consider seeking appropriate professional advice in reviewing the

Presentation and all other information with respect to the Company and evaluating the

business, financial performance and operations of the Company. Neither the provision of

the Presentation nor any information contained in the Presentation or subsequently

communicated to any person in connection with the Presentation is, or should be taken as,

constituting the giving of investment advice to any person.

Snapshot

2

Capital Structure

Name Shares (m) %

Michael Ruane 19.3 26.2

Other Directors 5.8 8.0

Top 20 Shareholders 43.7 59.9

Ordinary Shares on Issue 31-May-12 73.6m

Options on Issue1 31-May-12 5.4m

Share Price 31-May-12 A$0.70

Undiluted Market Capitalisation 31-May-12 A$51.5m

Debt 31-May-12 Nil

Cash 31-May-12 A$4.15 m

Undiluted Enterprise Value 31-May-12 A$47.4m

Major Shareholders

1. Issued options includes 2.4m options expiring 31 August 2014 with an exercise price of $0.50 and 3.0m options expiring 5 January 2016 with an

exercise price of $0.45. On confirmation of the Clearance Survey, a further 2.0m options expiring four years from the date of issue with an exercise

price of $0.45 and 4.5m options expiring four years from the date of issue with an exercise price of $0.50 will be issued. Further options are

issuable to WDLAC on achievement of certain milestones being 3.0m options on Decision to Mine and 7.5m options on Commencement of Mining

(both tranches with an exercise price of $0.50 and 4 year term from date of issue).

ASX:RWD

Colin McCavana Non Executive Director, Chairman

31+ years experience in the mining and earthmoving industries

FAICD and member of Australasian Institute of Mining and

Metallurgy

Director of Northern Minerals, and previously Director of Jinka

Minerals Ltd

Dr Michael Ruane Managing Director

PhD (Chemistry) MRACI

30+ years experience as a technical consultant in the chemical and

metallurgical fields

Director of Intermin Resources Ltd and Heartlink Ltd and previously

Director of Jinka Minerals Ltd

Cyrille J Van Heyst Non Executive Director

40+ years experience as a Director of numerous listed companies

Previously a Director of Jinka Minerals Ltd

William Paul Brooks Non Executive Director

28+ years experience in the exploration and mining industry

Involved in many exploration joint ventures and project agreements

with major and junior companies in the Goldfields

Previously Director of Jinka Minerals Ltd

Board

Investment Highlights

3

Single focus small cap company with significant Potash resources in surface/lake

brine deposits in Australia

Resources of 24.4 Mt of SOP in Lake Disappointment, WA + 20.5 Mt SOP in Lake

Mackay, WA – high sulfate brine sources

Numerous buried evaporite Potash targets held under tenure in Australia

Plan to produce SOP – a premium product with limited supply – strong market

fundamentals

Low technical risk – Potash production from high sulfate brines uses established

technology - Low end of capital and production cost curves

Favourable geographic locations provide high evaporation rates

Agreement with Traditional Owners signed in December 2011 paving the way for rapid

development of the Lake Disappointment SOP project

Clearance Heritage Survey conducted late February 2012. Survey Report approved

by WDLAC in May 2012. Lodgement of Mining ILUA expected in early June 2012

Potash Overview

4

Potash is a generic term for various

potassium (K) salts

Used primarily as a fertiliser

– One of three primary agricultural

nutrients

– Increases yields, water retention and

disease resistance

Global consumption of approx. 50 mtpa

Potash

Two main forms

– Muriate of Potash (MOP) – KCl

– Sulphate of Potash (SOP) – K2SO4

Currently no production in Australia

Australia Potash consumption ca 500 Kt/a

Potash Pricing

5

SOP generally trades at a premium to MOP, it is a niche product which is better

suited to certain agricultural production.

0

200

400

600

800

1000

1200

1400

Jan 06 Jul 06 Jan 07 Jul 07 Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 Jan 11 Jul 11 Jan 12

Price (

US

$/t)

MOP Price SOP Price

Declining food prices during

global financial crisis led

farmers to reassess the

economics of fertilizer use

resulting in excess capacity

Accelerated demand

due to peak grain

demand / shortages

Potash consumption is

recovering and prices

have increased

Source: Bloomberg as at 4-Apr-12, World Bank MOP Standard Grade FOB Price, Green Market SOP California Price.

SOP Production Methods

6

Process Method

% of World Capacity

Process Inputs

Products

Cost (US$/t)

Company

Mannheim 60%

MOP

Sulfuric acid

Energy

SOP

Hydrochloric acid $500

Tessenderlo

Qingshang

Yara

MOP and

Kieserite 25%

MOP

Kieserite

Energy

SOP

Magnesium chloride $350 K+S Kali

Salt Lakes 15% Lake brines

Energy

SOP

Magnesium chloride

Sodium chloride

$220

Compass Minerals

SQM

Luobupo Potash

Polyhalite Leach -

Polyhalite

Water

Energy

SOP

Kieserite $162 IC Potash Corp

Production of SOP from salt lakes is proven technology and is generally a

lower cost method of production.

Source: IC Potash.

SOP global market size of approx. 4mtpa (<10% of total Potash market)

Preferred over MOP for chloride sensitive crops (fruits, vegetables, tobacco and potatoes)

Produced either through upgrading MOP (expensive) or directly from salt lakes/high sulfate

brines

Mineral Production from Salt Lakes

7

SQM/Chemetall Salar de Atacama

Lithium products

Potash (SOP, MOP)

Boric acid

Magnesium chloride

FMC Lithium Hombre Muerto

Lithium products

Potash (MOP)

Qinghai Guoan Dongtai and Xitai Salt Lakes

Lithium products

Tibet Zabuye Zabuye Salt Lake

Lithium products

Qinghai Salt Lake Dongtai Salt Lake

Lithium products

Potash (MOP)

Sentinent Group Salar del Rincón

Lithium products

Chemetall Silver Peak

Lithium Products

Compass Minerals Great Salt Lake, Big Quill Lake

Potash (SOP)

Magnesium chloride

Intrepid Potash Wendover, Moab

Potash (MOP)

Rio Tinto Lake Macleod

Sodium chloride

Arab Potash Company Dead Sea (Jordan)

Potash (MOP)

Sodium chloride

Magnesium chloride

Xinjiang Luobupo Potash Lop Nur

Potash (SOP, MOP)

Dead Sea Works Dead Sea (Israel)

Potash (MOP)

Sodium chloride

Magnesium chloride

Various other mineral products are also produced from salt lakes globally,

using similar production concepts planned by Reward.

Typical SOP Production Process

8

Saline water is drawn into shallow solar evaporation ponds where the water is

naturally evaporated by the sun and wind before the SOP salts are harvested.

Note: Not all photographs are of Lake Disappointment.

Typical SOP Production Process

9

pulp

Schoenite pulp

Bitterns + NaCl

SOP pulp

SOP

SOP

water

Schoenite solids

brine to SOP ponds or lake

NaCl tailings settling pond

Harvested SOP salts

Milling / conversion

Schoenite filtration

SOP crystallisation

SOP filtration

Drying Compaction

Schoenite flotation

START

FINISH

Typically, harvested SOP salt is put through a milling, flotation, filtration and

crystallisation process before it is ready to be distributed.

Source: Sulphate of Potash Information Board.

Lake Disappointment – Highlights

10

JORC compliant resource of 24.4 Mt of SOP

(From 0-4m depth)

Chemistry similar to Great Salt Lake – high

sulphate brine

Mining and Indigenous Land Use Agreement

signed December 2011

Further feasibility studies to commence early

2012

Proven production techniques

– Brine collected via lakebed trenches

– Solar evaporation of brines to precipitate

crude Potash salts

– Flotation processing to refine Potash

harvest

Lake Disappointment – Resource

11

JORC compliant

Indicated Resource of

7,705 Bt at 3.17kg/t

K2SO4 for 24.4 Mt

contained K2SO4

Based on 30 holes

drilled on a 5km x 5km

grid

Brine samples drawn

from drill holes

returned SOP values

up to 20.0g/L (ave

12.6g/L)

Heavy brine flow

encountered in all

holes

Infill drilling on 2km x

2km grid to be

completed Q3 2012 to

upgrade resource

status for DFS

Drilling outside the

Lake to assess

additional resource

potential

Lake Disappointment – Brine Parameters

12

Total dissolved solids 293 g/L

Specific gravity 1.19 g/L

NaCl 238 g/L

K2SO4 12.19 g/L

MgSO4 22.65 g/L

MgCl2 5.51 g/L

NaCl/K2SO4 19.5:1

Lakebed solids % brine 30.5%

Lakebed solids specific gravity 1.95 tonne/m3

Brine composition 12.19 kg SOP/m3

Lakebed solids 3.72 kg SOP/m3

Potash Demand

13

Demand and growth by Region Demand by region, 2011

East Asia 28.9%

Latin America 16.4% North

America 15.2%

South Asia 12.3%

West Asia 11.6%

West Europe 6.7%

East Europe and Central

Asia 4.0%

Central Europe 2.3%

Africa 1.5%

Oceania 0.9%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Com

pound a

nnual gro

wth

rate

2011-2

015 (

%)

2011 D

em

and (

thousand t

onnes K

20)

Source: FAO 2011 fertilizer report

Strong growth in demand is expected in key markets of China, India and Brazil.

Demand (LHS) 2011 - 2015 CAGR (RHS)

Potash Market – Regional Issues

14

South America Isolated reserves

High capex for infrastructure

Political uncertainty

By-product only from salar

North America Isolated reserves

Strength of incumbents

High capex

Distance to target markets

Lack of product differentiation

High tax liability

Swing producers

Africa Politically insecure

Higher risk premium

Limited Potash experience

Reliance on Chinese

involvement

Oceania Limited Potash experience

Early stage projects

Low Potash grades

Asia Operating difficulties

Political uncertainty

Low Potash grades

CIS Political uncertainty

Higher inflation forecast

Europe Declining reserves

High operating costs

Distance to target market

Proximity to Key Markets

15

Reward’s geographic location places it in close proximity to key Asian markets, which

collectively accounted for over 50% of global Potash demand in 2011

West Asia

11.6% of

Global Demand

2011

East Asia

28.9% of

Global Demand

2011 South Asia

12.3% of

Global Demand

2011

Reward

Source: FAO 2011 fertilizer report

Reward’s Other Potash Projects

16

Complementing its flagship Lake Disappointment Project, Reward has a suit of

projects across Australia.

Lake Mackay Project (100%) Pre-Feasibility

JORC Inf. Res. 20.56Mt SOP

Land access negotiations in

progress with Traditional Owners

Officer Project (100%) Exploration

15 licences covering 3,900km2

Large sedimentary basin with

extensive salt horizons

Potential to host a world class

Potash deposit

Karinga Lakes Project (29%) Exploration

5 exploration licences covering

1,801km2

JV with ASX:RUM

Adavale Project (100%) Exploration

3 licences covering 790km2

Tenements over freehold

land

Development Plan

17

Activity

Timing

1. Appoint Lake Disappointment Project Director Done

2. Finalise native title clearance survey with

WDLAC/Martu and register ILUA Done

3. Register Mining and Indigenous Land Use Agreement June 2012

4. Lodge Applications for project Mining Lease and

Miscellaneous Licences Done

5. Conduct infill drilling of Lake Disappointment to

upgrade/expand the resource base Within 8 weeks of Permit availability

6. Construct new access road to Lake Disappointment Awaiting Permits - construction to

immediately follow approvals

7. In house evaporation trial Completed - awaiting analytical

results

8. Pilot Evaporation Trial – Lake Disappointment Awaiting S18 approval to commence

- 3 months trial duration

9. Conduct independent scoping study Commence on receipt of evaporation

trial results - 6 months to complete

10. Progress Lake Disappointment definitive feasibility

study

Post scoping study - 6 months

completion period

Competent Person Statement

18

Reward Minerals Ltd advise in accordance with ASX Listing Rule 5.6 that resource

parameters provided in this presentation are based on information compiled by Mr

Nigel Cranley who is a member of the Australian Institute of Geoscientists and a

Member of the Australasian Institute of Mining and Metallurgy and is a technical

consultant to Reward Minerals Ltd. Mr Cranley has sufficient experience that is

relevant to the style of mineralisation, type of deposit under consideration and to

the activity that he is undertaking to qualify as a Competent Person as defined in

the 2004 edition of the ‘Australasian Code for Reporting of Exploration, Results,

Mineral Resource and Ore Reserves’. Mr Cranley consents to the inclusion in this

presentation of the matters based on his information in the form and context in

which they appear.

159 Stirling Highway, Nedlands WA 6009 | PO Box 1104, Nedlands WA 6909

T: 08 9386 4699 E: admin@rewardminerals.com

F: 08 9386 9473 W: www.rewardminerals.com