Building value through innovation

Building value through innovation AMCHAM Business Briefing 18th February 2014

www.reedresources.com

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Disclaimer 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 Reed’s 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.

Competent Persons Statement: The Company confirms that it is not aware of any new information or data that materially affects the information included in the following ASX Releases during 2013 and subsequently reported herein:

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.

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Synopsis Majority price takers

underlying demand fundamentals

Next generation of deposits deeper

higher mining costs

Declining grades of current deposits

higher processing costs

Processing technologies www.reedresources.com

reduce costs

increase revenue

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Company Strategy

01 Focus on advanced mineral assets www.reedresources.com

02 Demonstrate low-cost competitive advantage

03 Co-venture with strong partners to reduce operating and financial risk 4

Advanced materials Lithium

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Mount Marion Lithium Project RDR 70%, MIN 30% (Fund and operate) www.reedresources.com

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Megatrend - rechargeable Lithium batteries Li2CO3 LI2CO3

11,000

350,000

10,000

300,000

9,000

250,000

8,000

200,000 Current Price US$7,500

7,000

150,000

6,000

100,000

5,000

50,000

0

Demand in metric tonnes of lithium carbonate equivalent (LCE)

LiOH Price US$ per tonne

LiOH

0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

LiOH: Lithium hydroxide Li2CO3: Lithium carbonate

www.reedresources.com Demand & Price Forecast Source: signumBOX

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Global Supply and Demand

China 6%

FMC 8%

Other 7%

Australia 40% Mineral source

www.reedresources.com Sources: Roskill (2013) and Reed Management analysis

SQM 27%

Rockwood 12%

Brine source 8

Flowsheet cost process Operating advantage Competitors

Input Price US$5,000/t x1

Lithium Brine

Lithium Carbonate Technical Grade

Lithium Carbonate Battery Grade

Cost US$5,700/t

Input Price US$350/t x 7.5 Final Product LiOH Battery Grade

Spodumene

Chlorination Purification Electrolysis

Final Product LiOH (BG)

Cost US$3,900/t

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

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New Feed | Mature Technology Chlor Alkali

Conventional process produces NaOH

RIM Process

Our new process produces Li OH

Li OH

Na OH POWER H2O

Li20 H2

+

Na Cl

POWER

+

H2

H Cl

Li Cl Cl2

Cl2

Na Cl

Proof of concept ďƒž Semi-pilot in progress

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Capital cost advantage Capital Efficiency (US$/ Production tonne LCE per annum) 25,000 US$/MT

20,000

LiOH Plant

15,000

10,000

Li2CO3 Plant

5,000

LiOH Li2CO3

0 Brine-based expansion

Brine-based new project

Spodumene-based new project

www.reedresources.com Sources: FMC Corporate Presentation 2011, Reed Pre-feasibility Study 2012, Reed management analysis

RIM Capex 2012 PFS

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Captive Resource www.reedresources.com

Strategic Location

Mine Ready 12

Development strategy: de-risk with strong partners Target 25-35% RDR X%

RDR 70%

=

+ Mine Spodumene with Mineral Resources as operators www.reedresources.com

Low upfront capital

Value add into Lithium Battery Materials

Integrated lithium producer

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Near-term milestones

Proof Of Concept

Complete Semi Pilot Plant Testwork

Commence Engineering Cost Study

Continue to prove technical feasibility, product quality

Nov 2013

April 2014

Operating & Capital Costs Anticipated

Attract LiOH JV Partner

June Q2014

Dec Q2014

Subject to RIM board approval

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Barrambie Titanium Project

100% RDR www.reedresources.com

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Increasing Demand and Price 4000

12000

3500 10000 3000 8000 2500 TiO2 Price 2000

6000

1500 TiO2 Demand

4000

1000 2000 500

TiO2 Price US$ per metric tonne

TiO2 Global Demand ()volume tonnes

TiO2 Demand vs Price

0

0 1980

1985

1990

www.reedresources.com Source: US Geological Survey, Industrial Minerals and TZMI Data

1995

2000

2005

2010

2013

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Strong long term fundamentals Developing Economies Pigment Use Growing with GDP 5

Pigment (Kg) Person

4

North America

3

Europe 2

Japan China

1

Global India

Asia

0 5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

REAL GDP/CAPITA (US$)

www.reedresources.com Source: Iluka

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99.9% Pure TiO2 from Ground Ore Competitors

Rutile or Synthetic Rutile

Chlorination & Purification

Final Product Fine Pigment

www.reedresources.com Source: Snowden Scoping Study 2013 and Reed management analysis

ROM Ore

Chlorination & Purification

Final Product Fine Pigment

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Potential lowest quarter operating costs Competitors Input Price US$1,000/t X1.2t

Rutile

Chlorination & Purification

Input Price US$150/t X 4t Final Product Fine Pigment

Cost US$1,900 2,100/t

ROM Ore

Chlorination & Purification

Final Product Fine Pigment

Cost US$1,214/t

Proof of concept ďƒž Mini-pilot in progress www.reedresources.com Source: Snowden Scoping Study 2013 and Reed management analysis

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Barrambie - the world’s 2nd highest grade TiO2 deposit

1

2

34%

22%

Lac Tio

Barrambie

3 18% Tellnes Sources: company reports

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www.reedresources.com

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Commercialisation timeline Test Work

Evaluation

2012

2013

2014

2014/2015

1.

3.

5.

Bench scale

Mini-pilot

Pilot

2.

4.

6.

Scoping Study

Pre Feasibility Study

Definitive Feasibility Study

Subject to Board Approval www.reedresources.com

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Near-term milestones Scoping Study +/- 35% accuracy

Nov 2013

Obtain technology licence

Dec 2013

Mini-pilot plant

Mar Q2014

Commence Prefeasibility

Pre Feasibility Study

Study

Results

April 2014

Oct 2014

Subject to board approval

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Financial Resources

www.reedresources.com www.reedresources.com

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Rebuilding the Balance Sheet

Cash at Bank $10M [31 Dec 13 ]*

Market Cap

$25M @ 4.7c per share

* Includes $6M of restricted access term deposits www.reedresources.com

Comet Vale $2M Sale

Meekatharra Mt Finnerty Iron & Gold Sale process commenced 25

Focus www.reedresources.com

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Realise inherent value of assets 175

Mt Marion

Barrambie

Meekatharra

Market Capitalisation A$m

150

125

100

75

GFC

50

25

0 Jul-06

Jan-07

Jul-07

Jan-08

Jul-08

Jan-09

Jul-09

Jan-10

Jul-10

Jan-11

Jul-11

Jan-12

Jul-12

Jan-13

Jul-13

Jan-14

RDR Goldindex (XGD)

www.reedresources.com Source: Datastream

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Thank you Presentation design by www.reedresources.com

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