Mt Marion Final Drill Results and Development Timetable

March 4, 2010

Australian diversified resources company Reed Resources Ltd (ASX: RDR) (the “Company” or “Reed”), together with joint venture partner Mineral Resources Limited (ASX: MIN) (“Mineral Resources”), remains on track for a Q1 2011 first shipment from the Mount Marion Lithium Project in the goldfields region of Western Australia (refer Fig 1), with the completion of Phase 2 resource extension drilling confirming multiple, stacked, high-grade pegmatites at the Nos 1, 2, 2W and 5 Deposits.

“With the completion of the two phases of drilling, a total of 197 vertical holes have been drilled for an aggregate of 9,959 metres at four of the six known deposits on the Mt. Marion tenement,’ Said Reed Resources Managing Director, Mr Chris Reed. “The structure of the pegmatite deposits is relatively simple, forming a series of sub-parallel stacked sills that dip at 10-20 degrees to the west,” he added.

For the second phase of RC drilling when using a cut-off grade (“COG”) of 0.5 % Li₂O the average thickness of the intercepts is 5.8 metres at a grade of 1.35 % Li₂O and 1.42 % Fe₂O₃. Deposit 5 is thinner than the other three Deposits that have been drill tested to date and, if excluded, then the average thickness of the mineralized pegmatite intercepts is 8.6 metres at a grade of 1.37 % Li₂O and 1.07 % Fe₂O₃. Intercepts of 10 metres or greater, at a COG of 0.6 % Li₂O, are listed in Table 1. All intercepts at a COG of 0.5 % Li₂O are included in Appendix A for the three deposits that were drill tested during the second phase of RC drilling.

Table 1: High-grade intercepts (>0.6% Li₂O) with a down-hole length in excess of 10metres (full details in Appendix A).

FORWARD WORK

The Joint Venturers expect to mobilise a processing plant and related equipment with a production rate of 17,000 tonnes per month of +6.5% Li₂O concentrate in 2010 subject to a decision to mine and obtaining all necessary approvals, the development timetable is below.

Competent Persons Statement

Geological aspects of this report that relate to Exploration Results have been compiled by Dr Bryan Smith (MAIG), a consultant to Reed Resources Ltd. Dr Smith 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. Dr Smith consents to the inclusion in the report of the matters in the form and context in which it appears.

Although Reed remains optimistic about the potential of the Mount Marion project, any reference to the terms “ore” and “high-grade” in this report is conceptual in nature. Use of the term “grade(s)” is not intended to represent the grade of a resource.

Appendix A

Summary of all intercepts of mineralisation for all assays with greater than 0.5% Li₂O, continuous throughout each intercept.

NOTES:

1. Collar coordinates are for a local grid as illustrated in Figure 1
2. All holes at Deposits 1, 2 and 2W were drilled vertically while most of the holes at Deposit 5 were drilled at a 60 degree dip. The holes reported here were drilled to depths of between 6 and 152 metres.
3. All depths and intercept lengths are down-hole distances and not intended to represent the true width of high-grade bands.
4. All samples analysed by Genalysis Laboratories , Maddington, WA. Samples were sorted, dried, split and pulverised then prepared as fused discs for analysis by X-Ray fluorescence spectrometry (method XRF01) for Fe, Si, Al, Mg, Ca, Mn, P, K, Na,Ta and Nb. Li was assayed by Atomic Absorption Spectrometry (AAS) following multi acid digest and LOI by gravimetric method. QA/QC was monitored using duplicate samples and a sample of Certified Reference Material (CRM) included at random among batches of samples and submitted blind to the laboratory; and analysis of pulverised CRMs and Reed standards have also been included sample batches.
5. Grades are reported as Li₂O and Fe₂O₃, in accordance with convention for reporting this style of mineralisation.
6. Holes that that did not intersect significant mineralisation (i.e., intercepts <0.4 % Li₂O) are not listed.
7. Spacing of the drill holes has ranged from 30m x 30m to 80m x 40m. At the No.1 and No.2 Deposits the average depth of the holes was 40 metres (Figure 1). The depths of the holes drilled at the No.2W Deposit averaged 75 metres with the deepest hole being 152 metres, while the average depth of the drill holes at the No.5 Deposit was 44 metres.