The Mt Marion Lithium Project, which is located in Western Australia, is being jointly developed by Reed Resources and Mineral Resources Ltd.

The lithium is hosted in a mineral known as spodumene - which is hosted in a hard, granite-like rock. Lithium bearing material of this nature is traditionally mined and crushed and sold to processors who further process it into lithium carbonate for use in batteries or use it in glass making and ceramics industries. There are a number of other uses for lithium, however, these two sectors make up for about half of the lithium consumed to date.

Reed Resources and Mineral Resources signed a farm-in agreement in October 2009 which sees Reed retain 100% ownership of the project while Mineral Resources will fund all development costs and build, own and operate the processing facilities in order to earn a 40% share of net profit.

Under the terms of the agreement, Mineral Resources will deliver an operations commencement notice by June 30, 2010 and operations are to commence by March 30, 2011.

The most recent resource definition programme has defined a resource of 10.5 million tonnes @ 1.4% Li₂O for 146,500 tonnes of contained Li₂O. The resource is open along strike and down dip. This resource figure was released in August 2010.

The Joint Venture Partners 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 early 2011 subject to obtaining all necessary approvals.

Project History

The Mt Marion Lithium Project is located approximately 40km south west of Kalgoorlie, Western Australia.

The Mount Marion Lithium project comprises two Mining Lease applications, M15/999 and M15/1000, which cover the outcropping pegmatites.

During the 1960’s - 1980’s, Western Mining Corporation (WMC) carried out extensive exploration on the Mount Marion tenements and completed a study which considered mining, beneficiation and chemical processing to produce 5,000t of lithium carbonate per annum over a mine life of 10 years.

In 1996, Associated Minerals Pty Ltd completed a prefeasibility study to produce lithium and potassium products. Pilot test work has produced spodumene (lithium) concentrates of 6.5 to 7 % Li₂O, with lithium recoveries of between 75 and 83%.

The Company will be targeting a Mineral Resource of 7-8Mt of spodumene pegmatite at a grade of ~1.5% Li₂O. This is based on a previous review of historical estimates of reserves that was undertaken as part of the pre-feasibility study in 1996 and reported in accordance with the JORC Code (1989). The review confirmed the original resource/reserve estimates by Western Mining Corporation (WMC) in the 1970s, supported by some check drilling in the 1990’s. This work identified reserves of 1.49 Mt at an average grade of 1.67 % Li20 in the No.1 deposit (refer Figure 2), including ‘proved reserves’ of 0.54 Mt at 1.9% Li₂O and ‘probable reserves’ of 0.95 Mt at 1.5% Li₂O (at a cut-off grade of 1.2% Li₂O and bulk density of 2.80 t/m3).

In addition, the review also confirmed a resource of 1.0 Mt at 1.5% Li₂O at depth in the No.1 deposit (using a 1.2% Li₂O cut-off grade); ‘probable reserves’ of 0.3 Mt at 1.2% Li₂O in the No.2 deposit; and resources of 0.8 Mt at 1.17% Li₂O in the No.2 West deposit and 0.3 Mt at 1.3% Li₂O in the No.4 deposit (Figure 2). A minimum cut-off grade has not been applied at the No.2, No.2 West and No.4 deposits. Strip ratios for the deposits ranged from 1:1 to 2:1.

2010-08-18 00:20:18

August 12, 2010

Mineral Resource Estimate at Mt Marion Lithium Project increased by 18%

A re-estimation has increased resource classification.

Total Resources increase a further 18% to 10.5Mt @ 1.4% Li₂O.

2.1Mt @ 1.5% Li₂O now in Measured Resource.

All deposits remain open along-strike and down-dip.

July 16, 2010

Mt Marion Lithium Project ‐ Decision to Mine

Reed has received “Commencement of Operations” notice from Mineral Resources Limited.

Mt Marion Lithium Project to commence production by March 2011 – subject to receipt of approvals.

Initial production rate of 200,000tpa of spodumene concentrate will make Mt Marion the world’s second largest hard rock lithium operation.

Scope of Joint Venture expanded to cover potential by-products of mica, tantalum and potash feldspars.

Reed has exercised its option to acquire 100% of the granted mining leases which cover the project.

Clearing permit approved. Mining proposal and works approvals submitted.

Discussions are continuing with domestic and international parties on toll conversion and joint venture arrangements for downstreaming to battery grade lithium carbonate.

July 1, 2010

Extension of Earn-In Period

Release of Operations Commencement Notice due within approximately two weeks.

Clearing permit approved. Mining proposal and works approvals near completion.

“This project is in an exciting stage and, following receipt of the outstanding approvals, we are looking forward to progress with the operational phase and working further with Reed to establish Australia’s premier lithium project” said Mineral Resources Ltd Managing Director, Mr Peter Wade.

June 15, 2010

Positive Results from Lithium Carbonate Pre-feasibility Study, New Exploration Target and Project Update

Independent consultants, Hatch, have completed a Pre-feasibility Study into the processing of lithium concentrates to battery-grade lithium carbonate.

The preferred case Net Present Value is around US$400 million based on various key commercial and operating assumptions. Using a 12% discount rate the project would deliver an Internal Rate of Return of around 68%.

China and Malaysia have been identified as the preferred options for the location of the lithium carbonate plant based on operating and capital costs and taxation regimes.

There has been strong interest from domestic and Asian parties seeking toll-conversion and standalone lithium carbonate joint venture arrangements.

A new exploration target of an additional 10 – 15 Mt of 1.1 – 1.4% Li₂O has been identified.

April 14, 2010

Mt Marion Lithium Oxide Content Increased by 220%

Mt Marion Lithium Project confirms its potential as a world-class high grade lithium deposit with total Resources of 8.9 Mt @ 1.4% Li₂O.

Total Lithium oxide (Li₂O) contained tonnes increased by 220% to 128,000 due to additional drilling along-strike and down-dip.

All deposits remain open along-strike and down-dip.

March 4, 2010

Mt Marion Final Drill Results and Development Timetable

Phase 2 resource extension drilling completed (57 holes) and confirms multiple, stacked, high-grade pegmatites at the Nos 1, 2, 2W and 5 Deposits.

All deposits remain open along-strike and down-dip.

Diamond drilling for geotechnical and metallurgical purposes is complete.

Resource estimate planned for completion by April 2010.

Development Timetable issued - plant commissioning anticipated in the December Quarter 2010.

January 18, 2010

Resource definition drill results

Phase 1 resource definition drilling (139 holes) confirms multiple, stacked, high-grade pegmatites at the Nos 1, 2 and 2W Deposits.

Average intercepts of high-grade mineralisation is 9.2m at 1.52% Li₂O and 1.4% Fe₂O₃, using 0.6% Li₂O lower cut-off grade.

Three additional pegmatite prospects have been delineated, including the 1W and 5 prospects.

Phase 2 resource extension drilling is underway (45 holes) and is expected to be completed by the end of January 2010.

Resource estimate planned for completion by April 2010.

November 19, 2009

Encouraging results point to 2010 startup at Mt Marion

Recently completed test work yields positive results.

Mass recovery to concentrate of 34% vs targeted 20% at target concentrate grade of +6.5% Li₂O

Phase 1 RC Drill Program to target 7-8Mt of 1.3-2% Li₂O has commenced.

中文版 - 瑞德（Reed）和矿产资源（Mineral Resources）继续推进Mount Marion 锂项目2010 年生产启动

October 27, 2009

Mount Marion Lithium Project to start-up in 2010

Reed Resources and Mineral Resources have reached a farm-in agreement for the development of the Mount Marion Lithium Project in Western Australia’s goldfields region.

Mineral Resources is to complete a feasibility study with a view to:

• build, own and operate the processing facilities;
• fund all development costs
• and operate the project,

to earn 40% of net profit from the operation with accumulated development and operational costs being repaid from future operations.

Reed will retain the balance of net profit (60%) and the right to purchase all Spodumene produced.

Based on the current timetable, Mineral Resources will mobilise processing plant and equipment to Nimbus site in Q2 2010, with first product shipments expected in Q3 2010.

Initial production rate is expected to be 17,000 tonnes per month of +6.5% Li₂O concentrate.

中文版 - 瑞德（Reed）和矿产资源（Mineral Resources）继续推进Mount Marion 锂项目2010 年生产启动

September 1, 2009

Reed exercises option to acquire Nimbus Processing Plant

Reed have exercised their option to acquire the Nimbus Silver Project and Processing Plant in Kalgoorlie for A$2.25M;

Acquisition funded by recent successful A$6.4M Capital Raising to institutional and qualified investors and fully underwritten A$4.5M Shareholder Purchase Plan;

The site offers a potential location for a mobile plant to produce lithium (spodumene) concentrates from Mount Marion, utilizing existing water supply, tailings facilities and site infrastructure.

August 13, 2009

Option to Acquire High Grade Lithium Project

Reed has acquired an Option to purchase the Mount Marion Lithium Project in the Goldfields region of Western Australia.

• Extensive drilling and evaluation was previously conducted by WMC.
• Targeting a mineral resource of 4-5Mt at 1.5-2% Li2O based on historical reserves.
• The project has significant infrastructure advantages and low strip ratios.
• RC/Diamond drilling program scheduled to commence next quarter.
• Bill Crossley appointed as Project manager for the Mount Marion project.
• Reed builds on position as a diverse commodity company.

中文版 - 瑞德资源（Reed Resources）赢得了获得高品位Goldfields 锂项目的 选择权