Reed Resources Limited ASX Announcement 8 April 2010 New Gold Resource for Sand Queen Gold Mine, WA
KEY POINTS: - Resource increased to 186,000 oz Au. - Increase in grade from 8.6 to 10.8 g/t Au. - Robust geological model based on mine production. Australian diversified resources company Reed Resources Ltd (ASX: RDR) is pleased to announce an increase in the size and grade of gold resources at the Sand Queen Gold Mine, 100km North of Kalgoorlie (Figure 1). The total Indicated and Inferred Mineral Resource comprises 534,000 tonnes at an average grade of 10.8 g/t Au for 186,000 ounces of gold (Table 1). This represents an increase of 2% in the total gold resource compared with the previous estimate of 182,600 ounces of gold (661,000t @ 8.6 g/t Au), which was released on 2 December 2008 .

It should also be noted that 11,608 oz of gold has been mined since the December 2008 estimate was released. The estimation and classification of Mineral Resources, for a 5 g/t Au cut‐off grade, has been undertaken by Cube Consulting Pty Ltd. The resource modelling and estimation has made use of an improved understanding of the geological controls at the Sand Queen mine based on recent development and mining of the 2,3 and 4 Levels (Figure 2).

This has lead to a comprehensive re‐interpretation of gold bearing structures providing a more reliable tool for mine planning and exploration.

An outline of the Indicated and Inferred Resources is illustrated in the attached long sections. FORWARD WORK Under the JV Termination Agreement (16 October 2009), Production Joint Venture Partner, Kingsrose Mining Ltd (ASX:KRM) will continue to mine from and above the 4 Level until 31 May 2010.

Reed plans to continue mining the 4 Level from the existing shaft until economic resources are exhausted. Reed has dewatered down to 5 Level and is in the process of completing a new mine plan for mining 5 and 6 Levels from the existing shaft. Ends For the full announcement please see below: http://esp.gewru.com/download/files/12414/1132078/New%20Gold%20Resource%20for%20Sand%20Queen%20Gold%20Mine.pdf For more information please contact: Reed Resources Chris Reed Managing Director Tel: 08 9322 1182 Media David Tasker Professional Public Relations Tel: 9388 0944/ 0433 112 936 Email: About Reed Resources Reed Resources is a diversified mining and exploration Company based in Western Australia, with modest gold production the Company is expanding and diversifying its production base. Reed Resources has four main projects all in Western Australia including; * Comet Vale -- High-grade underground gold mine in JV with Kingsrose Mining Limited.

Nickel Laterite JV with Heron Resources NL. * Barrambie -- Completed a Definitive Feasibility Study on Ferrovanadium operation to produce 6300t of vanadium per annum.

Currently in approvals process. * Mount Finnerty -- Iron Ore JV with Portman Ltd.

Nickel JV with Western Areas NL. * Mount Marion -- Option Agreement over high-grade Lithium project located approximately 40km south of Kalgoorlie
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