Hi George.

As was stated in the announcement above, the plant is on track to be commissioned in the December Quarter - so on that basis would expect cashflow to commence in 2012.

regards.

Dear Mr Wood,

Testing has been carried out for these elements, by us and previous explorers, with little success.

Regards
Reed Resources

Dear Mr Wood,

Testing has been carried out for these elements, by us and previous explorers, with little success.

Mr Bray,

just a note to let you know we have issued a statement to the market regarding our gold strategy. In case you missed it, you can read it here: http://www.reedresources.com/announce-blog.php?id...

Dear Mr Bray,

thank you for your note. We have taken it on board.

As a clarification the current status is as follows:

Our Sand Queen Gold Mine at Comet Vale was put on Care and Maintenance on 1st June 2010 due to the fact that our custom milling facility was no longer available.

Our Nimbus treatment plant is in the process of refurbishment but we will need an additional supply of gold ore to make the treatment plant economic.

We are currently drilling at Comet Vale to attempt to increase the size of near surface resources and are looking at other potential acquisitions to enable us to increase the size of our gold operation and profitability.

regards
David Reed
Chairman

Dear John - thank you for your interest.

We used a base price for 2012/13 which was at a discount to the five year average.

We are aware that there have been some price adjustments recently. They have even been reported in the media e.g. http://www.indmin.com/Article/2384883/SQM-on-lith...

We expect prices to recover from current levels (which are the result of the global economic downturn and possibly in response to new entrants) to the five year average as Li battery plants come on stream in earnest in 2011/12. We have assumed a modest single digit price escalation.

Paul,

Many thanks for taking the time to assess this announcement.

My answers to your questions are below.

"Does the long section only show the higher grade drill holes in the resource area?"

This is what we have done historically. The image would be too busy with all of them on.

"Why aren't all the pierce points shown otherwise, regardless if the assays are shown?"

I agree and will take this on board.

"I would want some confidence of what the grade will be on levels 4 and 5 given the discrepency in production grades experienced between levels 2 and 3."

There are different production grades between 2 and 3 that were broadly in line with the geological model at that time.

Under the JV, KRM are (until 31 May) responsible for paying mining costs and we pay the milling costs.

KRM decided to stope on 2 Level - it would have to have been strike driven anyway.

Once the decision to mine the 5 and 6 Level is made, we will publish reserves. We have not done so in the past because KRM are operators of the JV and chose not to publish reserves.

I appreciate the feedback.

Kind regards
Chris Reed
Managing Director

Robert, you will need to submit your email address via the email sign up form on the homepage, left hand side, near the bottom of the left hand column.

Thanks very much Ray.
Your support is appreciated.