Reed Resources Limited ASX Announcement 26 March 2010 Gold Production Update KEY POINTS: - Latest gold ore sale of 14,600 t at 14.12 g/t Au - Reed attributable share 2,468 oz - New Mineral Resource Estimate due second week April 2010 Australian diversified resources company Reed Resources Ltd (ASX: RDR) and Joint Venture partner Kingsrose Mining Limited (ASX:KRM) are pleased to advise the sale of the latest parcel of gold ore produced from the Sand Queen Gold Mine, 100km North of Kalgoorlie. Approximately 14,600 tonnes of ore grading 14.12 g/t Au was sold to a third party.

The final financial results from the sale are dependent on the average gold price for the month of April and grade confirmation.

The Company expects a cash margin of A$550‐600/oz for its share of production, which is 40% of recovered metal (about 2,468 ounces). Under the JV Termination Agreement (16 October 2009), Kingsrose will continue to mine from and above the 4 Level under the existing arrangement 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.

A new Mineral Resource Estimate is expected for completion by mid April 2010.
For the full announcement please click here: http://esp.gewru.com/download/files/12414/1122202/Gold%20Production%20Update.pdf For more information please contact: Reed Resources Chris Reed Managing Director T: 08 9322 1182 Media David Tasker Professional Public Relations T: 9388 0944/ 0433 112 936 E: About Reed Resources Reed Resources Ltd is a diversified mining and exploration Company based in Western Australia.

It has modest gold production and is expanding and diversifying its production base. Reed Resources has five main projects (all in Western Australia) including; * Comet Vale -- High‐grade underground gold mine in JV with Kingsrose Mining Limited (resuming 100% equity on 1 June 2010). * Barrambie -- Definitive Feasibility Study completed on a Ferrovanadium operation to produce 6300t of vanadium per annum.

Currently in approvals process. * Mount Finnerty -- Iron ore JV with Cliffs Natural Resources & Nickel Farm‐out Western Areas NL.

A Nickel Farm‐in with Barranco Resources NL * Mount Marion -- High‐grade Lithium project located about 40km south of Kalgoorlie in JV with Mineral Resources Ltd. * Bell Rock Range -- Nickel‐Copper‐PGM JV with Anglo American Exploration. Website: www.reedresources.com
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