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Barrambie - New MOU With NFC

Reed Resources enters into replacement MOU with NFC and Arccon in relation to Barrambie project.

Replacement MOU is on the same terms as the original MOU, but extends the period for provision of fixed price EPC quote by NFC and Arccon to 31 July 2011.

(this has been submitted to reed)

An estimate to +/- 7.5% accuracy expected by end of June 2011.

SKM appointed to estimate revised operating costs for Barrambie based on plant optimisations arising from NFC and Arccon?s design work.

Initial indications suggest savings are achievable, despite higher input costs.
Financing discussions ongoing.

I believe once the financing has been signed off an announcement will be made.