Reed Resources (ASX:RDR) in Talks with NFC (SHE:000758) to Develop Barrambie Project in WA

Australian diversified resources company Reed Resources Ltd (ASX:RDR) is in preliminary discussions with China Non-ferrous Metal Industry's Foreign Engineering and Construction Co. Ltd (NFC)(SHE:000758) to develop Barrambie vanadium project in Western Australia.

Reed has completed a two year A$20 million definitive feasibility study for Barrambie, which is recognised as one the world's highest grade vanadium deposits and forecasted average earnings per annum in excess of A$100 million at current vanadium price.

Reed said the approach by NFC had been organised by Arccon (WA) Pty Ltd, a construction and engineering company servicing the mining and commercial building sectors in Western Australia. The company has agreed to deal exclusively with NFC and Arccon regarding a development and financing proposal for Barrambie until Augst 31 2010.

Reed said no party is under any obligation to proceed at this stage, and there is no certainty that a transaction will eventuate.


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