IODM LIMITED — Capital/Financing Update 2007

Nov 5, 2007

L E VE L 2 8 C O L I N S T R E E T W E ST P ER T H WA 6005

PO B O X 1726 W E ST P ER T H WA 6872 T E L E P H O NE : +61 8 9211 2000 F AC SI M I L E : +61 8 9211 2001

ASX SHARE CODE: EXS

E M AI L : ⋅ info@excoresources.com.au W E B SI TE www.excoresources.com.au

ABN 99 080 339 671

6[th] November 2007

Market Release (via electronic lodgement)

JOINT URANIUM EXPLORATION INITIATIVE

• Exco Resources (EXS) and Paradigm Metals (PDM) to jointly explore for uranium and other commodities within the Toolebuc Limestone Formation, east of Cloncurry Queensland

• Exploration to be funded on a 50:50 basis in a separate, jointly-owned company to allow for future funding alternatives, including a possible spin-off

Exco Resources (EXS) and Paradigm Metals (PDM) are pleased to announce a joint initiative to explore for uranium and other commodities within the Toolebuc Limestone Formation on both companies’ exploration permits (EPMs) located east of Cloncurry Queensland (see Figure 1 ). This initiative will combine into one contiguous package an otherwise fragmented exploration play. The total area of the initiative is approximately 600 square kilometres (see Figure 2 ).

The EPMs are considered prospective for a variety of commodities including uranium (see Figure 3 ), molybdenum, and vanadium. The Toolebuc Limestone, part of the Mesozoic Eromanga Basin sequence, lies above an oil shale sequence, which will also be reviewed for its potential.

The companies will fund the initiative on a 50:50 basis, and exploration will initially be managed by Paradigm. The intention is to transfer the EPMs into a separate, jointly-owned company to allow for possible future funding alternatives including a potential spin-off. The joint initiative will include:

• EPMs 15208 and 16113 held by Exco Resources Ltd, and

• EPMs 15325, 15906, 15931, 16073 and 16200 held by Paradigm Queensland Pty Ltd;

The arrangements are subject to finalisation of appropriate documentation and any necessary Government approvals.

Importantly from Exco’s perspective, this initiative will allow focus to be maintained on the Company’s portfolio of Cu-Au-U3O8 projects in the Cloncurry region, whilst providing an additional opportunity to create value for shareholders.

On behalf of the Board of Exco Resources Ltd

Please direct enquiries to: Michael Anderson Managing Director, Exco Resources Ltd Ph: (08) 9211 2000 or Graham Carman Managing Director, Paradigm Metals Ltd Ph: (02) 9955 7130

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Figure 1: NW Queensland Tenement Map highlighting Exco ground position and the location of key deposits & prospects.

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Figure 2: Detailed Map of the area to be included in the joint initiative on the Toolebuc Formation

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Figure 3: Radiometric Image (Uranium) highlighting the potential of the EXS & PDM EPMs

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