IODM LIMITED — Capital/Financing Update 2007

Sep 18, 2007

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ASX Release

19 September 2007 ASX Code: PDM

Exploration Update: Frogmore Copper and White Rock Tungsten Projects

Frogmore Copper Project (EL 6590), NSW

• Compilation of geological data from the 3 recent diamond drill holes at Frogmore has resulted in a new interpretation of the major mineralised structures.

• The copper structure intersected in the company’s first diamond drill hole (FDD001: 8.7m grading 1.92% Cu from 250.6m to 259.3m, including 0.95m at 4.8%Cu from 255.95m; 14m at 2%Cu from 275.1m including 0.8m at 8% Cu) is believed to have been intersected in the second and third diamond holes, approximately 60m either side of the first hole. It was initially thought that the mineralisation trended north-south parallel to the old mined lodes. However the drill results suggest a northeast-southwest structural trend which was previously unrecognised (see attached map - Figure 1).

• The new interpretation is significant because mineralisation along this copper structure is open in both directions and at depth. High-priority drill targets exist up-dip of the diamond drill intercepts near to surface, in particular adjacent to the old Frogmore copper workings (see long section – Figure 2).

• Assays are pending for diamond drill holes FDD002 and FDD003. Strong chalcopyrite mineralisation was observed in both holes over widths of between 5 and 10 metres. Photographs attached show some of the high-grade chalcopyrite in these holes.

• The Company recently announced that drilling would cease until all assay results have been assessed. However in light of the latest interpretation, Paradigm plans to utilise the percussion drill rig that will shortly commence work at White Rock, to first drill at least 3 holes to test shallow copper targets at Frogmore (see long section – Figure 2).

• Paradigm has applied for a new Exploration Licence immediately north of the Frogmore EL 6590 tenement to cover the old Federal Copper Mine located 10 km north of Frogmore. The old Federal Copper Mine was described in early 1900s geological reports but has seen no modern day exploration. The new tenement will increase the strike length of 100% controlled Silurian-Ordovician rocks prospective for copper and tungsten to 55km. Numerous base metal showings are known along this trend (Figure 3).

White Rock tungsten project (EL 6274), NSW

• Resource drilling at the White Rock tungsten project is scheduled to commence very shortly. A minimum program of 18 percussion holes (approximately 600m total) each to a maximum depth of 50m is planned. The Company expects to be able to recalculate the White Rock tungsten Resource prior to the end of this calendar year.

Please direct enquiries to: Managing Director, Graham Carman Ph: (02) 9955-7130

The information in this report that relates to Exploration Results is based on information compiled by Dr Graham Carman who is a Member of the Australasian Institute of Mining and Metallurgy. Dr Carman is a full-time employee of the Company, and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Carman consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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About Paradigm:

Paradigm Metals Ltd is a tungsten -base metals - uranium explorer and developer with projects in the Lachlan Fold Belt of NSW and the Mt Isa region of Queensland. More information at: www.paradigmmetals.com.au

Figure 1. Drill map of Frogmore with interpreted mineralised structure

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Figure 2. Long section of copper structure (southwest to northeast) with current drill data.

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Figure 3. Geological map of Frogmore-White Rock belt showing new application area

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FDD002: photo 315m depth – chalcopyrite (gold) and pyrrhotite mineralisation with chlorite alteration (dark)

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FDD003: 294m depth – sphalerite (red)chalcopyrite (gold) mineralisation in altered volcanic

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