IODM LIMITED — Capital/Financing Update 2007

Sep 10, 2007

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ASX Release

• 11 September 2007

ASX Code: PDM

Copper and Uranium Exploration Update

Frogmore Copper Project (EL 6590), NSW

• Updating the drilling report of 28 August 2007, the first diamond drill hole at Frogmore, FDD001, was completed to a depth of 350.7 metres. Two well mineralised zones 10-15m wide were intersected over a 40m down-hole interval (25m true width approx) from a depth of 250m ending at 290m. The two zones are separated by 10-15m of trace mineralisation. The well mineralised intervals are characterised by silicification, chloritisation, and sericitisation accompanied by vein chalcopyrite and pyrrhotite-pyrite vein mineralisation. The host rocks are strongly deformed felsic volcanics of Silurian age. Assays from FDD001 are expected shortly.

• A second diamond drill hole, FDD002, located 40m to the north has been drilled to a depth of 350 metres and intersected the mineralised sequence with strong visible chalcopyrite from 315-318m depth (see map in Figure 1).

• A third drill hole, FDD003, was collared 40m to the south of FDD001. FDD003 has intersected the mineralised sequence with visible chalcopyrite from 210-218m depth, and is continuing to a depth of 350m.

• Following completion of FDD003, the Company will break from drilling to await assays and complete geological interpretations. A long section is shown in Figure 2.

Cloncurry Uranium

• Paradigm is pleased to report that all of its applications for exploration permits prospective for uranium in Queensland have now been granted. These include EPMs 15325 and 16200 (Cloncurry Project), EPM 15324 (Blue Bush) and EPM 15323 (Jacktim). The Company now holds 280 square km of granted permits east of Cloncurry, prospective for roll-front style uranium mineralisation hosted by the Toolebuc Formation (see Figure 3).

• The Company is completing a structural interpretation of the Toolebuc Formation in order to identify possible zones of uranium enrichment prior to drilling.

White Rock tungsten project

• Resource drilling at the White Rock tungsten project (EL 6274) in NSW is scheduled to recommence within the next 2 weeks.

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

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The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves 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.

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. The Company is looking to divest its existing gold assets in eastern Australia. More information is available at: www.paradigmmetals.com.au

Figure 1. Map of Frogmore with known drill holes and surface projection of copper intercepts

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Figure 2. Long section of Frogmore with current drill information. Assays are awaited for holes FDD001 and FDD002. FDD003 is still drilling.

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Figure 3. Map of Paradigm’s Cloncurry tenements and uranium radiometrics

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