IODM LIMITED — Capital/Financing Update 2008

Feb 24, 2008

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Suite 202, 122 Walker St, North Sydney NSW 2060 Australia

Ph: 02 9955-7130 Fax: 02 8920-3576

Email: info@paradigmmetals.com.au

www.paradigmmetals.com.au

ASX Release

ASX Code: PDM

25 February, 2008

Drilling underway on Paradigm-Exco permits near Cloncurry: Rock assays up to 884 ppm U3O8, 10% phosphate

• The joint venture between Exco Resources Ltd and Paradigm Metals Ltd is now signed, with exploration for uranium underway near Cloncurry Queensland

• Toolebuc Resources Pty Ltd, the future holding company of the tenements, will be initially funded 50:50 by Paradigm and Exco

• Aircore drilling has now begun, with 2000m of drilling planned initially

• Recent rock samples of Toolebuc Limestone have returned assays up to 884 ppm U3O8 and 10% phosphate, and are also anomalous in vanadium and molybdenum.

Uranium deal formalised

Paradigm Metals Ltd and Exco Resources Ltd are pleased to announce that the documentation formalising the exploration joint venture for uranium and other minerals within the Toolebuc Limestone Formation near Cloncurry Queensland, is now signed. Final completion of the agreement will occur once government approvals have been given for the transfer of 8 exploration permits to Toolebuc Resources Pty Ltd (TOR), a jointly-owned company recently constituted.

TOR will be funded initially on a 50:50 basis by Paradigm and Exco, with exploration to be managed by Paradigm. TOR will be open to a range of possible future funding alternatives including a public spin-off. The permits to be transferred to TOR are EPMs 15208 and 16113 held by Exco; and EPMs 15325, 15906, 15931, 16073, 16200 and 17306 held by Paradigm. The total area of the tenement package is 500 sq km (see Figure 1).

Recent uranium assays

Recent uranium assays of Toolebuc Formation outcrops at several prospects are encouraging. Of more than 100 rock chip samples collected from limestone outcrops at the Longford, Elrose and Oorindi Park areas, a significant proportion (about 25%) returned uranium values greater than 175 ppm U3O8 (see Figure 2). Two samples assayed 707 and 884 ppm U3O8 from the Longford East area. Uranium assays correlate well with radioactivity readings in the field, up to 2000 counts per second. Uranium is believed to be associated with the vanadium mineral carnotite, but may also occur with phosphate, which correlates positively with uranium (assays up to 10% phosphate, P2O5). Uranium mineralisation is associated with a recrystallised fossiliferous limestone, the thickness of which will be tested with upcoming drilling. Molybdenum assays range up to 0.1%Mo, with vanadium up to 0.2%V.

Aircore drilling

An aircore drilling program has started, with 2000m planned to test the thickness of the mineralised horizons at several prospects (see Figure 2).

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

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Figure 1: Mt Isa region highlighting the joint Paradigm-Exco tenement position east of Cloncurry.

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Figure 2: Uranium prospects in the Paradigm-Exco exploration permits on a uranium radiometric grid

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About Paradigm: Paradigm Metals Ltd (PDM) is a copper, uranium and tungsten explorer and developer, with projects in the Lachlan Fold Belt of NSW and the Mt Isa region of Queensland.

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