IODM LIMITED — Capital/Financing Update 2009

Oct 6, 2009

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ABN 28 102 747 133 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

7 October 2009

ASX / Media Announcement

Drilling to commence at NSW gold copper projects

The Directors of Paradigm Metals Ltd (ASX: PDM) are pleased to announce that a programme of percussion drilling is shortly to commence at the Company’s three key gold and copper projects in central New South Wales. Drilling is expected to commence on Monday 12 October, with the drill rig to start first at Kangiara and then progress to Frogmore for approximately 2000m total advance. A further 1000m of percussion drilling is planned for the Rosedale gold project, on completion of an IP geophysical survey which will also commence on 12 October.

Kangiara gold‐base metals

The drilling at Kangiara is targeting volcanic‐hosted massive sulphide (VHMS) and disseminated sulphide mineralisation along strike of the old Kangiara mine (500,000 oz silver, 6,000 t lead, 3,000 oz gold mined early 1900s). A planned 9‐hole programme will follow‐up on mineralisation found in past drill holes, including 26m at 0.8g/t Au, 10g/t Ag, 3% Pb+Zn from 60m vertical depth . Several geochemical and geophysical targets will be tested at Kangiara including part of a 500m surface lead‐silver‐gold anomaly.

The largest known example of VHMS style mineralisation in NSW is the historic Woodlawn mine (see Figure 1 for location). At Woodlawn approximately 14 million tonnes of ore were processed at a grade of 1.6% copper, 3.6% lead, 9.1% zinc, 74 g/t silver and 0.5 g/t gold (from Triorigin Minerals Ltd website).

Frogmore copper

Following a recent review of the Frogmore copper project, the Directors have decided to carry out a limited 2 – 3 hole drill programme to follow up on past drill intercepts, including 15m at 2.0% Cu, 11g/t Ag from 240m vertical depth . The new holes will be targeted towards geophysical conductors located by down‐hole surveys, and shallow mineralisation that may be amenable to open pit exploitation in the future. Copper at Frogmore is associated with chalcopyrite veins accompanied by minor iron sulphide ‐ the down‐hole conductors possibly reflect high‐grade copper mineralisation.

Rosedale gold‐silver

An Induced Polarisation (IP) geophysical survey is scheduled to begin at the Rosedale gold‐silver project near Bathurst on 12 October which will take approximately 2 weeks to complete. The IP survey should identify disseminated sulphides believed to be associated with gold and silver mineralisation at Rosedale. The new geophysical data will provide the Company with more targeting information prior to a 3 to 5‐hole drill programme to follow.

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Figure 1. Location of PDM projects in central NSW with upcoming drill programmes highlighted

For further information please contact: Graham Carman, Managing Director: Ph: 61‐2‐9955‐7130

About PDM: Paradigm Metals Ltd (PDM) is a gold and copper explorer / developer with its key projects located in the Lachlan Fold Belt of New South Wales and the Cloncurry region of Queensland.

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.

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