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IODM LIMITED Capital/Financing Update 2009

Aug 23, 2009

65131_rns_2009-08-23_37181416-230a-4fa1-ae63-dde418d5adbf.pdf

Capital/Financing Update

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

Ph: 02 9955‐7130 Fax: 02 8920‐3576

Email: [email protected]

www.paradigmmetals.com.au

24 August 2009

ASX / Media Announcement

Results of Company Share Purchase Plan Offer

Paradigm Metals Limited is pleased to announce the results of the Share Purchase Plan (SPP) offer sent to shareholders on 30 July 2009. The offer was taken up by approximately 43% of the Company’s shareholders.

The SPP closed on 21 August 2009 with a total of 441 applications for shares to a value of $4.67 million. The Company is able to accept funds of only $758,000 of new equity pursuant to the SPP. Therefore, inevitably, SPP applications will have to be significantly scaled back.

Applications under the SPP represent an oversubscription of funds received of 620%. The Directors wish to thank shareholders, particularly the long term holders, for their very strong support.

We originally stated in the indicative timetable that the issue of SPP shares would take place on 24 August 2009. However, additional time is needed to clear a number of cheques, and to enable the Directors to determine the basis for a fair and equitable pro rata scale back. The Directors now expect to despatch holding statements and refunds to shareholders by 28 August 2009.

Yours sincerely,

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Mr Graham Carman Managing Director

PDM is a gold and gold‐copper explorer and developer with its key projects located in the Lachlan Fold Belt of New South Wales and the Cloncurry region of Queensland.

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