IODM LIMITED — Capital/Financing Update 2009

Aug 13, 2009

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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

14 August 2009

ASX / Media Announcement

Placement Raises $380,000

Placement completed

Paradigm Metals is pleased to announce that it has completed a share placement to professional and sophisticated investors raising approximately $380,000 (inclusive of fees and costs), as foreshadowed in the SPP announcement of 20 July 2009. The placement involves the issue of approximately 10.8 million shares at $0.035 (the same price as the SPP which is underway). The share issue is within the Company’s 15% placement capacity. We expect that the placement shares will be issued on or about 18 August 2009.

Shaw Corporate Finance, as Lead Manager to the placement, is taking its capital raising fees pursuant to the transaction in PDM shares. The Directors consider the support from participants in the placement and Shaw to be an endorsement of the potential in the upcoming drilling programs at Blue Bush, Rosedale and Kangiara.

Drilling timetable

The Company has scheduled a contractor to commence drilling at the Blue Bush copper‐gold target near Cloncurry on 25 August 2009. The drill programmes at Rosedale and Kangiara will commence shortly afterwards in early September.

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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