IODM LIMITED — Capital/Financing Update 2009

May 14, 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

15 May 2009

ASX / Media Announcement

Acquisition of Rosedale Gold & Silver Project near Blayney NSW

• Paradigm Metals has accepted an offer of grant for Exploration Licence ELA 3658 “Rosedale” covering an under-explored gold-silver project opportunity 20km southeast of the Newmont-Alkane gold discovery at McPhillamys near Blayney NSW

• Previous drilling at Rosedale returned positive gold & silver results in all 4 drill holes

• The deepest previous hole to was stopped in mineralisation at 127.4m and intersected 13m at 0.8g/t gold and 20g/t silver from 114m depth including 1m at 3.6g/t gold and 75g/t silver

• Compilation of open file data has uncovered a gold soil anomaly > 1km strike, up to -

• 400m wide, and coincident with an open ended IP anomaly

• Previous gold results in surface traverses include 30m at 3.6g/t gold, and spot samples up to 12 g/t gold

• The Company is planning an air core drilling programme to start shortly to define the extent of the high grade near surface mineralisation

Details

Paradigm Metals is pleased to report that it has accepted an offer of grant for a highly prospective underexplored gold and silver project opportunity (ELA 3658 Rosedale) located 50 km east-southeast of Newcrest’s Cadia-Ridgeway mine and 18km southeast of the Newmont-Alkane McPhillamys 2006 gold discovery near Blayney New South Wales (refer http://www.alkane.com.au/projects/nsw/orange/). ELA 3658, expected to be granted within days, covers an area of 28 sq km and is centred on the Rosedale gold-silver prospect.

This opportunity was identified following a review of undeveloped gold projects in central NSW in early 2009. The Rosedale prospect lies along an extension of the McPhillamys fault structure in similar Silurian volcanic rocks, at the intersection of a lineament which passes through Cadia and Brown’s Creek (see Figure 1 ).

The Managing Director, Dr Graham Carman, said “The Rosedale gold-silver project was identified using good detective work by the Company’s geological team during its recent review of gold opportunities in NSW. The prospect is already covered by an exploration licence for non-metallic minerals, over which Paradigm staked an exploration licence application for Group 1 metallic minerals. Mineralisation at Rosedale occurs with quartz - sericite - pyrite ‘phyllic’ alteration and breccia within Silurian felsic volcanics and sediments, the same host rocks that are described at McPhillamys. We believe the target opportunity at Rosedale is a large near-surface bulk tonnage gold-silver deposit similar in style to the recent Newmont-Alkane McPhillamys discovery.”

Previous drill results

Paradigm has reviewed and compiled open file drill reports covering the Rosedale tenement. Four drill holes were completed at Rosedale on one section line by past explorers, with positive intersections returned from all holes (see Table 1 below). These positive results were not followed up by drilling along strike or at depth, despite the deepest hole stopping in gold mineralisation at 127.4m down-hole. The drill holes are plotted in a map of the Rosedale prospect in Figure 2 .

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ROSEDALE GOLD PROJECT PDM NEWS RELEASE 15 MAY 2009

Figure 1. Geological map (left) and airborne magnetic image (right) of Blayney region showing Rosedale at the intersection of two important mineralised structures

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ROSEDALE GOLD PROJECT PDM NEWS RELEASE 15 MAY 2009

Figure 2. Rosedale IP chargeability (left) and resistivity (right) at 80m depth with previous drill holes and gold-in-soil contours

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ROSEDALE GOLD PROJECT PDM NEWS RELEASE 15 MAY 2009

Table 1: Summary of previous drill intercepts at Rosedale

Hole No	Intercept m	Gold g/t	Silver g/t	Depth from m	Year	Comment
RJ1 incl RP3 RP2 RP1	13 1 2 16 2	0.8 3.6 1.4 0.24 0.6	20 75 15 10 -	114.4 116.4 0 40 63	1979 1987 1987 1987	Hole ended in mineralisation at 127.4m Drilled away from the mineralised zone Up-dip of RJ1 intercept Edge ofprospect

Previous geophysics and surface sampling

Paradigm has reviewed and compiled past explorers’ geophysical and surface geochemical data over the Rosedale area. We believe these data indicate Rosedale has the potential to be a large gold-silver system.

IP data was obtained over 1km strike in 1987, but had limited vertical penetration to about 80m. The IP chargeability and resistivity anomalies are open along strike and at depths beyond 80m (see Figure 2 ).

Soil sampling was completed over the Rosedale prospect in the mid-1990s. A coincident gold and arsenic soil anomaly is 1km long and up to 400m wide, open to south, which coincides well with the IP chargeability and resistivity anomalies (see Figure 2 ).

Rock chip assays greater than 0.1g/t gold occur over a strike length of at least 1km, with individual assays up to 12 g/t. The strongest rock chip gold results occur at the northern end of the prospect on the western edge of the IP chargeability anomaly. The best rock chip traverse returned an assay result of 30m at 3.6g/t gold.

Planned work

The Company is planning to embark on a 1000m air core drilling programme expected to begin in May 2009. The drilling will enable the Company to better define the higher grade gold-silver ’footprint’ and to determine the priority areas for deeper drilling. An interpretation of the current drill holes in cross section is shown in Figure 3 .

Figure 3. Interpreted cross section of previous drilling line at Rosedale

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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 fulltime 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 (PDM) is a gold, copper, and tungsten explorer / developer with its key projects located in the Lachlan Fold Belt of New South Wales and the Cloncurry region of Queensland.

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

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