IODM LIMITED — Capital/Financing Update 2010

Oct 25, 2010

Suite 202, 122 Walker St W www.paradigmmetals.com.au North Sydney 2060 E info@paradigmmetals.com.au New South Wales T +61 2 9955 7130 AUSTRALIA F +61 2 8920 3576 26 October 2010

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ABN 28 102 747 133 ASX / Media Announcement

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Placement and Fully Underwritten Rights Issue to raise $1.32 million

The Company announces a placement to raise $210,000 and fully underwritten rights issue to raise $1.11 million before costs.

The placement will be of 7,000,000 ordinary fully paid shares at 3 cents per share to professional and sophisticated investor clients of Taylor Collison Limited. Each placee will receive 1 free option for each 2 shares subscribed for. These options will be exercisable at 10 cents on or before 30 November 2012 and will be unlisted. It is expected these shares and options will be issued prior to 1 November 2010.

The non-renounceable, pro-rata rights issue is fully underwritten by Taylor Collison and will follow and be priced on the same basis as the placement, being on a 1 for 3 basis at 3 cents per share. For every 2 shares received, the shareholder will be issued 1 free option exercisable at 10 cents on or before 30 November 2012. These options will not be listed on the ASX. The rights issue will only be available to shareholders with registered addresses in Australia or New Zealand as at the Record Date.

The timetable for the rights issue is as follows

The timetable for the rights issue is as follows
Lodgement of Prospectus with ASIC and ASX	27 October 2010
Notice sent to Shareholders	29 October 2010
Ex Date	1 November 2010
Record Date for determiningShareholder entitlements	8 November 2010
Prospectus despatched to Shareholders	11 November 2010
ClosingDate of Offer	26 November 2010
Securities commence quotation on a deferred settlementbasis	29 November 2010
Despatch of holdingstatements	2 December 2010
Normal tradingof New Shares expected to commence	3 December 2010

Paradigm intends to use the proceeds of the issues primarily for funding drilling and geophysical exploration programs at its gold projects, and for additional working capital purposes. In particular, the Yellow Mountain project (EL 6325) will be fast-tracked with drilling, and the Company has an application on adjacent ground (Marranoonbah ELA 4001) where exploration will commence soon after the licence is granted.

Paradigm has made significant progress in recent months, including: Acquiring an option to earn up to a 51% interest of the Yellow Mountain project EL 6325;

• Completing an initial shallow drill program at Yellow Mountain, and obtaining encouraging results for gold;

• Staking outright the Marranoonbah project (ELA 4001), an area that contains a number of gold anomalies close to Yellow Mountain and therefore provides additional exploration upside;

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• Moving forward with arrangements for a planned November 2010 drill program to test copper targets at the Toolebuc project near Cloncurry, northwest Queensland, a joint venture project with Exco Resources Ltd (PDM 50%: EXS 50%) and managed by Paradigm.

This capital raising will allow Paradigm to continue to maintain exploration momentum in its focused drill programs in New South Wales and Queensland, and in particular to fast track the earn-in stage at the Yellow Mountain EL 6325, should the early drill results be sufficiently encouraging.

The rights issue will provide all shareholders with the opportunity to increase their holdings at an attractive price without brokerage or other costs. In particular, shareholders who currently hold less than a marketable parcel of Paradigm shares (defined as being less than $500 in value) and apply for shares in excess of their entitlement will receive, if sufficient shares are available, priority to lift their holding to a marketable parcel.

A prospectus in relation to the rights issue will be despatched to eligible shareholders on 2 December 2010. Any shareholder considering the offer should read the prospectus before deciding whether to accept the offer. Eligible shareholders may only accept the offer by completing the application form accompanying the prospectus in accordance with the instructions in the prospectus and on the form.

For further information please contact the Managing Director, Graham Carman: Ph: +61-2-99557130

About Paradigm Metals Ltd: Paradigm is a Sydney-based mineral exploration and development company focusing on the discovery of large gold and copper deposits in New South Wales and northwest Queensland. The Company also has a base metal and tungsten project, both with JORC resources.

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