IODM LIMITED — Capital/Financing Update 2010

Mar 7, 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

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ABN 28 102 747 133

ASX / Media Announcement

8 March 2010

_______________ Drilling results from Rosedale gold project

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Summary of Rosedale Results

• Results from a recent RC drill programme at Rosedale indicate an important rock‐ type control to gold mineralisation focused by a major regional fault.

• Best new gold assays up to 0.76g/t gold were returned over narrow intervals within a broader zone of anomalous gold hosted by volcanic metasediments. Exploration is now concentrating on a 200m x 1000m gold anomalous corridor along strike immediately south of the recent drilling.

• Prospectivity of the Rosedale area is highlighted by Newmont’s recent decision to progress the McPhillamys gold project through to Bankable Feasibility. McPhillamys is just 18km from Rosedale and located adjacent to the same fault.

• Kangiara base metals – gold project: A 7‐hole RC drill programme has been completed. Full assays are awaited.

_______________ Paradigm Metals is pleased to provide results from a three hole RC drill programme at the Rosedale gold‐silver project, EL 7343, near Bathurst NSW. The Rosedale project lies 18km from Newmont‐Alkane’s McPhillamys gold project along a continuation of the same regional Godolphin Fault structure (see Figure 1 ).

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Figure 1. Tenement map of the Bathurst region showing Exploration Licences and Applications for gold and other metals for select companies. The Rosedale project is located adjacent to a southeast extension of the Godolphin Fault 18km from Newmont’s McPhillamys gold deposit. This fault is believed to be an important control for gold mineralisation.

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About Rosedale

Rosedale was acquired in 2009 after a review of gold opportunities in NSW. A past drill intercept included 13m @ 0.8g/t Au and 20g/t Ag from 114m in drill hole RJ1 within volcanic metasediments. Paradigm also uncovered a 2km gold‐in‐soil anomaly from past results.

Rosedale is located on a southeast extension of a major regional geological structure, the Godolphin Fault (see Figure 1 ). This fault is an important control to regional gold mineralisation.

Newmont and Alkane recently announced a target deposit at McPhillamys of 2 to 4 million ounces of gold (see Alkane Resources Ltd ASX announcement dated 2 March 2010). Favourable comparisons with respect to the geology of Rosedale with McPhillamys include:

• Similar age rocks and host rock lithologies.

• Similar hydrothermal alteration and style of mineralisation.

• Coincidence between gold and low‐level copper anomalism.

Summary of recent drilling

Two RC percussion holes were drilled to test mineralisation across the northern end of the fault structure at Rosedale (see Figure 2 ). Holes RRC007 and RRC008 (drilled to 192m and 216m respectively) passed through volcanic metasediments and into a sheared dacite porphyry approximately half way down each hole. The percussion holes screwed sharply to the right (up to 40 degrees in RRC008) and lifted by up to 25 degrees over a 200m length, hindering accurate targeting of the holes.

The best gold results were recorded in RRC007 which intersected 8m @ 0.44g/t Au from 172m (including 4m @ 0.76g/t Au) within dacite porphyry. Minor gold mineralisation was intersected within volcanic metasediments in both RRC007 and RRC008 (4m @ 0.18g/t Au from 64m, and 4m @ 0.11 g/t Au from 44m respectively) within a 40m‐wide continuous gold anomalous interval.

RRC009 drilled an IP geophysical anomaly east of the Rosedale structure (see Figure 2 ). RRC009 drilled dacite porphyry from surface to 108m encountering disseminated pyrite but no significant gold.

Interpretation

Drill holes RRC007 and RRC008 intersected low‐grade but continuous gold mineralisation in the ‘volcanic metasediments’ which we believe is a favourable host rock for bulk tonnage gold mineralisation as it is fractured and inherently permeable.

These new gold results do not yet reflect economic grade. However, significant potential still remains for a large gold target of the ‘McPhillamys type’ within the Rosedale prospect area. A 200m wide by 1000m long corridor defined by soil and RAB drilling is untested by deep drilling, while complexities in structure may reflect sites of enrichment (see Figure 2 ).

The Managing Director, Graham Carman said “The potential of the Rosedale area for gold mineralisation remains high, as there is a wide gold‐bearing corridor that is untested by drilling. Paradigm is committed to unlocking the potential at Rosedale in this highly prospective region for gold in Australia.”

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“It is significant to the New South Wales gold industry that a large gold company like Newmont has made a commitment to the McPhillamys project. This commitment is a testament to the gold potential of this under‐explored region west of Bathurst.”

“Paradigm will be carrying out further detailed soil sampling immediately, to be followed up by further drill testing”.

Figure 2 . Geological map of the Rosedale prospect highlighting drill results

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Kangiara base metals – gold project

A 7 hole RC drill programme has now been completed. Partial assays have been received, but results will be released once the full assay data have been received and compiled. For further information please contact the Managing Director, Graham Carman: Ph: 61‐2‐9955‐7130

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 and base metals explorer / 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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