IODM LIMITED - Capital/Financing Update 2011

Suite 202, 122 Walker St W www.paradigmmetals.com.au North Sydney 2060 E [email protected] New South Wales T +61 2 9955 7130 AUSTRALIA F +61 2 8920 3576

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ABN 28 102 747 133
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ASX / Media Announcement

22 July 2011

More copper - silver hits at Frogmore

HIGHLIGHTS

Results from the last two RC drill holes at Frogmore have been received;
FRC029: 5m @ 1.5%Cu & 19g/tAg from 106m, from a wide lower grade interval of 32m @ 0.5%Cu & 6g/t Ag from 79m
FRC030: 2m @ 1.3%Cu & 14g/t Ag from 69m
Other recently announced RC drill results include;
FRC027: 5m @ 2.3%Cu & 16g/t Ag from 197m
Results indicate a southerly plunge to the copper with mineralisation open at depth and possibly increasing in grade with depth
Plans are taking shape for an upcoming diamond drill program at Frogmore

RC drilling results

Paradigm is pleased to report further reverse circulation (RC) drill hole intersections of copper-silver at the Company’s 100%-owned Frogmore project, EL 6590, New South Wales. Frogmore is located 25km northeast of the township of Boorowa NSW, about 100km south of Newcrest’s Cadia Valley mines. The Frogmore project is prospective for high-grade copper - silver mineralisation of the Cobar style (i.e., CSA mine).

Assays have been received for the last two RC holes (FRC029 and FRC030), both of which contained significant mineralisation. A full summary of drill results from the Frogmore project, including recent and past results, is appended (see Table 1). Highlights of the new results include:

FRC029: 32m @ 0.5% copper and 6g/t silver from 79m, including 5m @ 1.5% copper and 19g/t silver from 106m.
FRC030: 2m@ 1.33% copper and 14g/t silver from 69m.
Other previously announced results from the recent RC drill program include:
FRC026: 7m @ 1.2% copper and 13g/t silver from 245 m, including 2m @ 2.26% copper and 18g/t silver 247m.
FRC027: 5m @ 2.3% copper and 16g/t silver from 197m, including 3m @ 3.50% copper and 24g/t silver from 198m.
Zinc-lead mineralisation was intersected in FRC027: 1m @ 5.1%Zn, 2.2%Pb, 0.9%Cu and 31g/tAg from 245m.

True thicknesses vary from 50% to 85% of the down-hole intercepts – see Table 1.

A map of the geology of the project shows the north-northeast trend of the copper lodes (see Figure 1 ). A longitudinal section (see Figure 2 ) highlights the plunge of the copper lodes to the south and main target areas. The new results confirm the continuity of strike, and the sub-vertical to steeply east dipping geometry of the copper lodes (see cross sections in Figure 3 ).

Down-hole geophysics

Down-hole electromagnetic geophysics (DHEM) was completed in drill holes FRC026, 027, 028, and 033 to identify proximal sulphide targets for future drilling. While no ‘in-hole’ responses directly associated with the mineralised zone were detected, ‘off-hole’ DHEM responses are consistent with the mineralised horizon being weakly conducting and possibly extending some distance away from the known intersections.

Planned work

Paradigm is now planning a diamond drill program to test the deep copper potential down-plunge of known mineralisation (see attached figures).

The Managing Director, Dr Graham Carman, said “The Directors believe that Frogmore represents an outstanding opportunity to find an economic copper deposit in a very well located part of New South Wales, close to infrastructure and markets. We believe there is excellent potential for the copper mineralisation to continue, and hopefully strengthen in grade with depth, as do the copper deposits of Cobar.”

“The Company will provide more information relating to the diamond drill program once details come to hand.”

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

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Figure 1. Simplified map of the Frogmore project highlighting copper structures and drill hole intercepts

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Figure 2. Longitudinal section viewing northwest, with true width copper intercepts and the interpreted southerly plunge of the Frogmore copper lode

Table 1. Significant copper intersections at Frogmore

Collar Easting GDA94 Z55	Collar Northing GDA94 Z55		Drill hole number	Down-hole interval m	Cu %	Ag g/t	Zn %	Pb %	Intercept depth from m	Estimated True thickness m	Hole Dip (av)	Hole Azimuth (avgrid)
669274.5 669264.3 669275.5 669319.0 669276.0 669398.0 669298.0 669298.0 669371.0 669411.0 669342.0 669440.0 669427.0 669381.0 669375.0 669437.9 669519.8	6205729.9 6205760.1 6205699.2 6205788.0 6205774.0 6205820.0 6205820.0 6205730.3 6205768.0 6205813.0 6205710.0 6205614.0 6205570.0 6205744.0 6205634.0 6205712.3 6205637.1		FDD001 and including including and including FDD002 and FDD003 and and FDD004 and FDD005 FDD006 FDD007 including FRC006 FRC019 FRC020 including FRC021 including FRC026 including including FRC027 including FRC029 including FRC030 MRF7 and MRF14	3.3 45.0 8.7 1.0 14.8 1.0 1.0 1.5 3.6 9.7 3.3 1.0 9.5 1.0 2.0 5.5 1.0 3.0 15.0 6.0 2.0 14.0 2.0 7.0 1.0 2.0 5.0 3.0 32.0 5.0 2.0 6.0 2.0 4.0	2.1% 1.17% 1.9% 4.5% 2.0% 6.6% 2.4% 6.0% 1.6% 1.0% 0.5% 2.3% 1.15% 1.2% 0.7% 1.52% 4.0% 1.9% 0.7% 2.1% 3.5% 1.0% 3.1% 1.2% 0.9% 2.26% 2.3% 3.5% 0.5% 1.5% 1.33% 0.8% 1.7% 2.1%	7g/t 6.5g/t 11g/t 29g/t 11g/t 30g/t 9g/t 24g/t 12g/t 8g/t 19g/t 25g/t 11g/t 9g/t 7g/t 8g/t 22g/t 20g/t 10g/t 21g/t 41g/t 8g/t 23g/t 13g/t 31g/t 18g/t 16g/t 24g/t 6g/t 19g/t 14g/t na na na	2.9% 5.1%	0.3% 2.2%	157.4 245.0 250.6 256.0 275.1 287.6 178.3 315.8 164.4 203.0 293.1 146.0 198.4 298.4 186.3 341.9 345.7 130.0 72.0 129.0 131.0 90.0 102.0 245.0 245.0 247.0 197.0 198.0 79.0 106.0 69.0 65.0 85.0 59.0	3.0 27.0 6.0 9.0 1.2 3.0 8.0 3.0 7.2 4.0 2.7 13.0 4.5 1.5 9.0 5.5 4.0 2.5 16.0 4.0 2.0 1.5	-53 -53 -55 -50 -47 -58 -32 -45 -42 -55 -70 -63 -62 -70 -60 -60	093 093 098 117 138 119 124 099 110 120 144 300 291 124 298 248 067
Recent RC drill holes and results highlighted. Recent assays are based on 1m splits from 20kg							RC drill samples. 3kg splits were analysed at ALS Orange using				an aqua regia digest and ICP-

AES method. Samples over 1%Cu were reanalysed using a more precise ore grade method via aqua regia digest and ICP-AES finish.

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Figure 3. Cross section interpretations of the Frogmore copper lodes. Top. Cross section of central zone along drill hole FRC029. Bottom. Cross section of southern end of mineralised zone along drill hole FRC027, highlighting the deeper copper target

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Figure 4. Regional geology and location map of Frogmore project in southern NSW.

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 full-time 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.

AI assistant

IODM LIMITED Capital/Financing Update 2011

65131_rns_2011-07-21_ed81430b-5452-4010-b6e0-a20f6cf80391.pdf

ASX / Media Announcement

22 July 2011

More copper - silver hits at Frogmore

HIGHLIGHTS

RC drilling results

Down-hole geophysics

Planned work

AI assistant

IODM LIMITED — Capital/Financing Update 2011

65131_rns_2011-07-21_ed81430b-5452-4010-b6e0-a20f6cf80391.pdf

ASX / Media Announcement

22 July 2011

More copper - silver hits at Frogmore

HIGHLIGHTS

RC drilling results

Down-hole geophysics

Planned work

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IODM LIMITED Capital/Financing Update 2011