IODM LIMITED — Capital/Financing Update 2011

Feb 8, 2011

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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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ASX / Media Announcement

9 February 2011

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Yellow Mountain gold project update

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First round of RC drilling completed at Yellow Mountain

Paradigm is pleased to report that it has completed 1600m of RC percussion drilling at the Quarry Hill gold prospect. The drill rig has been demobilized while gold assays are awaited.

Sixteen vertical RC percussion holes (numbered PRC002 to PRC017) were drilled to an average depth of just over 100m per hole. The deepest hole was drilled to 130m depth. Holes were drilled on a 80m x 80m grid spacing, with 2 infill holes at 40m spacing – see Figure 1.

Several of the holes intercepted thick zones of silicified, oxidized, ‘meta-sandstone’ rocks which we expect will contain oxide-gold mineralisation in several of the holes. Minor pyrite was intercepted towards the base of some of the drill holes. Full laboratory results are expected by the end of February.

Adjacent tenement now granted

Paradigm is also pleased to report that the NSW Department has now granted the adjacent tenement immediately along strike to the northwest of Yellow Mountain (EL 7697, ‘Maranoonbah’) – see Figure 2 and Figure 3. The new tenement, EL 7697 covering over 80 km[2] , is 100% owned by Paradigm, and contains a number of under-explored gold prospects which the company will begin to work up immediately to drill target status.

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Plate: Topography at Quarry Hill prospect with Yellow Mountain about 4km in the distance

Figure 1. Quarry Hill prospect drill location map, highlighting recent vertical RC percussion holes. Results are pending for drill holes PRC002 to PRC017.

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Figure 2. Tenure map highlighting key projects and selective competitor tenements in the region.

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Figure 3. Regional magnetic map highlighting gold prospects on EL 6325 and EL 7697.

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About the Yellow Mountain Project

The Yellow Mountain project, EL 6325, is located 70km north-northwest of Condobolin, central New South Wales. The project is prospective for disseminated sediment-hosted gold and porphyry gold (-copper) deposits. Paradigm can earn a 51% joint venture interest in EL 6325 by spending approximately $750,000 by 31 March 2013.

For further information contact the Managing Director, Dr Graham Carman: Ph: 61-(0)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 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.

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