IODM LIMITED — Capital/Financing Update 2013

Oct 7, 2013

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The Ladies Project returns high grade Copper

Initial rock chip sampling results have been returned from the Company’s 100% owned The Ladies Copper Project in the Cloncurry District of Queensland.

ABN 28 102 747 133

ASX: PDM

Contact details: Registered Office

Level 1, 330 Churchill Ave, Subiaco, WA 6008 PO Box 826 West Perth, WA 6872 Ph: +61 8 9200-4482 Fax: +61 8 9200-4469

Email: info@paradigmmetals.com.au Website: www.paradigmmetals.com.au

Executive Director: Anthony Reilly Non-executive Director: Graham Carman Non-executive Director: Brian McMaster Shares on issue: 425,215,010

12 month share price range: $0.004 to $0.013 Market capitalisation: $1.7 million (at $0.004) Cash at 30 June 2013: $1.68 million

Gold – Copper Explorer

CURRENT PROJECTS

Yellow Mountain Gold, NSW

• Extensive Cu-Au mineralisation at Yellow Mountain Mine

In particular, exceptional copper rock chip sampling results have been returned from the Lady Amy and Lady Kate prospects.

Key Points:

• Lady Amy area: 64 metres at 3% copper and 0.3g/t gold from semi continuous rock chip sampling.

• Lady Kate area: 20 metres at 1.3% copper and 0.3g/t gold from semi continuous sampling.

• Mineralisation is broadly related to magnetic anomalies associated with secondary magnetite and IOCG ‘red rock’ alteration.

• Both the Lady Amy and Lady Kate are believed to have similar geological characteristics to copper gold deposits in the Cloncurry region.

• The Company is now planning an initial RC drill programme.

• Porphyry Cu-Au targets undercover that remain untested by drilling

- Ladies Copper Gold, Cloncurry

• IOCG system

• High grade samples up to 13% Cu

• Completed ground geophysical survey

• Completed soil geochem

• New permit application for Cu-Au

Base Metals & Tungsten, NSW

• Tungsten-magnetite JORC resource

• Kangiara Zn-Pb-Cu-Ag JORC resource and oxide gold-silver cap available for farm-in

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THE LADIES (100%)

EPM 19016 “The Ladies” is a recently granted exploration permit prospective for copper-gold mineralization, located 70km south west of Cloncurry in north western Queensland.

The geological characteristics at The Ladies are believed to be similar to many iron oxide copper gold (IOCG) deposits in the region – for example the Mount Colin deposit (Mineral Resource of 1.9 Mt @ 2.59% copper and 0.42g/t gold– CopperChem Ltd & Exco Resources websites) lies 15km to the north, and Rocklands (Mineral Resource of 31.4 Mt @ 0.94% copper, 0.19g/t gold and 465ppm cobalt, – CuDECO Ltd, May 2011) lies 50km to the northeast – Figure 1. Ernest Henry, the large IOCG copper/gold mine operated by Glencore-Xstrata, is located 100km to the north east.

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Figure 1: Location of the Ladies project in the Cloncurry copper region of Queensland

Work completed by Paradigm in September quarter 2013

• Soil sampling using a portable XRF

• Geological mapping

• Selective rock sampling and laboratory assaying

• Ground geophysics magnetics and gravity

• Review of prospects in field

• Review of competitor activities

Soil and termite mound sampling

Paradigm analysed 498 in situ soil and termite mound samples over a 2 km x 1.5 km using a portable XRF analyser on a 50m by 200m grid. Two areas were infilled to a 50m

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grid at Lady Kate and Lady Amy – see Figure 2. Copper values ranged from 20 ppm to 10,600 ppm (1.06%) copper. The highest results occurred in the Lady Kate area over a 200m by 300m area, with several termite mounds recording over 2,000 ppm (0.2%) copper.

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Figure 2. Copper soil anomalies and sample points over regional magnetics (TMI)

Ground Geophysical Survey

The Company recently completed a ground magnetic survey along 100m spaced lines which has greatly assisted in the identification of the drill targets. The Lady Kate area in particular was highlighted by a strong magnetic anomaly. A gravity survey was also completed on a 200m by 50m grid.

Lady Amy rock sampling

The Lady Amy area has a number of shallow copper shafts which expose copper oxide mineralization along an old mining wall. A 64m wide wall returned an average grade of 3% copper and 0.3g/t gold based on sixteen 4m semi-continuous (SC) linear chip samples taken approximately perpendicular to strike. Secondary copper mineralization (malachite, minor azurite) occur throughout. See Figure 3 for location of rock sampling and copper soil results.

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Figure 3 - Copper surface map of the Lady Amy area.

Lady Kate rock sampling

The Lady Kate area has a number of shallow copper shafts, although outcrop is generally poor across much of the area. The wall of a 20m wide copper digging returned an average grade of 1.3% copper and 0.3g/t gold from semi continuous rock chip sampling with samples collected approximately perpendicular to strike – see Table 1. A semi continuous sample across a second digging returned 8m with an average grade of 1.7% copper and 0.3g/t gold. See Figure 4 for a plan of copper results in soil and rock samples.

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Figure 4. Copper surface map of the Lady Kate area with simplified geology.

Future Work

The Company is now planning an initial RC drilling programme to test the identified targets at Lady Kate and Lady Amy. The Company anticipates being able to undertake this programme during the December quarter 2013.

The Company looks forward to updating shareholders as work progresses.

Anthony Reilly Chief Executive Officer 8 October 2013 Email: info@paradigmmetals.com.au Website: www.paradigmmetals.com.au

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Table 1. Copper and gold results from surface rock samples from The Ladies

			Sample	Sampled
Easting	Northing	Area	type	width_m	Sample_ID	Au_ppm	Cu_%	Fe_%
393677	7687675	Lady Amy	SC	4	LM1	0.13	1.9	10.0
393673	7687676	Lady Amy	SC	4	LM2	0.06	1.8	11.8
393669	7687677	Lady Amy	SC	4	LM3	3.40	5.0	12.4
393665	7687677	Lady Amy	SC	4	LM4	0.02	4.0	13.4
393661	7687677	Lady Amy	SC	4	LM5	0.12	5.0	15.1
393657	7687678	Lady Amy	SC	4	LM6	0.03	2.0	12.6
393653	7687678	Lady Amy	SC	4	LM7	0.06	2.6	14.3
393649	7687679	Lady Amy	SC	4	LM8	0.30	0.9	20.7
393645	7687679	Lady Amy	SC	4	LM9	0.09	1.2	15.0
393641	7687680	Lady Amy	SC	4	LM10	0.10	4.1	17.2
393637	7687680	Lady Amy	SC	4	LM11	0.12	1.9	12.4
393633	7687681	Lady Amy	SC	4	LM12	0.08	0.4	8.6
393629	7687681	Lady Amy	SC	4	LM13	0.32	7.0	14.9
393625	7687682	Lady Amy	SC	4	LM14	0.25	13.8	7.8
393621	7687682	Lady Amy	SC	4	LM15	0.10	0.3	6.4
393617	7687683	Lady Amy	SC	4	LM16	0.49	0.7	7.6
393938	7688449	Lady Kate	SC	4	LK1	0.26	0.6	7.4
393942	7688451	Lady Kate	SC	4	LK2	0.26	0.1	4.6
393945	7688453	Lady Kate	SC	4	LK3	0.11	0.1	4.2
393949	7688455	Lady Kate	SC	4	LK4	0.27	2.0	9.3
393952	7688457	Lady Kate	SC	4	LK5	0.61	4.0	12.5
394017	7688456	Lady Kate	SC	4	LK6	0.40	2.1	12.7
394021	7688458	Lady Kate	SC	4	LK7	0.16	1.3	16.1

SC = semi-continuous rock chip sample. Coordinate datum is GDA94 zone 54.

Notes on sampling and assaying:

The sample results in Table 1 are based on 4 metre semi-continuous (SC) linear chip samples taken from the wall of old copper oxide diggings approximately perpendicular to strike. SC chip samples represent approximately 30% of a linear interval sampled, and although not continuous in nature, the samples were not selective and are believed to be broadly representative of the in situ copper oxide mineralisation in outcrop. It should be noted that the reported copper and gold grades do not necessarily reflect the grade of the mineralisation beneath the surface, which will require drilling. It is likely that oxide copper mineralisation is supergene and therefore enriched in copper relative to primary sulphide mineralisation.

Rock samples reported in Table 1 were sent to ALS Minerals in Townsville, and assayed for gold by fire assay using a 30g aliquot with an AA finish (method Au-AA25) and trace elements by ICP-AES (method ME-ICP41). Samples returning > 1% copper were re-assayed for copper using a standard high grade procedure (method Cu-OG46). Paradigm did not insert quality control samples, but ALS inserted internal standards, blanks and duplicates and reported the results which were satisfactory.

The 498 soil and termite mound samples reported here were analysed in situ using the company’s portable XRF analyser (Innov-X Delta DP-4000) from sites believed to be residual. Copper standards were analysed by the portable XRF during the survey and generally were found to be 10 to 20% low with respect to the known copper values of the standards. A correction factor was applied to the field soil data using a simple linear regression based on the copper standard results.

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 Fellow of the Australasian Institute of Mining and Metallurgy. Dr Carman is a non-executive director 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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