IODM LIMITED — Capital/Financing Update 2013

Feb 18, 2013

==> picture [256 x 75] intentionally omitted <==

ABN 28 102 747 133

ASX / Media Announcement

19 Feb 2013

EPM 19016 (The Ladies) Granted

Paradigm Metals Ltd (Paradigm) is pleased to announce that EPM 19016, “The Ladies”, has been granted to Paradigm for a five year period. The Ladies is a new copper-gold project for the Company, located between Mt Isa and Cloncurry in Queensland covering a number of historic copper prospects over a 2 km trend (see Fig 1 & 2).

Key facts:

• 8 Cu-Au prospects occur along a 2 km trend about a prospective dome structure;

• Located in Iron Oxide Copper Gold (IOCG) belt close to existing roads and infrastructure;

• Paradigm rockchips from 2 of the 8 prospects returned up to 11% copper (oxide) and 2 g/t gold;

• 2 past drill holes at the Morning Star prospect intersected shallow copper-gold mineralisation including 16m @ 0.76% Cu and 0.12g/t Au from 46m in MSP-1;

• Paradigm to carry out low-cost exploration to generate drill targets.

About The Ladies

“The Ladies” area was staked by Paradigm late in 2010 and is only recently granted. At least eight historical copper oxide workings are known on the property. “The Ladies” is derived from prospects described in old exploration reports including Lady Rose, Lady Kate, Lady Ethel and Lady Amy.

Paradigm has made reconnaissance visits to the Lady Rose, Morning Star, and the Australian Flag prospects to date.

Mineralisation of iron oxide copper gold (IOCG) style occurs at the contact between felsic volcanic rocks of the Argylla Formation and the overlying calc-silicate rocks of the Corella Formation within a stratigraphic unit known as the Ballara Quartzite. The Argylla Formation forms an anticlinal dome, with mineralisation wrapping around and dipping away from the dome (see Fig 2).

Paradigm Metals Limited

Principal Office: Suite 202, 122 Walker Street Registered Office: Level 1, 33 Richardson Street North Sydney, NSW, 2060 West Perth, WA, 6005 Ph: +61 (2) 9955-7130 PO Box 826 Fax: +61 (2) 8920-3576 West Perth, WA, 6872 Website: www.paradigmmetals.com.au Ph: +61 (8) 9200-4482 Email: info@paradigmmetals.com.au Fax: +61 (8) 9200-4469

1

==> picture [491 x 345] intentionally omitted <==

Figure 1: Regional Location Map

Copper-gold mineralisation occurs in association with magnetite, hematite, biotite, and minor quartz in schistose rocks at or near the contact with the Corella Formation. Hematite ‘red rock’ alteration is common in the area. At the Australian Flag prospect mineralisation occurs in strongly brecciated quartzite and sampling by Paradigm geologists of a 1 metre wide mineralised dyke returned grades of 11.2% Cu and 2g/t Au in a pit. Generally, outcrops are believed to be depleted of copper due to surface leaching (see photos attached).

Placer Exploration Ltd carried out a reconnaissance evaluation of a number of the Ladies prospects during the early 1990s which included reconnaissance mapping and sampling of the various prospects. Work also included the drilling of two shallow percussion holes at the Morning Star. These holes returned the following results:

• 16m @ 0.76% copper and 0.12g/t gold from 46m depth (sulphide) in MSP-1

• 22m @ 0.23% copper and 0.05g/t gold from 8m depth (oxide) in MSP-2 . (EPM 5985 Annual Report to July 1993 – Placer Exploration Ltd)

Since Placer’s work there has been no systematic exploration in the area.

2

==> picture [474 x 388] intentionally omitted <==

Figure 2: Simplified geological map of The Ladies project (based on open file data)

Future Work

Paradigm believes that more detailed evaluation of the prospects is required given the extensive outcropping of copper mineralisation at the surface and widespread red-rock alteration in the host rocks. In relatively recent times, large copper-gold deposits such as Ernest Henry, Rocklands, and E1 have been discovered in the Cloncurry region highlighting the prospectivity of the belt (see Fig 1).

Paradigm will carry out rock sampling and detailed mapping.

Magnetics and EM geophysics is also planned.

3

==> picture [310 x 196] intentionally omitted <==

Photo of oxidised copper mineralisation at Australian Flag (above) & Morning Star (below)

==> picture [274 x 232] intentionally omitted <==

==> picture [105 x 26] intentionally omitted <==

Greg Curnow Chief Executive Officer Paradigm Metals

Ph: (02) 9955-7130

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

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Greg Curnow who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Curnow is the Chief Executive Officer 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”. Mr Curnow consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

4