IODM LIMITED — Capital/Financing Update 2015

May 21, 2015

ABN 28 102 747 133

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26 May 2015

Dear Shareholder,

PARTICIPATION IN PRO-RATA NON-RENOUNCEABLE ENTITLEMENT ISSUE

As announced to ASX on 22 May 2015, Paradigm Metals Limited ( Paradigm ) is undertaking a pro-rata non-renounceable entitlement issue of approximately 733,903,149 fully paid ordinary shares in the capital of the Company ( Shares ) at an issue price of $0.003 per Share with 1 free attaching Option for every 2 Shares subscribed to its shareholders who are registered as shareholders at 5pm (WST) on 29 May 2015 ( Record Date ) to raise approximately $2,201,709 ( Entitlement Issue ).

The Shares will be offered on the basis of 6 new Shares for every 7 Shares held as at the Record Date with 1 free attaching Option for every 2 Shares subscribed and allotted under the Entitlement Issue ( Offer ). The Shares offered under the Entitlement Issue will rank equally with the Shares on issue at the date of the prospectus.

The entitlements under the Offer ( Entitlements ) are non-renounceable, which means that all or part of an eligible shareholder’s rights to subscribe for securities under the Offer may not be traded on ASX.

The Company has lodged a prospectus in relation to the Entitlement Issue ( Prospectus ) at the Australian Securities & Investments Commission and ASX and is available on the ASX website at asx.com.au for inspection. This document will be despatched to shareholders of the Company on 3 June 2015 and will outline the Entitlement Issue in detail.

Key Dates

The proposed timetable for the Entitlement Issue is as follows:

he proposed timetable for the Entitlement Issue is as follows:
Lodgement of Prospectus with the ASIC	22 May 2015
Lodgement of Prospectus & Appendix 3B with ASX	22 May 2015
Notice sent to Optionholders	22 May 2015
Notice sent to Shareholders	26 May 2015
Ex date	27 May 2015
Record Date for determining Entitlements	29 May 2015
Prospectus sent out to Shareholders & Company announces this	3 June 2015
has been completed
Last day to extend the Closing Date	10 June 2015
Closing Date (5:00 pm WST)*	15 June 2015
Securities quoted on a deferred settlement basis	16 June 2015
Notify ASX of under subscriptions	18 June 2015
Issue date/Securities entered into Shareholders’ security	22 June 2015
holdings
Normal trading of Securities commences*	23 June 2015

These dates are subject to change and are indicative only. Subject to the ASX Listing Rules the Corporations Act 2001(Cth) the Directors reserve the right to vary the dates for the Entitlement Issue at their discretion.

The funds raised from the Offer are planned to be used in accordance with the table set out below:

Item	Proceeds of the Offer	($)	%
1.	Geophysics – Caninde Graphite Project	150,000	6.81
2.	Metallurgy– Caninde Graphite Project	50,000	2.27
3.	Mappingand trenching– Caninde Graphite Project	100,000	4.54
4.	Drilling– Caninde Graphite Project	900,000	40.88
5.	Acquisition Payments – Caninde Graphite Project	250,000	11.36
6.	Market research – Brazilgraphite	50,000	2.27
7.	Expenses of the Offer	168,830	7.67
8.	Workingcapital	532,879	24.20
	Total	2,201,709	100

Level 1 / 330 Churchill Avenue, Subiaco WA 6008 P.O. Box 540, Subiaco WA 6904, Australia Ph: +61 8 9200 6264, Fax: +61 8 9200 4469

ABN 28 102 747 133

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The above table is a statement of current intentions as of the date of this Prospectus. As with any budget, intervening events and new circumstances have the potential to affect the manner in which the funds are ultimately applied. The Board reserves the right to alter the way funds are applied on this basis.

The effect of the Offer on the capital structure of the Company, assuming the Offer is fully subscribed is set out below:

Shares		Number
Shares currentlyon issue		856,220,340
Shares to be issuedpursuant to the Offer		733,903,149
Total Shares on issue after completion of the Offer		1,590,123,489
Options		Number
Options currentlyon issue1		262,543,010
CPS Deferred Options		220,000,000
New Options to be issuedpursuant to the Offer1		366,951,574
Total Options on issue after completion of the Offer		849,494,584
1.Listed Options exercisable at $0.002 on or before 31 December 2016.

In calculating entitlements under the Entitlement Issue, fractions will be rounded up to the nearest whole number.

Applicants

The Entitlement Issue is made to shareholders with registered addresses in Australia and New Zealand only.

Your acceptance of the Offer must be made on the Entitlement and Acceptance Form accompanying the Prospectus. Your acceptance must not exceed your Entitlement as shown on that form. If it does, your acceptance will be deemed to be for the maximum Entitlement.

You may participate in the Offer by:

• (a) taking up all of your Entitlement;

• (b) taking up a proportion of your Entitlement and allowing the balance to lapse; or

• (c) allowing all of your Entitlement to lapse.

If you wish to accept all or part of your Entitlement, you must:

• (a) complete the Entitlement and Acceptance Form and attach your cheque, drawn on an Australian bank or bank draft made payable in Australian currency, for all or part of the amount indicated on the Entitlement and Acceptance Form; or

• (b) pay the appropriate application monies for all or part of your Entitlement through the BPay® facility described in the Prospectus and the Entitlement and Acceptance Form. If you make your payment by BPay®, you do not need to return the Entitlement and Acceptance Form.

Ineligible Shareholders

The Offer is being made to all shareholders of the Company ( Shareholders ) named on its register of members at 5pm (WST) on 29 May 2015, whose registered address is in Australia or New Zealand. Overseas shareholders should contact the Company Secretary with any queries.

Full details of the Entitlement Issue will be contained in the Prospectus that will be mailed to eligible shareholders who are registered on the Record Date. Shareholders eligible to participate should read the Prospectus carefully.

Should you have any queries in relation to this matter, please do not hesitate to contact the Company on (+61 8) 9200 6264.

Yours sincerely

Paula Cowan Company Secretary PARADIGM METALS LIMITED

Level 1 / 330 Churchill Avenue, Subiaco WA 6008 P.O. Box 540, Subiaco WA 6904, Australia Ph: +61 8 9200 6264, Fax: +61 8 9200 4469