IODM LIMITED — Capital/Financing Update 2015

May 21, 2015

ASX release 22 May 2015 ASX: PDM

ABN 28 102 747 133

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CAPITAL RAISING – ENTITLEMENTS ISSUE

The Board of Paradigm Metals Limited (“Paradigm” or “the Company”) is pleased to announce that it has engaged Lodge Corporate to act as lead manager to a non-renounceable rights issue to existing shareholders on a 6 for 7 basis at an issue price of $0.003 per Share (approximately 733,903,149 shares) with a free attaching listed option for every two new shares (exercisable at $0.002 and expiry of 31 December 2016) to raise $2,201,709 before costs. Application will be made by the Company to the ASX for quotation of the options.

This offer will allow the Company to advance its exploration strategy following the successful completion of the first drilling programme at its Caninde Graphite project in Ceara State, Brazil. The Company intends to undertake ground geophysics, mapping and trenching to identify targets for a second diamond drilling programme planned to commence in the September quarter 2015.

A prospectus setting out the details of the offer will be lodged with the Australian Securities and Investment Commission and the Australian Securities Exchange on or about Friday 22nd May 2015.

Yours sincerely,

Anthony Reilly Chief Executive Officer 22 May 2015

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

Level 1, 330 Churchill Avenue Subiaco WA 6008 Tel: +61 8 9200 4482 Fax: +61 8 9200 4469

Contact : Anthony Reilly Managing Director info@paradigmmetals.com.au

Directors: Anthony Reilly Nicholas Lindsay Brian McMaster

Paradigm Metals (ASX:PDM ) - Capital Raising – Entitlements Issue