IODM LIMITED — Interim / Quarterly Report 2007

Oct 22, 2007

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ASX Release 23 October, 2007

ASX Code: PDM

QUARTERLY REPORT Period ending 30 September 2007

HIGHLIGHTS

TUNGSTEN - White Rock project, New South Wales (PDM 100%)

• The Company is awaiting the results from 21 RC drill holes recently completed at White Rock, aiming to expand the current Indicated and Inferred Mineral Resource of 150,000 t @ 0.9% tungsten trioxide

• Skarn rock, the host of tungsten and tin at White Rock, has been widely intersected in holes outside of the resource envelope. A resource upgrade is expected late Nov07

• Further drilling and a scoping study will be initiated later in 2007

• Metallurgical test work using a combination of gravity and magnetic separation techniques is continuing with positive results so far

COPPER - Frogmore project, New South Wales (PDM 100%)

• Diamond drilling beneath old copper workings at Frogmore has returned exciting high-grade copper results from the “Pride of Frogmore” lode:

• FDD001: 8.7m @ 1.9% Cu from 250.6m including 1m @ 4.8% Cu

• 14.8m @ 2% Cu from 275m including 0.8m @ 8.3% Cu

• The mineralisation is believed to be ‘Cobar-style’ hosted by strongly sheared Silurian rocks. The potential is for multiple plunging lodes, with only one of five lodes tested by deep drilling so far

• A VTEM geophysical survey will be conducted to better define targets to be followed up with further drilling by early 2008

URANIUM – Cloncurry - Mt Isa projects, Queensland (PDM 100%)

• All exploration permits have now been granted giving the Company full access to all of its uranium projects in the Mt Isa region (total 430 sq km)

• Sampling of Toolebuc limestone at the Cloncurry project has confirmed carnotitebearing outcrops grade up to 300ppm U with co-anomalous molybdenum (300ppm Mo), vanadium, phosphorus and zinc over an extensive area

• Detailed structural analysis is being carried out to better understand controlling structures, possible trap-sites for high-grade uranium, and to prioritise drill targets

• Drilling is anticipated in 2008 following appraisal and ranking of targets

Please direct enquiries to: Graham Carman, Managing Director PhD, MAUSIMM 02 9955-7130

Paradigm Metals Ltd ABN 28 102 747 133: Suite 202, 122 Walker Street, North Sydney, AUSTRALIA 2060 Ph: +61 (2) 9955-7130 Fax: +61 (2) 8920-3576 E-mail: info@paradigmmetals.com.au

1. White Rock Tungsten project (EL 6274)

The Company is awaiting the results of 21 percussion drill holes for some 750 metres recently completed at the White Rock tungsten project, Rye Park, New South Wales. Assays are expected by mid November. The objective of the drill programme was to allow for a revised resource statement by the end of November 2007. The current Indicated and Inferred Mineral Resource of 150,000 tonnes @ 0.9% WO3 is based largely on 1950’s diamond drill holes.

The host of the tungsten mineralisation is ‘skarn’, a rock formed by contact metamorphism of carbonate rocks (eg limestone) by granite. Magnetite skarn bodies are associated with magnetic anomalies at White Rock (Figure 1). A ‘halo’ of non-magnetic skarn has been discovered by drilling to the east of the known mineralisation. The skarn remains open to the northeast (Figure 1).

Based on the geology encountered to date there is considerable potential to expand the resource with tungsten accompanied by tin, molybdenum and possibly gold credits. Previous PDM drill hole intersections of non-magnetic tin-tungsten skarn not included in the current Mineral Resource include; WRP023: 4m @ 0.55% SnO2 and 0.02% WO3 from 10m;

WRP016: 4m @ 0.44% SnO2 ,0.26% WO3 from 23m; 3m @ 0.2%SnO2 and 0.16% WO3 from 35m; RPD: 3m @ 0.07% SnO2, 0.13% WO3 and 1.4g/t gold from 11m.

Figure 1. White Rock drill holes and magnetic data (analytic signal) & East-West geological cross-section

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Paradigm is targeting a resource in the 500,000-1million tonnes range as being potentially economic given high tungsten prices, and the high-grade / shallow nature of the deposit.

We expect shortly the results of initial recoverability tests of the tungsten minerals using magnetic and gravity laboratory testing. Preliminary test-work only of the magnetite skarn indicates two tungsten minerals, scheelite (CaWO4) and ferberite (FeWO4) are present. The ferberite (iron-rich wolframite) is weakly magnetic, so this property may be used in the beneficiation step to separate ferberite from non-magnetic material following the initial separation of the magnetite. Independent testing of the magnetite indicates it contains no deleterious elements, so it would likely be suitable for use in the coal washing industry.

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2. Frogmore Copper project (EL 6590)

High-grade copper results were returned during the quarter from a 3-hole diamond drill programme beneath late 19[th] century copper workings at Frogmore, New South Wales. Five separate lodes are currently known at Frogmore, with only the ‘Pride of Frogmore’ lode drilled to any significant depth so far (Figure 2):

Table 1: Significant diamond drill intercepts at Frogmore reported during the quarter.

Lode	Drill hole	Interval m	Cu %	Zn%	Depth from m
“Pride of Frogmore” “Western” “Corcoran”	FDD002 FDD003 including FDD001 including FDD001 including FDD002 FDD003 FDD001 FDD003	1.5 m 15.8 m 6.5 m 8.7 m 1.0 m 14.8 m 0.8 m 1 m 1.5 m 3.3 m 3.3m	6.0% 0.68% 1.1% 1.92% 4.8% 2.0% 8.3% 2.4% 2.2% 2.14% 0.52%	- - - - - - - - - - 2.9%	315.8 m 203.0 m 209.1 m 250.6 m 256.0 m 275.1 m 287.6 m 178.35 m 165.4 m 157.4 m 293.1 m

Assays are pending for RC holes recently drilled on the ‘Frogmore’ (FRC016) and “Zinc” (FRC 013, 014) lodes where minor visible copper and zinc sulphides were observed. Two RC holes drilled at the southern end of the Pride of Frogmore appear to limit the southerly extension of that lode (FRC011, FRC015), but the Pride of Frogmore remains open to the north and at depth. There exists the possibility that the Frogmore and Pride of Frogmore lodes could join up as these lodes dip steeply towards each other.

Figure 2. Drill map of Frogmore and regional project location map

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Currently the Pride of Frogmore has a strike length of 150- 200 metres and extends to 250 metres depth (Figure 3). Every deeper drill hole has so far demonstrated increased copper grade.

We believe the Frogmore district has the potential to host a multi-million tonne high-grade copper deposit of the Cobar (CSA) type. Analogies to the CSA mine include the high-grade copper mineralisation, similar mineral alteration and geochemical associations (Cu, Zn, Pb, Bi, Au), persistence of the mineralisation to depth, and a close relationship to regional north-trending shear zones.

Drilling to date has largely been guided by geology alone. The Company has booked a VTEM geophysical survey for late 2007 to assist with targeting the next round of drilling to a depth of 300 metres.

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Figure 3. Long section (left) and cross section (right) of the Pride of Frogmore lode

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3. Uranium Projects - Cloncurry and Mt Isa region

All exploration permits held by the Company in Queensland have now been granted, giving the Company full access to all three of its projects consisting of some 430 square kilometres in the Mt Isa region.

Further sampling of Toolebuc limestone on the Company’s Cloncurry tenements (EPM 15325, 15906, 16200) has resulted in additional uranium anomalies up to 300ppm U along a trend that now extends for some 15 km (Figure 4). Some of the highest values in sparse sampling were returned from EPM 16200. More detailed work will be completed there shortly.

The grade and extent of uranium mineralisation discovered to date on the Cloncurry project is not yet sufficient to be an economic discovery. However the Company’s tenements are large, and there remains the possibility for buried deposits which may require significant drilling. With this in mind, we are seeking to enhance our chances of drilling success by first completing a detailed structural analysis of the Toolebuc limestone basin, with the purpose of identifying mineralised faults and uranium trap sites for possible economic mineralisation. This analysis will not be completed until early 2008. RC drilling was originally planned for the current quarter; however the Company has decided to delay the drilling until our interpretations are complete.

The Blue Bush and Jacktim projects will be visited once access arrangements have been made with the native title groups.

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Figure 4. Location map and detail of samples collected at the Cloncurry project with radiometric base grid

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4. Other

The Company is continuing to investigate farm-out options for its gold assets (Auburn, Lighthouse Gully, North Cadia, Guyra) located in southeast Queensland and New South Wales.

The Company’s AGM will be held at the Company offices, suite 202, 122 Walker Street, North Sydney on 15 November 2007 at 10am.

About Paradigm:

Paradigm Metals Ltd (ASX code PDM) listed on the ASX in November 2003. The Company is a tungsten, copper and uranium explorer and developer, with projects in the Lachlan Fold Belt of NSW and the Mt Isa region of Queensland. More information is available at our 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 Dr Graham Carman who is a Member of the Australasian Institute of Mining and Metallurgy. Dr Carman is a fulltime employee of the Company. Dr Carman 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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Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

Name of entity	Name of entity
PARADIGM METALS LIMITED
ABN 28 102 747 133	Quarter ended (“current quarter”)
28 102 747 133	30th September 2007

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid - GST refund 1.7 Other (provide details if material) Net Operating Cash Flows	Current quarter $A’000	Year to date ( 3 months ) $A’000
	(449) (212) 33 59 1	(449) (212) 33 59 1
	(568)	(568)
Cash flows related to investing activities 1.8 Payment for purchases of: (a)prospects (b)equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)
	(568)	(568)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(568)	(568)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows	150	150
	150	150
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	(418) 2,172	(418) 2,172
	1,754	1,754

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		34
1.25	Explanation necessaryfor an understandingof the transactions
	Payments to Non-Executive Directors - $33,750

Non-cash financing and investing activities

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2.1 Details of financing and investing transactions which have had a material effect on consolidated
assets and liabilities but did not involve cash flows
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• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Financing facilities available

Add notes as necessary for an understanding of the position.

Amount available Amount used $A’000 $A’000

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

• 3.1 Loan facilities

3.2 Credit standby arrangements

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development	$A’000
	300
	-
Total	300

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.

• 5.1 Cash on hand and at bank

5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)

Total: cash at end of quarter (item 1.22)

Current quarter Previous quarter $A’000 $A’000 12 46 1,742 2,126 1,754 2,172

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	EPM 15323 EPM 15324 EPM 15325 EPM 16200	Paradigm Queensland Pty Ltd Paradigm Queensland Pty Ltd Paradigm Queensland Pty Ltd Paradigm Queensland Pty Ltd	nil nil nil nil	100% 100% 100% 100%

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note3) (cents)	Issue price per security (see note3) (cents)	Amount paid up per security (see note3) (cents)	Amount paid up per security (see note3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital,buy-backs	64,167,582	64,167,582
7.5 +Convertible debt securities(description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor Listed Options Unlisted Options Employee Options 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	30,006,153 300,000	30,006,153 -		Exercise price $0.25 $0.25	Expiry date 18th May 2008 22ndMay 2010
	2,000,000	2,000,000		Exercise price $0.075
	N/A
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

Compliance statement

1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Sign here: . . Date: 23 October 2007... (Director)

Print name: Graham D Carman

Notes

1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3 Issued and quoted securities: The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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• See chapter 19 for defined terms.

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