IODM LIMITED — Interim / Quarterly Report 2007

Jul 23, 2007

24 July, 2007

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Company Announcements Office Australian Securities Exchange Sydney

Exploration Activities & Cash Report June Quarter 2007

HIGHLIGHTS

URANIUM

• CONFIRMATION OF U-Mo POTENTIAL AT CLONCURRY

• Detailed rock sampling of Toolebuc Limestone has confirmed uranium and molybdenum mineralisation, with individual assays up to 270ppm U3O8 and 355ppm MoO3

• The blanket-like nature of the Toolebuc Limestone opens up the possibility for a large deposit of molybdenum-vanadium-uranium within the Cloncurry permits, given that the geology is similar to the extensive V-Mo limestone deposits at nearby Julia Creek

• RC drilling is planned for the next quarter

• EXPLORATION PERMITS OFFERED FOR GRANT IN MT ISA REGION

• New permits at Cloncurry, Blue Bush and Jacktim are expected to be granted in July

• The new permits will more than double the Company’s prospective uranium ground in the Mt Isa region to 430 square kilometres

TUNGSTEN AND BASE METALS

• WHITE ROCK TUNGSTEN PROJECT

• Several high-grade tungsten drill intersections were made at White Rock during the quarter, including 12 m @ 1.54% WO3 with 640 ppm MoO3, and 11 m @ 0.40% WO3 with 0.16% SnO2

• Further drilling at White Rock is planned for Aug-Sep07

• Metallurgical test-work awaited on magnetite for coal washing purposes

• Drilling will commence in July at the adjacent Mica Hill wolframite prospect

• DRILLING UNDERWAY AT FROGMORE COPPER PROSPECT

• RC drilling is currently targeting high-grade copper mineralisation adjacent to the old Frogmore copper mine (12,000 tonnes grading 10% copper mined, late 1800’s)

• An encouraging air-core drill intersection of 4m grading 3% combined Pb-Zn-Cu from 30m will be followed up with RC drilling immediately

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. Cloncurry Uranium Project

U-Mo results

Rock chip uranium results from Exploration Permit (EPM) 15906 have delineated approximately 10 sq km of ground prospective for ‘roll front’ uranium mineralisation, likely to extend to a larger area when EPM 15325 is granted shortly (Figure 1). Uranium mineralisation is believed to be in the form of carnotite, a uranium vanadate mineral.

The two largest of the four defined surface anomalies range from 50-200ppm U up to a maximum of 230 ppm U (271 ppm U3O8); Figure 2. Many of the rock samples are also strongly anomalous in molybdenum, up to a maximum of 237 ppm Mo (355 ppm MoO3). Other coanomalous elements include phosphorus (up to 1%), vanadium (950ppm V2O5), zinc (450ppm Zn) and silver (4.5ppm Ag).

Geology

Research of previous drilling indicates that the prospective Toolebuc Limestone thickens towards the western margin of the Eromanga Basin, and in particular within Paradigm’s Cloncurry permits. This thickening is possibly related to folding of the Mesozoic strata in this area (Figure 1). The Mesozoic strata has a gentle dip to the northeast.

Hole INDI14 drilled within EPM 15325 intersected 10m at 0.3% V2O5 accompanied by molybdenum up to 300ppm Mo (incomplete assays) from 20m depth. No uranium assays are available for these drill holes. However, given the vanadium-molybdenum-phosphorus-uranium association in rock samples, Paradigm considers the Cloncurry project offers an exciting opportunity for a very large, multi-metalliferous blanket deposit. Overburden is likely to be minor, as indicated by drill hole INDI14. Extensive vanadium-molybdenum mineralisation is already known in Toolebuc Limestone about 100km to the northeast at Julia Creek.

Drilling Planned

RC percussion drilling is planned for the next quarter. The program will entail shallow (<50m) wide-spaced (0.5-1km) drill holes within EPMs 15906 and 15325.

2. Exploration Permits Offered for Grant, Mt Isa – Cloncurry Region

In July the Queensland Government has offered for grant several permits in the Mt IsaCloncurry region. The Company has accepted the standard terms and conditions, and paid the financial assurances. The newly offered permits are EPM 15323 (Jacktim), EPM 15324 (Blue Bush), and EPM 15325 (Cloncurry-1) all considered prospective for ‘roll-front’ and ‘skarn’ Mary Kathleen uranium deposits. The new permits, expected to be formally granted before the end of July, will more than double the Company’s granted permits in the Mt Isa region to 430 square kilometres.

The Company is still awaiting news on the outcome of competing applications adjacent to its Cloncurry project covering 25 sq km (EPMA 16111 and EPM 16200) competing with one other party.

3. Blue Bush Uranium Project

Mary Kathleen Uranium Target

An interpretation of the Blue Bush uranium target is shown on a cross section in Figure 3. In 1983 CRA drilled one hole into the Blue Bush magnetic anomaly (hole DDH83KM2) while searching for iron-rich copper-gold deposits. Uneconomic copper mineralisation (up to 0.2%) was intercepted over narrow intervals, but of interest here was a 100m wide interval of altered Proterozoic metasediments with anomalous gamma radiation between 100-450 counts per second (no uranium assays available). Paradigm believes potential exists for Mary Kathleen style mineralisation up-dip and along strike of this drill intercept

Drilling Planned

A diamond drill program is planned for Blue Bush during the second half of calendar 2007.

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Figure 1A: Interpretive geological map of the Cloncurry project showing previous drill holes and thickened Toolebuc Limestone within Paradigm permits

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Figure 1B: Cross section of uranium roll front model within the Toolebuc

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Figure 2: Cloncurry uranium - molybdenum rock chip results, structure

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Figure 3: Interpretive geological cross section of the Blue Bush uranium prospect

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3. White Rock Tungsten project, NSW

White Rock prospect update

The Company reported during the quarter several high-grade tungsten drill intercepts at the White Rock tungsten project, 110km south of Orange near Rye Park, central New South Wales (EL 6274). The best intercepts were:

• *12 metres @ 1.54% WO3 and 428 ppm Mo from 6m in WRP037

• 8 metres @ 1.80% WO3 and 138 ppm Mo from12m in WRP039

• 4 metres @ 1.0% WO3 and 176 ppm Mo from 23m in WRP040

• 11 metres @ 0.40% WO3 and 0.16% SnO2 from 30m in WRP026

• *3 metres @ 0.27% WO3 and 0.44% SnO2 from 23m in WRP016

• intercepts made within existing Mineral Resource envelope

Paradigm has previously calculated a Mineral Resource (Indicated and Inferred categories) at White Rock of 150,000 tonnes @ 0.9% WO3 based on 1950s drill results. The Company is targeting a resource in the 500,000-1million tonnes range as being potentially economic given high tungsten prices of around $25,000 per tonne of concentrate, and the high-grade / shallow nature of the deposit. Substantial exploration potential still exists at White Rock and in surrounding prospects yet to be adequately drill tested.

The geology at White Rock is zoned from a core granite contact zone of magnetite skarn with high-grade tungsten mineralisation, to a lower-grade envelope of garnet skarn with tungsten-tin mineralisation (Figure 4). The high-grade tungsten occurs as scheelite (CaWO4) with visible molybdenite, which may also be recoverable as a credit in a future mining operation. Potential exists to extend the resource both down-dip, along strike, and up-dip within the lower grade tungsten – tin.

The Company is awaiting preliminary test-work results on the suitability of the magnetite at White Rock in coal washing industry. Magnetite makes up between 20% and 50% of the White Rock skarn by volume. Magnetite concentrate for coal washing is currently selling at approximately $150 per tonne, so if suitable the White Rock magnetite could be an important economic credit.

Further drilling at White Rock

Recent rains have hindered access to the project area, especially for the truck-mounted rig currently being utilised at Frogmore. We anticipate the next round of drilling at White Rock to begin during the August-September period.

Mica Hill prospect

Recent fieldwork has confirmed the ubiquitous occurrence of the tungsten mineral wolframite (FeWO4) at the Mica Hill prospect, located 500 metres south of the White Rock tungsten resource (Figure 4).

The wolframite is disseminated within flat-lying ‘greisen’ (or altered granite). Inspection of outcrops suggest that the ‘greisen’ has a shallow dip to the south. Mica Hill has received limited past exploration with only one known historic drill hole (RPJ, Figure 4) and an exploration adit.

Preliminary RC drilling will be carried out in late July to investigate the potential for the continuation of tungsten mineralisation to the south beneath shallow colluvial cover. Access to Mica Hill is easier than at White Rock, so we anticipate that the drilling rig currently at Frogmore will complete this work with minimal difficulty.

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Figure 4: White Rock tungsten project showing the location of the Mica Hill wolframite prospect and planned drill holes for early September quarter drilling

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4. Frogmore Base Metal project, NSW

Encouraging early drill results

The Company is continuing to advance exploration at the Frogmore Base Metals Project (EL 6590), located 200km west of Sydney, with ongoing air-core and RC percussion drilling.

Air-core drilling at the Frogmore South prospect intersected encouraging base metal sulphide mineralisation about 1 kilometre south of the old Frogmore Copper Mine (12,000 tonnes grading 10% copper, late 1800s). The best assays received were in air-core hole FGP069, with an intercept of 4m grading 3% combined Pb+Zn+Cu and 0.2g/t Au from 32m (Figure 5). This intercept is associated with galena, sphalerite, chalcopyrite and minor pyrite.

The Company believes these results are highly encouraging, given the potential strike length and the limited drilling to date. Several oxidised base metal intercepts in the air-core drilling require follow-up with deeper RC drilling. IP geophysical anomalies occur along at least 2km of strike indicating disseminated sulphide at depth.

Further exploration

RC percussion drilling is on-going at time of writing. Several holes are testing the extent of copper mineralisation beneath the western lode at Frogmore (Figure 5). Additional holes are planned to test targets between these workings and hole FGP069 (i.e. 1km of strike).

Mineralisation at Frogmore is associated with steeply dipping shear zones accompanied by pyrite in Silurian felsic volcanic rocks, and minor quartz veining. The mineralisation style could be similar to the Woodlawn Pb-Zn-Cu deposit 100km to the south. The geology of Frogmore has many similarities to the Woodlawn area including age and composition of the host rocks.

Figure 5: Plan of current RC drilling at Frogmore

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5. Gold Assets

The Company is continuing to receive interest for its gold assets in southeast Queensland and New South Wales. The projects for divestment include North Cadia EL 6588, Guyra EL 5976 in NSW; Lighthouse Gully EPM 13878, and Auburn EPMs 15264, 15296, 15322 in southeast Queensland.

Yours faithfully,

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GRAHAM D CARMAN, PhD., Member AUSIMM Managing Director PARADIGM METALS LIMITED

24 July, 2007

About Paradigm:

Paradigm Metals Ltd (ASX code PDM) listed on the ASX in November 2003. The Company is a uranium, tungsten and base metals explorer and developer, with projects in the Mt Isa region of Queensland and the Lachlan Fold Belt of NSW.

More information is available at our website: www.paradigmmetals.com.au

_____________ The information in this report that relates to exploration results 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 full-time 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.

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Name of entity
PARADIGM METALS LIMITED
ABN Quarter ended (“current quarter”)
28 102 747 133 30 [th] June 2007
Consolidated statement of cash flows
Current Year to date
Cash flows related to operating activities quarter ( 12 months )
$A’000 $A’000
1.1 Receipts from product sales and related debtors
1.2 Payments for (a) exploration and evaluation ( 564 ) ( 804 )
(b) development
(c) production
(d) administration ( 264 ) ( 693 )
1.3 Dividends received
1.4 Interest and other items of a similar nature received 31 82
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Other (provide details if material) GST refund 31 86
Net Operating Cash Flows (766 ) ( 1,329 )
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)
( 766 ) ( 1,329 )
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• See chapter 19 for defined terms.

Appendix 5B Page 9

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(766 )	(1,329 )
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) Far East Capital - Share Offer Management Fees Net financing cash flows	826 (149 )	2,481 (149 )
	677	2,332
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	( 89 ) 2,261	1,003 1,169
	2,172	2,172

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
		( 65 )
		N/A
1.25	Explanation necessaryfor an understandingof the transactions
	Payments to Non-Executive Directors - $ 65,000

Non-cash financing and investing activities

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

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1	Loan facilities
3.2	Credit standby arrangements

Amount available	Amount used
$A’000	$A’000
N/A	N/A
N/A	N/A

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development	$A’000
	$400,000
	N/A
Total	$400,000

Reconciliation of cash

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.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	46	161
	2,126	2100
Total: cash at end of quarter(item 1.22)	2,172	2,261

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

6.2	Interests in
	mining tenements
	acquired or
	increased

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	62,167,582	62,167,582
	7,002,360	7,002,360	$0.15 in respect of 4 million, $0.075 in respect of 3 million, and $0.25 in respect of 2,360
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 2,000,000 300,000	30,006,153 - -		Exercise price $0.25 $.075 $0.25	Expiry date 18th May 2008 22ndMay 2010 22ndMay2010
	4,000,000 300,000	4,000,000 -		Exercise price $0.25 $0.25	Expiry date 18th May 2008 22ndMay2010
	3,000,000 2,360	3,000,000 2,360		Exercise price $0.075 $0.25
	N/A
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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.

Sign here: . .Date: 24 July 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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