IODM LIMITED — Interim / Quarterly Report 2011

Apr 19, 2011

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Ph: 61-(0)2 9955-7130 Fax: 61-(0)2 8920-3576 Email: info@paradigmmetals.com.au Postal Address: Suite 202, 122 Walker St North Sydney, NSW 2060 Website: www.paradigmmetals.com.au

ABN 28 102 747 133

ASX ANNOUNCEMENT

20 APRIL 2011

Quarterly Activities Report for the period ending 31 March 2011

HIGHLIGHTS

Gold drill intersections at Yellow Mountain, NSW

• A 16-hole percussion drill program was carried out at the Quarry Hill gold prospect during the quarter. A number of holes intersected significant shallow oxide gold mineralisation.

• The best intercept in the percussion drill program was hole PRC005 which returned 12 metres @ 1.45g/t gold from 28 metres including 6 metres @ 2.0g/t gold from 34 metres (revised drill intercept based on 1m sample intervals).

• Sulphide mineralisation was found in hole PRC009. An intersection of 4 metres @ 1.4g/t Au from 98 metres was associated with disseminated pyrite, and suggests there is deep sulphide potential should higher grades be encountered.

• A gold leach test of oxide material grading 1.26 g/t Au recovered 91% of the gold in a short time frame. Consumption of cyanide was low.

• Drilling focus has shifted to five nearby gold prospects located on EL 6325 (PDM earning 51%) and EL 7697 (PDM 100%). A drill program of 34 air core / RC drill holes for 1400m advance has just been completed at Quarry Hill South, Q2, Central, Quarry Hill West, and Sheep Yard prospects with results pending. Full gold assays are expected by early May.

Toolebuc project, Cloncurry QLD (PDM 50%)

• A ground magnetic survey has been completed in the area surrounding a significant rare earth element (REE) drill intersection of 4m @ 2590ppm combined REE from 37-41m depth during the last quarter. The REE mineralisation occurs in a weathered, carbonate-altered mafic intrusive rock.

• The magnetic data is currently being processed, with drilling planned after the wet season.

Corporate

• The company is seeking to farm out its base metals projects in the southern NSW Lachlan Fold Belt region.

PARADIGM METALS LTD - QUARTERLY REPORT TO 31 MARCH 2011

YELLOW MOUNTAIN GOLD PROJECT, NSW

Work completed during the quarter

A RC percussion drill program consisting of 16 vertical holes for 1,616m advance was completed during February 2011 at the Quarry Hill prospect, Yellow Mountain project, EL 6325 (PDM earning 51%).

The RC percussion holes were drilled on 80m spacing to test the northerly-dipping continuation of oxide gold mineralisation found in earlier air core programs. Current and past drill intercepts are plotted in a map of the Quarry Hill prospect, see Figure 1.

Highlights of oxide gold intercepts from the percussion drill program include:

• *12m @ 1.45g/t Au from 28m, including 6m @ 2.0g/t from 34m in PRC005;

• 10m @ 0.56g/t Au from 32m in PRC008;

• 20m @ 0.5g/t Au from 18m in PRC003;

• A revised intercept based on individual 1m samples, which is 15% higher in gold grade than the original 2m composite.

Figure 1. Map of Quarry Hill showing significant drill intercepts to date.

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PARADIGM METALS LTD - QUARTERLY REPORT TO 31 MARCH 2011

Gold mineralisation at Quarry Hill is hosted by Ordovician-age meta-sandstones and schist. North-dipping lowangle shear zones are believed to control the mineralisation (see cross section, Figure 2). While most of the gold occurs in oxide, a sulphide drill intercept was made in PRC009 with gold associated with 5% combined pyrite and arsenopyrite as follows:

• 37m @ 0.5g/t Au from 71m, including 4m @ 1.4g/t from 98m in PRC009;

Figure 2. Interpretive cross section at Quarry Hill highlighting some of the drill intercepts

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Favourable leach tests

Gold leach test results of oxide material were favourable. Cyanide leaching at a conventional gold P80 grind size of 75μm resulted in a head grade of 1.26g/t Au with 91% gold recovery which appeared complete within 7 hours. Reagent consumptions were low, which bodes well for ultimate mining costs.

Current drilling

A combined air core/RC percussion drill program has just been completed for 1405m advance in 34 holes, targeting new prospects at Yellow Mountain located on EL 6325 (PDM earning 51%) and EL 7697 (PDM 100%).

The current drilling is concentrating on gold-in-soil geochemical anomalies at 5 different prospects. These prospects had not been previously drilled, or had been drilled with a few shallow holes. The locations of the recent drill holes are shown in Figure 3 below.

Results for the recent drill holes are pending. We expect to release the results by early May.

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PARADIGM METALS LTD - QUARTERLY REPORT TO 31 MARCH 2011

Figure 3. Gold prospects at Yellow Mountain with recent drill holes shown (base map is 1VD TMI magnetics)

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TEMORA GOLD PROJECT, NSW

Work completed during the quarter

The Temora project (EL 7443, 100% PDM) is prospective for high grade gold vein systems. Rock chip sampling was carried out at the Temora project during the quarter, following up on mine dump samples collected by Paradigm at the Barron prospect which returned gold assays up to 23g/t Au.

A recent sample of quartz float located several hundred metres to the southeast of the Barron East workings recorded an assay of 6.2g/t Au. The soil grid was extended and infilled around the Barron area, with gold assays in soils up to 0.3g/t Au.

Rock chips from the Maid of Judah area returned gold results up to 0.4g/t Au in sheared quartz veins around mine dumps.

Planned work

Further sampling is required around the Barron prospect to isolate areas for initial drill testing later in the year. No further work is planned at Maid of Judah.

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PARADIGM METALS LTD - QUARTERLY REPORT TO 31 MARCH 2011

About the Temora gold project

Gold was first discovered at Sebastopol 15km south of Temora township in 1869. Gold won was obtained from quartz reefs, however production records are poor. There were two major production periods from 1869 to 1880 (hard rock mining), and 1897 to 1898 (tailings processing). It is estimated about 30,000 oz of gold were produced. No relevant production records are available, however old reports indicate there were a large number of shallow shafts. At Barron, east-west trending quartz veins were mined from shallow shafts in 1941, which are intact.

TOOLEBUC PROJECT, CLONCURRY QUEENSLAND

Current work

A detailed ground magnetic survey was recently carried out over an area prospective for rare earth element (REE) mineralisation, following-up on a drill intersection of 4m @ 2590ppm combined REE from 37-41m during the previous quarter. The REE mineralisation occurs within a weathered, carbonate-altered mafic intrusive rock. The magnetic data are currently being processed.

The Toolebuc project (EPM 16073) is a 50:50 joint venture between Paradigm Metals Ltd and Exco Resources Ltd. The project area is covered by thin Mesozoic sedimentary rocks (<20 to 50m thick). Further drilling is planned once access improves following the wet season.

BLUE BUSH (75% PDM)

No exploration was carried out at Blue Bush, EPM 15324, during the quarter.

FOUR MILE TANK (100% PDM)

The Four Mile Tank project, EPM 18294, is going through the Native Title process, with the granting of the permit expected during the 2[nd] quarter of 2011.

CORPORATE

The Company is progressing with its farm-out strategy to receive value for its 100%-owned base metals projects in the southern Lachlan Fold Belt of NSW. These projects include the White Rock tungsten project (EL 6274), Kangiara lead-zinc-copper-silver-gold project (EL 7273) and the Frogmore copper-silver project (EL 6590).

About Kangiara

The Kangiara project includes a JORC Indicated and Inferred Mineral Resource of 2.75 million tonnes @ 1.3% zinc, 1.0% lead, 0.18% copper, 0.5 g/t gold, and 24 g/t silver over a strike length of 360m. A nominal open pit design encompassing an Indicated and Inferred Resource of 1.65 million tonnes @ 1.4% Zn, 1.2%Pb, 0.4 g/t gold, 0.12% copper and 24 g/t silver to a maximum depth of 90 m was calculated by an independent mining consultant from the larger resource, with a waste to ore strip ratio of 1.5 to 1. Mineralisation is open along-structure, and down plunge.

About White Rock

The White Rock tungsten project includes a JORC Indicated and Inferred Mineral Resource of 260,000 tonnes @ 0.7%WO3. The Resource can be subdivided into two separate ore types: A high-grade magnetite tungsten Resource of 123,000 tonnes @ 1.15% WO3, and a lower grade Resource of 138,000 tonnes @ 0.3% WO3. The Mineral Resource covers a strike length of 240m. The maximum depth of the Resource is 50m, with 65% of the resource within 30m of surface.

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PARADIGM METALS LTD - QUARTERLY REPORT TO 31 MARCH 2011

About Frogmore

The Frogmore project is a Cobar-style copper sulphide target located near Boorowa NSW. Drill intersections at the project include 45m @ 1.2% Cu from 251m, including 9m @ 1.9% Cu and 15m @ 2% Cu. Individual copper assays include 0.8m @ 8% Cu.

Yours sincerely,

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Graham D Carman, PhD, MAUSIMM

Managing Director

20 April 2011

Please direct enquiries to Graham Carman: Phone: 02 9955-7130 Email: info@paradigmmetals.com.au Website: www.paradigmmetals.com.au

Competent Person statement:

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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