IODM LIMITED — Interim / Quarterly Report 2011

Apr 26, 2012

ASX / MEDIA ANNOUNCEMENT

27 April 2012

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ABN 28 102 747 133

ASX: PDM

Contact details: Ph: +61 2 9955-7130 Fax: +612 8920-3576 Email: info@paradigmmetals.com.au Website: www.paradigmmetals.com.au Office and postal address: Suite 202, 122 Walker Street North Sydney, NSW 2060, Australia

Chief Executive Officer: Greg Curnow Non-executive Director: Dr Graham Carman Non-executive Director: John Gaskell NED / Co. Secretary: Stephen Lonergan Shares on issue: 148,881,492 12 month share price range: $0.007 to $0.03 Market capitalisation: $1.5million (at $0.01) Cash at 31 March 2011: $358,000

Gold - Base Metals Explorer Eastern Australia

KEY PROJECTS Frogmore copper Project, NSW

• High-grade copper-silver intersections

• Well located close to infrastructure, markets

Quarterly Activities Report for the period ending 31 March 2011

HIGHLIGHTS

Yellow Mountain Project Condobolin NSW (PDM 30%)

• 22 rockchip samples were collected during a site visit to the Yellow Mountain mine area returned anomalous gold, silver and base metal mineralisation with grades up to 5.5g/t Au, 267g/t Ag, 24% Pb & 11% Zn.

• Anomalous copper (up to 0.9%) also reported.

• Good correlation noted between gold and lead assays

• The rockchip sampling confirms the known base metal mineralisation in the historical drilling and highlights the potential for shallow oxide gold and silver mineralisation.

• The sampling also highlighted 3 distinct areas of mineralisation.

• The historic drilling was rarely assayed for gold and PDM will start re-assaying the remaining diamond core in May.

White Rock NSW (PDM 100%)

• An option to purchase EL 6274 White Rock was entered into with Resmetco, an unlisted public company

• Resmetco has 18 months to exercise the option which is dependent on Resmetco successfully listing on the ASX.

• Restmetco to keep tenement in good standing

Copper & Rare Earths, Cloncurry

• REE mineralisation found in initial drilling

• Other EPM applications pending

Yellow Mountain Project, NSW

• On exercising the option Resmetco will issue PDM 4 million ordinary shares in Resmetco.

Opportunities

• Porphyry gold targets under cover

• Shallow gold - 6m @ 3.1g/t Au from 5m

• Gold mineralisation associated with base metal mineralisation at old Yellow Mtn mine

Base Metals & Tungsten, NSW

• Available for joint venture

• Tungsten-magnetite JORC resource under option to third party

• PDM has continued reviewing new opportunities for investment both in Australia and overseas.

Farm-outs

• Discussions are continuing with 3[rd] parties interested in farming in to the Company’s projects in southern NSW.

• Kangiara Zn-Pb-Ag JORC resource , oxide cap

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Fig 1: Paradigm NSW Tenement Plan

YELLOW MOUNTAIN GOLD PROJECT, NSW (PDM 30% earning 51%)

EL 6325 (Yellow Mountain ) is a joint venture between PDM (30%), Triako Resources Pty Ltd (40%) and Golden Cross Resources Pty Ltd (30%) and is located 75kms north-west of Condobolin in the central west part of NSW (see Fig 2) in a region that contains a number of world class mines.

Paradigm has the option to earn an additional 21% Joint Venture interest by spending $450,000 by 31 March 2013. PDM has already earned a 30% interest.

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Recent Work

During a field trip to the Yellow Mountain Mine area in March, Paradigm geologists collected 22 rock chip samples to test the historically known base metal mineralisation and to see if there is any associated gold and silver mineralisation (see Fig 3). This area had previously not been closely investigated by Paradigm.

The 22 grab samples were selectively collected to test known historical base metal mineralisation found in drilling from between 1968 and 1986 which outlined a broad shallow area of copper, lead, zinc and silver mineralisation.

Five of the 22 samples have returned gold assays of over 1 g/t Au (with a top grade of 5.5g/t Au), four of the five sample had silver assays of over 100g/t Ag and all five samples had lead assays of over 1% showing that there is a relationship between the lead mineralisation and the gold mineralisation (see Table 1 for a complete list of assay results).

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Fig 2: Yellow Mountain Location Plan

Historic Drilling

Historical work at the Yellow Mountain Mine area targeted known Cu, Pb and Zn mineralisation and includes 75 holes drilled between 1968 and 1986.

Other work has included IP geophysics, mapping, trenching, soil and rockchip sampling, with the exploration highlighting two main zones of mineralisation known as the Main Shaft and Main North Shaft (see Fig 3).

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Little work was done on testing the gold content of the Yellow Mountain Mine area, with only 4 of 25 holes drilled in the Main shaft area having gold assays, but the results from the 4 holes highlight a good correlation between the gold and base metal mineralisation:

• 62m @ 0.49g/t Au, 112g/t Ag, 0.28% Cu, 1.16% Pb & 1.21% Zn (PYM11 from 8m)

• 56m @ 0.41g/t Au, 25g/t Ag, 0.43% Cu, 1.05% Pb & 1.64% Zn (PYM12 from 64m)

• 41m @ 0.36g/t Au, 14g/t Ag, 0.23% Cu, 0.85% Pb & 0.94% Zn (PYM13 from 10m)

• 7.4m @ 5.73g/t Au, 102g/t Ag, 0.7% Cu, 5.18% Pb & 6.74% Zn (YD13 from 206m)

It should also be noted 3 of the 4 intercepts are located near the top of the holes, indicating a possible shallow oxide cap of higher grade gold and silver mineralisation. See Table 2 below for a list of the significant assays.

Future Work

PDM believes that further work could develop an exploration target of 10-15 million tonnes of shallow base metal and gold mineralisation. The Company is drawing up a work plan to include[1] :

• Re-assaying of selective intercepts of historic diamond drill core

• Re-mapping and sampling of the main ore zones

• Drilling of 5-10 shallow (100-150 metre) RC drillholes concentrating on areas adjacent to historic higher-grade base metal and gold intercepts.

• Modern geophysical surveys

WHITE ROCK PROJECT, NSW (PDM 100%)

In February 2012 PDM granted Resmetco Limited (A.B.N. 89 150 566 626) an option to purchase PDM’s 100% interest in NSW Exploration Licence 6724 which contains the Company’s White Rock tungsten project.

Resmetco (RSM) is an unlisted public company based in Brisbane and is focussed on exploring and developing strategic metals projects in Australia, and plans to list on the ASX in 2012.

The option may be exercised by Resmetco within the 18 month option term and only after Resmetco has been admitted to the Official List of the ASX. On exercise of the option, Resmetco is required to issue 4 million ordinary fully paid Resmetco shares to PDM.

During the option term, Resmetco is required to keep EL 6274 in good standing.

The White Rock project, along with a number of tungsten and base metal exploration targets, is located 40km north of Yass in the central west of NSW. The White Rock tungsten prospect has a JORC compliant inferred resource of 260,000 tonnes of 0.7% tungsten oxide and 0.15% tin oxide.

1 “ The Exploration target is conceptual in nature and there has been insufficient exploration to define a Mineral Resource, and it is uncertain if further exploration will result in the determination of a Mineral Resource under the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, the JORC Code (JORC 2004). The Exploration Target is not being reported as part of any Mineral Resource or Ore Reserve.”

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Fig 3: Yellow Mountain Grab Sample Plan

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Sample ID	Au	Ag	Cu	Pb	Zn	Easting	Northing	Sample Type	Description
	**ppm **	**ppm **	**ppm **	%	%	(GDA94)	(GDA94)
YM01	5.50	242	4,550	16.2	0.76	483,140	6,407,812	Outcrop	Gossanous Ironstone
YM02	3.14	267	5,200	24.2	0.10	483,140	6,407,812	Float	Gossanous Ironstone
YM03	0.06	1.2	325	0.11	0.01	483,094	6,407,724	Float	Sheared Dacite & Quartz
YM04	0.04	4.6	285	0.18	0.03	483,072	6,407,737	Outcrop	Rhyolitic tuff
YM05	0.28	23.7	512	1.26	0.07	483,060	6,407,755	Float	Sheared Rhyolite Breccia
YM06	0.04	8.4	593	0.70	0.03	483,031	6,407,845	Shaft Mullock	Quartz Carbonate Tuff
YM07	0.05	1.1	1,335	0.04	0.07	483,031	6,407,845	Shaft Mullock	Sheared Tuff
YM08	0.09	23.9	1,840	0.91	0.12	483,031	6,407,845	Float	Quartz veiningin Tuff
YM09	0.19	46.5	1,065	0.32	0.10	483,094	6,407,992	Float	Carbonate Tuff
YM10	0.07	11.1	537	0.27	0.03	483,094	6,407,992	Float	Siliceous Rhyolite
YM11	1.64	175	2,130	16.4	11.3	483,094	6,407,992	Float	Chloritic Tuff
YM12	0.89	56	1,650	0.28	0.22	483,089	6,407,996	Float	Rhyolite Breccia
YM13	3.38	66.8	4,710	3.49	3.20	483,129	6,407,960	Drillhole Spoil	Rhyolite Breccia
YM14	0.01	0.7	35	0.03	0.02	483,151	6,407,977	Outcrop	Rhyolite
YM15	0.37	15.4	458	0.54	0.13	483,097	6,408,047	Float	Rhyolite
YM16	0.24	3.1	328	0.90	0.01	483,184	6,408,125	Float	Rhyolite Breccia
YM17	0.01	0.6	35	0.05	0.02	483,182	6,408,128	Outcrop	Sheared Rhyolite
YM18	0.00	<0.2	4	0.01	0.02	483,219	6,408,127	Outcrop	Sheared Rhyolite
YM19	0.08	0.7	741	0.07	0.05	483,710	6,408,315	Shaft Mullock	Altered Chloritic Rhyolite
YM20	0.17	7.2	245	0.26	0.01	482,712	6,408,320	Shaft Mullock	Altered Sheared Rhyolite
YM21	0.54	12.3	251	0.72	0.08	483,558	6,408,471	Shaft Mullock	Sheared Rhyolite Breccia
YM22	5.51	151	9,320	>20%	0.56	483,534	6,408,560	Float	Gossanous Ironstone

Table 1: Grab Sample Results

TOOLEBUC RARE EARTHS PROJECT, QLD (PDM 50%)

PDM is waiting on the end of the wet season before planning any more work at Toolebuc.

FROGMORE COPPER-SILVER PROJECT, NSW (PDM 100%)

No exploration was carried out during the quarter.

A deep RC drilling program of 2-3 holes, approximately 350 metres in depth, has been postponed. PDM expects to carry out the drilling in 2012.

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Hole-ID	From	To	length	Au(g/t)	Ag (g/t)	Cu %	Pb %	Zn %	Location
PYM01	12	22	10	0.54	25	0.16%	0.92%	0.13%	Other
PYM01	32	42	10	0.10	9	0.10%	0.40%	0.12%	Other
PYM05	4	8	4		5	0.21%	2.46%	2.32%	Twin Shafts
PYM05	26	34	8	0.40	5	0.25%	1.62%	1.30%	Twin Shafts
PYM06	14	18	4		29	0.36%	2.72%	0.17%	Twin Shafts
PYM10	40	46	6	0.40	17	0.06%	0.65%	0.54%	Main Shaft Nth
PYM11	8	70	62	0.49	112	0.28%	1.16%	1.21%	Main Shaft
PYM12	64	120	56	0.41	25	0.43%	1.05%	1.64%	Main Shaft
PYM13	10	51	41	0.36	17	0.23%	0.85%	0.94%	Main Shaft
RD18	29.3	47.8	18.5		24	0.16%	0.78%	0.89%	Main Shaft Nth
RD22	26.21	35.47	9.26			0.22%	1.18%	2.17%	Main Shaft Nth
RD45	20.05	27.76	7.71			0.20%	1.60%	0.15%	Other
incl	38.55	43.18	4.63			0.23%	1.39%	0.37%	Other
RD47	95.6	140.32	44.72			0.14%	0.89%	0.39%	Main Shaft Nth
incl	106.4	140.32	33.92			0.18%	1.00%	0.43%	Main Shaft Nth
YD02	55.2	165.61	110.41			0.24%	0.63%	1.34%	Main Shaft
YD03	43.18	49.34	6.16			0.51%	0.41%	0.77%	Main Shaft
YD03	107.94	111.02	3.08			0.66%	0.95%	1.79%	Main Shaft
YD05	46.26	80.18	33.92			0.34%	0.68%	1.23%	Main Shaft
incl	46.26	52.43	6.17			0.68%	0.98%	1.53%	Main Shaft
YD13	62.61	80.18	17.57	0.36	8	0.07%	0.29%	0.76%	Main Shaft
YD13	185.04	217.08	32.04	1.69	34	0.36%	1.58%	2.29%	Main Shaft
incl	206.63	214.03	7.4	5.73	102	0.70%	5.18%	6.74%	Main Shaft
YD17	103.47	107.79	4.32		5	0.25%	1.18%	1.06%	Main Shaft
YP04	53.97	58.6	4.63			0.78%	0.98%	1.11%	Main Shaft
YP05A	0	24.67	24.67			1.05%	1.19%	1.02%	Main Shaft
YP05A	32.38	33.92	1.54			0.10%	0.17%	8.61%	Main Shaft
YD53	75	78	3	0.12	14	0.20%	0.57%	0.64%	Main Shaft Nth
YD53	95	96	1	0.45	20	0.19%	0.67%	0.53%	Main Shaft Nth
YP54	26	34	8	0.25	18	0.13%	0.30%	0.61%	Main Shaft Nth

Table 2: Significant Historical Yellow Mountain Drill Intercepts

LADY ROSE, CLONCURRY (PDM Application)

Lady Rose exploration permit application EPMA 19016 covers more than twenty small 19[th] century copper mines along a 2km trend between Cloncurry and Mt Isa.

The Lady Rose project is well located in a very prospective belt, being 17km south of the Mary Kathleen mine, and approximately 40km southwest of Cudeco’s Rocklands copper project between Mount Isa and Cloncurry.

The permit is still under application, with discussions continuing with the relevant native title parties. PDM believe the permit could be granted within 3-4 months.

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FOUR MILE TANK, CLONCURRY (PDM 100%)

The Four Mile Tank project, EPMA 18294, is still under application.

The area is prospective for copper/gold, Rare Earth Element &/or uranium mineralisation.

BLUE BUSH, CLONCURRY (PDM 75%)

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

CORPORATE

Opportunities

The Company is broadening its search for new projects beyond eastern Australia to include highly prospective overseas opportunities with the potential of hosting world class projects and PDM has been reviewing a number of new project opportunities.

Farm-outs

Paradigm is continuing its discussions with parties interested in farming-in to its non-core base metals and silver projects in NSW.

Yours sincerely,

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Greg Curnow Chief Executive Officer

24 April 2012 Phone: (02) 9955-7130 Email: info@paradigmmetals.com.au 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 Mr Greg Curnow who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Curnow is the Chief Executive Officer of the Company, and 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”. Mr Curnow 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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