IODM LIMITED — Interim / Quarterly Report 2013

Jul 25, 2013

26 July 2013

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ASX / MEDIA ANNOUNCEMENT

Quarterly Activities Report for the period ending 30 June 2013

ABN 28 102 747 133

ASX: PDM

Contact details: Registered Office

Level 1, 33 Richardson St, West Perth, WA 6005 PO Box 826 West Perth, WA 6872 Ph: +61 8 9200-4482 Fax: +61 8 9200-4469 Email: info@paradigmmetals.com.au Website: www.paradigmmetals.com.au

Chief Executive Officer: Anthony Reilly Executive Director: Mattheus Pieterse Non-executive Director: Graham Carman Non-executive Director: Brian McMaster Shares on issue: 425,215,010

12 month share price range: $0.004 to $0.013 Market capitalisation: $1.7 million (at $0.004) Cash at 30 June 2013: $1.68 million

Gold – Copper Explorer

CURRENT PROJECTS

HIGHLIGHTS

The Ladies project, Cloncurry

• Exploration commenced at The Ladies project during the quarter with completion of a ground magnetic and gravity surveys covering 2 km[2] surrounding an area of old copper workings;

• Several magnetic-gravity anomalies have been identified that appear to have some relationship with surface copper-gold-iron oxide mineralisation. The geophysical anomalies are being modelled in 3D;

• Systematic surface sampling and geological mapping is being planned for the current quarter.

Yellow Mountain Gold, NSW

• Extensive Cu-Au mineralisation at Yellow Mountain Mine

• Porphyry Cu-Au targets undercover that remain untested by drilling

- Ladies Copper Gold, Cloncurry

• IOCG system

• High grade >1% Cu samples

• Completed ground geophysical survey

• Other EPMs prospective for Cu-Au

Base Metals & Tungsten, NSW

• Tungsten-magnetite JORC resource

• Kangiara Zn-Pb-Cu-Ag JORC resource and oxide gold-silver cap available for farm-in

Corporate

• The Company is pleased to welcome Mr Anthony Reilly as Chief Executive Officer of the Company. Mr Reilly was appointed on 24 June 2013, and will be based out of Perth.

• The Yellow Mountain Project JV (PDM 30%) was renegotiated to reduce PDM’s exploration expenditure.

• Paradigm is continuing to review new opportunities for investment both in Australia and overseas.

• The Company had $1.68 million in cash reserves at the end of the June quarter.

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THE LADIES (PDM 100%)

EPM 19016 “The Ladies” is a new copper-gold project for the Company, located 70km southwest of Cloncurry in northwest Queensland, and about 20km south of the old Mary Kathleen uranium mine. The exploration permit was granted to Paradigm in February 2013 for a period of five years.

The Ladies permit covers a number of historic copper-gold prospects over a 2km north-south trend near the contact between quartzite metasediments and felsic volcanics of the Argylla Formation with calc-silicate rocks of the Corella Formation. The surface copper and gold mineralisation is generally associated with iron oxide outcrops (commonly magnetite). Values up to 11% Cu in oxide and 18g/t gold have been sampled by Paradigm in the surface outcrops.

Modern exploration at the property is limited. Two shallow percussion holes drilled at the Morning Star prospect in the early 1990s is the only known drilling at the Ladies. These holes returned the following results:

• 16m @ 0.76% copper and 0.12g/t gold from 46m depth (sulphide) in MSP-1;

• 22m @ 0.23% copper and 0.05g/t gold from 8m depth (oxide) in MSP-2 .

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Figure 1: Ground magnetics (RTP) image from recent data collected at Ladies superimposed on the regional airborne magnetics

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Geophysics

In the June quarter, Paradigm carried out ground-based magnetics and gravity geophysical prospecting covering an area of 2km[2] . The data was collected on 100m- spaced east-west lines. Gravity was collected on 50m stations, while magnetic data was collected continuously along the east-west lines.

Processing and interpretation of the data is currently being carried out. Encouragingly, there appears to be a general coincidence between the obvious magnetic anomalies and the known surface copper mineralisation – see Figure 1. This indicates that the geophysical data will be useful in targeting areas for future drilling.

Future Work

Processing and interpretation of the geophysical data will be completed, and geophysical anomalies will be checked in the field during the current quarter. A systematic soil sampling program over the principal targets area, and more detailed geological mapping, will be carried out during AugustSeptember.

YELLOW MOUNTAIN (PDM 30%, earning 51%)

During the quarter the company successfully renegotiated the Yellow Mountain JV agreement to reduce its exploration expenditure required to earn an additional 21%.

Under the original agreement the company was required to expend $500,000 by the 31[st] March 2013 to earn an additional 21%. Under the amended agreement the company is now required to expend $180,000 on exploration before 19[th] October 2015 to earn the additional 21%.

The Company is currently reviewing exploration targets at EL 6325 ‘Yellow Mountain’ including the old Yellow Mountain Mine area, and the Melrose porphyry target.

WHITE ROCK (PDM 100%)

Resmetco Ltd has advised the Company that it does not intend to exercise its option to purchase EL 6274 “White Rock”, which contains a tungsten Inferred Resource of 260,000t at 0.7% WO3. The Resmetco option formally lapses 7[th] August 2013. All data gathered by Resmetco will be returned to Paradigm, and Resmetco will withdraw with no retained interest.

The Company will consider alternative options to advance the project.

FROGMORE (PDM 100%)

No work was carried out on EL 6590 Frogmore, located near Boorowa in New South Wales, during the current quarter.

KANGIARA (PDM 100%)

No work was carried out on EL 7273 Kangiara, located near Boorowa in NSW, during the current quarter.

FOUR MILE TANK (PDM 100%)

No work was carried out on EPM 18294 Four Mile Tank, near Cloncurry Queensland, during the current quarter.

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CORPORATE

New Management

The Company announced the appointment of Mr Anthony Reilly as Chief Executive Officer of the Company on the 24 June 2013. Mr Reilly has considerable experience in the finance and junior mining sectors and will add value to the company in its pursuit and execution of new investment opportunities.

The Company wishes to thank the outgoing CEO, Mr Greg Curnow, for his efforts.

Opportunities

The Company has been undertaking a project by project review of the existing portfolio with the objective of rationalising exploration expenditure.

The Company continues to review new project opportunities both in Australia and overseas.

A number of prospective opportunities have been reviewed and, in the case of projects considered to have the highest potential, the Company has advanced these into an initial phase of technical and corporate due diligence. The underlying investment drivers being considered by the company is the potential for large scale resources in cost competitive jurisdictions.

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,

Anthony Reilly Chief Executive Officer 26th July 2013 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 Dr Graham Carman who is a Fellow of the Australasian Institute of Mining and Metallurgy. Dr Carman is a non-executive director 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”. 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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