IODM LIMITED — Investor Presentation 2014

Dec 21, 2014

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Developing high grade flake graphite projects in Brazil.

Corporate advisor:

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Investor Presentation December 2014

Paradigm Metals (ASX: PDM) - Investor Presentation

Forward-looking statements

This document contains “forward-looking” statements or projections based on current expectations. Forward looking words such as, “expect”, “anticipate”, “should”, “could”, “may”, “predict”, “plan”, “will”, “believe”, “forecast”, “estimate”, “target” and other similar expressions are intended to identify forward-looking statements within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements.

Forward-looking statements, opinions and estimates provided in this document are based on estimates and assumptions related to future business, economic, market, political, social and other conditions that, while considered reasonable by Paradigm Metals Ltd, are inherently subject to significant uncertainties and contingencies. Many known and unknown factors could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements. Such factors include, but are not limited to: operating and development risks, counterparty risks, commodity price risk and a number of other risks and also include unanticipated and unusual events, many of which are beyond the companies’ ability to control or predict.

No representation or warranty is made as to the accuracy, correctness, completeness, adequacy or reliability of any statements, estimates, opinions or other information contained in this presentation. The forward-looking statements only speak as at the date of this document and, other than as required by law and the ASX Listing Rules, Paradigm Metals Ltd disclaims any intent, obligation or duty to update any forward looking statements, whether as a result of new information or developments, future events, results or otherwise. To the maximum extent permitted by law, each of Paradigm Metals Ltd and its respective directors, officers, employees, agents and contractors disclaim all liability and responsibility for any direct or indirect loss or damage which may be suffered by any person (including because of fault or negligence or otherwise) through use or reliance on anything contained in or omitted from this document.

Paradigm Metals (ASX: PDM) - Investor Presentation

Executive Summary Developing high grade fake graphite projects to meet the demand in Brazil and the World.

EXCITING OPPORTUNITY

The Company has acquired an 80% interest in the Caninde Graphite Project Brazil. The Project area covers high-grade metamorphic lithologies with massive flake graphite identified. Multiple prospects identified, sampled and trenched.

42.04%. Analysis of surface grab samples has carbon contents as high as

LOCATED IN BRAZIL, A FORCE IN GRAPHITE

Brazil is a leading global producer and end user of graphite.

Strategically located to major export markets - Europe, U.S and South America.

PROVEN MANAGEMENT TEAM WITH TRACK RECORD IN BRAZIL

Paradigm Metals (ASX: PDM) - Investor Presentation

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due to its unique properties.
Low frictional
Graphite is a very versatile non metallic mineral.
resistance
High resistance
There are three types of graphite found naturally: to corrosion
flake, lump, and amorphous.
High electrical
conductivity
Flake graphite commands the highest demand
due to the versatility of use. Large flake graphite
Lightest
commands the highest price and lowest supply.
weight of all
reinforcements
Graphite declared a critical strategic
mineral in UK, Europe and USA.
Highest
natural
strength
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Paradigm Metals (ASX: PDM) - Investor Presentation

The Graphite Market

Graphite market is more than 50 times larger than the lithium and rare earths markets.

Supply for graphite can be grouped into two major categories:

• 46% of graphite supply is in amorphous-form 53% of graphite supply is in flake-form

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1% Vein 3% Other
Global supply 2013 Flake Graphite Demand in Tonnes 2013
TOTAL: 375,000 tpa
Industrials
Refractories 52%
22%
46% 53%
Batteries 23%
Amorphous Flake Refractories
52% Industrials 22%
Batteries
Other 3%
23%
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25 new 40,000t graphite mines are needed before 2020.

Paradigm Metals (ASX: PDM) - Investor Presentation

Global Graphite Supply Global graphite supply is in decline.

• Natural Graphite Global Production 2011 - 1.01mt.

• Natural Graphite Global Production 2013 - 700,000t.

• Flake Graphite Production 2013 – 375,000t .

• Chinese production dominates the graphite market.

• China is closing uneconomic and polluting mines.

• +20% of China’s flake capacity lost in the last two years.

• China has instituted a 20% export duty on graphite and a 17% VAT.

• China has instituted an export licensing system.

Natural Graphite Supply / Demand

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2,250,000
1,750,000
1,250,000
750,000
250,000
(250,000)
(750,000)
Total Demand Total New Mine Demand Surplus/Deficit
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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Paradigm Metals (ASX: PDM) - Investor Presentation

• A long term supplier experienced work force, proven production and quality.

• Available infrastructure, ease of mining and process = low capex and opex.

• Strong internal demand approx. 75% domestic consumption.

• Brazil has a significant end user market graphite products.

Paradigm Metals (ASX: PDM) - Investor Presentation

Caninde Graphite Project

The Company has acquired an 80% interest in the Caninde Graphite Project located in Ceara State, Brazil.

The project area covers15,600 Ha high grade metamorphic lithologies that are host to bodies of both disseminated and massive flake graphite mineralization. Multiple prospects identified, sampled and trenched.

Analytical results for surface grab rock chip samples as high as 42.04% Cg.

Aggressive drilling programme planned to commence in the first quarter of 2015.

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Caninde Graphite Project
% Cg in Rock Grab or Chip Samples
> 10% Cg
> 3% - < 10% Cg
< 3% Cg
Cg = graphitic carbon
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Paradigm Metals (ASX: PDM) - Investor Presentation

Caninde Graphite Project

In 2014 a programme of shallow trenching into bedrock totalled 538 metres and tested 11 target areas. High grade trenching results:

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PEDRA PRETA PROSPECT SAO LUIS PROSPECT SALGUEIRO PROSPECT MARIANA PROSPECT
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PEDRA PRETA PROSPECT	SAO LUIS PROSPECT	SALGUEIRO PROSPECT	MARIANA PROSPECT
25.3 metres at 13.29% Cg,	12 metres at 5.5% Cg	1.5 metres at 30.2% Cg	4.5 metres at 8.25% Cg
incl 9.3 metres at 20.76% Cg	6 metres at 4.44% Cg	2 metres at 23.13% Cg
7.2 metres at 13.01% Cg,	4 metres at 8.93% Cg
3 metres at 8.9% Cg

The programme indicated the presence of significant zones of graphite mineralization that warrant further systematic trenching and drilling.

Cg - Carbon Graphite

Paradigm Metals (ASX: PDM) - Investor Presentation

Caninde Graphite Project Graphite occurrences

Stratabound massive coarse graphite-rich beds

Massive discordant Graphite lenses or veins

Paradigm Metals (ASX: PDM) - Investor Presentation

Caninde Graphite Project

The Company is planning a series of drilling programmes at the Caninde project. The first being a diamond drilling programme at the Pedra Preta prospect to commence late January 2015. Assay results and results from metallurgical test work are expected to be received progressively during Q1/Q2 2015.

First half of 2015

Q3 2015

Commence diamond drill programme at Pedra Preta prospect. Drill metallurgical test holes at Petra Pedra prospect.

Commence diamond drill programme at Sao Luis prospect.

Drill metallurgical test holes at Sao Luis prospect.

Samples submitted for laboratory assay, metallurgical and mineralogy testing.

Results of Graphitic Carbon assays expected to be returned. Results of metallurgical test work to determine flake size and distribution expected to be returned.

u

• Samples submitted for laboratory assay, metallurgical and mineralogy testing.

• Results of Graphitic Carbon assays expected to be returned. Results of metallurgical test work to determine flake size and distribution expected to be returned.

Trenching Sao Luis, Mariana East and Salgueiro to identify initial drill targets.

Planning follow up diamond drill programme at Pedra Preta.

Paradigm Metals (ASX: PDM) - Investor Presentation

Company Directors

Extensive experience in Brazil and South America.

Anthony Reilly Managing Director

Mr Reilly has over 20 years experience in financial markets, financial risk management and corporate finance. Working in investment banking, his clients have included a number of global corporations and fund managers based in Australia, the UK and Europe. He was a founding Director of a private Brazil incorporated gold exploration company. He has also served as an Executive Director of an ASX listed resource Company.

Brian McMaster Non-Executive Director

Mr McMaster is a Chartered Accountant, a registered and official liquidator and has almost 20 years’ experience in the area of corporate reconstruction and turnaround and performance improvement. Mr McMaster’s experience includes numerous reorganisations and turnarounds, including being instrumental in the recapitalisation and listing of 12 Australian companies on the ASX. Mr McMaster’s experience includes significant working periods in the United States, South America, Asia and India. Mr McMaster is also a director of a number of ASX listed companies.

Dr Nicholas Lindsay Non-Executive Director

Dr Lindsay has substantial experience in the global mining industry, and the technical and commercial assessment, and development of copper, gold and iron ore projects in Australia, South Africa, Mongolia and Chile. He has been associated with both the major and junior mining sectors in Chile for over 20 years. He is Managing Director of Castillo Copper Limited and a Director of Laguna Resources Limited. Dr Lindsay is a Member of the AusIMM and the Australian Institute of Geoscientists.

Paulo Brito Senior Exploration Geologist

Mr Paulo Brito is a senior geologist with over 30 years experience in the mining industry, dealing primarily with gold, base and industrial metals for major and junior mining companies. Mr Brito is a Principal of consulting group Brasgeo and was until recently Exploration Manager of ASX listed Paringa Resources Limited. Previously, he worked as a senior geologist with WMC Resources Ltd for 18 years. Mr Brito holds a B.Sc Geology from Universidade do Estado do Rio de Janeiro and is a member of AusIMM and a member of AIG. Mr Brito will drive the company’s aggressive exploration programs at the Caninde Project.

Paradigm Metals (ASX: PDM) - Investor Presentation

Peer Comparison

ASX listed graphite companies

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ASX companies Location Market capitalisation Enterprise Value Resource Grade
Syrah Mozambique $606m $582 m 1.15Bt 10.20%
Triton Mozambique $78m $74m 1.457Bt 10.70%
Talga Sweden $36m $32.5m 7.6Mt 24.40%
Lamboo WA $45m $44.5m 7Mt 4.73%
Kibaran Tanzania $19m $16.5m 12.8Mt 10%
Sovereign Malawi $14m $12m 86Mt 7%
Buxton WA $6m $4m 4Mt 16.20%
Archer SA $13m $9m 5.27Mt 7.60%
Paradigm Brazil $1.5m $0.6m 7-10Mt 13-15%
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Caninde conceptual target resource of 7-10Mt at 13-15% Cg

*The potential quantity and grade of the exploration target is conceptual in nature and there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource calculated in accordance with the JORC code. ASX listed graphite companies - Source ASX and company websites 28/11/2014

Paradigm Metals (ASX: PDM) - Investor Presentation

Paradigm Metals (ASX:PDM)

STREET ADDRESS:

POSTAL ADDRESS:

CONTACT NUMBERS:

CONTACT:

Level 1, 330 Churchill Avenue SUBIACO WA 6008 Australia

PO Box 540 SUBIACO WA 6904 Australia

Tel: +61 8 9200 6264 Fax: +61 8 9200 4469

Anthony Reilly - CEO info@paradigmmetals.com.au www.paradigmmetals.com.au

Competent Persons Statement

The technical information in this release is based on compiled and reviewed data by Mr. Paulo Brito. Mr. Brito is a consulting geologist for Paradigm Metals Limited and is a Member of AusIMM-The Minerals Institute, as well as, a Member of Australian Institute of Geoscientists.

Mr. Brito has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Brito consents to the inclusion in the report of the matters based on their information in the form and context in which it appears. Mr. Brito accepts responsibility for the accuracy of the statements disclosed in this release.