IODM LIMITED — Share Issue/Capital Change 2009

Jul 19, 2009

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Suite 202, 122 Walker St, North Sydney NSW 2060 Australia

Ph: 02 9955-7130 Fax: 02 8920-3576

Email: info@paradigmmetals.com.au www.paradigmmetals.com.au

20 July 2009

ASX / Media Announcement

Share Purchase Plan

The Company is pleased to announce the launch of a Share Purchase Plan (SPP) to allow shareholders in Australia and New Zealand the opportunity to subscribe for additional shares in PDM. The SPP will allow shareholders to subscribe for up to $15,000 worth of PDM shares at 3.5 cents per share . This price represents a 19% discount to the PDM closing sale price over the last 5 days on which PDM shares have been traded prior to this announcement. The Company is limited to issuing 21,654,025 shares under the SPP and, if subscriptions are received in excess of this number, all subscribers will be cut back prorata.

The Record Date for participation in the SPP is 7.00pm (Sydney time) 28 July 2009. It is anticipated offer documents will be despatched to eligible shareholders on 30 July 2009.

In parallel with the SPP, the Company may place up to 10,827,012 shares at the same price as the SPP with professional and sophisticated investors.

Over the past year the Company has reduced administrative costs to the minimum but has nevertheless continued to maintain exploration on its properties in NSW and has acquired a new and exciting gold prospect at Rosedale. Paradigm now has several enticing gold and base metals prospects in regional NSW which it is anxious to drill. It believes that the SPP will enable shareholders to acquire additional shares at an attractive price and position shareholders to the upside in any discovery in these pending drilling programmes.

The Managing Director, Dr Graham Carman said, “Paradigm is well positioned with several rapidly advancing gold and gold‐base metals projects which could become significant discoveries for the Company with additional drilling. We are planning at least 2 drill programmes at our cornerstone Rosedale and Kangiara projects over the next 12 months commencing in July‐August. Shareholders can also benefit from any successes at the Blue Bush project near Cloncurry Queensland, which has recently been farmed out and will be drilled in August‐September this year.”

The Directors have advised the Company that they each intend to subscribe for their full entitlement under the SPP.

Indicative timetable – key dates

Indicative timetable – key dates
SPP Record Date	28 July 2009(7pm Sydneytime)
Despatch of SPP offers	30 July 2009
SPP Opening Date	31 July 2009
SPP Closing Date	21 August 2009(5pm Sydneytime)
Issue of shares under the SPP	24 August 2009
Despatch date for holding statements	25 August 2009
Quotation of shares on ASX	25 August 2009

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Mr Stephen Lonergan Company Secretary

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