PATERSON RESOURCES LTD — AGM Information 2013

Oct 24, 2013

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Chairman’s
Presenta.on
to
Shareholders 25
October
2013

Disclaimer

**Cau$on

on
Forward-­‐Looking
Statements**

This
presenta.on
contains
"forward-­‐looking
informa.on"
which
may
include,
but
is
not
limited
to,
statements
with
respect
to
the
future
financial
or
opera.ng performances
of
Elysium
Resources
Limited
(EYM),
its
subsidiaries
and
their
respec.ve
projects,
the
future
price
of
minerals,
the
es.ma.on
of
ore
reserves
and
mineral resources,
the
realisa.on
of
mineral
reserve
es.mates,
the
.ming
and
amount
of
es.mated
future
produc.on,
costs
of
produc.on,
capital,
opera.ng
and
explora.on
10% expenditures,
costs
and
.ming
of
the
development
of
new
deposits,
costs
and
.ming
of
future
explora.on,
requirements
for
addi.onal
capital,
government
regula.on 20% of
mining
opera.ons,
environmental
risks,
reclama.on
and
rehabilita.on
expenses,
.tle
disputes
or
claims,
limita.ons
of
insurance
coverage
and
regulatory
maUers. OWen,
but
not
always,
forward-­‐looking
informa.on
statements
can
be
iden.fied
by
the
use
of
words
such
as
"plans",
"expects",
"is
expected",
"budget'',
''scheduled", "es.mates",
"forecasts'',
''intends",
''an.cipates'',
or
"believes",
or
varia.ons
(including
nega.ve
varia.ons)
of
such
words
and
phrases,
or
state
that
certain
ac.ons,
80% events
or
results
"may'',
"could",
"would",
"might",
or
"will"
be
taken,
occur
or
be
achieved. 30%

Forward-­‐looking
statements
involve
both
known
and
unknown
risks,
uncertain.es
and
other
factors
which
may
cause
the
actual
results,
performance
or
achievements of
EYM
and/or
its
subsidiaries
to
be
materially
different
from
any
future
results,
performance
or
achievements
expressed
or
implied
by
the
forward-­‐looking
statements. Although
EYM
has
aUempted
to
iden.fy
important
factors
that
could
cause
actual
ac.ons,
events
or
results
to
differ
materially
from
those
described
in
forward-­‐looking statements,
there
may
be
other
factors
that
cause
ac2ons,
events
or
results
to
differ
from
those
an.cipated,
es.mated
or
intended.
There
can
be
no
assurance
that forward-­‐looking
statements
will
prove
to
be
accurate,
as
actual
results
and
future
events
could
differ
materially
from
those
an.cipated
in
such
statements.
Accordingly, readers
should
not
place
undue
reliance
on
forward-­‐looking
statements.

**JORC

Compliance
Statement**

The
informa.on
in
this
announcement
that
relates
to
Explora.on
Targets,
Explora.on
Results,
Mineral
Resources
or
Ore
reserves
is
based
on
informa.on
reviewed
or compiled
by
Neb
Zurkic
BAppSc(Geol),
MSc(Min
&
Energy
Economics),
a
Competent
Person
who
is
a
Member
of
the
Australasian
Ins.tute
of
Mining
and
Metallurgy
and a
Registered
Professional
Geoscien.st
with
the
Australian
Ins.tute
of
Geoscien.sts.
Mr.
Zurkic
is
employed
by
Zurkic
Mining
Consultants
Pty
Ltd.
Mr.
Zurkic
has sufficient
experience
that
is
relevant
to
the
styles
of
mineralisa.on
and
types
of
deposit
under
considera.on
and
to
the
ac.vity
being
undertaken
to
qualify
as
a Competent
Person
as
defined
in
the
2012
Edi.on
of
the
“Australasian
Code
for
Repor.ng
of
Mineral
Resources
and
Ore
Reserves”.
Mr.
Zurkic
consents
to
the
inclusion in
this
announcement
of
the
maUers
based
on
his
informa.on
in
the
form
and
context
in
which
it
appears.
Zurkic
Mining
Consultants
Pty
Ltd,
which
is
owned
and controlled
by
Mr.
Zurkic,
owns
shares
in
Elysium
Resources
Limited
and
shares
and
op.ons
in
Burraga
Copper
Limited
and
provides
consul.ng
services
as
required
to both
companies.

**Explora$on

Targets**

References
to
Explora.on
Targets
or
Targets
in
this
document
are
in
accordance
with
guidelines
of
the
JORC
Code
(2004).
As
such
it
is
important
to
note
that
in
rela.on to
reported
Targets
any
references
to
grade
and
quan.ty
are
conceptual
in
nature.
Explora.on
carried
out
to
date
is
insufficient
to
be
able
to
es.mate
and
report mineral
resources
in
accordance
with
the
JORC
Code
(2004).
It
is
uncertain
if
further
explora.on
will
result
in
the
determina.on
of
a
Mineral
Resource.

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Presenta.on
to
Elysium
Resources
Limited
shareholders
at
AGM
25
October
2013

2

Project

Loca.ons

Western
Australia,
Indonesia
and
NSW
(based
on
successful
takeover
of
Burraga
Copper)

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10%
20%
80%
30%
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Presenta.on
to
Elysium
Resources
Limited
shareholders
at
AGM
25
October
2013

3

EYM

February
2013
-­‐
present New
board
&
management,
review
projects,
implement
new
strategy

þ þ	Feb 13 Jun 13	20% 10% Installa.on of new board & management. Strategy is to re-purpose the company and iden.fy highly prospec.ve low explora.on cost project(s) and an advanced resource project to generate cash fow and create shareholder value Rights Issue
þ þ þ	Aug 13 Aug 13 30 Aug	80% 30% Acquisi.on of Malang project (highly prospec.ve, low explora.on cost) Announce inten.on to acquire Burraga Copper an advanced resource project with near cash fow EYM announces inten.on to make takeover Ofer for Burraga Copper Limited (BCU). Ofer is 6.5 EYM shares for each BCU share and 1 share for each BCU op.on. At 3 month VWAP EYM share price of $0.013 values the Ofer is $7.35M.
þ	24 Sep	EYM lodges No.ce of Mee.ng for AGM on 25 October. Independent Expert Report valuing BCU in the range $6M - $11.7M and sta.ng Ofer is fair and reasonable to non associated shareholders.
q	25 Oct	EYM AGM considers shareholder resolu.ons At 24 October share price close of $0.015 the Ofer is valued at $8.48M.
q	25 Oct	EYM issues Bidders Statement to send to shareholders – proxies received support all resolu.ons
q	25 Oct	BCU responds with Target Statement to send to shareholders
q	27 Nov	EYM Ofer closes
q	2 Dec	EYM issues 565,550,000 shares to BCU share and op.on holders

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Share
Price
Chart
from
ASX
website
demonstrates improving
share
price
and
volumes

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Presenta.on
to
Elysium
Resources
Limited
shareholders
at
AGM
25
October
2013

4

EYM

today

Capital

structure,
board
&
management
and
projects

80% ~~30%~~ 20% 10% Share Capital Issued Shares 24 Oct 13 160,130,741 Op.ons Outstanding Ex.Price Expiry 23,152,398 $0.013 30 Jun 14 2,000,000 $0.20 1 May 15 32,386,426 $0.20 31 Mar 16 17,000,000 $0.02 30 Jun 17 Share Price close 24 Oct 13 $0.015 Market Capitalisa.on $0.015 $2.4M Cash 30 Sep 13 $500K Board of Directors Shares % age Op$ons Michael Tilley,BA FCA 12,500,000 7.81% 5,500,000 Max Carling,BCom BA 24,000,000 14.99% 14,500,000 Mark Ohlsson,FCPA Nil 0% 4,250,000 Technical & Management Shares % age Neb Zurkic, BSc (Geol) M Mineral & Energy Economics MAusIMM MAIG 5,000,000 3.12% Michael Beith, BCom Nil 0%	80% ~~30%~~ 20% 10% Share Capital Issued Shares 24 Oct 13 160,130,741 Op.ons Outstanding Ex.Price Expiry 23,152,398 $0.013 30 Jun 14 2,000,000 $0.20 1 May 15 32,386,426 $0.20 31 Mar 16 17,000,000 $0.02 30 Jun 17 Share Price close 24 Oct 13 $0.015 Market Capitalisa.on $0.015 $2.4M Cash 30 Sep 13 $500K Board of Directors Shares % age Op$ons Michael Tilley,BA FCA 12,500,000 7.81% 5,500,000 Max Carling,BCom BA 24,000,000 14.99% 14,500,000 Mark Ohlsson,FCPA Nil 0% 4,250,000 Technical & Management Shares % age Neb Zurkic, BSc (Geol) M Mineral & Energy Economics MAusIMM MAIG 5,000,000 3.12% Michael Beith, BCom Nil 0%
Projects	Descrip$on Work Programme
Horseshoe South	5.5km2tenement 4kms south of the Horseshoe Lights Mine in WA, a VMS style high grade copper ore body Review of magne.c data and reconnaissance feld visit to determine a drill program.
Redmond Project	37km2tenement centred on Blue Gum gold prospect in WA Field visit imminent to undertake further mapping, stream & soil sampling which will determine if EYM progresses to a ground magne.c survey.
Malang (Indonesia)	99km2concession with local Indonesian company retaining 70% of project. Ini.al soil and stream sampling in highly prospec.ve copper gold explora.on area.
Takeover Ofer	EYM has launched a takeover Bid for Burraga Copper Limited EL’s in the Lachlan Fold Belt of NSW including the Lloyds Copper Mine, Lucky Draw Gold Mine and Hackneys Creek Gold Project

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Presenta.on
to
Elysium
Resources
Limited
shareholders
at
AGM
25
October
2013

5

EYM

–
the
Future

Copper

Produc.on

Cash
flow

Explora.on
Upside

① Con$nue
on
the
path
to
copper
produc$on
at
Burraga A. PFS
completed
2011
shows
viable
opera.on
with
12-­‐18
months
payback;
11,000 tonnes
of
copper
@
$7,200t
=
Gross
Revenue
$79.2M,
NPV[10%] is
$31.8M B. Full
FS
underway
including
EIS,
ML
applica.on
work,
detailed
plant
cos.ng, infrastructure
design

• C. Expect
  to
  be
  in
  produc.on
  Q1
  2015

• ② Resource
  development
  at
  Burraga

A. JORC
resource
3.2Mt
@
0.6%
CuEq
@
0.2%
cut-­‐off
(inc.
1Mt
@
1%
CuEq)

B. Three
targets
of
5-­‐15Mt
@
1-­‐2%
Cu

• ③ Explora$on
  at
  Burraga

A. Induced
Polarisa.on
(IP)
survey
in
progress

B. Poten.al
to
supplement
exis.ng
gold
resources
(141kozs)
at
Lucky
Draw
and Hackneys
Creek ④ Explora$on
in
WA

• A. Reviewing
  data
  and
  field
  visit
  to
  undertake
  drill
  program

• B. Mapping
  and
  soil
  and
  stream
  sampling

• ⑤ Explora$on
  in
  Indonesia

• A. Highly
  prospec.ve
  copper
  gold
  explora.on
  area

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6

Thank

you
Shareholders
for
your
con.nued
support and
we
look
forward
to
an
exci.ng
future

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Michael
Tilley Chairman Elysium
Resources
Limited 25
October
2013

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7