PATERSON RESOURCES LTD — AGM Information 2014

Oct 28, 2014

AGM Technical Presentation October 2014

Follows on From Detailed Review of Operations in Annual Report

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Drilling of Magnetics Anomaly Below Sothern Slag Dump
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Disclaimer

Caution on Forward-Looking Statements

This presentation contains "forward-looking information" which may include, but is not limited to, statements with respect to the future financial or operating performances of Elysium Resources Limited (EYM), its subsidiaries and their respective projects, the future price of minerals, the estimation of ore reserves and mineral resources, the realisation of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration10% expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional capital, government regulation 20% of mining operations, environmental risks, reclamation and rehabilitation expenses, title disputes or claims, limitations of insurance coverage and regulatory matters. Often, but not always, forward-looking information statements can be identified by the use of words such as "plans", "expects", "is expected", "budget'', ''scheduled", "estimates", "forecasts'', ''intends", ''anticipates'', or "believes", or variations80% (including negative variations) of such words and phrases, or state that certain actions, 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, uncertainties 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 attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actual actions, events or results to differ from those anticipated, estimated 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 anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

JORC Compliance Statement

The information in this announcement that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore reserves is based on information reviewed or compiled by Neb Zurkic BAppSc(Geol), MSc(Min & Energy Economics), a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy and a Registered Professional Geoscientist with the Australian Institute of Geoscientists. Mr. Zurkic is employed by Zurkic Mining Consultants Pty Ltd. Mr. Zurkic has sufficient experience that is relevant to the styles of mineralisation and types of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves”. Mr. Zurkic consents to the inclusion in this announcement of the matters based on his information 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 provides consulting services as required to both companies.

Exploration Targets

References to Exploration Targets or Targets in this document are in accordance with guidelines of the JORC Code (2012). As such it is important to note that the reported Targets are based on existing data, historical production and geology models. Any references to grade and quantity are conceptual in nature. Exploration carried out to date is insufficient to be able to estimate and report mineral resources in accordance with the JORC Code (2012). It is uncertain if further exploration will result in the determination of a Mineral Resource.

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Flagship Project – Burraga (NSW) Production Progress

Environmental Impact Study (EIS),

3 Critical Elements:

• i. Flora & Fauna … 100% complete, no issues10% ii. Heritage … 90% complete, issues workable20% iii. Water … water bores needed for modelling 80%

30%

: Definitive Feasibility Study (DFS) Inputs

• i. EIS … 55% complete

• ii. Resource Estimate … drilling underway iii. Metallurgy (MET) … drilling after water bores

• iv. Tailings Dam Design … due after MET test-work

• v. Process Plant Design … due after MET test-work vi. Reserve Estimate … after resource estimate

: Permitting & CAPEX

• Permitting … running concurrently:

• i. All of above needed

• ii. Timing dependent on state authorities

• CAPEX

• i. DFS (ii-vi) needed for costing confidence

• ii. Process Plant - “Off-shelf”, sourced from China

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Burraga Production Progress – Currently in Progress – Water Bore Establishment

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10%
20%
80%
30%
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Burraga Production Progress – EIS is 55% Complete (Sept 30[th] )

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10%
20%
80%
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Burraga Exploration

Airborne ~~Magnetic~~ Data

Government Geology Government Geology Map

Greyscale First Vertical Derivative (1VD) of the Total ~~Magnetic~~ Intensity (TMI)

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Interpreted
Ma netic
g
Data
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Government Geology Map 7

Burraga Drilling Summary

Plan

1. Lloyds resource & reserve - to establish resource estimate to feasibility level of confidence 2. Geophysics targets - near Lloyds and in and around potential infrastructure 3. Water bore establishment - for groundwater modelling required for EIS 4. Lloyds metallurgy - core for final metallurgy test work to refine process plant costings

Status

1. Lloyds resource

2. 6 RC holes (703m) completed ; various intervals of chalcopyrite logged; samples submitted for assaying

3. • 7 RC & 1 diamond hole (810m) remain

4. Geophysics targets

5. 2 RC holes (262m) completed ; various intervals of chalcopyrite logged; samples submitted for assaying

6. 2 RC holes (440m) remain

7. Water bore establishment

8. To today. Up to eight water monitoring bores to be established

9. Lloyds metallurgy

10. Planned to commence following water bore establishment

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South Malang (Indonesia)

• Detailed Update in Annual Report.

• Planned for 2015 / 16:

• Complete sampling, spectral analysis and mapping

• Airborne magnetics survey

• Drill target development for 2015 drilling

TARGETING LARGE COPPER / GOLD PORPHYRIES

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Horseshoe South (WA) – Agreement with Horseshoe Metals Ltd

Horseshoe Metals Limited (ASX:HOR)

• 2 Year Option Agreement to acquire E52/2569

• 30 day due diligence, then either execute or walk away

• 2 x 250m RC drill-holes in Year 1, minimum commitment

• Then either walk away or exercise option

• To exercise option either:

• AUD$100,000 or,

• Issue HOR shares to value of AUD$100,000

• Elysium can opt for shares if offered cash.

• www.horseshoemetals.com.au

Magnetic high, (western anomaly):

• Target approx. 100m below surface

• MRB prefixed holes only drill to ~75m

• Existing intercept, SWRC5: 9m @ 10.3 g/t Au, from 19m immediately west shows there is “metal in the system”

• HOR to drill minimum 1 x 250m RC

M1 Magnetic high target:

• Target approx. 100m below surface

• HOR to drill minimum 1 x 250m RC

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M1
Western Anomaly
E52/2569 (magenta) with RTP MAG and existing drilling
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