PATERSON RESOURCES LTD — AGM Information 2015

Aug 19, 2015

Lloyds Pit Design

Elysium Resources – AGM

Focused NSW copper explorer/developer moving to production

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 exploration expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional capital, government regulation 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 variations (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.

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.

Reserves and Project Development

The information in this announcement that relates to Ore Reserves or Project Development is based on information reviewed or compiled by Dean Pontin BAppSc (Surv), Grad Dip (Mining), a Competent Person, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr. Pontin is employed by Lesmau Pty Ltd. Mr. Pontin 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. Pontin consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. Lesmau Pty Ltd, which is owned and controlled by Mr. Pontin, owns shares in Elysium Resources. 2

July 2015

Corporate Overview

Directors, Biographies and Shareholdings	Directors, Biographies and Shareholdings	Directors, Biographies and Shareholdings	Directors, Biographies and Shareholdings	Directors, Biographies and Shareholdings	Directors, Biographies and Shareholdings
Max Carling (Executive director)	Founding director of Burraga Copper. 35 years experience as merchant banker & corporate financier. Served as director & advisor to several successful mining companies since 2000. Managing Partner Carling Capital Partners.				8.23%
Dean Pontin (Director & Burraga Project Manager)	Qualified Mine manager - proven track record in mining and construction and mining operations management. Direct experience in commissioning three major copper-gold projects; Batu Hijau, Sepon & Toka Tindung.				10.57%
Neb Zurkic (Technical director)	Principal, Zurkic Mining Consultants. Clients over 25 years include Newmont and junior exploration & mining companies. Expertise in deposit modelling, resource estimation & ore control.				3.55%
Michael Tilley (Chairman)	Over 35 years experience in business, accounting and finance. Served on boards on exploration and mining companies during his extensive career. Chairman of Terrain Capital.				2.41%
		Capital Structure		3
		Last Sale prior to Rights Issue announcement	$0.005
		High /Low (12 months)	$0.008/$0.002
		Cash @ bank 30 June	$330K
		Shares on Issue prior to Rights (26 June)	1,255,384,800
		Shares Issued via Rights Issue (closed 23 July)	186,749,521
		Cash & debt reduction	$560,248
		Shortfall shares - 231,171,079	~$700,000
		MCap (undiluted) @ Rights Price	$4.325M
		PFS2011NPV10%Burraga Copper Project	$30.8M

August 2015

Timeline – the next 12 – 15 months to Production

Q4 Drilling Program – specifically to increase Lloyds Reserve

Q4 Continue negotiations with Off-take Parties & Debt providers

Q4 Upgrade Resources Statement and Announce Maiden Reserve

Q4 Complete Feasibility Study & EIS Q1 2016 Apply for DA and Mining License

2H ’16 Commence Mining

Plant commissioning within 10 months of Permitting

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August 2015

EYM’s Resource Estimate – 23 June 2015

Model	Category	tonnes	Cu (%)	Au (g/t)	Ag (g/t)	Zn (%)	Cu Metal (t)
Lloyds(0.3% Cu cutoff)	Measured	80,000	1.0	0.1	5	0.2	800
	Indicated	910,000	0.8	0.1	7	0.2	7,130
	Inferred	320,000	0.7	0.1	5	0.1	2,200
	Total	1,310,000	0.8	0.1	6	0.2	10,090
Tailings(0.3% Cu cutoff)	Indicated	280,000	1.2	0.3	9	0.2	3,490
Slag Heaps(0.3% Cu cutoff)	Indicated	90,000	1.3	0.2	7	0.7	1,170
	Copper (EL6463)– above combined
Burraga	Measured	80,000	1.0	0.1	5	0.2	800
	Indicated	1,280,000	0.9	0.1	7	0.2	11,520
	Inferred	320,000	0.7	0.1	5	0.1	2,200
	Total	1,680,000	0.9	0.1	7	0.2	15,120
	Gold only projects (EL6463)
	Category	tonnes	Cut Off (g/t)	Au (g/t)			Au Metal (ozs)
Lucky Draw	Inferred	470,000	0.5	2.1			31,600
Hackneys Creek	Inferred	2,210,000	0.5	1.4			101,800
Total	Inferred	2,860,000	0.5	1.6			133,400

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August 2015

Resource development drilling to extend current open pit – Target #1

• Drilling planned adjacent recent resource to extend open pit …

• Near surface extensions to mineralisation appear unmined … = high grade?

• High-grade near surface mineralisation seen in recent drilling …

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Best recent grade,
Lloyds Historical Mining
width and near
surface intercepts
Optimised
Pit
Planned drilling to
extend open pit
Un-mined mineralisation coming to surface?
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August 2015

Resource Development Drilling – Target #2

• Resource Development Drilling planned ~500m from Lloyds …

• March results confirmed new Lloyds-like mineralisation:

• 5m @ 1.38% Cu from 47m

• Previous drilling outlines new shoot geometry:

• 5m @ 1.87% Cu from 59m

• 6m @ 1.48% Cu from 150m

• New mineralised shoot, like Lloyds, bounded by Melbourne Fault …

• New mineralised shoot, like Lloyds, plunges off to the NE …

• Development drilling to focus on near surface SW part …

• Extensions to Slag resource are likely during drilling …

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Melbourne Fault
Planned Drilling
New Mineralised Shoot
confirmed in March.
South Slag Dump
~500m from Lloyds
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August 2015

Elephant Hunting – the Porphyry copper-gold system

• Field proofing of geophysical targets continues to build evidence for large concealed copper-gold systems …

• ~300km traversed during May, across all tenements and hot spot south of Lloyds.

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Lloyds
…
Similar surface alteration to Lloyds, over sub-surface IP target
Mineralised veins
coincident with IP and
surface geochemistry …
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August 2015

Remaining technical items – Metallurgical Test-work …

• Completion of test-work this month.

• Copper recovery results to date more or less as expected.

• Something unexpected, elevated grades of Indium in transition MET samples!

• On current prices, Indium is ~100 x more valuable than copper …

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August 2015

Indium … major component of iPads, smartphones, hi-res TVs …

Usage / Demand factors …

Demand for indium is expected to increase as markets for LCD products continue to grow at 25% to 35% per annum. In addition, commercial production of CIGS photovoltaic solar cells has the potential to significantly increase demand.

Supply factors …

The main indium production is as a by product of zinc and tin mining. There are no indium mines in the world and as a result it is difficult to increase indium production without an increase in the production of zinc or tin. The recent decline in the zinc prices is expected to reduce the supply of indium. China currently produces about 60% of the world’s indium supply. Other major producing countries include Canada, USA, Peru and Russia. Recycling is also a major source of indium.

Elysium – Lloyds …

Assaying for Indium has not been carried out as it falls out of the regular suite of elements for a copper ore body. Selected samples from recent drilling are now being assayed to see if a coherent body of mineralisation exists at Lloyds … stay tuned …

A couple of interesting links …

www.dailymail.co.uk/sciencetech/article-1355682/Tonnes-indium-used-iPods-discovered-abandoned-Cornish-mine.html www.forbes.com/sites/timworstall/2012/03/09/what-will-apple-do-when-indium-runs-out-in-2017

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August 2015

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Remaining EIS items … Ground & Surface Water

• Robust model remains final time critical component.

• 8 monitoring bores drilled and established late 2014.

• Data for first model now available.

• Model reliability to be tested over next 6 months.

• X-section below shows schematic conceptual model through pit and showing two bores, BC6 and BC7

• Image left: 3D view of the model showing seepage face boundary conditions

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August 2015

Q4 2015 Next Steps – In Summary

• Preliminary TSF Design for Stage 1 completed. Commence Stage 2 for ANCOLD permitting

  • Discussion s with NSW Office of Water.

• Metallurgical Test work nearing Completion

• Scope of Works for Process Design Engineer.

   - Plant Engineering.
  

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August 2015