PATERSON RESOURCES LTD — Board/Management Information 2020

Jul 29, 2020

30 July 2020

ASX ANNOUNCEMENT

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- GRACE GOLD COPPER PROJECT LOGISTICS APPOINTMENT OF TECHNICAL DIRECTOR

• On Ground Logistics and Technical Support retained for this year’s field season of geophysical surveys followed by drilling

• Planning underway for Heritage Clearances, Re-establishment of Access and Logistical Support

• Appointment of Brian Thomas as Technical Director

• Grace Gold Project located 25km to the southeast of Newcrest’s world class Telfer Mine and 40km to the southwest of the Havieron gold deposit in the Paterson province of WA.

• Shallow inferred gold resource previously defined over portion of known mineralised Grace-Bemm shear zone.

Paterson Resources Limited (“Paterson” or “the Company”) (ASX:PSL) is pleased to announce the planning for this year’s field season at the 100% owned Grace Gold Copper Project in the immediate vicinity of the open ended gold mineralisation at the Grace deposit. The Grace tenements which includes multiple gold prospects is located 25km southeast of Newcrest’s 32Moz Telfer gold-copper mine in the highly prospective Paterson Province (Figure 1).

Paterson has commenced applications for field activities to commence on the Grace gold copper project with the Department of Mines, Industry Regulation and Safety (DMIRS) for Proposals of Work (PoW’s). This will enable field crews to carry out the planned geophysical surveys and preparatory work for a drilling programme planned for next quarter. As part of the process the Company will coordinate with the representatives of the Martu People Traditional Owners, the Western Desert Lands Aboriginal Corporation, and the requisite Heritage Clearances with assistance from contract field personnel.

Work has also commenced on the design of an infill drilling programme to increase the confidence levels of the existing resource estimate but also to expand the drill coverage of the mineralised system contained within the Grace Bemms shear zone to increase data points contained within the current exploration target.

ACN : 115 593 005 Suite 2 Level 1, 1 Altona Street, West Perth WA 6005 www.patersonresources.com.au

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Figure 1. Grace Gold Project tenements (blue) located 25km to the southeast of the Telfer Mine (Newcrest) and 40km to the southwest of the Havieron gold deposit (GreatlandNewcrest JV).

The Company is also planning and budgeting for a drilling programme to test the magnetic anomaly trends, as well as untested IP anomalies as detailed in previous ASX Announcements.

Appointment of Technical Director

The Company is pleased to announce the appointment of Mr Brian Thomas as Technical Director. Mr Thomas is currently a Non-Executive Director of the Company and has previously taken primary responsibility for the management of the Company’s exploration assets since his appointment in March 2019.

Mr Thomas graduated from the University of Adelaide with a BSc in Geology and Mineral Economics, the University of Western Australia Business School with an MBA and the Securities Institute of Australia (now FinSIA) with a Certificate in Applied Finance and Investment. He has extensive professional and pre-professional experience in senior operational management in the resources industry in both production and exploration settings working in a diverse range of commodities such as precious and base metals, industrial minerals, bulk commodities plus oil and gas.

Mr Thomas’s appointment as Technical Director is effective from 1 July 2020.

ACN : 115 593 005

Suite 2 Level 1, 1 Altona Street, West Perth WA 6005 www.patersonresources.com.au

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Grace Telfer Project Summary

The Company’s focus is to systematically explore the Telfer District projects which includes the advanced Grace asset and the considerable regional greenfields tenement applications covering 367 km².

On review of existing drill hole data it is evident that a series of shallow dipping en-echelon stacked vein sets are related to gold mineralisation and have not yet been adequately tested at Grace. There is a strong geological case that supports further gold mineralisation to be found in additional stacked vein sets along strike and at depth. Furthermore, the vertical stockwork hydrothermal breccias present an exciting new type of gold target at Grace which have potential to increase the resource tonnage potential of the Grace prospect.

An Inferred Mineral Resource estimate of 1.59mt @ 1.35g/t Au (PSL ASX Announcement 22 May 2020 – Entitlement Issue Prospectus *) was calculated from the historical drilling on a shallow portion of the mineralised zone covering 1,140m strike length from within a much larger total strike length of known gold mineralised zone extending over 4,130m along the Grace-Bemms shear zone. Additional exploration and infill drilling on the full 4,130m strike along the Grace-Bemms shear zone has the potential to expand and increase the confidence level of the known Resource.

(* - The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous announcement. All material assumptions and technical parameters pertaining to the resource estimate continue to apply and have not materially changed)

For further information, please visit www.patersonresources.com.au or contact:

Sarah Smith Company Secretary +61 8 6559 1792

This announcement has been authorised for release to ASX by the Board of Paterson Resources Limited.

About Paterson Resources:

Paterson Resources (ASX: PSL) is a publicly listed, junior mineral resources company focused on the exploration and development of gold and copper projects. Paterson has aggregated a diversified portfolio of assets that are at multiple stages, commodities and jurisdictions. The Grace Gold Project located in the world class Paterson mineral province in Western Australia consists of two granted exploration licences and five granted prospecting licences (E45/4524, E45/5130, P45/2905, P45/2906, P45/2907, P45/2908, and P45/2909). The Company also has an extensive landholding prospective for gold in the Pilbara in Western Australia, with four exploration licences (E08/2880,

ACN : 115 593 005

Suite 2 Level 1, 1 Altona Street, West Perth WA 6005 www.patersonresources.com.au

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E47/3578, E47/3827, and E45/5020). The Burraga Copper Gold Project, located in the world class minerals province of the East Lachlan Fold Belt in central western New South Wales consists of four contiguous exploration licences (EL6463, EL6874, EL7975 and EL8826) covering a total area of approximately 221km². Paterson is an active explorer with the aim of discovering a valuable mineral resource and delivering shareholder value.

Forward Looking Statements

Some of the statements appearing in this announcement may be in the nature of forwardlooking statements. You should be aware that such statements are only predictions and are subject to inherent risks and uncertainties. Those risks and uncertainties include factors and risks specific to the industries in which Paterson operates and proposes to operate as well as general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets, among other things. Actual events or results may differ materially from the events or results expressed or implied in any forward-looking statement. No forward looking statement is a guarantee or representation as to future performance or any other future matters, which will be influenced by a number of factors and subject to various uncertainties and contingencies, many of which will be outside Paterson Resources (PSL) control.

The Company does not undertake any obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this announcement. To the maximum extent permitted by law, none of PSL, its Directors, employees, advisors or agents, nor any other person, accepts any liability for any loss arising from the use of the information contained in this announcement. You are cautioned not to place undue reliance on any forward-looking statement. The forward-looking statements in this announcement reflect views held only as at the date of this announcement.

This announcement is not an offer, invitation or recommendation to subscribe for, or purchase securities by PSL. Nor does this announcement constitute investment or financial product advice (nor tax, accounting or legal advice) and is not intended to be used for the basis of making an investment decision. Investors should obtain their own advice before making any investment decision.

ACN : 115 593 005 Suite 2 Level 1, 1 Altona Street, West Perth WA 6005 www.patersonresources.com.au