PATERSON RESOURCES LTD — Capital/Financing Update 2006

Oct 15, 2006

ASX PERTH

BDO Consultants (WA) Pty Ltd

Level 8, 256 St George's Terrace Perth WA 6000 PO Box 7426 Cloisters Square Perch WA 6850 Tel: (61 8) 9360 4200 Fax: (61 8) 9481 2524

Email: bdo@bdowa.com.au www.bdo.com.au

AFS Licence Number 246328

URANIUM OIL AND GAS LIMITED

BALANCE SHEET

	Pro-formaafter theOffer$
CURRENT ASSETS
Cash and cash equivalents	6,416,761
Receivables	44.927
Prepayments	8.333
Other current assets	238
TOTAL CURRENT ASSETS	6,470,259
NON-CURRENT ASSETS
Investments	23.333
TOTAL NON-CURRENT ASSETS	23,333
TOTAL ASSETS	6,493,592
CURRENT LIABILITIES
Creditors	223,822
TOTAL CURRENT LIABILITIES	223,822
TOTAL LIABILITIES	223,822
NET ASSETS	6,269,770
EQUITY
Issued Capital	6,918,014
Accumulated Losses	(3, 243, 085)
Option Reserve	2,594,841
TOTAL EQUITY	6,269,770

The pro-forma Balance Sheet presented above has been constructed based on the same assumptions relied upon in our Independent Accountant's Report, dated 8 June 2006, and included in the Prospectus for Uranium Oil and Gas, dated 19 July 2006, except for the following changes:

• The issue of 35,568,100 ordinary fully paid shares to raise $7,113,620; and
• The payment of expenses associated with the preparation and issue of the Prospectus and $\bullet$ the listing of Uranium Oil and Gas amounting to $702,000. These have been netted off against the share capital raised.

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