PATERSON RESOURCES LTD — Capital/Financing Update 2007

Jan 29, 2007

Lovel 8, 256 St Georges TerracePerth, Western Australia 6000 Ekonomia e na sana ezera De Stad Anglicus ( Modular Adams Bank

30 January 2007

The Company Announcements Office Australian Stock Exchange 20 Bridge Street SYDNEY NSW 20000

Uranium Oil and Gas Limited Acquires Uranium and Gold Projects in the Northern Territory.

Introduction

Uranium Oil and Gas ("UOG") is pleased to announce it has executed an agreement with Bralich Holdings Pty. Ltd. to acquire a 70% interest in its 6 Northern Territory tenements for the consideration of 1,000.000 UOG options (exercisable August 2010) at a deemed fair value of $60,000.

This acquisition strengthens UOG's existing uranium and resources portfolio and provides access to exciting opportunities within the NT.

UOG is also pleased to announce the appointment of Mr David O'Farrell as Exploration Manager.

Project Summary

The tenements are currently under application and are located on pastoral land. It is anticipated that titles should begin to be granted from April 2007.

The Lucky U uranium prospect (EL25329, 54 sq km) is located 120 km ENE of Alice Springs. The uranium mineralisation is contained within NW trending structural zones within the Strangeways Metamorphic Complex. The Power Reactor and Nuclear Fuel Development Corporation of Japan (PNC) sampled the area during the 1990's and identified high grade zones with two samples returning grades of 2.95% and 46.4% uranium. From the PNC reports there has not been any follow up work. Airborne radiometric anomalies occur proximal to the samples. The area offers exciting potential and will be a priority target when granted.

The Sandover prospect (EL25504, 702 sq km) is located 150 km NNE of Alice Springs.

This covers a drainage system which contains calcrete and has a length of over 46 km. Much of the waters that flow into the system are from the radiometric anomalous granites of the Arunta Complex.

CRA in the 1970's drilled 9 auger holes on the edge of the calcrete body but the central and more prospective areas have not been tested. There are a number of low order radiometric anomalies within the calcrete and elevated levels of uranium contained in ground waters in the region that confirm the project is highly prospective.

Additional targets on this tenement include "roll front" style mineralisation within the Tertiary sediments in the south.

The Alroy prospect (EL25723, 287 sq km) is located 156 km ENE of Tennant Greek in the Georgina Basin. The tenement covers an arcuate 7 km long high amplitude radiometric anomaly within Tertiary sediments. There has been no previous exploration over this anomaly. UOG propose to complete Native Title discussions and secure granting.

The Charming U prospect (EL25368, 76 sq km) is located 212 km NNW of Alice Springs in the Arunta region. The tenement partly overlies a 2.5 km wide high amplitude radiometric anomaly. Rock chip sampling from the edge of the anomaly have returned values of 580 and 170 ppm uranium. These encouraging results have not been followed up. Again, once granted, a major exploration program will commence.

The Ethel Creek prospect (EL25382, 245 sq km) is located 370 km NW of Alice Springs within the under explored Lander Beds of the SW Arunta. Previous workers have demonstrated that the Lander Beds are the lateral equivalent of the Mt Charles Beds, host to the Granites-Tanami gold mineralisation.

The Ethel Creek prospect has a 3.6 km long soil and lag anomaly with peak values to 31 ppb Au and 1150 ppm As. This work was done by Yuendumu Mining and Posgold in the 1990's. Recent reinterpretation of the data suggests the main structure has been inadequately tested. Only 2 of the numerous vacuum drill holes were drilled close to the structure; both were drilled to 3m depth and returned elevated bedrock values of 43.9ppb and 12 ppb Au. Further work needs to be done to test the reinterpretation particularly as gold mineralisation of minable grade has been discovered 42 km to the west by Tanami Gold.

The Treasure Prospect (EL25346, 101 sq km) is located 170 km ENE of Alice Springs on the edge of the Harts Range. Previous rock chip sampling in the 1980's has identified several units of calc-silicate quartzites that contain ore grade tungsten mineralisation with values to 1.36% and 0.68% W. Due to depressed tungsten prices at the time no further work was undertaken.

The price of tungsten has seen resurgence and this prospect requires further evaluation.

Appointment of an Exploration Manager.

UOG is pleased to appoint Mr David O'Farrell as the Exploration Manager. David was previously the Chief Geologist for Tennant Greek Gold and has over 15 years of experience including 5 years in the Northern Territory. This experience includes working at a number of WA and NT goldmines, widespread exploration around Australia. Asia and the Pacific and 3 years in the Oil and Gas exploration industry. David is a Director of Bralich Holdings Pty. Ltd.

Yours faithfully URANIUM OIL AND GAS LIMITED

W Bannister Managing Director

The information within this report as it relates to geology and mineral resources was compiled by the Managing Director Mr William Bannister. Mr. Bannister has sufficient experience which is relevant to the style of mineralization and the type of deposit under consideration to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, the JORC Code". Mr Bannister consents to the inclusion in the report of the matters based on information in the form and context which it appears.