PATERSON RESOURCES LTD — Capital/Financing Update 2008

Oct 20, 2008

ACN 092 471 513

ASX Release

21 October 2008

EMPIRE DOUBLES WILUNA COPPER- GOLD-PGM

EXPLORATION INTERESTS IN W.A.

A more than doubling of its copper, gold and PGM exploration interests at the Troy Creek project northeast of Wiluna in Western Australia, has been announced by Perthbased Empire Resources Ltd. (ERL).

The expansion is based on a respective swap of exploration rights involving Empire's existing 585 square kilometres of Cu-Au and PGM interests at Troy Creek, and new access rights by Empire for those same commodities on 645 square kilometres of surrounding or nearby acreage owned by Uranium Oil and Gas Ltd. (UOG).

In return, UOG will be able to earn a 50% interest in uranium and diamonds and a 70% interest in iron ore across Empire's tenements in the area, located within the Earaheedy Basin northeast of Wiluna.

Previous exploration within Empire's Troy Creek Project identified multi-element anomalous geochemistry in sedimentary rocks over a widespread area extending for a strike length of more than 20 kilometres.

Within this area, separate drill intersections of 1.5m $(a)$ 2.98% copper, 9.6m $(a)$ 0.34% conner, and 8m $\omega$ 0.79% PGM and gold have been obtained. In addition as previously reported, drilling by Empire last year of a magnetic anomaly intersected massive pyrite/pyrrhotite sulphide mineralization. Several more magnetic targets have been identified but not yet drill tested.

Under the terms of the agreement, Empire will be entitled to earn an interest in various minerals within UOG tenements with the exception of iron ore. This interest will be 50% for uranium and diamonds and 70% for all other minerals including copper, gold and PGM minerals.

PRINCIPAL AND REGISTERED OFFICE

53 Canning Highway Victoria Park WA 6100 Tel: +61 8 9361-3100 Fax: +61 8 9361-3184 To earn their respective interests in each others tenements, each company is required but not obligated to spend 50% of the minimum annual expenditure commitment for each individual tenement for a period of three years.

Empire's 100% owned tenements northeast of Wiluna comprise the Company's total Troy Creek Project and consist of 6 exploration licences, 1 exploration licence application, and 6 prospecting licences.

UOG's acreage comprises 2 exploration licence applications in the Troy Creek area and 1 exploration licence application situated 100 kilometres to the west, in the Miss Fairbairn Hills area.

Empire's Managing Director, Mr David Sargeant, said: "The agreement with UOG provides an additional large area adjoining our very prospective Troy Creek copper-gold-PGM project.

"The combined exploration footprint covered by the swap agreement of approximately 1,230 square kilometres, including the Miss Fairburn Hills block, has the potential to contain differing styles of mineralization such as iron oxide-copper-gold, gold-PGM, and stratiform copper. Various targets within the tenements have already been identified.

"Empire is now progressing an enhanced work program over the total Wiluna area interests, for implementation over calendar 2009.

"Significantly, the agreement sidesteps the current market turmoil and its emerging project funding pressures for junior explorers, while delivering an expansion of our exploration opportunities and upside at Troy Creek with no cash dilution to Empire and on cost neutral terms satisfactory to both parties."

CONTACT:

Empire Resources Limited

David Sargeant -- Managing Director	Tel.	08 9361 3100
Adrian Jessup -- Executive Director		Tel. 08 9361 3116
Field Public Relations
Kevin Skinner	Tel.	08 8234 95550414 822 631
Website: www.resourcesempire.com.au
PRINCIPAL AND REGISTERED OFFICE
53 Canning Highway		Tel: $+6189361-3100$
Victoria Park WA 6100		Fax: $+6189361-3184$

The information in this report that relates to Exploration Results has been compiled by Mr. David Ross B.Sc(Hons), M.Sc. who is an employee of the Company. He is a member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. He has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity to which he is undertaking 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". David Ross consents to the inclusion in the public release of the matters based on his information in the form and context in which it appears.

PRINCIPAL AND REGISTERED OFFICE

53 Canning Highway Victoria Park WA 6100 Tel: +61 8 9361-3100 Fax: +61 8 9361-3184

PRINCIPAL AND REGISTERED OFFICE

53 Canning HighwayVictoria Park WA 6100

Tel: +61 8 9361-3100 Fax: +61 8 9361-3184