PATERSON RESOURCES LTD — Capital/Financing Update 2011

Mar 10, 2011

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11 March 2011

Company Announcements Office Australian Securities Exchange Level 20 Bridge Street SYDNEY NSW 2000

PROJECT UPDATE Application for New Tenement – Redmond Project E70/4073

UOG is pleased to announce it has applied for an exploration licence covering approximately 37km² and centered on the Blue Gum gold prospect which was reported in newspapers in the late 1890’s. The historical workings are reported to be situated approximately 24km south west of Mt Barker in Western Australia and consisted of several vertical shafts and small pits. With the passage of time all surface evidence has since disappeared due to farming activity. The workings pre-date official Mines Department records, therefore besides the noted 1890’s newspaper reports lodged at the department there are no official mining lease records.

The project area lies within the Albany-Fraser Proterozoic Mobile Belt and is prospective for gold and base metals.

Exploration within the tenement area has been limited to some soil sampling carried out by Wilga Mines NL in 1995 which did not yield encouraging results and 4 Rotary Air Blast (RAB) holes drilled in 1997 to approximate depths of 20m each by Tramore Bay Pty Ltd. It was reported these holes were drilled to determine the nature of the geology and the magnetic anomaly situated adjacent to and between the Redmond Road and Blue Gum Creek. The results indicated that mafic rocks were present over a wider area than originally interpolated and not enough information had been collected to determine the areas potential and recommended further exploration. The reported 1890’s mined Gold Reef has therefore not been adequately tested.

In the late 1990’s BHP explored the region to the NE and SW for zinc, lead and silver however their project did not include the current application area. No other reported exploration has been carried out and therefore the project area is underexplored.

UOG’s exploration will concentrate on sourcing historical maps and records from the late 1890’s to determine the exact location of the reported gold reef and using modern day exploration techniques will determine the gold and base metal potential of the project.

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NOEL TAYLOR Managing Director

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The information within this report as it relates to geology and mineral resources was compiled by the Managing Director, Mr Noel Taylor. He 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. Taylor consents to the inclusion in the report of matters based on information in the form and context which it appears.

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