PATERSON RESOURCES LTD — Capital/Financing Update 2014

Nov 23, 2014

ASX ANNOUNCEMENT 24th November 2014 FOR IMMEDIATE RELEASE

COPPER INTERCEPTS FROM LLOYDS DRILLING CONTINUE TO IMPRESS.

Elysium Resources Limited ("Elysium" or "Company") (ASX:EYM) is pleased to announce the remaining results from the RC drilling commenced in October at its Burraga Copper Project ("Project") in NSW.

Highlights

• Significant intercept from drill-hole EYMRC-001:
  • o 9m @ 1.10 % Cu from 79m {including: 3m void}
• Significant intercept from drill-hole EYMRC-010:
  • o 22m @ 1.02 % Cu from 12m {including: 7m @ 1.86 % Cu and 4m void}
• Significant intercept from drill-hole BC-6:
  • o 5m @ 1.35 % Cu from 116m {including: 3m void}
• Diamond drilling to commence this week.
• Development and Exploratory RC drilling to resume in January.

Final results have been received for the 6 reverse circulation (RC) drill-holes completed (693m) in and around the historic Lloyds Mine where the Company is upgrading a resource estimate carried out by Burraga Copper Limited. The results confirm historical records that a halo of mineralisation remains around the old underground workings grading up to 3% copper and occasionally higher where pillars are encountered and areas the historic mining was unable to access. Further evidence of broad mineralised halo widths are beyond what has been assumed in the Company's 2011 pre-feasibility study and will enhance the economic viability of the Project. The Lloyds Mine development drilling is presented below via 3 cross-sections, spaced 25m apart and summarized in Table 1.

This drilling campaign was, in part, planned to confirm previous drilling in the area which has not been included to date in the resource estimates as a precautionary measure due to the high grades and broad widths. With the confirmatory grades and widths received during this drilling campaign, the Company is now comfortable that the "SP" series of holes be included in the resource which will give an increased level of confidence to the estimate. The best intercept from the SP series of drill-holes is from SP2: 35m @ 1.49% Cu from 24m. These broad zones of mineralisation will allow the Company to position diamond-core holes for metallurgical test-work. Most of the metallurgical test-work has been completed for the tailings and slag with the hard-rock test-work remaining. The core drilling is to commence this week, ensuring that a bulk sample is dispatched to the metallurgical laboratory prior to the holiday period.

EYMRC-007 was drilled through the southern slag dump where a magnetic anomaly presents below the slag. An anomalous interval of zinc (10m @ 0.27% Zn from 63m) suggests the hole was not drilled deep enough; metal zonation of the Lloyds area is clearly seen in EYMRC-003 where zinc is encountered earlier in the hole than the deeper copper mineralisation (see Table 1). A total of two holes for 262m has been drilled in prioritized target areas away from Lloyds (refer Figure 5). EYMRC-008 also drilled a geophysical anomaly just north of Lloyds; down-hole EM is being considered to dial in on the source of the anomaly before further drilling is planned.

BC-1 and BC-6 were planned for water-monitoring bores and were sampled due to their proximity to the Lloyds Mine. Water-bore drilling / installation is progressing with 5 of the 8 planned bores currently completed.

The remaining resource development drilling at Lloyds and exploratory drilling into nearby anomalies is set to resume early in 2015.

Figure 1. Plan of preliminary pit at Lloyds showing the cross-section locations, and drilling copper (magenta) and zinc (black) significant intercepts.

Figure 2. Cross-section A (looking towards 0500) showing significant drilling intercepts.

Figure 3. Cross-section B (looking towards 0500) showing significant drilling intercepts.

Figure 4. Cross-section C (looking towards 0500) showing significant drilling intercepts.

Hole ID	East (m)	North (m)	PlannedAzimuth(degrees)	PlannedDip(degrees)	HoleDepth(m)	From (m)	To (m)	SignificantInterval (m)	Cu %(average)	Pb %(average)	Zn %(average)
EYMRC‐007	734155	6239750	000	‐90	100	0	3	3 (Slag)	0.62	‐	0.71
EYMRC‐007	734155	6239750	000	‐90	100	63	73	10	‐	‐	0.27
EYMRC‐005	734108	6239216	210	‐55	84	18	24	6	‐	0.38	0.74
EYMRC‐005	734108	6239216	210	‐55	84	41	50	9	2.16	‐	‐
EYMRC‐005	734108	6239216	210	‐55	84	57	72	15	0.91	‐	‐
					Including:	67	70	3	void	void	void
EYMRC‐003	734120	6239222	170	‐50	120	18	32	14	‐	‐	0.46
EYMRC‐003	734120	6239222	170	‐50	120	32	39	7	1.26	‐	‐
EYMRC‐003	734120	6239222	170	‐50	120	42	74	32	1.47	‐	‐
Including:					42	46	4	3.87	‐	‐
					Including:	59	65	6	void	‐	void
EYMRC‐001	734153	6239240	185	‐55	114	6	13	7	0.45	0.33	‐
EYMRC‐001	734153	6239240	185	‐55	114	72	76	4	0.71	‐	‐
EYMRC‐001	734153	6239240	185	‐55	114	79	88	9	1.10	‐	‐
					Including:	84	87	3	void	void	void
EYMRC‐008	734085	6239425	000	‐90	162	11	14	3	0.29	‐	0.77
EYMRC‐008	734085	6239425	000	‐90	162	69	74	5	‐	0.25	0.41
EYMRC‐010	734147	6239168	000	‐90	74	12	34	22	1.02	‐	‐
Including:						13	20	7	1.86	‐	‐
					Including:	26	30	4	void	void	void
BC‐6	734153	6239240	000	‐90	121	99	102	3	0.47	‐	‐
BC‐6	734153	6239240	000	‐90	121	116	121	5	1.35	‐	‐
Including:				117	120	3	void	void	void
BC‐1	734175	6239375	000	‐90	180	27	30	3	0.36	‐	0.30
BC‐1	734175	6239375	000	‐90	180	126	130	4	‐	‐	0.50

Table 1. RC results.

Note 1: Significant intervals for resource development holes use Cu cut-off grade of 0.3%, 3m minimum width and do not remove "internal" intervals below 0.3 % Cu and 2m width.

Note 2: EYMRC-007 and 008 are exploratory; significant intervals are reported as anomalous grade & width, not above cut-off Note 3: Zn and Pb use a 0.3% cut-off when not associated with Cu; this is to highlight "zoned" location of mineralisation and does not necessarily imply economic viability for these metals.

Figure 5. Priority 1 and 2 targets being drilled directly north and south of the Lloyds Mine.

Figure 6. Location of the Company's Burraga Projects and Regional Geology.

About the Burraga Copper Project

As announced on 9th April 2014, the Company engaged Endure Environmental to carry out an Environmental Impact Study ("EIS"), pivotal to gaining the necessary permits to commence production at the historical Lloyds Mine near the township of Burraga in NSW. The decision to progress towards production is based on the preliminary findings of the 2011 prefeasibility study ("PFS") which is available for reading on the Company's website. The findings suggested an economically viable operation was plausible within a relatively short period and at a relatively low upfront capital investment. The operation is anticipated to yield a cash-flow to allow Elysium to explore the attractive upside potential across its entire tenement holding (refer Figure 5 "priority targets" showing prospective areas near Lloyds Mine).

The Lloyds Copper Mine produced 19,443 tons of Copper from 469,626 tons of ore implying a recovered grade of 4.14% Cu, between 1880 and 1920, then intermittently up to 1961. As a result of mining at the Lloyds Mine, and to a lesser extent at nearby mines, there now exists a tailings dump and two slag dumps of up to 350 Kt. The tailings resource contains a drill proven 234Kt @ 1.2% Cu (see Company website for detail). Metallurgical testing of the tailings confirms a greater than 70% recovery rate from re-processing of the tailings and greater than 50% from re-processing the slag can be expected. The PFS assesses the commercial potential of reprocessing the tailings, slag and hard rock resources from the surface of Lloyds Mine, and concludes that such a project, subject to further testing and financial investigation, is financially and commercially viable with start-up capital expenditure estimated at $10.8 million, generating a net profit of $75 million over 4.4 years of operation.

For further information:

Elysium Resources Limited Elysium Resources Limited Mark Ohlsson Nebojsa Zurkic Company Secretary Technical Director 0400 801 814 03 9329 4075 Email: markohlsson@elysiumresources.com.au Email: nebzurkic@elysiumresources.com.au

For and on behalf of the Board of Directors

Mark Ohlsson, Company Secretary, Elysium Resources Limited

The information in this announcement that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore reserves is based on information reviewed or compiled by Neb Zurkic BAppSc (Geol), MSc (Min & Energy Economics), a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy and a Registered Professional Geoscientist with the Australian Institute of Geoscientists. Mr. Zurkic is employed by Zurkic Mining Consultants Pty Ltd. Mr. Zurkic has sufficient experience that is relevant to the styles of mineralisation and types of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Mineral Resources and Ore Reserves". Mr. Zurkic consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. Zurkic Mining Consultants Pty Ltd, which is owned and controlled by Mr. Zurkic, owns shares in Elysium Resources.

The Following table provides explanations required under JORC 2012. It pertains to the Lloyds Mine and areas in immediate vicinity.

Section 1 Sampling Techniques and Data

Criteria		JORC Code explanation		Commentary
Samplingtechniques		Nature and quality of sampling (e.g. cutchannels, random chips, or specificspecialized industry standard measurementtools appropriate to the minerals underinvestigation, such as down hole gammasondes, or handheld XRF instruments, etc).These examples should not be taken aslimiting the broad meaning of sampling.		Samples are collected using standardindustry practice sampling, assay methodsand QAQC. Reverse Circulation (RC)samples weighing approximately 2kg arecollected as individual 1m samples througha cyclone which are riffle split for analysis.
		Include reference to measures taken toensure sample representivity and theappropriate calibration of any measurementtools or systems used.		Nominal 1m down the hole samples aretaken unless geology intervals dictateotherwise.Uniform weight collected.
		Aspects of the determination ofmineralization that are Material to thePublic Report.		Gold by fire assay method and Basemetals by 4 acid digest for all RC drillsample.
		In cases where 'industry standard' work hasbeen done this would be relatively simple(e.g. 'reverse circulation drilling was used toobtain 1 m samples from which 3 kg waspulverized to produce a 30 g charge for fireassay'). In other cases more explanationmay be required, such as where there iscoarse gold that has inherent samplingproblems. Unusual commodities ormineralization types (e.g. submarinenodules) may warrant disclosure of detailedinformation.		Best industry practise used for reversecirculation drilling whereby a nominal 2kgRC drill sample representing a 1m sampleinterval down the hole was used to obtain a250g pulp for analysis. Similarly for goldanalysis the same sample was used toproduce a 30g nominal sample charge toanalyse by fire assay method.
Drillingtechniques		Drill type (e.g. core, reverse circulation,open-hole hammer, rotary air blast, auger,Bangka, sonic, etc) and details (e.g. corediameter, triple or standard tube, depth ofdiamond tails, face-sampling bit or othertype, whether core is oriented and if so, bywhat method, etc).		Reverse CirculationFace-sampling bit126mm diameter
Drillsamplerecovery		Method of recording and assessing coreand chip sample recoveries and resultsassessed.		Visual inspection of the sample volumeindicates sample recovery is better than90%. Any poor sample recovery orcondition is noted in the logs.
		Measures taken to maximize samplerecovery and ensure representative nature		RC samples are visually checked forrecovery, moisture and contamination. A

Elysium Resources Limited

ABN 45 115 593 005 Suite 705, 3 Spring Street, Sydney NSW 2000 PO Box H238, Australia Square NSW 1215 Phone: +61 2 9247 7744

Fax: +61 2 9247 7244 Email: info@elysiumresources.com.au Web: www.elysiumresources.com.au

Criteria	JORC Code explanation	Commentary
	of the samples.	cyclone splitter is used to provide a uniformsample and these are routinely cleaned. Airis used at the beginning of each drill rod toremove excess water and maintain drysamples where possible.
	Whether a relationship exists betweensample recovery and grade and whethersample bias may have occurred due topreferential loss/gain of fine/coarsematerial.	Ground conditions are conducive for RCdrilling and drilling returned consistent sizedsamples. RC recoveries are high enough topreclude the potential for sample bias.
Logging	Whether core and chip samples have beengeologically and geotechnically logged to alevel of detail to support appropriateMineral Resource estimation, miningstudies and metallurgical studies.	Logging of RC drilling identifies all aspectsof lithology, colour, weathering, texture,alteration and mineralization includingpercentage estimates of sulphide content.During logging, part of the RC sample wassieved, logged and placed in RC chip trayswhich is also photographed and includedwith the logging. The logging includesreferences to wet samples if present, voidsand other information important to theresource estimation process.
	Whether logging is qualitative orquantitative in nature. Core (or costean,channel, etc) photography.	Logging is qualitative. Magneticsusceptibility is quantitative. Chip trays arestored for reference and photos areincluded in the logs.
	The total length and percentage of therelevant intersections logged.	RC drilling is logged from top to the holebottom.
Subsamplingtechniques	If core, whether cut or sawn and whetherquarter, half or all core taken.	No core sampling took place in reference tothis announcement.
andsamplepreparation	If non-core, whether riffled, tube sampled,rotary split, etc and whether sampled wet ordry.	Sampling was dry off the cyclone / rifflesplit.
	For all sample types, the nature, quality andappropriateness of the sample preparationtechnique.	High quality and appropriateness of samplepreparation techniques
	Quality control procedures adopted for allsub-sampling stages to maximizerepresentivity of samples.	QAQC procedures adopted for all sampledintervals. Laboratory methods includeinsertion of blanks, standards and duplicatecheck samples at a 1: 20 ratio.
	Measures taken to ensure that thesampling is representative of the in situmaterial collected, including for instanceresults for field duplicate/second-halfsampling.	Yes, appropriate measures taken to ensurein-situ material collected
	Whether sample sizes are appropriate tothe grain size of the material beingsampled.	Samples sizes are to industry standard andconsidered appropriate.
Quality ofassay dataand	The nature, quality and appropriateness ofthe assaying and laboratory proceduresused and whether the technique is	Near-total ALS appropriate techniques formaterial and mineralisation being sampled.Includes Gold Fire assay (Au-AA25) and 4

Criteria	JORC Code explanation	Commentary
laboratorytests	considered partial or total.	Acid digest ICP-AES (ME-ICP61) for multielement analysis and ore grade analysis(OG62) of Cu, Pb, Zn for grades>10,000ppm
	For geophysical tools, spectrometers,handheld XRF instruments, etc, theparameters used in determining theanalysis including instrument make andmodel, reading times, calibrations factorsapplied and their derivation, etc.	Geophysical tools not used to determinegrade.
	Nature of quality control proceduresadopted (e.g. standards, blanks, duplicates,external laboratory checks) and whetheracceptable levels of accuracy (i.e. lack ofbias) and precision have been established.	In addition to the internal laboratory checksthe Company submits standards on a 1: 30ratio and one field duplicate for thestrongest mineralised interval visualised forevery drill hole.
Verificationofsamplingandassaying	The verification of significant intersectionsby either independent or alternativecompany personnel.	None undertaken during this program.
	The use of twinned holes.	A proportion of the RC program reportedhere was in part intended to verify historicalsignificant grade widths. While not closeenough to be considered "twins" due to theaccess issues, the holes trace closely tothe historical holes which are nowconsidered appropriate for inclusion intofuture resource estimates.
	Documentation of primary data, data entryprocedures, data verification, data storage(physical and electronic) protocols.	Data is stored both as a hard copy andentered into a commercial database.
	Discuss any adjustment to assay data.	No adjustments were made to the data.
Location ofdata points	Accuracy and quality of surveys used tolocate drill holes (collar and down-holesurveys), trenches, mine workings andother locations used in Mineral Resourceestimation.	Initial collar locations are determined byhandheld DGPS.Down-hole surveys consisted of single shotdigital camera readings obtained at collarand generally every 30m intervalsthereafter except for vertical holes wherefewer readings are taken.
	Specification of the grid system used.	GDA94 (Zone 55)
	Quality and adequacy of topographiccontrol.	Sufficient accuracy for this stage ofexploration activity determined fromairborne surveys.
Dataspacinganddistribution	`Data spacing for reporting of ExplorationResults.	Scout drilling into anomalous areas definedby geochemistry and geophysics does notconsider drill spacing.Drilling into Lloyds for resource estimationpurposes targets a 25 x 25m lateral spacingfor the highest confidence. Due to terrain,drilling is carried out from common pads ina "fan" which generally harnesses the

Criteria	JORC Code explanation	Commentary
		highest variance grade reasonably wellgiven the relatively flat nature of themineralised shoot.
	Whether the data spacing and distributionis sufficient to establish the degree ofgeological and grade continuity appropriatefor the Mineral Resource and Ore Reserveestimation procedure(s) and classificationsapplied.	The resource development drilling istargeting a spacing of between 25-50m,considered sufficient to harness thegeological and grade continuity for MineralResource and subsequent Ore Reserveestimation.
	Whether sample compositing has beenapplied.	No sample compositing is carried out forthis program.
Orientationof data inrelation togeologicalstructure	Whether the orientation of samplingachieves unbiased sampling of possiblestructures and the extent to which this isknown, considering the deposit type.	Drilling is oriented as close to perpendicularto the interpreted mineralised shoot aspractically possible (and therefore, acrossthe direction of greatest variance).
	If the relationship between the drillingorientation and the orientation of keymineralized structures is considered tohave introduced a sampling bias, thisshould be assessed and reported ifmaterial.	As per above. No bias suspected.
Samplesecurity	The measures taken to ensure samplesecurity.	All samples prior to submission are underthe supervision of the Project Geologist.Following submission to the laboratory (byCompany personnel), reference materialare stored at the Company's warehouse inOberon.
Audits orreviews	The results of any audits or reviews ofsampling techniques and data.	No audits completed on current drillprogram.

Section 2 Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineraltenement andland tenurestatus	Type, reference name/number, locationand ownership including agreements ormaterial issues with third parties such asjoint ventures, partnerships, overridingroyalties, native title interests, historicalsites, wilderness or national park andenvironmental settings.	EL6463~60km South of Oberon in NSW.EYM through a subsidiary holds 100%
	The security of the tenure held at the timeof reporting along with any knownimpediments to obtaining a license tooperate in the area.	Tenement is in good standing.
Explorationdone by otherparties	Acknowledgment and appraisal ofexploration by other parties.	Various operators have held tenure overthe area; Getty Oil, Dominion andRepublic Gold NL have carried out themajority of the most recent work and uponwhich EYM has based its explorationprograms.
Geology	Deposit type, geological setting and styleof mineralization.	Within EL6463 copper – gold – silver +/-zinc +/- lead mineralisation is generallyrestricted to the Lloyds corridor, althoughlocalised anomalous base metal valuesalso occur in the Mossgrove Northprospect. The mineralisation is bestdeveloped in the Hanrahan'sAgglomerate but also occurs in the upperpart of the Excelsior Porphyry. At Lloydsmine copper mineralisation occurs as twoquartz – sulphide veins, although mostproduction was from the main vein. Thepredominant sulphide mineral in the veinswas chalcopyrite with sphalerite on thevein walls and pyrrhotite disseminated inthe wall rocks. Galena and tetrahedritewere also reported, but not ateconomically important levels.Disseminate base metal mineralisationwas reported as forming a halo to theveins. The main vein varied in width from0.3m to 12 m, striking roughly east - westand dipping moderately north. The mainvein has a typical strike extent of 180m,terminating in faults at both ends. Theintersection of the terminating faults withthe vein results in the ore plunging to thenortheast.

Criteria	JORC Code explanation	Commentary
Drill holeInformation	A summary of all information material tothe understanding of the explorationresults including a tabulation of thefollowing information for all Material drillholes:easting and northing of the drill holeocollarelevation or RL (Reduced Level –oelevation above sea level in metres) ofthe drill hole collardip and azimuth of the holeodown hole length and interceptionodepthhole length.o	Refer to the body of the text of this reportand Table 1 for all information, material tothe understanding of the explorationresults.
	If the exclusion of this information isjustified on the basis that the informationis not Material and this exclusion does notdetract from the understanding of thereport, the Competent Person shouldclearly explain why this is the case.	No exclusions of information haveoccurred.
Dataaggregationmethods	In reporting Exploration Results, weightingaveraging techniques, maximum and/orminimum grade truncations (e.g. cutting ofhigh grades) and cut-off grades areusually Material and should be stated.	Only 1m split samples are reported andsimply averaged over the intervalconsidered significant.For development drilling, a 0.3 % Cu cutoff grade has been used to determinesignificant intervals without removingindividual results less than this grade over1-2m (considered internal dilution if / whenmined). The cut-off is deemed appropriatebased on preliminary studies of economicviability.For scout / exploration drilling, no cut-off isassumed for "significance". Anomalousintervals are reported as "significant" if theinterval is considered to aid futureexploration efforts in intercepting potentialeconomic minerals and therefore theinterval itself does not imply economicviability.
	Where aggregate intercepts incorporateshort lengths of high grade results andlonger lengths of low grade results, theprocedure used for such aggregationshould be stated and some typicalexamples of such aggregations should beshown in detail.	Not used / applied.
	The assumptions used for any reporting ofmetal equivalent values should be clearlystated.	No metal equivalents reported.
Relationshipbetweenmineralization	These relationships are particularlyimportant in the reporting of ExplorationResults.	Sample spacing and orientation isappropriate to the scale and geometry ofthe interpreted mineralisation.

Criteria	JORC Code explanation	Commentary
widths andinterceptlengths	If the geometry of the mineralization withrespect to the drill hole angle is known, itsnature should be reported.	Close to perpendicular.
	If it is not known and only the down holelengths are reported, there should be aclear statement to this effect (e.g. 'downhole length, true width not known').	Close to true width.
Diagrams	Appropriate maps and sections (withscales) and tabulations of interceptsshould be included for any significantdiscovery being reported These shouldinclude, but not be limited to a plan view ofdrill hole collar locations and appropriatesectional views.	To the extent relevant, maps are includedin the main body of the report.
Balancedreporting	Where comprehensive reporting of allExploration Results is not practicable,representative reporting of both low andhigh grades and/or widths should bepracticed to avoid misleading reporting ofExploration Results.	Reference is made to both significant andanomalous results, the relevance of eachis referred to in Table 1.All drill-holes where results have beenreceived are commented on, whether ornot significant intervals are present.
Othersubstantiveexplorationdata	Other exploration data, if meaningful andmaterial, should be reported including (butnot limited to): geological observations;geophysical survey results; geochemicalsurvey results; bulk samples – size andmethod of treatment; metallurgical testresults; bulk density, groundwater,geotechnical and rock characteristics;potential deleterious or contaminatingsubstances.	Data considered most comprehensive andmost relevant has been reported. Previousdata relevant to this work has beenreported here.
Further work	The nature and scale of planned furtherwork (e.g. tests for lateral extensions ordepth extensions or large-scale step-outdrilling).	Water-bore drilling installationMetallurgical diamond core drillingComplete resource definition drillingScout exploration / sterilization drilling
	Diagrams clearly highlighting the areas ofpossible extensions, including the maingeological interpretations and futuredrilling areas, provided this information isnot commercially sensitive.	The full extent of the planned drillprograms have been previously reportedthrough announcements or Companypresentations.