PATERSON RESOURCES LTD — Capital/Financing Update 2014

Sep 2, 2014

ASX ANNOUNCEMENT FOR IMMEDIATE RELEASE

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03[rd] September 2014

Geophysics Defines Priority Intrusive Targets.

Elysium Resources Limited (“Elysium” or "Company") (ASX:EYM) is pleased to present the results from the completed Induced Polarisation (“IP”) survey over the historical Lloyd’s Mine general area and Aeromagnetic (“MAG”) survey over the Company’s NSW tenements, EL6463, EL687 and EL7975.

Highlights:

• Mineralization potential at 30 targets identified

• Drill-ready targets at 8 locations away from the known mineralization at Lloyds

• High priority, drill-ready potential intrusive targets identified at 3 locations

• Planning for drill program underway.

As announced 3[rd] October 2013, an east-west oriented pole-dipole IP survey was commenced approximately 2km south of the historic Lloyds Mine. By the Christmas holiday period more than half of the planned 1-2km lines were completed and the survey had reached the Lloyds Mine area. As announced 24[th] April 2014, the survey was recommenced and completed 2km to the north of Lloyds beyond the historical North and Howards Shafts (see Figures #5 and #6 for IP coverage). As announced on April 23[rd] 2014, a MAG survey was flown over the Company’s 3 contiguous tenements in NSW. The survey was flown with 60m line spacing at a nominal terrain clearance of 60m. With the surveys now completed, preliminary findings show numerous targets in EL6463 and single anomalies on the peripheries of the Burraga Granite in both EL6874 and EL7975.

A cluster of 3 high priority targets are defined 0.5 to 1.5km to the south of the historic Lloyds Mine (see Figures #5 and #6). The central potassium anomaly is located in a structural corridor and presents as a potential intrusion. The Priority 1 target directly to the south-east is a remanently magnetised potassium anomaly and the cross-cutting structures to the north could provide potential fluid traps for the suspected central intrusion. These interpretations are further supported by previously reported strong soil geochemistry over this area. The Company intends commencement of drilling in this area by October, details of this drill program will be announced shortly.

The Priority 2 target that extends from Lloyds in the NE direction is interpreted as a cross-cutting structure possibly providing a trap for fluids from the suspected intrusion to the south (see paragraph above), suggesting possibly that Lloyds itself is a surface expression of a concealed system as reported previously on numerous occasions (see Figure #4). Three further Priority 2 targets further north are possibly porphyries and / or display as cross-cutting remanently magnetised features, that coincide with the historical North and Howards shafts. Two IP targets, lie intermittent to these (coinciding to magnetic highs), one directly to the north of Lloyds and one directly beneath the southern slag dump. The Company intends to drill the Priority 2 targets at Lloyds and directly to the north of Lloyds including below the southern slag dump in the kick-off drill program planned for October.

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Priority 3 targets generally conform to the NE trending IP anomaly and require additional field work before drilling is proposed. Soil sampling is planned for these areas during the remainder of the 2014.

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

The group of Priority 4 targets to the north of EL6463 may relate to the gold deposits at Lucky Draw and Hackneys Creek. Structurally they appear related to the major NNW faulting corridor previously inferred as the southern extension of the Godolphin Fault which hosts the 2.5Moz[1] McPhillamy’s Gold Deposit some 50km to the NW (see Figure #3).

In EL6874 a remanently magnetised anomaly within the Burraga Granite requires field investigation, as does a magnetic high on the SE periphery of the granite in EL7975. Mapping and soil sampling is being planned for these areas to investigate whether drilling is warranted.

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

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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.

1www.regisresources.com.au

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Figure #1. Aircraft carrying out magnetic survey over EL6463.

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Figure #2. Plan show RTP magnetics results from recently flown survey along with targets of interest.

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Figure #3. Plan showing interpreted geology and structure from recently flown magnetics survey over entire tenement holding.

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Figure #4. Conceptual geological model showing some features evident at Burraga such as the speculated magmatic source at depth for the quartz-sulphide-carbonate veins as well as skarnoid and potassic alteration, along with the Hanrahan’s structure plumbing system and Lloyds Syncline (from Corbett 2008, "Comments on the Burraga Exploration Project.")

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Figure #5. Plan of EL6463 showing interpreted geology and targets from MAG with recent IP survey.

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Figure #6. Plan of IP survey area with recently interpreted geology, structure and targets from MAG survey.

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The Following table provides explanations required under JORC 2012. Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling techniques	• Nature and quality of sampling (e.g. cut channels, random chips, or specific specialized industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not _be taken as limiting the broad meaning of sampling. _	• Airborne geophysics survey carried out at 60 meter line spacing by Thompson Aviation Pty Ltd over 3 tenements EL6463, EL6874, EL7975 • Survey flown at a nominal 60 meter terrain clearance with magnetometer mounted in a stinger assembly on the rear of the aircraft • 3,244.8 block traverse kilometers • Geometrics G822A Magnetometer and RS 400 Gamma Ray Spectrometer • Induced Polarization (IP), 50m pole dipole survey on 200m lines over an area 3.5 x 1.0 km centered on the historic Lloyds Mine in EL6463 • IP survey carried out by Fender Geophysics Pty Ltd • GDD 16 channel receiver connected via 8 core data cable • IRIS Instruments VIP4000 transmitter
	• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
	• Aspects of the determination of mineralization that are Material to the Public Report.
	• In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverized to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralization types (e.g. submarine nodules) may warrant disclosure of detailed information.
Drilling techniques	• Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is _oriented and if so, by what method, etc). _	• N/A – no drilling undertaken
Drill sample recovery	• Method of recording and assessing core and chip sample recoveries and results assessed.
	• Measures taken to maximize sample recovery and ensure representative nature of the samples.
	• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
Logging	• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	• N/A – no drilling undertaken
	• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
	• The total length and percentage of the relevant intersections logged.
Sub-sampling techniques and sample preparation	• If core, whether cut or sawn and whether quarter, half or all core taken.	• N/A – no drilling undertaken
	• If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
	• For all sample types, the nature, quality and appropriateness of the sample preparation technique.
	• Quality control procedures adopted for all sub-sampling stages to maximize representivity of samples.

Criteria	JORC Code explanation	Commentary
	• Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
	• Whether sample sizes are appropriate to the grain size of the material being sampled.
Quality of assay data and laboratory tests	• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	• GeOZ-DAS Digital Data Acquisition System • Calibration in flied and at testing stations
	• For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
	• Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) andprecision have been established.
Verification of sampling and assaying	• The verification of significant intersections by either independent or alternative company personnel.	• Flight path plots • Magnetic stacked profiles • Statistical summary of line data • Magnetometer base station plots • Progressive image presentation of magnetic and topographic data • Daily plots of aircraft parking locations to verify GPS position
	• The use of twinned holes.
	• Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
	• Discuss any adjustment to assay data.
Location of data points	• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	• Geometrics G822A Magnetometer and RS 400 Gamma Ray Spectrometer • Novatel OEMV-1VBS GPS Receiver provides sub-meter resolution • Radar (King KR 495B) and Barometric (Setra 276 Pressure Transducer) Altimeters used terrain clearance.
	• Specification of the grid system used.	• GDA94
	• Quality and adequacy of topographic control.	• Radar (King KR 495B) and Barometric (Setra 276 Pressure Transducer) Altimeters used terrain clearance.
Data spacing and distribution	• `Data spacing for reporting of Exploration Results.	• 60m line spacing and 60m terrain clearance sufficient for the for the accuracy and depths sought • 200m line spacing and 50m pole dipole configuration considered sufficient for the mineralization style and depth sought
	• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.
	• Whether sample compositing has been applied.
Orientation of data in relation to geological structure	• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.	• Surveys nominally oriented perpendicular to major structural features, lithological trends and / or other features of interest to ensure maximum resolution • All data acquired by both contractors reported to the Company's representatives
	• If the relationship between the drilling orientation and the orientation of key mineralized structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
Sample security	• The measures taken to ensure sample security.
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	• No audits completed.

Section 2 Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.	• EL6463, EL6874, EL7975 • ~60km S of Oberon in NSW. • EYM through a subsidiary holds 100%
	• The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.	• Tenements are in good standing.
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	• Various operators have held tenure over the area; Getty Oil, Dominion and Republic Gold NL have carried out the majority of the most recent work and upon which EYM has based its exploration programs.
Geology	• Deposit type, geological setting and style of mineralization.	• Within EL6463 copper – gold – silver +/- zinc +/- lead mineralisation is generally restricted to the Lloyds corridor, although localised anomalous base metal values also occur in the Mossgrove North prospect. The mineralisation is best developed in the Hanrahan’s Agglomerate but also occurs in the upper part of the Excelsior Porphyry. At Lloyds mine copper mineralisation occurs as two quartz – sulphide veins, although most production was from the main vein. The predominant sulphide mineral in the veins was chalcopyrite with sphalerite on the vein walls and pyrrhotite disseminated in the wall rocks. Galena and tetrahedrite were also reported, but not at economically important levels. Disseminate base metal mineralisation was reported as forming a halo to the veins. The main vein varied in width from 0.3m to 12 m, striking roughly east - west and dipping moderately north. The main vein has a typical strike extent of 180m, terminating in faults at both ends. The intersection of the terminating faults with the vein results in the ore plunging to the northeast.
Drill hole Information	• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length.	• N/A – no drilling undertaken
	• If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
Data aggregation methods	• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.	• N/A – no drilling undertaken

Criteria	JORC Code explanation	Commentary
	• Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.	•
	• The assumptions used for any reporting of metal equivalent values should be clearly stated.
Relationship between mineralization widths and intercept lengths	• These relationships are particularly important in the reporting of Exploration Results.	• N/A – mineralized widths not reported
	• If the geometry of the mineralization with respect to the drill hole angle is known, its nature should be reported.
	• If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).
Diagrams	• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.
Balanced reporting	• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	• N/A – grades not reported
Other substantive exploration data	• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	• The Company’s previous ASX releases have detailed exploration works including historical drilling, geological mapping, soil sampling, results from previous ground and airborne geophysical surveys.
Further work	• The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).	• Drilling at targets deemed drill-ready • Further soil sampling and mapping at targets identified as not yet drill-ready • Further interrogation of geophysical data.
	• Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	• Appropriate figures included in body of announcement of both survey data and interpreted data.

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