PATERSON RESOURCES LTD — Capital/Financing Update 2014

Apr 8, 2014

9[th] April 2014

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ASX ANNOUNCEMENT FOR IMMEDIATE RELEASE

EIS CONSULTANT ENGAGED.

Elysium Resources Limited (“Elysium” or "Company") (ASX:EYM) is pleased to announce that the bulk of the proceeds from the recent share placement are to be directed to securing the necessary permits to commence production at the Burraga Copper Project. Pivotal to the application for a Mining Licence (ML) is an Environmental Impact Statement (EIS) for which the Company has engaged Endure Environmental (Endure) to prepare.

Highlights

• 18 months of baseline environmental data already collected

• Flora and Fauna field surveys completed – no indication of endangered species found

• Site planning meeting conducted for key technical professionals

• Operations options assessed for optimal definition of ML extents

Burraga Copper Pty Ltd (BCPL) carried out a pre-feasibility study (PFS) in 2011[1] which showed that the processing of the historical tailings located near the abandoned Lloyds Mine, along with the two slag heaps would pay-back the capital investment over a period of 1-2 years, dependant on the copper price. The PFS study further showed that if 1Mt @ 1% Cu was mined from where the Lloyds mineralisation outcrops, a 4-5 year operation at a 300Ktpa production rate resulted in an attractive project Net Present Value (NPV). The Company believes that the project cash-flow can fund extensive exploration and is therefore accelerating towards production to ensure sufficient and ongoing funding for the aggressive exploration strategies planned for its highly prospective land positions in NSW, WA and Indonesia.

The Burraga Copper Project would not be declared to be State Significant Development because it would not meet the capital investment threshold for such a declaration ($30 million) under clause 5, Schedule 1 of State Environmental Planning Policy (State and Regional Development) 2011. The project would, however, be classified as Regional Development and is therefore subject to assessment and determination under Part 4 of the Environmental Planning and Assessment Act 1979 and will require the preparation of an EIS. As Regional Development, the consent authority role will be fulfilled by the Western Joint Regional Planning Panel rather than Oberon Council.

As Regional Development, designated development and subject to assessment under Part 4 of the Environmental Planning and Assessment Act 1979, the key steps associated with the statutory environmental assessment process for the project will be as follows:

1. Pre-development application meeting with Oberon Council.

2. Preparation of a request for Director-General’s environmental assessment requirements (DGRs).

3. Receipt and review of the DGRs and refinement of the scope of the EIS if necessary.

4. Preparation of the EIS, including relevant technical specialist studies.

• 1 PFS can be viewed at www.ElysiumResources.com.au

1. Consultation with community and stakeholders during the preparation of the EIS.

2. Lodgement and public exhibition of the EIS.

3. Response to submissions made during the public exhibition of the EIS.

4. Preparation of an assessment by Oberon Council, including draft approval conditions.

5. Potential public meeting of the Western Joint Regional Planning Panel.

6. Determination of the development application by the Western Joint Regional Planning Panel.

The Company anticipates it can fulfil the requirements required for the ML to be granted in the next 12-15 months with a further 3-6 months required to commission the processing facility. Concurrently with the EIS, the Company will be working on various elements to enhance the confidence in the existing PFS which will include a drilling campaign to upgrade the existing JORC Inferred resource at Lloyds[2] , mine planning and design, as well as sourcing a process facility. Elysium intends to provide a company update shortly detailing the proposed activities at all its projects.

Elysium Resources Limited

Mark Ohlsson Company Secretary 0400 801 814 Email: markohlsson@elysiumresources.com.au

Elysium Resources Limited Nebojsa Zurkic Chief Technical Advisor 03 9329 4075 Email: n_zurkic@zurkic-mining-consultants.com

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.

2Resource statement can be viewed at www.ElysiumResources.com.au

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Figure #1.Weather-station installed 18 months ago by BCPL. Historical water-jacket located near the entrance of the abandoned Lloyds Copper Mine in the back-ground.

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Figure #2.Copper bearing northern slag dump.

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