PATERSON RESOURCES LTD — Capital/Financing Update 2014

Feb 26, 2014

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27 February 2014

ASX Limited

COMPLETION OF CAPITAL RAISING

The Directors of Elysium Resources (EYM) are pleased to advise the completion of a placement to institutional and sophisticated investors eligible under s.708 of the Corporations Act (2001) of 360,000,000 new ordinary shares at 1 cent per share with 360,000,000 attaching options to raise $3,600,000 (“Placement”). The options will have an exercise price of 1.4 cents each, expire 30 November 2014 and comply with ASX Listing Rules.

The funds raised will be used to fund the Company’s exploration expenditure and working capital requirements.

The first stage of the Placement will comprise the issue of 90,000,000 new ordinary shares at 1 cent per share with 90,000,000 attaching options to raise $900,000. The first stage of the Placement was made utilizing the Company’s existing capacity under ASX Listing Rules 7.1 (54,426,054 shares and 54,426,054 options) and 7.1A (35,573,946 shares and 35,573,946 options).

The first stage of the Placement is unconditional is expected to settle on 28 February 2014 and issue of shares is expected to occur on 3 March 2014. The shares will rank pari passu with existing ordinary shares. After settlement and issue of new shares the Company will have 815,680,730 shares on issue.

The subsequent stages of the Placement will be subject to shareholder approval. The Company intends to call a General Meeting of Shareholders to renew its capacity under Listing Rule 7.1 and to put resolutions to the shareholders with respect to the balance of the Placement.

Information required under ASX listing Rule 3.10.5A

The Company provides the information as required under ASX Listing Rule 3.10.5A as follows:

1. Dilution to existing shareholders as a result of the issue made under 7.1A:

   • The percentage of the existing issued capital represented by the Placement made under 7.1A is 4.9%

   • The percentage of the post-Placement issued capital held by the pre-placement security holders is 88.9%

2. No existing shareholders participated in the Placement made under Listing Rule 7.1A

3. The Company issued the Placement shares to institutional and sophisticated investors as it was considered to be a more efficient and expedient method for raising the funds to achieve the Company’s objectives.

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1. No underwriting arrangements were in place for the Placement and fees of 4% are due to be paid.

Mark Ohlsson Company Secretary

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