PATERSON RESOURCES LTD — Capital/Financing Update 2020

Oct 14, 2020

ASX ANNOUNCEMENT 15 October 2020

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$2.25m Capital Raising Completed after SPP Closes Oversubscribed

Paterson Resources Limited (“Paterson” or “the Company”) (ASX: PSL) advises that the Share Purchase Plan (SPP) closed on 9[th] October 2020.

After the completion of a $500,000 placement to professional and sophisticated investors in September, the Company launched the SPP which was strongly supported, raising a further $1,757,625 after closing oversubscribed. The Company received applications for a total of 502,178,606 shares and confirms it will accept the oversubscriptions of $257,625 in accordance with the Prospectus lodged with ASX on 18 September 2020.

The successful completion of the SPP together with the Placement on the same terms raised a total of $2.25m, leaving the Company with a current cash position of approximately $3.55m.

The Company is now fully funded to complete drilling programs at the Grace Project in the Paterson Province of Western Australia and the Burraga Copper Gold Project in the Lachlan Fold Belt of NSW.

The Board of Paterson wishes to thank shareholders for their ongoing support.

Allotment of the shares under the SPP is expected to occur on 16[th] October 2020. Holding Statements are expected to be dispatched on 19[th] October 2020.

As announced on 14[th] September 2020, the Company will seek shareholder approval for the free attaching SPP Options at its Annual General Meeting to be held in early December.

For further information, please visit www.patersonresources.com.au or contact:

Sarah Smith Company Secretary +61 8 6559 1792

This announcement has been authorised for release to ASX by the Board of Paterson Resources Limited.

ACN: 115 593 005 Suite 2 Level 1, 1 Altona Street, West Perth WA 6005 www.patersonresources.com.au

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About Paterson Resources:

Paterson Resources (ASX: PSL) is a publicly listed, junior mineral resources company focused on the exploration and development of gold and copper projects. Paterson has aggregated a diversified portfolio of assets that are at multiple stages, commodities and jurisdictions. The Grace Gold Project located in the world class Paterson mineral province in Western Australia consists of two granted exploration licences and five granted prospecting licences (E45/4524, E45/5130, P45/2905, P45/2906, P45/2907, P45/2908, and P45/2909). The Company also has an extensive landholding prospective for gold in the Pilbara in Western Australia, with four exploration licences (E08/2880, E47/3578, E47/3827, and E45/5020). The Burraga Copper Gold Project, located in the world class minerals province of the East Lachlan Fold Belt in central western New South Wales consists of four contiguous exploration licences (EL6463, EL6874, EL7975 and EL8826) covering a total area of approximately 221km². Paterson is an active explorer with the aim of discovering a valuable mineral resource and delivering shareholder value.

Forward Looking Statements

Some of the statements appearing in this announcement may be in the nature of forwardlooking statements. You should be aware that such statements are only predictions and are subject to inherent risks and uncertainties. Those risks and uncertainties include factors and risks specific to the industries in which Paterson operates and proposes to operate as well as general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets, among other things. Actual events or results may differ materially from the events or results expressed or implied in any forward-looking statement. No forward looking statement is a guarantee or representation as to future performance or any other future matters, which will be influenced by a number of factors and subject to various uncertainties and contingencies, many of which will be outside Paterson Resources (PSL) control.

The Company does not undertake any obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this announcement. To the maximum extent permitted by law, none of PSL, its Directors, employees, advisors or agents, nor any other person, accepts any liability for any loss arising from the use of the information contained in this announcement. You are cautioned not to place undue reliance on any forward-looking statement. The forward-looking statements in this announcement reflect views held only as at the date of this announcement.

This announcement is not an offer, invitation or recommendation to subscribe for, or purchase securities by PSL. Nor does this announcement constitute investment or financial product advice (nor tax, accounting or legal advice) and is not intended to be used for the basis of making an investment decision. Investors should obtain their own advice before making any investment decision.

ACN: 115 593 005 Suite 2 Level 1, 1 Altona Street, West Perth WA 6005 www.patersonresources.com.au