PATERSON RESOURCES LTD — Capital/Financing Update 2020

May 31, 2020

1 June 2020

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Dear Shareholder

NOTICE TO INELIGIBLE SHAREHOLDERS OF NON-RENOUNCEABLE ENTITLEMENT OFFER

We write to you as the registered holder of Paterson Resources Limited (ASX: PSL) ( Paterson or the Company ) shares as at today's date. As advised in the Company's ASX announcement dated 22 May 2020, Paterson is undertaking a non-renounceable pro-rata entitlement offer to eligible shareholders of ordinary fully paid shares in the Company at an issue price of $0.001 per share and on the basis of 1 (one) new share ( New Share ) for every share held at the record date on 27 May 2020 ( Record Date ), to raise approximately $1.93 million (before costs) ( Entitlement Offer ).

Purpose of the Entitlement Offer

Subject to the satisfactory completion of the Entitlement Offer, funds will be used for exploration activities on the Company’s Western Australian projects, and the Burraga Project in New South Wales, interest payments on the convertible notes, as well as for costs of the Entitlement Offer and general working capital.

The Entitlement Offer is available to all Predictive shareholders ( Shareholders ) registered on the Record Date whose registered address is in Australia, New Zealand, and United Kingdom ( Eligible Shareholders ). The Entitlement Offer is not being extended to any Shareholders with addresses outside these jurisdictions.

Ineligible Shareholders

A Shareholder who has a registered address outside Australia, New Zealand, and United Kingdom ( Ineligible Shareholder ) will not be eligible to participate in the Entitlement Offer.

You are not eligible to participate in the Entitlement Offer and you will not be sent a copy of the Prospectus. This decision has been made pursuant to Listing Rule 7.7.1(a) of the ASX Listing Rules after taking into consideration the costs of complying with legal and regulatory requirements in jurisdictions outside Australia, New Zealand, and United Kingdom compared with the small number of Ineligible Shareholders and the number and value of New Shares to which they would otherwise be entitled.

For all enquiries concerning the Entitlement Offer, please contact the Company Secretary, by telephone on +61 8 6559 1792 and for all general shareholder enquiries, please contact Computershare Investor Services Pty Limited on 1300 850 505.

Yours sincerely

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Nick Johansen Non-Executive Chairman Paterson Resources Limited

ACN: 115 593 005

Suite 2 Level 1, 1 Altona Street, West Perth WA 6005

www.patersonresources.com.au