PATERSON RESOURCES LTD — Capital/Financing Update 2023

Jun 27, 2023

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ASX ANNOUNCEMENT

28 June 2023

Drilling operations commence at Grace Gold-Copper Project

HIGHLIGHTS

Grace Gold-Copper Project, Paterson Province, Western Australia

• More than 5,000 metres RC drilling set to commence at Grace Gold-Copper Project

• Field crew onsite preparing drill sites

• Drilling expected to commence next week

• Drilling targeting strike and depth extensions to thick high-grade intercepts from previous program including 15m @ 4.03 g/t gold from 79m and 31m @ 3.31 g/t gold from 145m which included 7m @ 11.0 g/t from 148m.

• The Grace Gold-Copper Project is located 25km southeast of Newcrest’s world-class 30-plus million-ounce Telfer Gold-Copper Mine.

Burraga Copper-Gold Project, Lachlan Fold Belt, New South Wales

• Revised 3D modelling and drill planning underway to target high-grade copper

mineralisation at the Lloyds Copper-Gold deposit.

• Work approval is being sought from New South Wales Resources Regulator for a upcoming drilling program.

Paterson Resources Limited (“Paterson” or “the Company”) (ASX: PSL); is pleased to provide an update on progress at the Company’s Grace Gold-Copper Project near Telfer in Western Australia, together with drill program planning at the Burraga Copper-Gold Project in New South Wales.

The Paterson Province

The Grace Gold-Copper Project is in the heart of the highly prospective Paterson Province, where multiple major exploration groups including Rio Tinto, Newcrest and Greatland Gold are actively exploring the region. Significant discoveries proximal to Paterson’s Grace Project include the Havieron 5.5 million ounce gold-copper resource being jointly developed by Greatland Gold and Newcrest, Cyprium Metal’s Maroochydore copper prospect to the south and Newcrest’s world-class 30-plus million ounce Telfer gold-copper mine, located 25km to the northwest.

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Paterson is preparing to complete more than 5,000 metres of Reverse Circulation (RC) drilling to extend along strike and at depth the thick high-grade gold shoot discovered from the most recent drilling program. Significant intercepts ( see ASX Announcement dated 24[th] October 2022 ) previously reported include:

• 15m @ 4.03g/t Au from 77m including 6m @ 9.3g/t Au from 79m ( PRC0024 )

• 31m @ 3.13g/t Au from 145m including 7m @ 11.0g/t Au from 148m ( PRC0024 )

• 19m @ 1.23g/t Au from 104m including 2m @ 5.9g/t Au from 106m ( PRC0025 )

• 41m @ 2.56g/t Au from 143m including 4m @ 9.2g/t Au from 143m and 3m @ 8.7g/t Au from 176m ( PRC0025 )

Additional drilling will also target repetitions of stacked shallow dipping vein and breccia lodes over the Bemm deposit at depth.

Paterson’s Executive Director Matt Bull commented on the results, “We are pleased to be commencing our next phase of drilling at the Grace Project. More than 5,000m of RC drilling will look to extend a string of compelling high-grade gold intercepts along strike and at depth, along with testing the repetition of shallow, stacked vein and breccia lodes over the Bemm deposit at depth. The field crew is on site preparing drill pads with the drill rig expected to arrive early next week to commence drilling soon after. I look forward to updating the market with assay results in the coming weeks.”

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Figure 1. Overview of RC drilling completed at the Grace Gold-Copper deposit

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Pilbara Project, Western Australia

A field crew recently returned from combined mapping and soil sampling programs at the Company’s Elsie North and Bellary Projects in Western Australia’s Pilbara region.

A total of 143 soil samples were collected over an identified layered ultramafic intrusive complex prospective for nickel-copper-platinum group elements at the Bellary Project with samples dispatched to ALS Global Laboratory in Perth for multi-element analysis.

Burraga Project, Lachlan Fold Belt, New South Wales

Approvals are being sought from the New South Wales Resources Regulator to undertake a drilling program at the high-grade Lloyd’s Copper-Gold project in New South Wales’ metal rich Lachlan Fold Belt province. Revised 3D modelling is underway following a geological review of historical RC chips to assist with drill targeting.

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

Matt Bull

Executive Director

COMPETENT PERSON’S STATEMENT:

The information in this announcement that relates to exploration results is based on and fairly represents information reviewed or compiled by Mr Matt Bull, a Competent Person who is a Member of the Australian Institute of Geoscientists. Mr Bull is a Director of Paterson Resources Limited. Mr Bull 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 Exploration Results, Mineral Resources and Ore Reserves”. Mr Bull has provided his prior written consent to the inclusion in this announcement of the matters based on information in the form and context in which it appears.

Disclaimer

Some of the statements appearing in this announcement may be in the nature of forward-looking 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.