PATERSON RESOURCES LTD — Interim / Quarterly Report 2007

Apr 23, 2007

Lovel 8, 256 St Georges TerracePerth, Western Australia 6000 Bhonartas an San Carac Polar id ng sama Martin Alexandria

URANIUM OIL AND GAS LIMITED (UOG)

QUARTERLY REPORT (Third Quarter) JANUARY-MARCH 2007

HIGHLIGHTS

Tenement applications for Heavy Mineral Sands in Western Victoria

Victoria

Uranium Oil and Gas has two granted Exploration Licences (EL5018 and EL5019), three application that have priority granted status (EL's 5036, 5037 and 5038) and one competing application (EL 5032). The position of the tenements is portrayed on the accompanying map, but the competing application is not as large as shown as it has been amended. The map is produced by the Minerals and Petroleum Division of the Department of Primary Industries for the State of Victoria. Also shown on the map are the positions of the known Heavy Mineral Sand occurrences.

New deposits are sought in the north whilst extensions to existing deposits are the prime targets in the south.

South Australia

The applications for Exploration Licences 203/06 and 206/06 have been granted. They are located just south of the old copper mining centre of Moonta. Copper-Gold- Uranium deposits are the prime exploration target.

Northern Territory

The Lucky U uranium prospect (EL 25329) has been granted as has the Sandover uranium prospect (EL25504). It is planned to fly the Lucky U for radiometric and magnetic data. Drilling targets should result from this work. It is also planned to drill the Sandover prospect.

Yours faithfully URANIUM OIL AND GAS LIMITED

W E Bannister AWASM, MSc Managing Director

21 March 2007

The information within this report as it relates to geology and mineral resources was compiled by the Managing Director Mr William Bannister. Mr. Bannister has sufficient experience which is relevant to the style of mineralization and the type of deposit under consideration to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, the JORC Code". Mr Bannister consents to the inclusion in the report of the matters based on information in the form and context which it appears.