PATERSON RESOURCES LTD — Interim / Quarterly Report 2008

Mar 13, 2008

URANIUM OIL AND GAS LIMITED ABN 45 115 593 005

INTERIM FINANCIAL REPORT 2007

For the Half-Year Ended 31 December 2007

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C O N T E N T S

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Directors’ Report...............................................................................................................................................1 Auditors Independence Declaration ...........................................................................................................3 Income Statement ...........................................................................................................................................4 Balance Sheet...................................................................................................................................................5 Statement of Changes in Equity ....................................................................................................................6 Cash Flow Statement.......................................................................................................................................7 Notes to the Financial Statements.................................................................................................................8 Directors’ Declaration....................................................................................................................................10 Independent Auditors Review Report ........................................................................................................11

Uranium Oil and Gas Limited Interim Financial Report 31 December 2007 ABN: 45 115 593 005

D I R E C T O R S ’ R E P O R T

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The Directors present their report together with the financial report for the half year ended 31 December 2007, and the independent review report thereon.

Directors

The names of the directors of the company in office any time during or since the end of the half year are:

David Alan Zohar – Executive Director and Company Secretary (Appointed 3 August 2005) John Karajas – Non Executive Director (Appointed 24 May 2006) Zhukov (Zeke) Pervan – Non Executive Director and Chairman (Appointed 24 May 2006) William Edwin Bannister – Managing Director (Appointed 24 May 2006)

Review of Operations

The principal activity of the Company during the course of the financial period was mineral exploration.

The net loss of the company for the half year after tax was $336,358 (2006: $226,548). No dividends were paid and the directors have not recommended the payment of a dividend.

Western Australia

Selected areas of the Mt Vernon and Collier projects were soil sampled. The results were not encouraging. However investigations into previous exploration programs showed that there is a semi continuous linear uranium anomaly within the Mt Vernon project. This has yet to be ground checked.

Two Exploration Licences have been applied for covering iron formations of the Frere Range in the Eastern part of the Nabberu Basin.

Northern Territory

Ethel Creek was about to be drilled but the weather interfered. Early rains terminated the exploration program for 2007.

The airborne radiometric results were received for the Lucky U prospect and the better anomalies were ground checked using a helicopter to cover the rugged terrain. Each area visited showed radiometric activity but little of geological significance that would indicate a potential deposit was evident.

South Australia

The Olary prospect was examined geologically and parts soil sampled and rock chip sampled.

Both Moonta tenements were examined. Field work will commence in the next quarter.

Uranium Oil and Gas Limited Interim Financial Report 31 December 2007

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ABN: 45 115 593 005

D I R E C T O R S ’ R E P O R T

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Auditor’s Independence Declaration

The auditor’s independence declaration under Section 307(c) of the Corporations Act 2001 for the half year ended 31 December 2007 has been received and is set out on page 3.

Signed in accordance with a resolution of Directors

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William Bannister Managing Director 13 March 2008 Perth, Western Australia

Uranium Oil and Gas Limited Interim Financial Report 31 December 2007

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ABN: 45 115 593 005

A U D I T O R S I N D E P E N D E N C E D E C L A R A T I O N

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Uranium Oil and Gas Limited Interim Financial Report 31 December 2007

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ABN: 45 115 593 005

I N C O M E S T A T E M E N T For the half year ended 31 December 2007

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	31 December 2007 $ 31 December 2006 $
REVENUES Interest Income Other Income Total Revenue Expenditure Administration Acquisition costs Exploration costs Occupancy costs Consulting and management Depreciation Employment costs(including directors) Finance costs Total Expenditure Loss Before Income Tax Income tax expense NET LOSS ATTRIBUTABLE TO MEMBERS Basic and dilutive loss per share	135,966 102,687 268,370 121,500
	404,336 224,187
	68,380 181,197 88,613 - 188,075 72,038 16,866 - 63,317 197,500 4,672 - 310,432 - 339 -
	740,694 450,735
	(336,358) (226,548) - -
	(336,358) (226,548)
	(0.52) (0.63)

The accompanying notes form part of these financial statements.

Uranium Oil and Gas Limited Interim Financial Report 31 December 2007

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ABN: 45 115 593 005

B A L A N C E S H E E T As at 31 December 2007

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Note	31 December 2007 $ 30 June 2007 $
CURRENT ASSETS Cash and cash equivalents Trade and other receivables Other current assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant & equipment 6 Available for sale financial assets 7 TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Provisions TOTAL CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Accumulated losses TOTAL EQUITY	4,175,784 4,590,451 26,935 86,065 4,272 9,944
	4,206,991 4,686,460
	746,876 684,649 806,372 420,000
	1,553,248 1,104,649
	5,760,239 5,791,109
	64,062 56,429 34,144 21,026
	98,206 77,455
	98,206 77,455
	5,662,033 5,713,654
	6,693,252 6,689,252 319,817 39,080 (1,351,036) (1,014,678)
	5,662,033 5,713,654

The accompanying notes form part of these financial statements.

Uranium Oil and Gas Limited Interim Financial Report 31 December 2007

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ABN: 45 115 593 005

S T A T E M E N T O F C H A N G E S I N E Q U I T Y For the half year ended 31 December 2007

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Notes 2006 Balance as at 1 July 2006 Loss for the period Total recognised income and expense for the half year Shares issued during the period Capital raising costs Options issued for services Balance at 31 December 2006 2007 Balance as at 1 July 2007 Loss for the half year Increase in the fair value of available-for-sale financial assets Decrease in the fair value of available-for-sale financial assets Total recognised in income and expense for the half year Shares issued during the year Capital raising costs Options issued for tenement acquisition 8 Balance as at 31 December 2007	Issued Share Capital $ Accumulated Losses $ Reserves $ Total $ 537,353 (523,960) - 13,393 - (226,548) - (226,548)
	- (226,548) - (226,548)
	7,138,870 - - 7,138,870 (923,659) - - (923,659) - - 19,080 19,080
	6,752,564 (750,508) 19,080 6,021,136
	6,689,252 (1,014,678) 39,080 5,713,654 - (336,358) - (336,358) - - 318,065 318,065 (98,628) (98,628)
	- (336,358) 219,437 (116,921)
	4,000 - - 4,000 - - - - - - 61,300 61,300
	6,693,252 (1,351,036) 319,817 5,662,033

The accompanying notes form part of these financial statements.

Uranium Oil and Gas Limited Interim Financial Report 31 December 2007

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ABN: 45 115 593 005

C A S H F L O W S T A T E M E N T For the half year ended 31 December 2007

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	31 December 2007 $ 31 December 2006 $
CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Payment for exploration, evaluation & acquisition costs Interest received Interest paid Other income Goods and services tax received / (paid) NET CASH FLOWS USED IN OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Deposit on property Payment for property, plant and equipment Payments for unlisted investment Proceeds from sale of investments NET CASH FLOWS FROM / (USED IN) INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issues of shares and exercise of options Payment of share issue costs Loans from director related entities NET CASH FLOWS FROM FINANCING ACTIVITIES NET (DECREASE)/ INCREASE IN CASH HELD Cash and cash equivalents at the beginning of the financial year CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR	12,492 - (372,983) (351,720) (276,688) - 135,966 102,687 (339) - 26,190 20,000 48,349 (85,886)
	(427,013) (314,919)
	- (50,000) (66,899) - (100,000) (200,000) 175,245 -
	8,346 (250,000)
	4,000 6,823,870 - (892,021) - 180,000
	4,000 6,111,849
	(414,667) 5,546,930 4,590,451 9,337
	4,175,784 5,556,267

The accompanying notes form part of these financial statements.

Uranium Oil and Gas Limited Interim Financial Report 31 December 2007

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ABN: 45 115 593 005

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S

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1. Basis of Preparation

The half-year financial statements are a general purpose interim financial report prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standard AASB 134: Interim Financial Reporting, Australian Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001 .

It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2007 and any public announcements made by Uranium Oil and Gas Limited during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001 .

The accounting policies have been consistently applied by the company and are consistent with those in the June 2007 financial report.

The half-year report does not include full disclosures of the type normally included in an annual financial report.

Reporting Basis and Conventions

The half-year report has been prepared on an accruals basis and on the basis of historical costs and do not take into account changing money values or, except where stated, current valuations of non-current assets. The financial statements have been prepared on a going concern basis.

2. Segment Information

Business Segments

The Company is involved in the oil and gas research sector.

Geographical Segments

The Company has exploration and development interests in Western Australia.

3. Dividends

No dividends were paid or proposed during the period.

The Company has no franking credits available at 31 December 2007.

4. Contingent Liabilities

The Directors are not aware of any contingent liabilities as at 31 December 2007.

5. Events subsequent to Reporting Date

As at the close of market on the 12th March 2008, the Company's investments in listed entities (as disclosed in Note 7) had a fair value of $545,000, representing a diminution in value of $260,000 since 31 December 2007. The Fair value adjustment has not been recognised at the 31 December 2007 as the condition did not exist at reporting date, and the Directors believe the diminution in value is as a consequence of market conditions and does not represent a permanent impairment of financial assets.

Other than the above, there has not arisen in the interval between the end of the period and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Company to affect substantially the operations of the Company, the results of those operations or the state of affairs of the Company in subsequent financial years.

Uranium Oil and Gas Limited Interim Financial Report 31 December 2007

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ABN: 45 115 593 005

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S

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6. Property, Plant and Equipment LAND AND BUILDINGS At cost Accumulated depreciation TOTAL BUILDINGS PROPERTY IMPROVEMENTS At cost Accumulated amortisation TOTAL PROPERTY IMPROVEMENTS COMPUTER EQUIPMENT At cost Accumulated depreciation TOTAL COMPUTER EQUIPMENT PLANT & EQUIPMENT At cost Accumulated depreciation Total Office Equipment TOTAL PROPERTY, PLANT AND EQUIPMENT 7. Available for Sale Financial Assets Shares in listed corporation at fair value Shares in unlisted corporation at cost Less Fair value adjustment	31.12.2007 30.06.2007
	682,122 681,246 (2,134) -
	679,988 681,246
	50,000 - - -
	50,000 -
	4,082 4,082 (1,490) (679)
	2,592 3,403 16,900 - (2,604) -
	14,296 -
	746,876 684,649
	31.12.2007 30.06.2007
	805,000 220,000
	100,000 200,000
	(98,628)
	806,372 420,000

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The unlisted investment is ordinary shares in Black Gold Resources Limited, a Director related entity.

The fair value of the investment has been recognised based on the net tangible asset backing of the investment. The revaluation is considered temporary as Black Gold Resources Limited is currently pursuing an IPO with an expected listing date within the next 12 months. Upon listing it is expected the investment will be revalued to fair value with reference to the quoted price on the Australian Stock Exchange.

8. Equity Securities Issued

During the period, the company issued 1,000,000 listed options as part of a tenement acquisition. The fair value was determined using the Black Scholes model. Input variables used for the valuation were as follows: Volatility - 75% Risk Free Rate – 6.35% Current Share Price – 14 cents

Uranium Oil and Gas Limited Interim Financial Report 31 December 2007

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ABN: 45 115 593 005

D I R E C T O R S ’ D E C L A R A T I O N

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The directors of the Company declare that:

• (a) the financial statements and notes of the Company are in accordance with the Corporations Act 2001, including:

• (i) giving a true and fair view of the Company’s financial position as at 31 December 2007 and of its performance for the half-year ended on that date; and

• (ii) comply with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations; and

• (b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Directors.

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William Bannister Managing Director 13 March 2008 Perth, Western Australia

Uranium Oil and Gas Limited Interim Financial Report 31 December 2007

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ABN: 45 115 593 005

I n d e p e n d e n t A u d i t o r s R e v i e w R e p o r t

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Uranium Oil and Gas Limited Interim Financial Report 31 December 2007

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ABN: 45 115 593 005

I n d e p e n d e n t A u d i t o r s R e v i e w R e p o r t

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Uranium Oil and Gas Limited Interim Financial Report 31 December 2007

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ABN: 45 115 593 005