PATERSON RESOURCES LTD — Interim / Quarterly Report 2010

Jul 28, 2010

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29 July 2010

Company Announcements Office Australian Securities Exchange Level 20 Bridge Street SYDNEY NSW 2000

Quarterly Report (4th Quarter) April to June 2010

Exploration Highlights

• At the Horseshoe West project a contract has been signed to cover the anomalous copper and gold soil areas with heliborne EM

• The new but small Exploration Licence 52/2569 will also be covered with heliborne EM.

• A new Exploration Licence has been applied for in the Eucla Basin. The licence covers a coincident gravity and magnetic anomaly. Base metals are the target.

Corporate Affairs

• On 26 May UOG announced that it had agreed to the sale of its property at 113 Mackie Street to Iron Mountain Mining Ltd.

• On 3 June UOG entered into a Heads of Agreement with Iron Mountain Mining Ltd whereby the latter can purchase the outstanding available interest in three UOG Exploration Licences in the Northern Territory in which Iron Mountain already holds a minority interest.

• Both transactions are subject to and conditional upon the approval of shareholders of both Iron Mountain Mining Ltd and United Orogen Ltd as the companies have common directors.

1

Mineral Exploration

Western Australia

1. Horseshoe West (E52/2016)

The copper-gold soil anomalies will be tested for concentrations of massive sulphides using Heliborne EM. The contract has been signed and the aircraft is awaited.

2. Horseshoe South (E52/2569)

This small exploration licence has been subject to much exploratory work by previous explorers. It is known to contain anomalous gold and copper in soils, thus UOG will test the area using the same Heliborne EM system looking for concentrations of massive sulphides.

3. Victoria Desert (ELA39/1528)

The exploration licence is situated 250km ENE of Kalgoorlie and covers part of a NW trending magnetic high thought to be part of a remnant greenstone belt that may be prospective for gold. To the east and south lies the Albany Fraser Range Province, also prospective for gold, whilst 6km to the NE is the Mulga Rocks uranium deposit.

4. Gunnedo Project (ELA69/2808 )

The exploration licence covers a coincident gravity and magnetic anomaly within the Eucla Basin. The basement is thought to be an Archaean craton. The targets are base metals and gold. Gunnedo is situated 450 km east of Kalgoorlie and lies partly on the Gunnedorah Pastoral Lease; access is along the Transcontinental Railway line.

The following projects were relinquished during the quarter:-

1. Mt Vernon (E52/2338)

Mt Vernon was explored for uranium, platinum-palladium and manganese. All results were low and of no further interest.

2. Northampton (E70/3378)

Research was done on past exploration on the licence. The area had been flown to gather airborne magnetic and airborne EM information and the resultant anomalies were thoroughly tested. In the north of the licence abundant lines of IP covered the area and

2

many of the anomalies were drill tested. The licence had been fully tested and was relinquished.

3. Miss Fairbairn Hills (E69/2336)

The area was fully researched. All past drilling in the vicinity was plotted. In the north Stockdale drill several kimberlite pipes but all were north of the northern boundary of the licence. In the south Goldfield drilled several deep diamond drill hole searching for lead-zinc deposits-minor mineralization was intersected. There were enough scattered exploratory holes drilled across the channel to determine that there was little chance of a palaeochannel infilled with channel iron ore occurring. The licence was surrendered.

Northern Territory

1. Treasure (EL25346), Florence Creek (EL25894) and Lucky U (EL25329)

Iron Mountain has offered to purchase the portion of the Northern Territory exploration licences from UOG that they do not own. Treasure is 70% owned by UOG, Lucky U is also owned 70% by UOG and Florence Creek is owned 50% by UOG. The consideration is for Iron Mountain to give UOG 5 million shares in Iron Mountain and 5 million options in Iron Mountain exercisable at 20 cents per option on or before 1 May 2015. For this to occur the shareholders of both companies have to approve the transaction.

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W.E. BANNISTER AWASM, MSc.

Managing Director

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The information within this report as it relates to geology and mineral resources was compiled by the Managing Director, Mr. William Bannister. He 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 matters based on information in the form and context which it appears.

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Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

UNITED OROGEN LIMITED

	ABN 45 115 593 005 Consolidated statement of cash flows		Quarter ended (“current quarter”) 30 June 2010	Quarter ended (“current quarter”) 30 June 2010
			30 June 2010
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes & GST paid / received 1.7 Other – Rental Income Net Operating Cash Flows		Current quarter $A’000		Year to date (12 months) $A’000
		NIL (128) NIL NIL (97) NIL 8 NIL NIL 1		NIL (436) NIL NIL (314) NIL 34 NIL NIL 1
		(216)		(715)
Cash flows related to investing activities 1.8 Payment for purchases of: (a)prospects (b)equity investments (c)other fixed assets 1.9 Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		NIL NIL (2) NIL NIL NIL NIL NIL NIL		NIL NIL (4) NIL NIL NIL NIL NIL NIL
		(2)		(4)
		(218)		(719)

• See chapter 19 for defined terms.

Appendix 5B Page 1

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	1.13 Total operating and investing cash flows (brought forward)	(218)	(719)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows		NIL NIL NIL NIL NIL NIL	NIL NIL NIL NIL NIL NIL
		NIL	NIL
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter		(218) 906	(719) 1,407
		688	688
Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities
1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10		Current quarter $A'000
			89
			NIL
1.25	Explanation necessaryfor an understandingof the transactions
	1.23 Directors Fees paid to Directors

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

N/A

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

N/A

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	NIL	NIL
	NIL	NIL

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.2 Administration	$A’000
	160
	NIL
	NIL
	110
Total	270

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	70	96
	618	810
Total: cash at end of quarter(item 1.22)	688	906

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	E09/1245 E52/2338 E69/2336 E70/3378 E69/1728 E69/1486 EL25329	Surrendered 01/06/2010 Surrendered 11/05/2010 Surrendered 22/06/2010 Surrendered 31/05/2010 Compulsory 50% Surrender 24/06/2010 Compulsory 50% Surrender 28/05/2010 Compulsory 50% Surrender	100% 100% 100% 100% 50% uranium and diamonds, 70% iron minerals 50% uranium and diamonds, 70% iron minerals 70%	0% 0% 0% 0% 50% uranium and diamonds, 70% iron minerals 50% uranium and diamonds, 70% iron minerals 70%
	E52/2569 E69/2808	Application made 22/04/2010, granted 18/06/2010 Application made 22/06/2010	0% 0%	100% 100%

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	64,762,853	43,112,853
	NIL	NIL
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	38,339,300	18,939,300	Exercise price 20 cents each	Expiry date 04/08/2010
	NIL
	NIL
	NIL
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here: (Company secretary)

Date: 29 July 2010

Print name: MARK KILLMIER

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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• See chapter 19 for defined terms.

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30/9/2001