PATERSON RESOURCES LTD — Interim / Quarterly Report 2011

Jul 28, 2011

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Level 7, 231 Adelaide Terrace Perth WA 6000 +61 (8) 9225 4936
+61 (8) 9225 6474
PO Box 3235, 256 Adelaide Terrace
Perth Western Australia 6832
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29 July 2011

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

Quarterly Report as of 30[th] June 2011

Highlights

Corporate

• Non-renounceable Rights Issue of Shares with Free Attaching Option completed . Sale of 113 Mackie St and Northern Territory tenements completed.

Exploration

• Tambellup Project: - Two Exploration Licences were applied for 100km North of Albany and 30km south of Katanning covering approximately 395km². The project area is prospective for gold and base metals and is situated within the Yilgarn Craton with the Albany-Fraser Proterozoic mobile belt lying to the south. Little or no exploration is recorded to have been carried out within the project area.

Corporate

On 18 April 2011 United Orogen Ltd ( UOG ) announced a one (1) for two (2) non-renounceable pro rata rights issue of new UOG shares at an issue price of 3 cents for each new share, with one (1) free attaching option (exercisable at 20 cents and expiring on 31 March 2016) for every one (1) new UOG share issued. The Rights Issue was completed which resulted in the issue of 12,057,147 new UOG shares (and 12,057,147 free attaching options). The issue raised $361,714.41. The share shortfall of 20,329,279 shares will remain open until 27 August 2011.

Sale of 113 Mackie Street, Victoria Park, WA

An agreement was reached with Iron Mountain Mining Limited for the sale of 113 Mackie Street, Victoria Park, Western Australia, for the payment of $85,000, the issue of 10 million fully paid

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Level 7, 231 Adelaide Terrace Perth WA 6000
+61 (8) 9225 4936
PO Box 3235, 256 Adelaide Terrace +61 (8) 9225 6474
Perth Western Australia 6832
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ordinary shares in Iron Mountain Limited and the grant of 15 million options exercisable at 20 cents each on or before 1 May 2016 on the terms set out in the Explanatory Memorandum, in the notice of meeting announced on the 18[th] April 2011. The sale was ratified by shareholders at a general meeting held on Friday 27[th] May 2011.

Sale of Northern Territory Tenements to Iron Mountain Mining Limited

(Treasure (EL25346) Florence Creek (EL25894) and Lucky U (EL25329))

An agreement was reached with Iron Mountain Mining Limited for the sale of Northern Territory tenements for the issue of 3.5 million fully paid ordinary shares in Iron Mountain Mining Limited and the grant of 15 million 20 cent options exercisable on or before 1 May 2016 on the terms set out in the Explanatory Memorandum, in the notice of meeting announced on the 18[th] April 2011. The sale was ratified by shareholders at a general meeting held on Friday 27[th] May 2011.

Mineral Exploration Western Australia

Tambellup Project (100%)

(Tambellup E70/4173 Application and Tambellup East E70/4174 Application)

United Orogen has applied for two exploration licences covering approximately 395km² situated 100km north of Albany and approximately 30km south of Katanning.

The project area lies within the Yilgarn Craton South West Terrane with the Albany-Fraser Proterozoic Mobile Belt lying to the south and is prospective for gold and base metals.

The Company is targeting structural targets for gold mineralisation namely the north west trending Darken fault zone which is interpreted from geophysical work to trend from Boddington situated 137km to the north west and the lesser Kojonup fault which lies 5-6km to the south and runs parallel to the Darken fault.

The only recorded historical exploration of the western project area E70/4173 is an exploration licence which was held by Goldport Pty Ltd for a year and surrendered due to financial constraints in 2009. They carried out desktop studies to attempt to identify if structural similarities exist with the Blackburn/Badgebup and Boddington gold deposits. No fieldwork was completed.

The eastern project area E70/4174 was held for a year by Falcon Minerals. They were interested in the area after identifying regionally elevated Ni-Cu values located to the east of Tambellup from the CSIRO/CRC LEME regional laterite geochemical database for the Western Yilgarn Craton. They interpreted an analogy to the Voisey’s Bay Nickel project in Canada and analysed historic water bores for whole rock, rare earth, base metal and trace elements and concluded that the project

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Level 7, 231 Adelaide Terrace Perth WA 6000
+61 (8) 9225 4936
PO Box 3235, 256 Adelaide Terrace +61 (8) 9225 6474
Perth Western Australia 6832
----- End of picture text -----

contained the essential ingredients to form a mafic hosted Nickel sulphide system. Subsequent geochemical soil sampling over the prospective part of the project area defined nine nickel and copper anomalous areas, eight of which fall within UOG’s tenement area. They concluded that there appeared to be a mafic source generating the anomalism and recommended a moving loop EM survey to be conducted to better define the targets; this survey or any additional work was not carried out and the tenement was surrendered in 2008.

There has been no other reported exploration within the project area and therefore the area is underexplored and is considered “grassroots exploration”.

Other gold deposits and mineralisation in the region besides the world class Boddington mine 137km to the north west include the Badgebup gold mine located 50 km to the north of E70/4174, some recorded gold mining near Wagin 50 km to the north of E70/4173 carried out in the early 1900’s and there was also exploration success (3m @ 11g/t Au) in drilling at Nanicup 48km to the north east.

UOG’s exploration will concentrate on sourcing and analysing data and using modern day exploration techniques which will determine the gold and base metal potential of the project.

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Level 7, 231 Adelaide Terrace Perth WA 6000
+61 (8) 9225 4936
PO Box 3235, 256 Adelaide Terrace +61 (8) 9225 6474
Perth Western Australia 6832
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Redmond Project (100%)

(E70/4073 application)

This application covers approximately 37km² and is centered on the Blue Gum gold prospect which was reported on in newspapers in the late 1890's. The historical workings are reported to be situated approximately 24km south west of Mt Barker in Western Australia and consisted of several vertical shafts and small pits. With the passage of time all surface evidence has since disappeared due to farming activity. The workings pre-date official Mines Department records, therefore besides the noted 1890's newspaper reports lodged at the department there are no official mining lease records.

The project area lies within the Albany-Fraser Proterozoic Mobile Belt and is prospective for gold and base metals.

Exploration within the tenement area has been limited to some soil sampling carried out by Wilga Mines NL in 1995 which did not yield encouraging results and 4 Rotary Air Blast (RAB) holes drilled in 1997 to approximate depths of 20m each by Tramore Bay Pty Ltd. It was reported these holes were drilled to determine the nature of the geology and the magnetic anomaly situated adjacent to and between the Redmond Road and Blue Gum Creek. The results indicated that mafic rocks were present over a wider area than originally interpolated and not enough information had been collected to determine the areas potential and recommended further exploration. The gold reef reportedly mined in the 1890’s has therefore not been adequately tested.

UOG's exploration will concentrate on sourcing historical maps and records from the late 1890's to determine the exact location of the reported gold reef and using modern day exploration techniques will determine the gold and base metal potential of the project.

Victoria Desert Project (100%)

(Victoria Desert E39/1528, Victoria Desert North E39/1594 (granted 3/5/2011) and E39/1620 Application)

The Project area is situated 250km ENE of Kalgoorlie and covers an area of approximately 185km² and is prospective for gold, base metals and uranium.

E39/1528 contains a north west trending magnetic high interpreted to be part of a remnant greenstone belt that would be prospective for gold. Previous exploration identified gold and base metals anomalies which were delineated from 900 short vacuum drilling holes varying in depth from 3 to 6 metres. Follow up closer spaced infill surface sampling is planned with the aim of

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Level 7, 231 Adelaide Terrace Perth WA 6000
+61 (8) 9225 4936
PO Box 3235, 256 Adelaide Terrace +61 (8) 9225 6474
Perth Western Australia 6832
----- End of picture text -----

identifying drill targets in the vicinity of the previous Gold and base metals anomalies.

The northern part of the project E39/1594 (granted 3/5/2011) and E39/1620 (application) is underlain by narrow belts of north west trending greenstone within granites interpreted from aeromagnetic surveys. The area is therefore prospective for gold and base metals. A previous explorer identified 6 regional untested gold targets 2 of which fall within UOG’s tenements and both of which target pressure shadows associated with an interpreted north west trending ovoid intrusive. Also associated with either side of this structure, are two prospective interpreted north west trending shear zones. UOG will follow up these targets with surface sampling with an aim of identifying drill targets.

Horseshoe Project (100%)

(Horseshoe West E52/2016 and Horseshoe South E52/2569)

UOG’s exploration to date has concentrated on the western area of the tenement 7km west of the mine following up soil anomalies and where a recent Heliborne geophysical survey indicated no deep conductors are present in this area negating the possibility of a deep sulphide deposit. This area and Horseshoe South is now being targeted for north west striking structurally controlled gold mineralisation due to the vicinity of known deposits in the area. Additional sampling will be required to identify any drill targets.

Gunnado Project (100%)

(E69/2825)

The tenement was granted on 6 July 2011 and is located within the Eucla Basin approximately 450km east of Kalgoorlie and covers an area of 132km². Previous exploration is very limited which includes aeromagnetic and gravity surveys and two partly government funded (50%) diamond holes drilled to a depth of 400m each. The explorers were targeting possible nickel sulphide mineralisation within a north easterly trending zone of magnetic anomalies coincident with a gravity high. No significant nickel mineralisation was intersected.

UOG will be targeting gold and base metals and will review all the data and core collected from the holes which is stored in Kalgoorlie, with a view to utilising the holes for possible down hole geophysical work with the aim of detecting any deep conductors and possible mineralisation.

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Level 7, 231 Adelaide Terrace Perth WA 6000
+61 (8) 9225 4936
PO Box 3235, 256 Adelaide Terrace +61 (8) 9225 6474
Perth Western Australia 6832
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Tenements Relinquished

Nil

Tenement Applications

Tambellup E70/4173 (22/06/2011) and Tambellup East E70/4174 (24/06/2011)

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NOEL TAYLOR

Managing Director

The information within this report as it relates to geology and mineral resources was compiled by the Managing Director, Mr Noel Taylor. 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. Taylor 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 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

Name of entity

UNITED OROGEN LIMITED

	ABN 45 115 593 005 Consolidated statement of cash flows		Quarter ended (“current quarter”) 30 June 2011	Quarter ended (“current quarter”) 30 June 2011
			30 June 2011
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & 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 NetOperating Cash Flows		Current quarter $A’000		Year to date (12 months) $A’000
		NIL (57) NIL NIL (51) NIL 2 NIL 132 NIL		NIL (324) NIL NIL (390) NIL 12 NIL 132 1
		26		(569)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets (d) security deposits 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 NIL NIL NIL NIL NIL NIL NIL NIL		NIL NIL (2) (1) NIL NIL NIL NIL NIL NIL
		NIL		(3)
		26		(572)

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	26	(572)
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 –Share Issue Costs Net financing cash flows	362 NIL NIL (50) NIL (62)	364 NIL 50 (50) NIL (62)
	250	302
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	276 142	(270) 688
	418	418

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
		56
		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

• See chapter 19 for defined terms.

Appendix 5B Page 2

17/12/2010

Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

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

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	60
	NIL
	NIL
	130
Total	190

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as	Current quarter	Previous quarter
shown in the consolidated statement of cash flows) to	$A’000	$A’000
the related items in the accounts is as follows.
5.1 Cash on hand and at bank	167	35
5.2 Deposits at call	251	107
5.3 Bank overdraft	-	-
5.4 Other (provide details)	-	-
Total: cash at end of quarter(item 1.22)	418	142

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
	EL25329 EL25346 EL25894	Interests decreased upon shareholder approval at General Meeting held 27 May 2011	70% 70% 50%	0% 0% 0%
	E39/1594	Tenement Granted 03/05/2011	0%	100%

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 3

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	NIL
	NIL
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital,buy-backs	76,830,000	76,830,000
	(a) 12,057,147	(a) 12,057,147	(a) 3 cents each	(a) 3 cents each
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured,converted	NIL
	NIL
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	12,057,147 2,000,000	12,057,147 NIL	Exercise price 20 cents 20 cents	Expiry date 31 March 2016 1 May2016
	(a) 12,057,147 (b) 2,000,000	(a) 12,057,147 (b) NIL	(a) 20 cents (b) 20 cents	(a) 31 March 2016 (b) 1 May2016
	NIL
	NIL	NIL
7.11 Debentures (totals only)	NIL
7.12 Unsecured notes (totals only)	NIL

• See chapter 19 for defined terms.

Appendix 5B Page 4

17/12/2010

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 5).

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

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Sign here: ............................................................ Date: 29 July 2011 Company secretary

Print name: JACY LEU

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 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting 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.

17/12/2010 Appendix 5B Page 5