PATERSON RESOURCES LTD — Interim / Quarterly Report 2010

Jan 30, 2011

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PO Box 3235, 256 Adelaide Terrace
Perth Western Australia 6832
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31 January 2011

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

Quarterly Report as of 31[st] December 2010

Exploration Highlights

• Horseshoe Project EM Survey completed, no deep conductors detected for massive sulphides, UOG now concentrating on structural gold targets.

• Victoria Desert Project: - Additional Exploration Licence was applied for 12km north west of the Mulga Rock Uranium deposit. UOG will target gold, base metals and uranium.

Mineral Exploration

Western Australia

Horseshoe Project

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

Helicopter borne XTEM Electromagnetic Airborne Geophysical survey was completed by GPX Surveys and our consultant geophysical group Newexco Services Pty Ltd have analysed the data and determined no deep conductors were detected and therefore no massive sulphides would be present. The survey covered an area of 15 km² at the Horseshoe West tenement in an area of anomalous soil samples produced from the earlier work and a smaller area 3km² on the Horseshoe South tenement. Regional geophysical and the tenement soil geochemical data are being examined within a structural framework for possible associated gold targets.

Victoria Desert Project

(Victoria Desert E39/1528, Victoria Desert North E39/1594 Application & 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. The accompanying tenement plan shows the position of each tenement in relation to interpreted palaeochannels and the location of the Mulga Rock uranium deposits.

E39/1528 contains a north west trending magnetic high interpreted to be part of a remnant greenstone belt that would be prospective for gold. The tenement consists of WNW trending undulating sparsely vegetated static sand dunes several hundred metres apart and up to 10m in height. 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 with one sample per hole and

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PO Box 3235, 256 Adelaide Terrace
Perth Western Australia 6832
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70 aircore holes drilled on an 800m by 100m grid. UOG carried out reconnaissance of the area which included 11 shallow hand auger profiles averaging 2m in the vicinity of the previous explorer’s anomalous gold and base metal results. These were assayed at 15cm intervals to determine the near surface geochemical profile. Seven profiles indicated anomalous gold values up to 12 ppb Au against a background of <1ppb within the top 30cm of the surface. Follow up closer spaced infill surface sampling with the aim of identifying drill targets in the vicinity of the previous Gold and base metals anomalies on the current 800m grid spacing can therefore be restricted to the top 30cm. This will be cost effective and should produce a meaningful result.

An additional exploration licence E39/1620 was applied for which is contiguous and to the south of UOG’s recent application E39/1594 and 12km north west of the Mulga Rock Uranium deposit. Most of the area is underlain by narrow belts of north west trending greenstone within granites interpreted from aeromagnetic surveys. The area is prospective for gold, base metals and uranium, is covered by Tertiary sediments and a narrow salt lake crosses the middle part of the northern tenement. Previous exploration included 6 aircore holes and 85 short vacuum holes with one sample per hole and 68 soil samples. It is noted that this exploration was limited and concentrated in the extreme northern part of the tenement north of the salt lake and is interpreted to be underlain by granites.

Exploration will concentrate on locating palaeochannels which may host uranium mineralisation by analysing available data and using geophysical methods which has proved successful in the past. The gold targeting will concentrate on locating north west trending structures.

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PO Box 3235, 256 Adelaide Terrace
Perth Western Australia 6832
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Gunnado Project

(E69/2825 Application)

The Project area is located within the Eucla Basin approximately 450km east of Kalgoorlie and covers an area of 132km². Previous exploration is limited and 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.

Once granted 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.

Teck Cominco holds ground in the vicinity of UOG’s and is targeting IOCG (iron-oxide-copper-gold) mineralisation. An initiative by the state government helps to co-fund exploration drilling and is part of the Exploration Incentive Scheme (EIS) 50% funded from Royalties for Regions. As part of this initiative 4 holes will be drilled in the area during the coming year, two by Teck Australia, one by Richmond Mining Ltd and one by General Mining Corporation.

Northern Territory

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

These tenements are subject to a purchase agreement by Iron Mountain for the portion of the Northern Territory exploration licences from UOG that they do not own. The consideration was 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. The transaction is subject to shareholder approval. Iron Mountain Mining Limited held a General Meeting in December where the transaction was approved by its shareholders. United Orogen Limited is expected to hold a General Meeting within the coming months.

No significant assay results were received from the previously collected 12 stream sediment samples taken from areas of interest within Florence Creek, determined from the airborne magnetic data and no gabbroic rocks were identified. The aim was to determine the presence of any gabbroic intrusions similar to those found by Mithril Resources 30km to the south east of the tenement where they have discovered through mapping and surface sampling significant copper and cobalt mineralisation.

The north east area of the Florence Creek tenement still remains to be explored.

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PO Box 3235, 256 Adelaide Terrace
Perth Western Australia 6832
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Corporate

During the quarter Mr. William Bannister retired as Managing Director of United Orogen Limited and Mr. Noel Taylor was appointed.

Tenements Relinquished

Nil

Tenement Applications

Victoria Desert E39/1620 (3/09/2010)

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NOEL TAYLOR 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 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 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity

UNITED OROGEN LIMITED

ABN 45 115 593 005

Quarter ended (“current quarter”) 31 December 2010

Consolidated statement of cash flows

Consolidated statement of cash flows
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 Net Operating Cash Flows	Current quarter $A’000	Year to date (6 months) $A’000
	NIL (66) NIL NIL (145) NIL 3 NIL NIL NIL	NIL (212) NIL NIL (261) NIL 9 NIL NIL 1
	(208)	(463)
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 (2) NIL NIL NIL NIL NIL NIL NIL	NIL NIL (2) (1) NIL NIL NIL NIL NIL NIL
	(2)	(3)
	(210)	(466)

• See chapter 19 for defined terms.

Appendix 5B Page 1

30/9/2001

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(210)	(466)
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	2 NIL NIL NIL NIL NIL
	NIL	2
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	(210) 434	(464) 688
	224	224

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
		130
		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.

Appendix 5B Page 2

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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 4.4 Administration	$A’000
	70
	NIL
	NIL
	80
Total	150

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.

• 5.1 Cash on hand and at bank

• 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details) Total: cash at end of quarter (item 1.22)

	Current quarter	Previous quarter
	$A’000	$A’000
	78	61
	146	373
	-	-
	-	-
	224	434

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
	N/A	N/A	N/A	N/A
	N/A	N/A	N/A	N/A

• See chapter 19 for defined terms.

Appendix 5B Page 3

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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	NIL	NIL
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	64,772,853	64,772,853
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	NIL	NIL
7.11 Debentures (totals only)	NIL	NIL
7.12 Unsecured notes(totals only)	NIL	NIL

• See chapter 19 for defined terms.

Appendix 5B Page 4

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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:

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Date: 31 January 2011

(Company secretary)

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.

Appendix 5B Page 5

30/9/2001