PATERSON RESOURCES LTD — Interim / Quarterly Report 2012

Apr 29, 2012

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30 April 2012

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

Quarterly Report for quarter ended 31[st] March 2012

CORPORATE

A General Meeting was held on Friday 6[th] April 2012 and a resolution to acquire 100% of the shares in Orange Hills Resources Limited was approved. The acquisition of Orange Hills Resources Ltd has added the Mt Leeming (Bauxite), Cape Londonderry (Gold), Lawley (Gold) and Vansittart (Gold) projects to our assets. The acquisition of these areas of the Kimberley will provide prospective areas for gold, bauxite, base metals and diamonds. The key bauxite project at Mt Leeming, located south of Kalumburu can be developed at low cost from identified resources. The existing data consists of results from 80 air core drillholes and testwork results from bulk sampling.

The Cape Londonderry project has been explored for gold and alumina and volcanic hosted sulphides have been identified. The Lawley prospect has a diamond occurrence and anomalous gold values. Exploration on the Vansittart prospect has identified polymetallic mineralization.

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Projects acquired from Orange Hills Resources Limited
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Tenements Acquired from Orange Hills Resources Limited

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MINERAL EXPLORATION WESTERN AUSTRALIA

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• Tambellup Project: A programme of soil sampling was carried out in the northern part of tenement E70/4174 and across E70/4173. Results received extend the most northerly anomaly on E70/4174 and identifies new soil anomalies on tenement E70/4173.

• Planning was carried out for an exploration programme consisting of soil sampling and rock chip sampling on UOG’s Victoria Desert tenements.

• The application for Redmond Tenement, E70/4073 was granted.

Tambellup Project (100%)

(Tambellup E70/4173, Granted. Tambellup East E70/4174, Granted)

The two licences cover approximately 395km² and are situated 100km north of Albany and 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 mineralization namely the North West trending Darkan 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 Darkan fault.

Soil sampling was completed on anomalies in the western part of E70/4174 and on E70/4173. Sampling was carried out from within road reserves, many of which run through the tenement. Spacing was generally at 800 to 1000m. A total of 9 samples were taken on E70/4174, from an area in the North West and also an area in the east of the tenement. The north west samples were along the interpreted position of the Darkan Fault. A total of 21 samples were taken from E70/4173, along the interpreted position of structures.

Sampling was carried out with a shovel that was used to dig a 30cm deep hole, after humus and vegetation were removed from the surface. Ground conditions, regolith, soil composition and slope direction were recorded for each sample. Location of the sample was surveyed on a hand held GPS. A representative sample from the bottom of the hole was collected into a brown paper geochemical sample bag of around 400 grams. Field duplicates were inserted every 5[th] sample. Samples were submitted to the Bureau Veritas Laboratory in Perth to be prepared for analysis for gold and base metals. The samples were dried, crushed to 3mm using Jaw and Boyd crushers. Pulverization of the sample then produced 90% passing 75 µ. A subsample of 200g

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then went for the 4 acid digest analytical method (INST_AR40), followed by the ICPMS finish (AR_40_ICPMS). Detection Limit was 1 ppb Au. Laboratory QAQC consisted of standards, duplicates and blanks.

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The results of the soil sampling programme have delineated Au soil anomalies on both tenements. On E70/4174, results extend the most westerly of Falcon Mineral’s anomaly by 1-2 kilometers. This anomaly may be linked to another anomaly that is 5 kms long. The results from soil sampling done alongside the Beejenup Road (E70/4173) were very low. These results indicate that the northern anomaly may not continue further eastwards from Beejenup Road.

On E70/4173, anomalous results of up to 13 ppb have been obtained on the interpreted position of the Darkan Fault in the north of the tenement. Other soil samples in the vicinity have values of 6.4 And 3 ppb. No significant results were obtained from base metal analyses. UOG is currently assessing these results.

Redmond Project (100%)

(E70/4073; Granted April 2 2012)

This application went through the Native Title process during the quarter and 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. The project area lies within the Albany-Fraser Proterozoic Mobile Belt and is prospective for gold and base metals.

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. Aerial photography from the 1940’s, obtained from the National Archives, may assist in pin pointing the locations of shafts that existed prior to the development of farms on the tenement.

Victoria Desert Project (100%)

(Victoria Desert E39/1528, Victoria Desert North E39/1594) .

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 area is covered by undulating WNW trending sparsely vegetated static sand dunes with an average height of 10-15 metres. This continuous sand cover obscures the bedrock mineralization and the suitability of surface sampling techniques is often brought into question.

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Previous exploration on the Victoria Desert North project (E39/1594) has resulted in anomalous results in the vicinity of Lake Miningwal, in calcrete, for gold and uranium. Previous explorers have found at least six gold anomalies and two areas with uranium anomalies. There is potential for sedimentary hosted gold, base metals and uranium deposits. It has been possible to define lineaments in lake sediments, as they are of a different colour due to the influx of oxidized brines. This northern tenement requires exploration for mesothermal lode style deposits.

The Victoria Desert North project is underlain by narrow belts of north west trending greenstone of the Narnoo Greenstone Belt within granites interpreted from aeromagnetic surveys. Mafic and ultramafic lithologies are present in a structural setting of north and north west trending brittle deformed faults. The area is therefore prospective for gold, base metals and uranium. During this quarter desktop studies continued to identify a number of additional areas for infill surface sampling, but sampling was not carried out.

Horseshoe South Project (100%)

(Horseshoe South E52/2569)

UOG’s exploration of both projects has included a heliborne geophysical survey which indicated no deep conductors are present in this area negating the possibility of a deep sulphide deposit. This area is being targeted for north west striking structurally controlled gold mineralization due to the vicinity of known deposits in the area however field checking and a data review of previous soil geochemistry, mapping and drilling carried out by Dominion Mining in this area did not produce encouraging results. Additional work will be required in the north west area of the tenement to determine the prospectivity of the project area.

Gunnedo Project (100%)

(E69/2825)

The tenement is located within the Eucla Basin approximately 450km east of Kalgoorlie and covers an area of 132km². The tenement was granted this quarter. 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 mineralization within a north easterly trending zone of magnetic anomalies coincident with gravity high. No significant nickel mineralization was intersected. Other major explorers working in the vicinity of the Gunnedo project have relinquished their holdings and are now concentrating their efforts 120km further east along the major Mundrabella fault.

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Drill core from two holes drilled in 2009 by Gunson Resources Ltd was examined at the DMP Coreyard in Perth during the quarter. The examination by our geologists did not reveal lithologies that may host significant thicknesses of base metals or gold mineralization. A radiometric instrument survey of the core for radiometrics did not give good results. We are reviewing exploration data from this tenement.

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Parmesh Vakil Managing Director

The information within this report as it relates to exploration results and mineral resources was compiled by the Managing Director Mr. Parmesh Vakil. Mr.Vakil is a full-time employee of the company and is a Member of the Australasian Institute of Mining and Metallurgy. Mr. Vakil 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. Vakil consents to the inclusion in the report of the 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”) 31 March 2012	Quarter ended (“current quarter”) 31 March 2012
			31 March 2012
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 (9 months) $A’000
		- (15) - - (166) 3 - 1		- (103) - - (537) 11 - (131)
		(177)		(760)
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)		- - - - - - - - - -		- - - - - - - - - -
		-		-
		(177)		(760)

• 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)	(177)	(760)
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	- - - - - -	610 - - - - -
	-	610
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	(177) 445	(150) 418
	268	268

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
		100
		NIL
1.25	Explanation necessaryfor an understandingof the transactions
	1.23 Directors Fees paid to Directors including superannuation

Non-cash financing and investing activities

2.1 2.2	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
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas 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
	130
	NIL
	NIL
	80
Total	210

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	268	445
5.2 Deposits at call		-
5.3 Bank overdraft		-
5.4 Other (provide details)		-
Total: cash at end of quarter(item 1.22)	268	445

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
	E52/2016	Expired 18/02/2012	100%	0%
	N/A	N/A	N/A	N/A

• 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	NIL
	NIL
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital,buy-backs	97,159,279	97,159,279
	NIL
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	32,386,426 2,000,000	32,386,426 NIL	Exercise price 20 cents 20 cents	Expiry date 31 March 2016 1 May2016
	NIL
	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

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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 5).

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

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Sign here: ........................................................... Date: 30 April 2012 Company secretary

Print name: SHOSHANNA ZOHAR

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