PATERSON RESOURCES LTD — Interim / Quarterly Report 2014

Apr 28, 2014

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Quarterly Activities Report Quarter ended 31[st] March 2014

Corporate

In February the Company announced a placement to institutional and sophisticated investors eligible under s.708 of the Corporations Act (2001) of 360,000,000 new ordinary shares at 1 cent per share with 360,000,000 attaching options to raise $3,600,000. The options will have an exercise price of 1.4 cents each, expire 30 November 2014 and comply with ASX Listing Rules.

The funds raised will be used to fund the Company’s exploration, EIS, ML approval expenditure and working capital requirements.

The first stage of the Placement comprising the issue of 90,000,000 new ordinary shares at 1 cent per share with 90,000,000 attaching options to raise $900,000 was completed on 31 March 2014 and was made utilizing the Company’s existing capacity under ASX Listing Rules 7.1 (54,426,054 shares and 54,426,054 options) and 7.1A (35,573,946 shares and 35,573,946 options).

The subsequent stages of the Placement are subject to shareholder approval and the Company has given Notice of a General Meeting of Shareholders to be held on 28 May 2014 to renew its capacity under Listing Rule 7.1 and to put resolutions to the shareholders with respect to the balance of the Placement.

Exploration Activities

NSW

EL6463 (100%) EL6874 (100%) EL7975 (100%)

During the late 1800's and early 1900's, copper ore from and near the Lloyds Mine were smelted producing two slag dumps which remain at the site today. The smaller and older slag dump was formed prior to Lloyds taking ownership of the mine in 1900 and is situated at the north end of the project site. The second, larger slag dump, was from the Lloyds period and is situated just to the north of the tailings dump. The material contains visible copper oxide minerals. The metallurgical and limited sampling conducted in 2011 is reported on the Company's website. During the quarter, 95 samples were taken over the two slag dumps along with a GPS survey. With the gridded sampling of the dumps and detailed topographical survey, a JORC compliant estimate of the total slag dump resource is anticipated.

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Environmental monitoring continued during the month. A full 18 months of data from the weather station installed by the Company, along with the strategic sampling of groundwater, is now available. The Company set up the baseline data collection well in advance and in anticipation of carrying out an environmental impact statement during 2014.

Elysium Resources Limited

ABN 45 115 593 005 Suite 705, 3 Spring Street, Sydney NSW 2000 PO Box H238, Australia Square NSW 1215 Phone: +61 2 9247 7744 Fax: +61 2 9247 7244 Email: info@elysiumresources.com.au Web: www.elysiumresources.com.au

Indonesia – Malang Project

IUP(Industrial) number: 180/005/IUPE/421.302/2013 (earn to 67.5%)

District mapping over the tenement area covered 7,982 ha (~80% of total tenement area), with 1,500 ha of detailed mapping being completed during the quarter. During the mapping, 354 samples were collected, consisting of 143 rock chip samples, 38 meters of channel samples and 164 samples from clay / soil. Interpretation / compilation of the mapping is anticipated to take place during the next quarter. The samples have been submitted to the assay laboratory and should also be available during the next quarter.

Along with meetings with the regional Bupati, two community meetings were held at the towns of Sukodono and Dampit where district and local government representatives were present. Continuing consultation with the communities is crucial in maintaining the support the Company receives for its exploration activities.

WA

Horseshoe South Project EL52/2569 (100%)

No activity

Redmond Project E70/4073 (100%)

No activity

Max Carling Director 29 April 2014

EYM tenements held as at March 31st, 2014.

PermitType	Permit Number	Location	Held Via	Beneficial %	AgreementType
EL	6463	Australia,NSW	Burraga ExplorationLtd	100.0%
EL	6874	Australia,NSW	Burraga ExplorationLtd	100.0%
EL	7975	Australia,NSW	Burraga ExplorationLtd	100.0%
E	52/2569	Australia,WA	Elysium ResourcesLtd	100.0%
E	70/4073	Australia,WA	Elysium ResourcesLtd	100.0%
IUPE	421.302/2013	Indonesia,JAVA	Malang ResourcesPtyLtd	67.5%	Farm-in

The information in this announcement that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore reserves is based on information reviewed or compiled by Neb Zurkic BAppSc(Geol), MSc(Min & Energy Economics), a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy and a Registered Professional Geoscientist with the Australian Institute of Geoscientists. Mr. Zurkic is employed by Zurkic Mining Consultants Pty Ltd. Mr. Zurkic has sufficient experience that is relevant to the styles of mineralisation and types of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves”. Mr. Zurkic consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. Zurkic Mining Consultants Pty Ltd, which is owned and controlled by Mr. Zurkic, owns shares in Elysium Resources.

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