PATERSON RESOURCES LTD — Interim / Quarterly Report 2016

Jul 17, 2016

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Quarterly Activities Report Quarter ended 30[th] June 2016

Corporate Activities

During the quarter the Company conducted a share placement raising $506,000 for working capital from four professional investors. On completion of the capital raising, two new directors were appointed, Mr. Robin Armstrong and Mr. Terence Clee.

A General Meeting of shareholders was held on 16 June 2016 after being requisitioned by the largest shareholder, Lesmau Pty Ltd the investment company of director Mr. Dean Pontin who sought the removal of two directors, Messrs. Tilley and Carling. Two shareholders requested the Company to include two resolutions seeking the removal of two directors, Messrs. Pontin and Zurkic.

The General Meeting of shareholders voted on the resolutions, which resulted in the removal of directors Mr. Neb Zurkic and Mr. Dean Pontin.

The Company is reviewing its corporate strategy and assessing funding requirements.

Exploration Activities

NSW

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

Burraga

Due mainly to the distraction of the corporate activities described above and partly to cash flow constraints little activity other than normal reporting and database validation activities was carried out during the quarter.

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The Company is now renewing its efforts to complete the Environmental Impact Study.

Indonesia – Malang Project

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

No work was conducted during the quarter.

Elysium Resources Limited

ABN 45 115 593 005 Suite 1412 3 Spring Street, Sydney NSW 2000 PO Box H238, Australia Square NSW 1215 Phone: +61 2 8249 4504 Email: info@elysiumresources.com.au Web: www.elysiumresources.com.au

WA

Horseshoe South Project EL52/2569 (100%)

Horseshoe Metals Ltd (ASX:HOR) is managing this tenement under an option agreement.

Mark Ohlsson Company Secretary 15[th] July 2016

EYM tenements held as at 30[th] June 2016.

Permit**Type **	Permit Number	Location	Held Via	Beneficial%	Agreement**Type **
EL	6463	Australia, NSW	BC Exploration Pty Ltd	100.0%
EL	6874	Australia, NSW	BC Exploration Pty Ltd	100.0%
EL	7975	Australia, NSW	BC Exploration Pty Ltd	100.0%
E	52/2569	Australia, WA	Elysium ResourcesLimited	100.0%	Underoption
IUPE	421.302/2013	Indonesia,JAVA	Malang Resources PtyLtd	67.5%	Farm-in

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