PATERSON RESOURCES LTD — Investor Presentation 2014

May 13, 2014

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**Company

Update May
2014**

Disclaimer

**Cau9on

on
Forward-­‐Looking
Statements**

This
presenta2on
contains
"forward-­‐looking
informa2on"
which
may
include,
but
is
not
limited
to,
statements
with
respect
to
the
future
financial
or
opera2ng performances
of
Elysium
Resources
Limited
(EYM),
its
subsidiaries
and
their
respec2ve
projects,
the
future
price
of
minerals,
the
es2ma2on
of
ore
reserves
and
mineral resources,
the
realisa2on
of
mineral
reserve
es2mates,
the
2ming
and
amount
of
es2mated
future
produc2on,
costs
of
produc2on,
capital,
opera2ng
and
explora2on
10% expenditures,
costs
and
2ming
of
the
development
of
new
deposits,
costs
and
2ming
of
future
explora2on,
requirements
for
addi2onal
capital,
government
regula2on 20% of
mining
opera2ons,
environmental
risks,
reclama2on
and
rehabilita2on
expenses,
2tle
disputes
or
claims,
limita2ons
of
insurance
coverage
and
regulatory
maNers. OQen,
but
not
always,
forward-­‐looking
informa2on
statements
can
be
iden2fied
by
the
use
of
words
such
as
"plans",
"expects",
"is
expected",
"budget'',
''scheduled", "es2mates",
"forecasts'',
''intends",
''an2cipates'',
or
"believes",
or
varia2ons
(including
nega2ve
varia2ons)
of
such
words
and
phrases,
or
state
that
certain
ac2ons,
80% events
or
results
"may'',
"could",
"would",
"might",
or
"will"
be
taken,
occur
or
be
achieved. 30%

Forward-­‐looking
statements
involve
both
known
and
unknown
risks,
uncertain2es
and
other
factors
which
may
cause
the
actual
results,
performance
or
achievements of
EYM
and/or
its
subsidiaries
to
be
materially
different
from
any
future
results,
performance
or
achievements
expressed
or
implied
by
the
forward-­‐looking
statements. Although
EYM
has
aNempted
to
iden2fy
important
factors
that
could
cause
actual
ac2ons,
events
or
results
to
differ
materially
from
those
described
in
forward-­‐looking statements,
there
may
be
other
factors
that
cause
actual
ac2ons,
events
or
results
to
differ
from
those
an2cipated,
es2mated
or
intended.
There
can
be
no
assurance that
forward-­‐looking
statements
will
prove
to
be
accurate,
as
actual
results
and
future
events
could
differ
materially
from
those
an2cipated
in
such
statements. Accordingly,
readers
should
not
place
undue
reliance
on
forward-­‐looking
statements.

**JORC

Compliance
Statement**

The
informa2on
in
this
announcement
that
relates
to
Explora2on
Targets,
Explora2on
Results,
Mineral
Resources
or
Ore
reserves
is
based
on
informa2on
reviewed
or compiled
by
Neb
Zurkic
BAppSc(Geol),
MSc(Min
&
Energy
Economics),
a
Competent
Person
who
is
a
Member
of
the
Australasian
Ins2tute
of
Mining
and
Metallurgy
and a
Registered
Professional
Geoscien2st
with
the
Australian
Ins2tute
of
Geoscien2sts.
Mr.
Zurkic
is
employed
by
Zurkic
Mining
Consultants
Pty
Ltd.
Mr.
Zurkic
has sufficient
experience
that
is
relevant
to
the
styles
of
mineralisa2on
and
types
of
deposit
under
considera2on
and
to
the
ac2vity
being
undertaken
to
qualify
as
a Competent
Person
as
defined
in
the
2012
Edi2on
of
the
“Australasian
Code
for
Repor2ng
of
Mineral
Resources
and
Ore
Reserves”.
Mr.
Zurkic
consents
to
the
inclusion in
this
announcement
of
the
maNers
based
on
his
informa2on
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
Limited
and
provides
consul2ng
services
as
required
to
both
companies.

**Explora9on

Targets**

References
to
Explora2on
Targets
or
Targets
in
this
document
are
in
accordance
with
guidelines
of
the
JORC
Code
(2012).
As
such
it
is
important
to
note
that
the reported
Targets
are
based
on
exis2ng
data,
historical
produc2on
and
geology
models.
Any
references
to
grade
and
quan2ty
are
conceptual
in
nature.
Explora2on carried
out
to
date
is
insufficient
to
be
able
to
es2mate
and
report
mineral
resources
in
accordance
with
the
JORC
Code
(2012).
It
is
uncertain
if
further
explora2on
will result
in
the
determina2on
of
a
Mineral
Resource.

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May
2014

2

**Company

Informa9on**

ASX code ASX:EYM		13% 57% 30% Shareholder Composi9on Board Cornerstone Investors Retail Investors
Share Price (90day VWAP) A$0.01
Last Sale (13 May 2014) A$0.01
Market Cap (undiluted) $8.15M
No. of Shares on Issue 815,680,730
Debt Nil
Cash @ bank (31 Mar 14) $872,000

**Board

of
Directors
&
Senior
Management**

Board of Directors & Senior Management	Board of Directors & Senior Management	Board of Directors & Senior Management
Michael D Tilley BA FCA Non Execu2ve Chairman 35 years experience in Australian investment banking, stockbroking & equity capital markets. Chartered Accountant & experienced company director.
	Michael D Tilley BA FCA Non Execu2ve Chairman 35 years experience in Australian investment banking, stockbroking & equity capital markets. Chartered Accountant & experienced company director.
	Maxim J Carling BCom BA Execu2ve Director 35 years experience in interna2onal investment banking, corporate management & equity capital markets. Seed capitalist to junior explora2on and mining companies and experienced company director.
	Nebojsa Zurkic Technical Director 25 years experience in the mining industry, Newmont over 12 years and junior explora2on companies. BSc Geology, M Mineral& Energy Economics, Member of Australian Ins2tute of Mining & Metallurgy, Member Australian Ins2tute of Geophysicists. Competent person under JORC code. Exper2se in deposit modelling, resources es2ma2on and ore control in gold, silver & copper.
Mark T Ohlsson Non Execu2ve Director & Company Secretary 30 years in business management & venture capital industry assessing business proposals. Fellow of CPA & registered Tax Agent and company secretary of several ASX companies.	Mark T Ohlsson Non Execu2ve Director & Company Secretary 30 years in business management & venture capital industry assessing business proposals. Fellow of CPA & registered Tax Agent and company secretary of several ASX companies.

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May
2014

3

**Project

Loca9ons**

A
Pipeline
of
Copper,
Gold,
Silver,
Lead,
Zinc
projects
...
at
various
stages
of
explora2on
/
development

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10%
20%
80%
30%
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May
2014

4

**Projects

Overview**

BURRAGA =
flagship
project
=
high
grade
near
surface
&
concealed
large
scale
targets

• ~ Independent,
  base
  and
  precious
  metal
  projects

• ~ Pipeline
  of
  projects
  from
  grass-­‐roots
  to
  resource
  development
  to
  produc2on
  imminent = Lloyds
  copper
  produc2on
  within
  18
  months;
  permitng
  commenced

• = Resource
  development
  drilling
  at
  Lloyds
  planned
  for
  2H,
  2014

• = Resource
  es2mate
  update
  due
  2H,
  2014

• = Targets
  away
  from
  Lloyds
  progressing
  to
  drill-­‐ready
  status

• = Induced
  Polariza2on
  (IP)
  within
  Lloyds
  Mine
  area
  nearing
  comple2on

• = Airborne
  magne2cs
  survey
  over
  en2re
  tenement
  package
  nearing
  comple2on

• = Copper
  and
  gold
  target
  drilling
  an2cipated
  for
  2H,
  2014

MALANG

• ~ Large
  scale
  porphyry
  targets
  in elephant
  country

• = Reconnaissance
  mapping
  and
  sampling
  ongoing

• = Airborne
  magne2cs
  planned
  for
  2H,
  2014

• = Drill-­‐ready
  targets
  an2cipated
  for
  2015

HORSESHOE SOUTH

• ~ High
  grade
  copper
  target,
  drill-­‐ready

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May
2014

5

**Strategy

–
Point
of
Differen9a9on**

FOCUS ON COPPER PRODUCTION AT BURRAGA

~ Posi2ons
EYM
to
be
self
funded
from
Q3
2015

~ Based
on
NPV[10%
] $31.8M
of
Lloyds
tailings
project,
produc2on
value
is
3
–
4 2mes
present
Mcap

~ Provides
approx.
$1M
/
month
free
cash-­‐flow
for
explora2on

CURRENT
BUDGET
ALLOWS
FOR
PIPELINE
OF
PROJECTS
TO
BE
DEVELOPED
TO ENSURE
AGGRESSIVE
DRILLING
CAMPAIGNS
ARE
READY
TO
BE
DEPLOYED
AS CASH-­‐FLOW
COMES
ON
STREAM.

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May
2014

6

**Burraga

Projects
Overview**

Lloyds Produc2on

• ~ 300tpa
  flota2on
  circuit

• ~ 2,250tpa
  copper
  to
  be
  produced

• ~ 1[st] tailings
  dump

• ~ 2[nd] slag
  dumps

• ~ 3[rd] open
  pit

• ~ Metallurgy
  favorable

• ~ Mine
  planning
  commenced

• ~ OPEX
  ~$2,500/t

• ~ OPEX

• CAPEX
  ~$3,000/t

• ~ Upfront
  CAPEX
  ~$10.8M

• ~ EIS
  commenced

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Copper Explora2on

• ~ IP
  Survey
  nearing
  comple2on

• ~ Airborne
  magne2cs
  nearing
  comple2on

• ~ 5
  x
  2km
  copper
  soil
  anomaly

• ~ Structural
  mapping
  completed

• ~ Lloyds
  poten2al
  5-­‐15Mt
  @
  1-­‐2%
  Cu

• ~ How
  many
  more
  Lloyds
  are
  there?

• ~ Concealed
  porphyry?

• ~ Drilling
  planned
  for
  2H
  2014

Gold Explora2on

• ~ Lucky
  Draw
  high
  grade
  skarn;
  Hackneys
  Creek
  resource
  unmined

• ~ Tenements
  cover
  90%
  of
  Burraga
  Granite

• ~ Detailed
  magne2cs
  con2nuing;
  structural
  mapping
  completed

• ~ Isabella
  Prospect
  exci2ng
  drill
  intercepts
  exist

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May
2014

7

**Burraga

(NSW)
-­‐
Development**

~ EIS

consultant
engaged
end
of
March
2014

• = Comple2on
  an2cipated
  in
  6
  -­‐12
  months

• ~ Gran2ng
  of
  ML
  and
  permits
  an2cipated
  in
  12-­‐18mths

• ~ Grid
  sampling
  &
  surveying
  of
  slag
  heaps
  completed

• = Expected
  to
  upgrade
  resource
  es2mate
  to
  Indicated

• ~ Basement
  defini2on
  IP
  surveying
  of
  tailings
  dump

• = Expected
  to
  upgrade
  resource
  es2mate

• = Expected
  to
  increase
  current
  tonnage
  es2mate

• ~ 1,500m
  of
  RC
  to
  be
  drilled
  in
  Aug
  /
  Sep

• = Expected
  to
  upgrade
  resource
  es2mate

• = Consolidate
  4
  –
  5
  year
  opera2on

• ~ Best
  Intercepts
  to
  date
  (halo
  mineraliza2on):

• = ZRC-­‐001,
  37m
  @
  1.2%
  Cu,
  from
  11m {incl.
  18m
  stope
  /
  void}

• = ZRC-­‐008,
  8m
  @
  2.9%
  Cu,
  from
  12m {incl.
  2m
  stope
  /
  void}

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May
2014

8

**Burraga

(NSW)
–
Copper
Explora9on**

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NEAR MINE

{IP
at
100m
depth
with
historic
mine
access
and
mined
ore
–
image
below}

~ IP
targets
near
Lloyds
....
is
there
a
2nd,
3rd
...
Lloyds?

~ ZDD-­‐018
shows
Lloyds
shoot
exits
BEYOND
workings
(NE
in
image
below)

~ Down-­‐hole
and
surface
EM
planned

~ Scout
drilling
of
prospec2ve
targets
in
2014

~ Development
drilling
of
Lloyds
exten2on
in
2015

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FURTHER AFIELD

{IP
at
100m
depth;
currently
surveying
N
of
Lloyds
–
image
above}

~ Strong
chargeability
S
&
N
of
Lloyds
towards
Howards

~ Strong
surface
soil
assay
results
S
&
N
of
Lloyds

~ NE
chargeability
high
towards
Spragues
Mine
–
limited
drilling
to
date

~ Scout
drilling
of
prospec2ve
targets
in
2014

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May
2014

9

**Burraga

(NSW)
–
Gold
Explora9on**

LUCKY DRAW
– produc2on

1.48Mt
@
3.5
g/t
Au

• ~ Renison
  mined
  during
  1988-­‐1991

• LUCKY DRAW resource – remaining

• 0.47Mt
  @
  2.1
  g/t
  Au

• ~ equates
  to
  31,600
  in-­‐situ
  ounces
  –
  JORC
  compliant

HACKNEYS CREEK resource – 2.21Mt
@
1.4
g/t
Au

• ~ equates
  to
  101,800
  in-­‐situ
  ounces
  –
  JORC
  compliant

ISABELLA
– best drilling intercept IRC020:
12m
@
3.2g/t
Au

~ incl.
1m
@
11.5g/t
Au
and
1m
@
7.3g/t
Au

2014 / 15 programme

• ~ Interpreta2on
  of
  airborne
  magne2cs

• ~ Field
  altera2on
  mapping
  of
  propec2ve
  areas

• ~ Scout
  drilling
  of
  new
  targets

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Burraga
Granite
and
nearby
prospec9vely
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May
2014

10

**South

Malang
(Indonesia)**

Mapping

completed:

~

• = District
  scale
  over
  en2re
  tenement

• = Detailed
  over
  most
  advanced
  prospect

~ Sampling

to
date:

• = 143
  rock-­‐chip

• = 38
  channel

• = 164
  soil
  /
  clay

~ Socializa2on

programs
underway:

• = Fresh
  water
  to
  local
  villages

• = Electricity
  to
  local
  villages

Planned

for
2014
/
15:

~

• = Complete
  sampling,
  spectral
  analysis
  and
  mapping

• = Airborne
  magne2cs
  survey

• = Drill
  target
  development
  for
  2015
  drilling

TARGETING

LARGE
COPPER
/
GOLD
PORPHYRIES

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Vuggy
Silica
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----- Start of picture text -----

Silica
ledge
at
main
prospect
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May
2014

11

**Horseshoe

South
(WA)**

~ Review
of
open
file
data
completed = geophysics = reports = Drilling
and
soil
results ~ Magne2c
high,
west
part
of
tenement: = Approx.
100m
below
surface = MRB
prefixed
holes
only
drill
to
~75m ~ Exis2ng
intercept
immediately
west: = SWRC5:
9m
@
10.3
g/t
Au,
from
19m ~ Planned
for
2014
/
15: = Reconnaissance
site
visit
and
logis2cs
planning = Drill
3
x
250m
holes
into
two
western
targets LOCATION
TO
HORSESHOE
LIGHTS
MINE (3-­‐4Km
SOUTH)

PROSPECTIVE
FOR
HIGH E52/2569
(magenta)
with
RTP
MAG
and
exis2ng
drilling GRADE
COPPER
/
GOLD

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May
2014

12

**Reasons

to
invest
in
EYM**

ü 100%
ownership
of
Australian
projects
–
no
royal2es

ü NPV
of
Lloyds
tailings
project
is
presently
3.9c/share
(31.8M
÷
815M) ü Cu
produc2on
(11,000T)
yields

$1M
per
month
for
50
months
+ ü EYM
to
produc2on
of
Cu
concentrate
in
1½
years ü Experienced
&
focused
explora2on
team
–
$’s
spent
in
ground ü FS
completed
&
ML
granted
1[st] half
2015 ü Explora2on
upside
from
aggressive
&
focused
drilling
programme

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May
2014

13