PATERSON RESOURCES LTD — Regulatory Filings 2015

Sep 13, 2015

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14 September 2015

Companies Announcement Office Via Electronic Lodgment

APPOINTMENT OF PROCESS DESIGN GROUP

Elysium Resources Limited (“Elysium” or “Company”) is pleased to announce that it has engaged PIE (Plant and Infrastructure Engineering Pty Ltd) to assist the Company with the process design.

The process design is the critical first step in refining the capital cost requirements for the Burraga Copper Project. The services to be provided by PIE will include:

• Review of relevant metallurgical test-work results and their interpretation into present process design criteria. Identify test-work results and deficiencies that enable low risk equipment selections.

• Engage a copper flotation specialist, to review flotation test-work to identify potential flaws and opportunities when upscaling to detailed design. Review economic modelling process plant performance assumptions and assist with development of high confidence performance data.

• Development of process design deliverables such as Process Design Criteria, Mass Balances, Process Flow Diagrams, Process Control Philosophy and Piping and Instrumentation Diagrams.

• Carryout major equipment sizing and assist with equipment selections.

• Assist with development of equipment datasheets and equipment specifications.

• Review vendor data to ensure specifications are adhered to and proposed equipment is suitable.

• Assist with development of process plant layout.

• Review suitability of operating cost estimate.

• Incorporate third party contractor data into the process design as well as assist in providing process data to third party contractors.

• Develop an upgrade strategy for future implementation into the process plant design.

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• Assist with HAZOP investigation of the process design.

• Assist the E and I contractor during development of instrument datasheets as well as review of instrument vendor proposals.

The metallurgy test-work is in its final stages with filtration and rheology tests on the bulk sample remaining prior to final results being released.

Elysium Resources Limited

ABN 45 115 593 005 Suite 706, 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

About the Burraga Copper Project

As announced on 9[th] April 2014, the Company engaged Endure Environmental to carry out an Environmental Impact Study ("EIS"), pivotal to gaining the necessary permits to commence production at the historical Lloyds Mine near the township of Burraga in NSW. The decision to progress towards production is based on the preliminary findings of the 2011 prefeasibility study ("PFS") which is available for reading on the Company's website. The findings suggested an economically viable operation was plausible within a relatively short period and at a relatively low upfront capital investment. The operation is anticipated to yield a cash-flow to allow Elysium to explore the attractive upside potential across its entire tenement holding (see Company website and previous announcements for detail).

The Lloyds Copper Mine produced 19,443 tons of Copper from 469,626 tons of ore implying a recovered grade of 4.14% Cu, between 1880 and 1920, then intermittently up to 1961. As a result of mining at the Lloyds Mine, and to a lesser extent at nearby mines, there now exists a tailings dump and two slag dumps of up to 350 Kt. The tailings resource contains a drill proven 234Kt @ 1.2% Cu (see Company website for detail). Metallurgical testing of the tailings confirms a greater than 70% recovery rate from re-processing of the tailings and greater than 50% from re-processing the slag can be expected. The PFS assesses the commercial potential of reprocessing the tailings, slag and hard rock resources from the surface of Lloyds Mine, and concludes that such a project, subject to further testing and financial investigation, is financially and commercially viable with start-up capital expenditure estimated at $10.8 million, generating a net profit of $75 million over 4.4 years of operation.

Elysium Resources Limited Elysium Resources Limited Mark Ohlsson Dean Pontin Company Secretary Project Development Manager 0400 801 814 0499 371 337 Email: markohlsson@elysiumresources.com.au Email: deanpontin@elysiumresources.com.au

Yours sincerely

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Mark Ohlsson Company Secretary

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.

The information in this announcement that relates to Ore Reserves or Project Development is based on information reviewed or compiled by Dean Pontin BAppSc (Surv), Grad Dip (Mining), a Competent Person, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr. Pontin is employed by Lesmau Pty Ltd. Mr. Pontin 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. Pontin consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. Lesmau Pty Ltd, which is owned and controlled by Mr. Pontin, owns shares in Elysium Resources.

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