PATERSON RESOURCES LTD — Share Issue/Capital Change 2006

Oct 15, 2006

URANIUM OIL AND GAS LIMITED (ACN 115 593 005)

Full Terms And Conditions Of All Options On Issue

The terms and conditions of the Options are:

• (a) each Option entitles the holder to subscribe for ONE (1) ordinary Share in the Company upon payment of TWENTY (20) cents per Option;
• (b) The Options will lapse at 5.00 pm WST on 4 August 2010;
• (c) the Options may be exercised at any time before the expiry date by delivery to the registered office of the Company of notice in writing stating the intention of the Option holder to exercise all or a specified number of Options held by them accompanied by the Option certificate and a cheque made payable to the Company for the payment of the sum of TWENTY (20) cents per Option exercised;
• (d) the Options are transferable;
• (e) application will be made to the ASX for Official Quotation of the Options and application will be made for Official Quotation of the Shares issued upon exercise of the Options:
• (f) there are no participating rights or entitlements inherent in the Options and holders of the Options will not be entitled to participate in new issues of capital which may be offered to Shareholders during the currency of the Options but Option holders will have the right to exercise their Options prior to the date of determining entitlements to any capital issues to the then existing Shareholders of the Company made during the currency of the Options, and will be granted a period of at least SEVEN (7) business days before the books closing date to exercise the Options;
• (g) the Shares issued on the exercise of the Options will, from the date of allotment, rank equally with the existing ordinary Shares of the Company in all respects:
• (h) in the event of any reorganisation (including reconstructions, consolidations, subdivision or reduction of capital) of the issued capital of the Company, the Options will be reorganised as required by the Listing Rules but in all other respects the terms of exercise will remain unchanged; and
• (i) the Options will not give any right to participate in dividends until Shares are allotted pursuant to the exercise of the relevant Options.

The 19,500,000 Options issued to date by the Company together with the options to be issued to the Sponsoring Broker have the same terms and conditions as the above and will be subject to escrow restrictions as required by the ASX.