Paterson Resources Limited announced mapping and soil sampling are due to commence across several high-priority targets at its wholly owned Burraga Project in New South Wales. Access agreements have been reached with the relevant landholders and the field crew will be mobilised to site next week to commence ground activities, including the soil sampling survey. Soil surveys will be focused initially on the Lloyds tenure (EL6463), targeting an area north of the historical Lloyd's Copper mine which has historically produced 19,443 tonnes of copper (470,000 tonnes of ore at 3.6% Cu) from an array of flat-lying quartz­ carbonate­ sulphide veins located within a significant, altered shear zone.

The program will cover three areas highlighted from an extensive data review of available open file reports considered highly prospective for copper mineralisation. Anomalous gold has also been noted in the area. Samples will be collected on a 25m by 100m spacing grid and submitted to the laboratory for analysis.

The program is designed to aid in the assessment of Paterson's greater Burraga Project which comprises five exploration licenses (EL6463 - Lloyds, EL6874 ­ Fernleigh, EL ­ 7975 ­ Isabella, EL8826 ­ Gibney's Creek and EL9135 ­ Burraga North) which cover an area over 230 square kilometers in the highly prospective Lachlan Fold Belt. Burraga Project: Various workers previously proposed an exhalative or volcanic hosted massive sulphide (VHMS) model for the Burraga copper-lead-zinc-gold mineralisation. This interpretation is based on the largely stratiform nature of the mineralisation housed in a sequence of volcanoclastic rocks.

Recent studies on the mineralisation and alteration in and near the historic Lloyds Copper Mine have suggested that the Burraga deposits may represent structurally controlled, deep, low sulphidation epithermal copper-gold grading to a carbonate-base metals mineralised system which in turn may be part of a larger porphyry system. The evidence for a porphyry system at Burraga includes the presence of deep, low sulphidation epithermal mineralisation, monzonite dykes, skarnoid rocks, and biotite (potassic) alteration. The Company's technical team have identified three highly prospective targets on EL6463 that will be tested with a soil geochemical survey.

Callinore Prospect: The Callinore Prospect is a newly defined target on EL6463, located just over six kilometres from the historic Lloyds Copper Mine. The Prospect has been highlighted from anomalous copper-lead-zinc- in-soils undertaken by previous explorer, Platina Developments in the late 1960's which was coincident with a strong induced polarisation anomaly outlined from ground geophysical surveys completed at the time. The anomaly identified by historical soil sampling has been defined over an area roughly 1.6km long and 350m wide and remains open along strike.

Given the age of the sampling and the lack of detail regarding sampling methods, the Company will undertake multiple lines of soil sampling to validate the anomaly, along with extending the anomaly along strike to the southeast. Three historical diamond drill holes were completed by Platina1 designed to test the bedrock source of mineralisation, with grades peaking up to 1.52% copper, 0.49% zinc and 0.24% lead. The new prospect is located along the regionally significant Callinore Fault.

This significant structural corridor extends further south, hosting the Lloyds copper mine, and may present a possible pathway for metalliferous-bearing fluids from a deep seated porphyry source. Callinore East Prospect: The Callinore East Prospect is another newly defined target on EL6463. It was highlighted by an aeromagnetic survey undertaken by previous explorer Elysium Resources.

Thomson Aviation flew a magnetic and radiometric survey (MAG) over three contiguous tenements at Burraga including EL6463, EL6874 and EL7975. The survey was flown on a 60m line spacing at a nominal terrain clearance of 60m and was intended to provide better resolution data than the government and open file data available. At the time, a preliminary interpretation of the data by geophysical consultant Kim Cook of GeoMagik identified a cluster of high-priority targets which included the Callinore East potassium anomaly.

The potassium anomaly is also located in the Callinore structural corridor and presents as a potential porphyritic intrusion. The potassium anomaly and the interpreted cross-cutting structures could provide potential mineralised fluid traps for the suspected porphyry intrusion. No historical exploration has been conducted over this area.

Hackney's Creek West Prospect: The Hackney's Creek West Prospect is the Company's third new target identified on the EL6463 tenure. The area has been highlighted as a possible structural target for gold and copper minerealisation, forming along strike of the historic Barrets Creek copper workings. No historical exploration has been conducted over this area.

Future Work: Moving forward the Company will: Digitally capture mapping to incorporate into the 3D geological model · Interpret soil geochemical survey in light of historical work and geological mapping · Plan further infill geochemical sampling and follow up ground geophysical surveys.