IODM LIMITED — Regulatory Filings 2009

Suite 202, 122 Walker St, North Sydney NSW 2060 Australia

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Ph: 02 9955-7130 Fax: 02 8920-3576

Email: [email protected]

www.paradigmmetals.com.au

ABN 28 102 747 133

3 December 2009

ASX / Media Announcement

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More significant Au ‐ base metal drill intercepts at Kangiara

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HIGHLIGHTS

• Recent drilling at Kangiara has returned the following new SULPHIDE intersections:

• KAN008 : 40m at 0.6g/t gold, 18g/t silver, 1.4% lead, 1.6% zinc from 18m, including o 18m at 1.1g/t gold, 15g/t silver, 1.8% lead, 2.1% zinc from 18m;

• KAN012 : 56m at 0.45g/t gold, 22g/t silver, 1.2% lead, 2.2% zinc from 38m, including o 26m at 0.52g/t gold, 35g/t silver, 1.9% lead, 3.1% zinc from 66m;

• KAN007 : 28m at 0.73g/t gold, 24g/t silver, 1.1% lead, 2.1% zinc from 14m, including o 18m at 1.0g/t gold, 33g/t silver, 1.6% lead, 2.8% zinc from 14m;

• KAN012 also intersected a gold‐copper zone at depth:

  • 4m at 3.7g/t gold and 0.6% copper from 132m depth.

• KAN011 hit a gold‐silver OXIDE zone : 10m at 0.4g/t gold, 15g/t silver from 2m;

• Paradigm has received results from all 12 percussion drill holes at Kangiara, 10 of which have intersected significant mineralisation. The extent of the mineralised structure indicated by drilling is 50‐60 metres wide, 200‐300m long, and 100‐150m deep, dipping steeply to the west and plunging to the south. A gold‐lead‐zinc zone is underlain by a gold‐copper zone on the eastern side of the structure, with only 3 holes drilled into the gold‐copper zone to date.

• Known mineralisation correlates well with geophysical IP anomalies – the IP data indicates mineralisation could extend for a strike length of 600 metres at shallow depths of <100m, and to depths of >150m in the central part of the prospect.

• RC percussion drilling is expected to recommence this week, to test for the continuation of mineralisation along strike and down‐dip. Ten more holes for 1500m advance are planned. Preliminary metallurgical test‐work will also be carried out.

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Gold and Base Metal Drill Intersections in 6 New Holes

Paradigm is pleased to report drill hole intersections from 6 RC percussion holes at the Kangiara project, (EL 7273, PDM 100%) near Boorowa NSW, 100km north of Canberra. Results have now been received for all outstanding holes, including KAN006, 007, 008, 010, 011, and 012.

Five of the new holes have intersected significant polymetallic gold and base metal mineralisation. The full results of all holes drilled at Kangiara are summarized in Table 1 below .

Combined gold ‐ base metal mineralisation is now defined by drilling along a continuous strike of 300 metres extending southwards from the old Kangiara mine shaft (see Figure 1 ). The mineralised structure (defined by the white dashed lines in Figure 1) is believed to be 50‐60m wide, have a depth extent of 100‐150m, dip steeply to the west and plunge to the south. Within the structure a gold‐lead‐zinc‐silver zone is underlain by a gold‐copper zone on the eastern side. The gold‐copper zone contains minor lead and zinc, while the lead‐zinc zone contains negligible copper.

Drill holes KAN007, KAN008, and KAN012 have intersected wide and persistent zones of gold‐ lead‐zinc‐silver mineralisation across true thicknesses of up to 50m. Gold‐copper mineralisation intersected in KAN012 could correlate with gold‐copper mineralisation intersected in KAN003 100m along strike to the south. Upcoming drilling will test for this continuity with some deeper drill holes to 200m depth in this vicinity.

KAN010 and KAN011 intersected gold‐copper mineralisation on the western margin of the old Kangiara mine workings. Both holes were stopped prematurely when these holes intersected the old mine stopes. Further drilling will be carried out to assess the grade of remnant mineralisation on the opposite (eastern) side of the workings (see Figure 1 ).

Correlation of Mineralisation with IP Anomalies

Modeling of IP geophysical data acquired by a past explorer show a strong correlation between mineralisation in the drilling and IP chargeability anomalies. Figure 2 shows a longitudinal section of the drill holes with the IP chargeability anomalies highlighted in red, with a strong positive correlation apparent. Two chargeability anomalies at either end of the trend are undrilled, and could extend the strike length of the Kangiara structure to 600m.

The Managing Director, Dr Graham Carman, said “Ten of our first twelve drill holes have intersected thick and persistent polymetallic mineralisation that we believe could be of an economic‐grade. Our drilling has shown that mineralisation not only comes to surface, but thickens up southwards from the old Kangiara mine to a true width of about 50m. The IP geophysics is giving us an excellent targeting tool for our drilling, and is proving highly predictive of the mineralisation so far. The longitudinal projection of the mineralisation and IP treatment could indicate at least 600m strike length and therefore significant upside. While the grades of the individual metals are not particularly high, collectively they could combine to form a resource worth exploiting. Other favourable characteristics are the comparative shallowness, gold credits, excellent location and the potential for additional mineralisation along strike and at depth.”

“We look forward to starting our final drill campaign for 2009 this week. Further drill results should be reported by early January 2010. We will also be collecting samples for preliminary metallurgical test‐work to estimate metal recoveries. “

East‐west cross sections of the Kangiara mineralisation are shown in Figures 3 and Figure 4 below.

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Table 1. Assay results of significant sulphide drill intersections at the Kangiara project

Results highlighted are new results

** Holes stopped in mine cavity, and were not sampled beyond start of cavity

Assays: RC percussion samples were split directly from the cyclone on the drill rig. Generally, 2m composite samples were collected. These were sent to ALS‐Chemex in Orange for gold fire assay and ICP‐AES analyses via an aqua regia acid digestion. Assays for Cu,Pb and Zn that exceeded 1% were reanalyzed using the prescribed method for ore‐ grade analyses.

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Figure 1. Map of drill holes at the Kangiara project over 100m IP chargeability depth slice.

The IP d ata was 3D remodeled using 3D geophysical software by Arctan Services Pty Ltd. The data was collected by Noranda (1985) with a 50m east‐west dipole‐dipole setup using a line spacing of 100m.

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South
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North
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Figure 2. Longitudinal section of existing drill holes superimposed on the IP chargeability. Zones of high chargeability are shown in red. .

Histograms on drill traces represent gold (yellow), copper (red), lead (blue), zinc (green) and silver (grey) assays, mostly 1m or 2m composites. Histogram heights are approximate relative values for each metal based on current metal prices.

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Figure 3. West to east cross section showing recent drill holes KAN008 and KAN012

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Graham Carman who is a Member of the Australasian Institute of Mining and Metallurgy. Dr Carman is a full‐time employee of the Company, and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Carman consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

For further details contact: Graham Carman, Managing Director: Phone: (61) 02 9955 7130

About PDM: Paradigm Metals Ltd is a gold and copper explorer / developer with its key projects located in the Lachlan Fold Belt of New South Wales and the Cloncurry region of Queensland

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Figure 4. West to east cross section of drill holes KAN007, KAN006 and KAN004

Table 2. Drill hole location information of all Kangiara holes ‐ Coordinates are GDA94 zone 55 datum

** Hole stopped in mine cavity, not sampled beyond start of cavity

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