Paterson Resources Limited provided an update on exploration activities at its Grace gold-copper project in Western Australia's Paterson Province and Burraga copper-gold project located in the prospective Lachlan Fold Belt in New South Wales. The Company has successfully amalgamated five prospecting licences P45/2905 to P45/2909 that encompass the Grace gold-copper project into E45/4524 upon signing of a Heritage Agreement with the Jamukurnu-Yapalikurnu Aboriginal Corporation. Paterson remains committed to advancing its Grace gold-copper deposit with planning underway to recommence drilling at the project within the first quarter of 2023 following a successful field season where reverse circulation (`RC') drilling discovered high-grade gold mineralisation in PRC0024 and PRC0025 (see ASX Announcement dated 24th October 2022) including: 15m @ 4.03g/t Au from 77m including 6m @ 9.3g/t Au from 79m, 31m @ 3.13g/t Au from 145m including 7m @ 11.0g/t Au from 148m, 19m @ 1.23g/t Au from 104m including 2m @ 5.9g/t Au from 106m, 41m @ 2.56g/t Au from 143m including 4m @ 9.2g/t Au from 143m and 3m @ 8.7g/t Au from 176m.

Assays from the remaining three RC drillholes have also been returned. The latest assay results are located southeast and along strike from Paterson's newly discovered high-grade gold zone. Mineralised intercepts include: 5m @ 0.45 g/t Au from 61m including 1m @ 1.5 g/t Au from 62m (PRC0026), 11m @ 0.94g/t Au from 165m including 1m @ 4.8 g/t Au from 166m, 2m @ 1.5 g/t Au from 169, and 2m at 1.9g/t Au from 174m (PRC0027), 2m @ 1.94g/t Au from 194m (end of hole) (PRC0027), 15m @ 0.43 g/t Au from 26m and 9m @ 2.8 g/t from 95m including 4m @ 6.1g/t Au (PRC0028).

Geological interpretation and 3D modelling of the results indicate the high-grade gold mineralisation interecepted in PRC0024 and PRC0025 is plunging to the southwest. Whilst holes PRC0026 toPRC0028 intercepted some zones of significant mineralisation, it is apparent the holes were not drilled deep enough to hit the high-grade skarn replacement style mineralisation intersected along strike in PRC0024 and PRC0025. This area provides a clear target for further drilling.

A total of 27 drill holes were completed for 4,761 meters in August and September this year with an average hole depth of 176.3m. The drilling program was designed to target dip and strike extensions of the mineralised resource envelope at the Grace-Bemm deposit and test the highly prospective Parallel Range Fault. Of the 27 drill holes, 24 returned significant gold mineralisation intercepts.

Paterson has been granted a six-year extension on exploration licence 6463 which encompasses the historic Lloyds copper mine that has a current JORC (2012) compliant resource of 1.68Mt grading at 0.9% copper for a total of 15,120 tonnes of contained copper (see PSL/HDY ASX Announcment dated 23rd June 2015). The Lloyds copper mine produced 19,443 tonnes of copper between 1880 and 1920, then intermittently up to 1961. The tenure also hosts the historic Lucky Draw gold mine where Renison Goldfields Consolidated mined 1.41 million tonnes of ore at an average grade of 4.2 g/t gold in the early 1990's. The Burraga project is located within the prospective Lachlan Fold Belt which hosts the 2Moz McPhillamy's gold deposit only 50km to the north of the project area.

Paterson has completed an extensive rehabilitation program of historic drill holes in the past quarter to ensure the company is adhering to environmental best practice in the lead up to prospectivity analysis, field mapping and drill targeting planned for the first quarter of 2023. The exploration licence 7975 which hosts the Isabella gold prospect has also been extended for an additional three years. The Grace Gold-Copper Project is in the heart of the Paterson Province, where multiple major exploration groups including Rio Tinto, Newcrest and Greatland Gold are actively exploring within the region.

Significant discoveries proximal to Paterson's Grace Project include the Havieron gold-copper deposit to the north-east where Greatland Gold recently reported a 5.5 million ounce gold resource, Cyprium Metal's Maroochydore copper prospect to the south and the world-class 30-plus million ounce Telfer Gold-Copper Mine, owned by Newcrest, located 25km northwest.