Paterson Resources Limited provided an update on progress of the Company's exploration efforts at its West Australian and New South Wales projects. Grace Project - Paterson Province; 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.

Phase Two Drilling Program - Grace Gold-Copper Deposit; Gold-copper mineraliastion at the Grace Prospect displays many similarities with the nearby Telfer gold-copper deposit. There are discordant veins and breccias with gold existing as inclusions in pyrite or in the matrix of the breccia. Mineralisation is centered around the Grace-Bemm shear.

The mineralisation system is considered to be the same as Telfer with hydrothermal fluids generated by granitic emplacements about 645 million years ago mobilizing gold present in the sedimentary country rock. Mineralisation at Telfer is hosted in the Malu formation but is also known to be hosted within the Puntapunta formation at Havieron and the Isdell Formation at Grace. It worth noting the Malu and Puntapunta formations also extend along the length of the Company's tenure.

Historic exploration has centered around the Bemm prospect and other prospects in the Isdell formation. The Company considers the intersection of regional structures with the Malu and Puntapunta formations to be prospective for further accumulation of gold-copper mineralisation. Gold mineralisation in the region is mostly structurally controlled.

The Grace-Bemm shear has been explored along a 4km strike length to depths averaging less than 100 metres. A further 3km of strike length to the northwest and up to 2km to the southeast of the Grace deposit remains largely unexplored and will be tested in the upcoming program. Additionally, the Parallel Range Fault that runs parallel to the Grace-Bemm Shear and juxtaposes the Malu Formation onto the Isdell Formation remains largely untested.

Historical drilling intercepting this structure returned intercepts of 4m at 2.49 g/t gold from only 14 metres and 14m at 1.37 g/t gold from 48m in GPB1506 that has never been followed up and presents a compelling target for the Company. The Company has planned an extensive reverse circulation drilling program of up to 8,000 metres designed to follow up on these high priority targets. Soil Geochemistry Sampling Survey - Smoke Rings; The technical team at Paterson Resources continues to expand on its understanding of the mineralised system at the Grace Project recently completing an additional review of historical data over its tenure.

The review identified previous drilling over the regional Gandy's Folly and Smoke Rings prospects on the Company's 100% owned contiguous E45/5130 tenure that had not been included in the geological database. Anomalous values of up to 0.98 g/t gold and 0.06% copper have been highlighted in historical drilling at Smoke Rings coincident with a significant aeromagnetic anomaly. Paterson has planned a mobile metal ion - or "MMI" surface geochemical soil survey program to traverse the distinct geophysical anomaly close to historical drilling.

The MMI technology is a proven advanced geochemical technique well suited for areas under transported cover and especially well-suited for deeply buried mineral deposits. The surface geochemical program is due to commence in the first week of June this year. Pilbara Gold & Base Metal Projects; The soil geochemistry sampling survey at the Company's Pilbara Projects is nearing completion.

The field team was mobilized to the Pilbara earlier this month to conduct a systematic geochemical soil sampling survey over high priority targets at the Bellary, Cheela Plains and Hamersley projects. More than 400 samples have been collected to date from all three projects. The sampling patterns are based on the results of previous grab sampling programs and regional geological trends and are planned to infill previously identified gold and base metal soil anomalies.