Paterson Resources : Pilbara Project Fieldwork Commences

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ASX ANNOUNCEMENT

14 March 2022

Soil Sampling Campaign over high priority targets commences at Paterson Resources

Pilbara Projects

HIGHLIGHTS

• Field work for the 2022 program has now commenced with extensive soil sampling surveys at the Company's Pilbara tenements
• Pilbara tenements highly prospective for gold and base metals
• Sampling programs are designed to better define targets for drill testing
• Planning now well advanced for an aggressive drilling program at the Grace Gold-Copper Project, located 25km southeast of Newcrest's world-class Telfer Mine, to commence in Q2 2022

Paterson's Executive Director Matt Bull said today, "We are excited to have boots on ground in the Pilbara with a soil geochemical survey well underway on our Pilbara Projects. We have expanded the Company's exploration team with field staff dedicated to following up high priority gold and base metal targets at Bellary, Cheela Plains and Hamersley. Coupled with an aggressive RC drilling program due to commence at the Grace Project in the highly prospective Paterson Province as well an RC drilling program to extend mineralisation at the Lloyds Copper Project when weather conditions in the project area allow, the Company looks forward to updating the market in the coming months."

Paterson Resources Limited ("Paterson" or "the Company") (ASX: PSL) is pleased to advise that the field program at the Company's Pilbara tenements is well underway. The field team was mobilized to the Pilbara earlier this month and is conducting systematic geochemical soil sampling surveys over high priority targets at the Bellary, Cheela Plains and Hamersley projects. A total of 1,132 samples will be collected in total 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.

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Figure 1: Location of PSL's Cheela Plains, Hamersley, Bellary and Elise North Pilbara Projects

Figures 2 & 3: Field team conducting surface soil geochemical sampling at the Bellary Project

Table 1: Total samples to be collected and the sampling grid.

Prospect	Number of sample points	Grid
Bellary	454	200m x 600m
Cheela Plains	402	200m x 600m
Hamersley	276	400m x 2000m

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Bellary Gold and Base Metals Project (E47/3578)

The Bellary Project is located about 20km northwest of Paraburdoo and 40km southwest of Tom Price in the Shire of Ashburton. Sporadic exploration dates back to 1989, with historical soil sampling identifying a suite of targets prospective for gold, copper, silver, platinum, palladium, nickel, lead and zinc.

Much of the Bellary tenement is underlain by rocks of the Fortescue Group including the Pyradie, Boongal and Hardey Formations. The Hardey Formation is highly prospective for conglomerate gold mineralisation, characterised by Novo Resources' 900,000 ounce Beatons Creek Gold Project and discovery at Purdy's Reward.

Previous reconnaissance field sampling undertaken by the Company over historical gold and base metal soil geochemical anomalies identified two high priority targets - Kara Well and Billie Camp.

Rock chip samples at Kara Well have returned values up to 27% Cu, 75ppb Au and 358g/t Ag.

At Billie Camp, several small gold nuggets were discovered from an exposed quartz vein with rock chip sampling returning anomalous gold values up to 1.2g/t Au and 0.79% Cu.

A total of 454 soil samples will initially be collected initially over the Kara Well Prospect on a nominal 200m by 600m grid spacing. The program has been designed to infill historical soil geochemical sampling and further define gold and base metal anomalism, along with gaining a better understanding of the underlying geology.

Figure 4: Bellary interpreted anomalies at Kara Well from historical sampling superimposed with

planned samples

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Cheela Plains Gold and Base Metals Project (E08/2880)

The Cheela Plains Project is located about 80km northwest of Paraburdoo on Wyloo Station. Small scale mining dates back to the 1930's with several small pits observed at the Slate Bore Prospect. No production records are available but outcrops of malachite and galena suggest mining was targeting copper and lead resources.

Historical exploration has defined a major gold, arsenic and lead anomaly that strikes for over 4.5km over the Big Sarah Prospect with reconnaisance rock chip sampling undertaken by the Company in 2019 returning samples grading upto 24.5g/t Au.

A total of 402 soil samples will be collected over the Slate Bore and Big Sarah Prospects on a nominal 200m by 600m grid spacing. The program has been designed to infill historical soil geochemical sampling and further define gold and base metal anomalism, along with gaining a better understanding of the underlying geology.

Figure 5: Cheela Plains interpreted anomalies from historical sampling with the location of follow-up

soil geochemical sampling locations over the Slate Bore Prospect (west target) and Big Sarah

Prospect (east target)

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Hamersley Gold and Base Metals Project (E47/3827)

The Hamersley Project is located about 65km west of Tom Price in the Shire of Ashburton, Western Australia. Very little historical exploration has been undertaken over the tenement area with a small number of stream sediment geochemical samples being taken by previous explorers.

The Company's technical team have identified multiple regional scale structures in favourable geological settings warranting preliminary reconnaissance soil geochemical surveying on a nominal 400m by 2000m grid. A total of 276 samples will be collected to cover the full extent of the tenement.

Figure 6: Hammersley Project with soil sample locations covering the tenement

Next Steps

Paterson's priority at its Pilbara tenements is to focus on advancing towards drill-ready status which will include the following:

• Complete field reconnaissance and soil sampling campaign
• Target definition and infill soil sampling
• Ground geophysical surveys
• Planning and design of an exploration drilling program to test identified high priority targets
• Heritage clearances and all requisite permitting