Paterson Resources Limited provided an update on progress of the Company's exploration efforts at its West Australian projects. The soil geochemistry sampling survey at the Company's Pilbara Projects has been completed 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. 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. At the Billie Camp Prospect, a total of 115 samples were collected over 2 areas on a 50m by 50m grid.

Several small gold nuggets were discovered at Billie Camp using metal detectors from an exposed quartz vein outcropping at surface, coinciding with a regional northwest trending structure and located at the base of a mopped metabasltic conglomerate from the Hardey Formation. Surprisingly, very little historical exploration has been conducted over this area and is limited to sporadic rock chip sampling. A total of 49 soil samples were collected 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. Previous rock chip samples at the Kara Well Prospect have returned values up to 27% Cu, 75ppb Au and 358g/t Ag. The Cheela Plains Project is located about 80km northwest of Paraburdoo on Cheela Plains 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 297 soil samples were collected over the Slate Bore and Big Sarah Prospects on a nominal 200m by 600m grid spacing. The program was designed to extend historical soil geochemical sampling and further define gold and base metal anomalism, along with gaining a better understanding of the underlying geology. The Hamersley Project is located about 65km west of Tom Price.

Very little historical exploration has been undertaken over the tenement with a small number of stream sediment geochemical samples being taken by previous explorers. The Company's technical team have identified multiple regional scale northwest trending structures in favourable geological settings warranting preliminary reconnaissance soil geochemical testing. A total of 129 samples were collected on a nominal 200m by 600m grid.

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

Figure 4 shows the Grace tenements and the significant regional discoveries and mines. The heritage survey crew completed the work program clearance last week. The Company expects program clearance to be received by the end of June in preparation for drilling of the Phase 2 program at Grace, set to commence in July.

The Company has planned an extensive reverse circulation drilling program of up to 8,000 metres designed to follow up multiple high priority targets located along the prospective Grace-Bemm shear zone, along with several under-explored regional targets highlighted by airborne geophysical surveys and anomalous gold and copper intersected in historical drilling. 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 completed a mobile metal ion ­ or "MMI" surface geochemical soil survey program on a 100m by 400m grid 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.

A total of 298 samples have been collected and sent to SGS Australia in Perth for MMI analysis.