Paterson Resources Limited provided an update on the results of the Company's RC drilling program at its Grace Gold-Copper Project in the highly prospective Paterson Province. Assay results have been received for a further 12 holes. The drilling program was designed to target dip and strike extensions of the mineralised resource envelop at the Grace-Bemm deposit, extend known mineralisation at the Genoa prospect, along with testing the highly prospective Parallel Range Fault.

Of the 25 holes with assays received, 22 holes have returned significant gold mineralisation. An EIS co-funded diamond drilling hole was completed at the Grace Gold-Copper project in August 2021 designed to test the source of a large magnetic feature at depth interpreted to be a felsic intrusion. The hole intercepted thick breccia hosted gold mineralisation within a metasedimentary sequence and was pushed through to hit a large felsic intrusion at about 761m.

Significant intercepts from the hole. included: 20.8m at 2.0g/t Au from 203.2m including 2m at 3.6g/t Au from 216m and 3m at 8.38g/t from 221m. 15.7m at 0.4g/t Au from 762.3m including 0.3m at 3.14g/t Au from 762m.

The hole confirmed the presence of a large felsic intrusion at depth, responsible for the magnetic anomaly, thought to be the likely source of gold-copper mineralised fluids penetrating the overlying sedimentary sequence forming breccia-hosted gold rich zones. Whilst only weakly anomalous gold mineralisation was intersected at the contact with the felsic intrusion, pervasive limonitic noted throughout the intrusion alluded to the presence of sulphide-rich fluids permeating through the intrusion. Drilling to date at the Grace Gold-Copper Project has intersected gold mineralsiation hosted mostly within quartz- carbonate breccias and vein stockworks cross-cutting the metasedimentary sequence.

The intersection of thick sulphide-replacement skarn gold mineralisation in drill holes PRC0024 and PRC0025 is a significant development in the evolution of understanding of the ore-forming model at Grace as an extensive intrusive related gold related system. 15m @ 4.03g/t Au from 77m including 6m @ 9.3g/t Au from 79m (PRC0024), 31m @ 3.13g/t Au from 145m including 7m @ 11.0g/t Au from 148m (PRC0024),19m @ 1.23g/t Au from 104m including 2m @ 5.9g/t Au from 106m (PRC0025), 41m @ 2.56g/t Au from 143m including 4m @ 9.2g/t Au from 143m and 3m @ 8.7g/t Au from 176m (PRC0025). Preliminary interpretations suggest the flat lying sulphide mineralisation is plunging steeply to the east-southeast.

Whilst PRC0026 hit a zone of shallow vein hosted gold mineralisation from 61m, it appears the hole was terminated too early prior to hitting the thick, high-grade sulphide horizon at depth. Gold mineralisation at Grace has now been identified to be hosted in breccias, veins and massive sulphide replacement skarn style typical of intrustion-related gold systems and key characteristics of the nearby Havieron Gold-Copper deposit. Grace-Bemm Gold-Copper Deposit: Infill and extensional drilling along the Grace-Bemm Shear has been successful in further delineating gold mineralisation along strike and down dip.

Significant intercepts include: 85m @ 0.64g/t Au from 55m including 3m @ 4.9g/t Au from 55m and 3m @ 3.9g/t Au from 60m, (PRC0014), 11m @ 1.07g/t Au from 32m including 1m @ 10.1g/t Au from 33m (PRC0017),8m @ 1.2g/t Au from 72m including 2m @ 3.8g/t Au from 77m (PRC0020), 10m @ 1.2g/t Au from 144m including 1m @ 8.2g/t Au from 144m (PRC0021), 8m @ 1.3g/t Au from 146m including 1m @ 6.3 g/t Au from 147m (PRC0022). The Company is highly encouraged by the intercept in PRC0014 indicating a thick, shallow zone of gold mineralisation remains open at depth. Mineralisation is hosted in a stockwork of extensive quartz-carbonate veining and brecciation within a sequence of metasedimentary rocks of the Isdell and Malu formations.

This presents a high-priority target for future drilling. Next Steps: All 1m drill samples were assayed at ALS laboratories for gold only via Fire Assay to expedite the assaying process and develop a greater understanding on the controls of gold mineralisation. The technical team at Paterson are in the process of identifying select samples for further base metal analysis, including copper.

These will be resubmitted to the laboratory prior to the end of the year. Following on from the successful RC drilling campaign at the Grace Gold-Copper Project, Paterson will: Conduct a detailed technical review of all results in conjunction with historical drilling results, Integrate assaying and logging into 3D model incorporating geophysical and geochemical data to identify priority drilling targets. Commence obtaining regulatory government and heritage approvals for drilling activities to recommence in the first quarter of 2023.