He said: "We're absolutely gutted. They had pressured us, but never really looked like scoring.
"It was just two silly mistakes right near the end of the game that has cost us dearly.
"It has cost us three points we desperately needed.
"I had a wee chance just before Jason Holt's chance. There were numerous occasions we could have scored and put the game to bed.
"We just didn't take our chances."
Paterson believes the young side can learn from this setback.
He said: "There is never a good time for something like this to happen, but we can take a lot from the performance.
"It has happened, and we need to learn from our mistakes and make sure it doesn't happen again throughout the season.
"We're learning all the time. Take Jamie Hamill and Jamie MacDonald out of the equation and we have probably played 50-odd first team games between us.
"We're learning in every game - and we just need to keep learning."