News from Marketwire

Paladin Energy Ltd: Financial Report for the Six Months Ending 31 December 2009

09:32 EST Thursday, February 11, 2010

-   Record total uranium oxide (U3O8) production of 987,310lb for the
    December quarter compared to 673,982lb for the comparative period.
    Record total production of 1,731,498lb achieved for the six months up
    from 1,324,537lb for the comparative period. 
    
-   Langer Heinrich Mine achieved Stage 2 production levels in the December
    2009 quarter with a 36% increase in production over the September 2009
    quarter. 
    
    -   Stage 3 construction to 5.2Mlb per annum underway. 
        
    -   Stage 4 feasibility study for expansion to 10Mlb per annum underway.
        
-   Kayelekera Mine production ramp-up slower than anticipated but improving
    with latest design upgrades. 
    
-   Langer Heinrich Mine cost of sales for the six months to 31 December
    2009 remained at US$26/lb as for the six month period to 31 December
    2008. This represents increased efficiencies despite a strengthening in
    the Namibian dollar exchange rate. 
    
-   Record quarterly sales volumes of 1,095,000lb for the quarter ended 31
    December 2009 at an average of US$56/lb up from the comparative period.
    Total sales volume for the six months reached 1,798,000lb averaging
    US$56/lb. This represents a significant increase over the 1,123,000lb
    sold in the six months ended 31 December 2008. 
    
-   Delivering into Paladin's long term contracting strategy with signing of
    a substantial long term contract totalling 4Mlb commencing in 2012. 
    

Corporate:

- Profit and Loss

3mths to 6mths to
31 Dec 09 31 Dec 09
US$M US$M
Revenue 62.6 101.2
--------------- -----------------
Gross Profit 14.7 29.6
--------------- -----------------
Exploration and Evaluation Expenses (4.4) (9.5)
Corporate and Other (4.0) (12.6)
Finance Costs (5.6) (10.8)
--------------- -----------------
Profit/(Loss) before Income Tax 0.7 (3.3)
Income Tax Expense (0.1) (16.1)
--------------- -----------------
Profit/(Loss) after Income Tax 0.6 (19.4)
Non controlling interests (0.2) 0.4
--------------- -----------------
Net Profit/(Loss) after Tax 0.4 (19.0)
--------------- -----------------

- Gross profit for the December quarter up by US$8.4M over the comparative
period reflecting higher sales volumes.

- Net profit for the December quarter of US$0.4M compared to net loss of
US$470.8M in the comparative quarter. Net loss for six months narrowed
to US$19.0M from US$475.6M in the comparative period.

- Strong balance sheet at 31 December 2009 with US$432.6M in cash invested
with Australian banks with a minimum AA Standard & Poor's credit rating.
.
Conference Call and Investor Update scheduled for 07:00 Perth, Tuesday 16 February 2010.

Paladin Energy Ltd
John Borshoff
Managing Director/CEO
+61-8-9381-4366 or Mobile: +61-419-912-571

john.borshoff@paladinenergy.com.au

or

Paladin Energy Ltd
Garry Korte
Chief Financial Officer
+61-8-9381-4366 or Mobile: +61-409-875-910

garry.korte@paladinenergy.com.au

or

Paladin Energy Ltd
Greg Taylor
Investor Relations Contact
+905 337-7673 or Mobile: +416-605-5120 (Toronto)

greg.taylor@paladinenergy.com.au
www.paladinenergy.com.au