Paladin Energy Ltd

Paladin Energy Ltd

November 28, 2008 10:20 ET

Paladin Energy Ltd: Annual General Meeting Chairman's Address

Chairman's Address by Mr Rick Crabb to the 2008 Annual General Meeting

PERTH, WESTERN AUSTRALIA--(Marketwire - Nov. 28, 2008) - Paladin Energy Ltd ("Paladin" or "the Company")(TSX:PDN)(ASX:PDN)

"The central theme of my 2007 Chairman's address was the emergence of Paladin Energy as a uranium producer. It has been a challenging year since then, particularly in the commodity and equity markets. However, I am firmly of the view that Paladin Energy remains well poised for strong future growth as a key player in the global uranium supply industry.

As is documented in our Annual Report and will be explained further today, the prominence of nuclear fuel to generate electricity is growing. It is now widely accepted that those involved in the nuclear fuel cycle are contributing positively to the goal of reducing greenhouse gas emissions.

Langer Heinrich has now been operational for over 18 months and notwithstanding some teething problems, we are now achieving nameplate production. Given the considerable technical, environment and social issues involved in bringing a uranium mine into operation, this has been a fantastic achievement by the committed Langer Heinrich team led by Wyatt Buck.

The Company is progressing well with construction of Stage II of Langer Heinrich, to take annual production to 3.7 million pounds uranium oxide per annum.

Concurrent with the substantial activity at Langer Heinrich, steady progress has been made on construction of the Kayelekera Mine in Malawi. I wish to particularly thank our construction General Manager Jim Morgan for his leadership and drive on this major project. Commissioning and production ramp-up will commence early 2009, with annual scheduled production of 3.3 million pounds uranium oxide to be reached in 2010. This project is a major economic driver for Malawi and a recent site visit by the President of Malawi has reaffirmed the importance of this mine to his country.

The change of Government in WA and the present Government's receptiveness to uranium mining now means that the Queensland State Government is the only Government in Australia (State and Federal) that is not pro uranium mining. Paladin will now commence additional evaluation work on its lead WA project, Manyingee.

Considerable work was undertaken on the Company's cornerstone Australian uranium project, in Mount Isa, which is steadily progressing to present to the Queensland Government in due course as an important economic project for that State and which will contribute positively to satisfying world demand for carbon free electricity generation.

The award to Paladin Energy and its joint venturer, Cameco Australia Pty Ltd, by the Northern Territory government of the Angela/Pamela project, has given the Company a superb base from which to launch its Australian uranium production aspirations.

The timely raising of US$325 million by a convertible note issue in February 2008 is a key component to my opening observation that Paladin Energy is well placed for future opportunities. The Company has a strong commitment to both organic and inorganic growth in an orderly and sustainable fashion. The Board and senior management have therefore, over the past year in particular, continuously analysed and reflected upon growth opportunities within the evolving uranium supply space.

As detailed in our Annual Report and as you will hear today, we continue to work hard to maintain and improve our health, safety, environmental and social responsibility practices. As shareholders, you know that Paladin plans to be a long term uranium producer from a number of sites. We recognise that a social licence to operate is essential to such strategy. On a personal level I know that my Board and all employees feel very passionate about enhancing the lives of the local communities in which we operate - and that includes appropriate measures to minimise the environmental effects of our operations.

I anticipate that the forthcoming 12 months or so will reveal further fascinating developments both for the industry at large and Paladin Energy in particular. Clearly, the current world financial crisis is having an impact on equity prices and Paladin is no exception. However, I feel very positive about the future of our Company and, if anything, reflecting on our business model during these turbulent times only enhances the positive view of Paladin's position.

On behalf of my Board and shareholders I again extend my sincere thanks to Managing Director/CEO John Borshoff and all Paladin Energy Group employees and contractors for their ongoing valuable contribution to our Company."


ACN 061 681 098

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