Paladin Energy Ltd
TSX : PDN
ASX : PDN

Paladin Energy Ltd

November 12, 2009 07:19 ET

Paladin Energy Ltd: Financial Report for the Quarter Ending 30 September 2009

PERTH, WESTERN AUSTRALIA--(Marketwire - Nov. 12, 2009) - Paladin Energy Ltd ("Paladin" or "the Company") (TSX:PDN)(ASX:PDN) announces the release of its Financial Report for the quarter ending 30 September 2009.

HIGHLIGHTS

Quarter Ending 30 September 2009

- Total production of 744,188lb for the quarter. The Langer Heinrich Mine produced 654,516lb as it transitioned to Stage 2 nameplate production (650,554lb for quarter to 30 September 2008). The Kayelekera Mine, which was hampered by slower than expected ramp-up produced 89,672lb.

- Stage 2 production levels at Langer Heinrich Mine are now almost being realised with October production of 276,757lb (90% of Stage 2 nameplate design).

- Cost of sales for three months to 30 September 2009 of US$26/lb is lower than in the three months to 30 September 2008 of US$27/lb reflecting improved operating performance at the Langer Heinrich Mine.

- Stage 3 expansion approved to further expand Langer Heinrich Mine production to 5.2Mlbpa with expected completion date set for the December quarter 2010.

- Uranium oxide sales for the quarter from Stage 1 of Langer Heinrich Mine 703,000lb U3O8 (2008: 878,000lb) averaging US$54/lb (2008: US$58/lb).

- Financial Year 2010 guidance revised to a range of 5.6Mlb to 6.1Mlb due to slower production ramp-up at Langer Heinrich Mine and Kayelekera Mine.

- Major new production expansion plans for Africa (increasing from 8.5Mlb pa to 13.8Mlb pa) to clearly establish Paladin as a Tier 1 producer. Stage 4 Langer Heinrich Mine expansion targeting 10Mlb pa (includes 1Mlb heap leach) with nameplate production planned by mid 2014. Kayelekera Mine optimisation to 3.8Mlb pa planned for late 2012.

Corporate:

- Profit and Loss



3mths to 3mths to
30 Sept 09 30 Sept 08
US$M US$M
Revenue 38.6 52.4
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Gross Profit 14.9 22.0
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Exploration and Evaluation Expenses (5.1) (3.6)
Corporate and Other (8.6) (10.1)
Finance Costs (5.2) (9.2)
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Loss before Income Tax (4.0) (0.9)
Income Tax Expense (16.0) (4.2)
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Net Loss after Tax (before minority interests) (20.0) (5.1)
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- US$374M private placement completed to fund M&A opportunities, progress Langer Heinrich Mine Stage 3 expansion and expand exploration and pre-development programs in Australia.

- Strong balance sheet at 30 September 2009 with US$494.5M in cash invested with Australian banks with a minimum AA Standard & Poor's credit rating. US$167M Project Financing facility completed for Kayelekera. Currently drawn to US$132M.

- Paladin participated in placement by NGM Resources Limited to increase shareholding to 19.9% to allow it to work on its Niger uranium concessions.

Conference Call and Investor Update scheduled for 20:00 Perth / 7:00 Toronto Tuesday 17 November 2009. Details are included in a separate news release.

The documents comprising the Financial Report for the Quarter ending 30 September 2009, including the Report to Shareholders, Management Discussion and Analysis, Financial Statements and Certifications will be available shortly with the Company's other documents on Sedar (http://www.sedar.com) and on the Company's website (http://www.paladinenergy.com.au).

ACN 061 681 098

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