Paladin Resources Ltd.
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ASX : PDN

Paladin Resources Ltd.

June 07, 2007 09:32 ET

Paladin Resources-Kayelekera Uranium Project, Malawi Government Support Reaffirmed

PERTH, WESTERN AUSTRALIA--(Marketwire - June 7, 2007) - Paladin Resources Ltd. (TSX:PDN)(ASX:PDN) Further to the announcement on 28 May 2007 that Paladin (Africa) Ltd ("PAL") and the Government of Malawi had been named in two actions commenced by a group of Non Government Organisations ("NGO's"), we advise that the Ministry of Mines and Energy ("the Ministry") has released a statement indicating its support for the Kayelekera Uranium Project and strongly refuting claims made by the NGO's.

The press statement released 5 June 2007 by The Ministry states that the Government has complied with the Environmental Management Act ("the Act") in relation to the Uranium Mining Project at Kayelekera which is to be undertaken by PAL. It further states that:-

- "................according to with the Act, the responsibility for carrying out Environmental Impact Assessment lies with the developer whereas responsibility to call for public hearings and comments on the EIA report lies with the Director of Environmental Affairs. In this respect the Director of Environmental Affairs undertook to distribute the EIA reports for review and comments by the Public at Kayelekera, Karonga District Assembly, University of Mzuzu, Mzuzu City Assembly, the then Ministry of Energy, Mines and Natural Resources Headquarters, now the Ministry of Energy and Mines, Department of Environmental Affairs, Bunda College, Chancellor College and Polytechnic".

- "Experts, including those from International Atomic Energy Agency (IAEA) commented on the Environmental Impact Assessment report and their valuable proposals have been taken into account".

- "That the Government has complied with the Act and it has undertaken to monitor the Kayelekera Uranium Mining Project on an ongoing basis" also stating "that it is in the Public's interest that the Uranium Mining Project at Kayelekera should be carried out by PAL as the Ministry believes that the Government of Malawi has not transgressed any of its laws".

Paladin remains confident that it has proceeded in the proper manner with regard to developing the Kayelekera Uranium Project and is encouraged by the positive stance the Government of Malawi has taken on this important matter.

Caution Regarding Forward Looking Statements: Statements regarding the Company's plans to develop the Kayelekera Project are forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ from those expressed or implied by such statements. There can be no guarantee such statements will be realised. In particular, there can be no assurance that Paladin will be able to successfully build, develop and operate a uranium mine or that it will be able to raise the funds necessary to complete such tasks. Furthermore, there can be no assurance that if completed, any mine will be profitably operated.

A.C.N. 061 681 098

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