Paladin Resources Ltd.

Paladin Resources Ltd.

May 30, 2006 09:40 ET

Paladin Resources Ltd: Langer Heinrich Uranium Project, Namibia

PERTH, WESTERN AUSTRALIA--(CCNMatthews - May 30, 2006) -

On schedule in strong uranium market conditions

Paladin Resources Ltd ("Paladin" or "the Company") (TSX:PDN)(ASX:PDN) is pleased to provide an update on its Langer Heinrich Uranium Project in Namibia.

Project Status

Construction of the Langer Heinrich Uranium Mine in Namibia continues on schedule and on budget. Overall work on this Project is now 80% complete and 95% of CAPEX is now committed. Recruitment of all senior level managers and supervisors, most with uranium production experience, has also been completed. Plant commissioning remains on schedule for September 22, 2006 start up.

Legal documentation for the US$71M Project Finance Facility and Standby Cost Overrun Facility provided by Societe Generale Australia Branch (as lead arranger), Nedbank Limited, and Standard Bank of South Africa Ltd., has been executed and drawdown will commence next month after fulfillment of the few remaining conditions precedent usual for this type of funding.

Uranium Contracts

The detailed contractual terms of the inaugural uranium sales contracts previously announced with three major US utilities have been agreed and formal documentation is being executed.

Uranium Market

The Spot and Long-Term uranium prices continue to increase and are now US$43.00/lb U3O8 and US$43.50/lb U3O8 respectively.

Ux Weekly of 22 May (UxC 20-21) commented:

"While there is some concern over supplies for the next five years, some utilities are concerned about security of supply sources out beyond six years, or when the current Russian HEU feed deal is set to expire. This competition for supply has maintained upward pressure on term prices."

With production imminent from its Langer Heinrich Uranium Project and construction expected to commence early 2007 on its Kayelekera Uranium Project in Malawi, Paladin remains a world leader in bringing critical new supply on line. This timing presents an extraordinary opportunity base for the Company's future development.

Paladin Resources Ltd is an Australian uranium exploration and development company listed on the Australian Stock Exchange ("PDN") and the Toronto Stock Exchange ("PDN"). Paladin is involved in the mineral resource sector with projects both in Australia and Africa. With the Langer Heinrich Uranium Project in Namibia currently under construction, the Kayelekera Project in Malawi undergoing a Bankable Feasibility Study, Paladin is well placed to become a major supplier of primary uranium to world markets.

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