Paladin Energy Ltd Completes Acquisition of Aurora Uranium Assets

PERTH, AUSTRALIA--(Marketwire - Feb. 1, 2011) - Paladin Energy Ltd (TSX:PDN)(ASX:PDN) ("Paladin") is pleased to announce that it has today completed its previously announced acquisition of the uranium assets of Aurora Energy Resources Inc. ("Aurora") from Fronteer Gold Inc. (TSX:FRG)(NYSE Amex:FRG) ("Fronteer") (see December 20, 2010 news release). Paladin now holds title to significant uranium assets within the highly prospective Central Labrador Mineral Belt of Eastern Canada, totalling 83.8Mlb of Measured and Indicated resources and 53.0Mlb of inferred resources across six deposits, including the Michelin, Jacques Lake, Rainbow, Nash, Inda and Gear deposits and has secured control of the most prospective ground within this belt.

The transaction was completed for a total consideration of C$260.87M via the issuance of 52,097,937 ordinary shares in Paladin. This values the current resources at US$1.90/lb.

With completion of this transaction, Fronteer now holds approximately 6.7% of Paladin's ordinary shares. The shares issued to Fronteer are subject to a four-month hold period under Canadian securities laws. Fronteer has also entered into an agreement that sets out procedures designed to ensure that any disposition of shares by Fronteer will occur in an orderly fashion. A copy of this agreement will be lodged by Paladin with the Australian Securities Exchange and filed with Canadian Securities Regulators. A copy will be available under Paladin's profile at www.sedar.com.

NOTES:

Technical Information: Scientific or technical information referred to in this news release has been prepared under the supervision of John Borshoff, Managing Director of Paladin Energy Ltd, a Fellow of the Australasian Institute of Mining and Metallurgy and a qualified person under National Instrument 43-101.

Caution Regarding Forward Looking Statements: Statements in this news release regarding the closing of the transaction to acquire the uranium assets of Aurora Energy Resources Inc., Paladin's plans to develop these assets, the estimation of mineral reserves and the expected resolution of the current Nunatsiavut Land Use Plan and uranium development moratorium in the Province of Newfoundland and Labrador constitute forward-looking information within the meaning of applicable securities laws. Assumptions upon which such forward looking statements are based include that Aurora and Paladin will be able to satisfy the conditions in the Definitive Agreement, that all third party, regulatory and governmental approvals to the transaction will be obtained and all other conditions to completion of the transaction will be satisfied or waived. Many of these assumptions are based on factors and events that are not within the control of Fronteer, Aurora or Paladin and there is no assurance they will prove to be correct. In particular, there can be no assurance that the transaction will close as scheduled or that there will be a resolution of the current Nunatsiavut Land Use Plan and uranium development moratorium in the Province of Newfoundland and Labrador that is favourable to Paladin or that Paladin will be able to successfully develop the properties acquired. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Paladin to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the integration of the business of Aurora, risks related to mining operations, including political risks and instability and risks related to international operations, actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, as well as those factors discussed in the section entitled "Risk Factors" in Paladin's Annual Information Form of the year ended June 30, 2010. Although Paladin has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Paladin does not undertake to update any forward-looking statements herein, except in accordance with applicable securities laws.

A.C.N. 061 681 098