Paladin Energy Ltd.-Kayelekera Mine, Malawi-Production Resumes After Plant Upgrade

PERTH, WESTERN AUSTRALIA--(Marketwire - Sept. 16, 2011) - Paladin Energy Ltd ("Paladin" or "the Company") (TSX:PDN)(ASX:PDN) is pleased to advise that uranium production has recommenced at Kayelekera as scheduled on the 12th of September following the upgrade work carried out on the plant. The benefits of the plant upgrade are clearly evident with production running in excess of 90% of capacity in the four days following the outage. On the performance being achieved the ramp-up to nameplate capacity is expected to be reached in a relatively short period of time.

The site has also commenced the drumming of the centrifuge pre-dried yellowcake and the first consignment of this product will be transported to the Langer Heinrich Mine for final drying and packaging in the last week of September.

The acid plant remains off line to undertake remedial maintenance necessary as a result of the ground movement. This work, referred to in the Company's announcement of 7th September is on schedule and is expected to be completed next month.

ACN 061 681 098