Paladin Energy Ltd
TSX : PDN
ASX : PDN

Paladin Energy Ltd

September 26, 2008 08:04 ET

CORRECTION FROM SOURCE: Paladin Energy Ltd-Langer Heinrich Uranium Project, Namibia

Correction of Substantial Increase to Ore Reserves Following some confusion surrounding the expression of percentage increases to the recently announced Langer Heinrich Ore Reserve please find attached the following amended announcement. - Ore Reserve increased from 37.6Mlb to 65.8Mlb - Allows more than 10 years mine life at expanded Stage III production rates - Remaining Inferred Mineral Resources of 91.6Mlb offers strong potential of further increase with additional drilling - Additional Reserve potential from Heap Leach study

PERTH, WESTERN AUSTRALIA--(Marketwire - Sept. 26, 2008) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Paladin Energy Ltd ("Paladin" or "the Company") (TSX:PDN)(ASX:PDN) is pleased to announce that a revised ore reserve estimate for the Langer Heinrich Deposit conforming to both the JORC and NI 43-101 codes has now been completed and the results are reported below using a 250ppm cut off.



New Ore Reserve Estimate (250ppm U3O8 (cut off) for Details 1, 2, 3
and 5

250ppm Cut-off M t Grade % t U3O8 Mlb U3O8
U3O8
Proved Ore Reserve 30.0 0.06 17,924 39.50
Probable Ore Reserve 20.6 0.06 11,950 26.34
------------------------------------------------------------------------
Total Ore Reserve 50.6 0.06 29,874 65.84
------------------------------------------------------------------------
------------------------------------------------------------------------
Ore Reserve has been depleted for mining


Compared to the previous ore reserve announced in 2005 (also reported at a 250ppm cut off) the new 2008 reserve estimate outlined herein represents a 28.3Mlb (75%) increase in contained U3O8. The Ore Reserve has been estimated from the previously announced Measured and Indicated Mineral Resource of 56.4Mt at a grade of 0.06% U3O8. The resource estimate is based on Multi Indicator Kriging and incorporates a specific adjustment based on expected mining parameters. As a result additional dilution and mining recovery are not included in the Ore Reserve estimation.

The cost parameters used in the reserve estimation are now well established and as such their inclusion can be reasonably justified. The revenue rate used in the estimate was US$60 per lb which is regarded as conservative when compared to the Ux spot price and existing term contracts.

These reserves will form the basis of the detailed mine planning for the Project. The revised mine model will allow a remaining mine life of 11 years, based on the expansion of processing capability to 6.0 million pounds per year. The mine model does not include any contribution from the 91.6Mlb of Inferred Mineral Resources, either from the open pit area (shown below) or Details 4 and 6 (to the east) or Detail 7 (to the west) outside the current pit design. The figure below shows the Ore Reserve pit outline and the underlying Mineral Resource.

The Ore Reserve is quoted exclusive of ROM stockpiles which, at the end of May 2008, contained 3.5M tonnes at a grade of 514ppm U3O8 for 1,796t (3.96Mlb) U3O8.

http://media3.marketwire.com/docs/paladinfigure0926.pdf

In the above figure Blue is greater than or equal to 250ppm U3O8, Green greater than or equal to 400ppm U3O8 and Red greater than or equal to 650ppm U3O8 at a 250ppm U3O8 cut off.

ADDITIONAL POTENTIAL

The potential for increasing the reserve even further within ML140 is still regarded as high, as the new revised Ore Reserve estimate represents a 91% conversion from the underlying Mineral Resource, and previous experience with the deposit indicates that the Inferred Resources outside the current pit design could be upgraded at a similar proportion following infill drilling to increase resource confidence.

In the revised Mineral Resource there are still 70Mt of Inferred Mineral Resources grading at 0.06% U3O8 containing 41,557t (91.6Mlb) U3O8 and as such it is believed that a considerable amount of these Inferred Resources will be able to be converted to Measured and Indicated Resources categories with more drilling and then included in future additional reserve estimations. There is a strong expectation that this future reserve estimate will contribute significantly to extending both the minelife of the Project and the subsequent upgrades in production. Additional production is seen as being essential to meet the increasing worldwide demand for Uranium.

Heap Leach studies are currently underway at Langer Heinrich to determine whether material in the 100-250ppm U3O8 range can be economically processed. Review of Gencor investigations into Heap Leaching of this deposit from the late 1970's indicates that the process may be viable.

Declaration

The information in this announcement that relates to mineral resources is based on information compiled by Andrew Hutson BE, M.AusIMM for ore reserve estimates. Mr Hutson has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as Competent Persons as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves", and as a Qualified Person as defined in Canadian National Instrument 43-101. Mr Hutson is a full-time employee of Paladin Energy Ltd and consents to the inclusion of the information in this announcement in the form and context in which it appears.

Contact Information