Paladin Resources Ltd.
TSX : PDN
ASX : PDN

Paladin Resources Ltd.

December 15, 2006 09:08 ET

Paladin Resources Ltd Announces Completion of Issue of US$250 Million of Convertible Bonds

PERTH, WESTERN AUSTRALIA--(CCNMatthews - Dec. 15, 2006) -

Not for distribution to United States newswire services or for dissemination in the United States.

Further to its announcements dated November 30, 2006 and December 6, 2006, Paladin Resources Ltd (TSX:PDN)(ASX:PDN) is pleased to announce the completion today of its issue of US$250 million of 4.50 per cent convertible bonds due December 15, 2011. The offering was made on a private placement basis to institutional, professional and sophisticated investors outside the United States to non-U.S. persons in accordance with Regulation S under the U.S. Securities Act of 1933, as amended, and to accredited investors in Canada. RBC Capital Markets and UBS Limited acted as Joint Lead Managers and Bookrunners.

Proceeds from the offering will be used to further advance the development of the Kayelekera Project in Malawi, establish a uranium marketing subsidiary, fund opportunities as they arise for acquisitions and corporate growth and for general corporate purposes. Paladin's uranium marketing subsidiary will, amongst other things, establish its own uranium inventory to afford the Paladin Group flexibility and stability of ongoing supply in a dynamic uranium market.

Caution Regarding Forward Looking Statements: Statements regarding the Company's plans to develop the Kayelekera Project and establish a uranium marketing subsidiary 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.

The securities referred to herein have not been registered under the US Securities Act of 1933 and may not be offered or sold in the United States or to a US person absent registration or an applicable exemption from registration.

A.C.N. 061 681 098

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