Paladin Resources Ltd.
TSX : PDN
ASX : PDN

Paladin Resources Ltd.

January 27, 2006 08:21 ET

Paladin Resources Ltd: Another Yellowcake Sales Contract Secured for Langer Heinrich

PERTH, WESTERN AUSTRALIA--(CCNMatthews - Jan. 27, 2006) - Paladin Resources Ltd ("Paladin" or "the Company")(TSX:PDN)(ASX:PDN) has secured a second sales contract for a portion of its yellowcake (U3O8) production from the Langer Heinrich Uranium Mining Operation, scheduled for commissioning in September 2006. (See Paladin announcement of January 19, 2006.) This latest sales arrangement with a US utility is subject to finalisation of all necessary legal documentation.

The sales contract is for the purchase of 2,080,000lbs U3O8 for delivery between 2007 and 2012. Pricing will be market related to be determined at time of each delivery with escalating floor and ceiling price components.

Paladin negotiations with nuclear power utilities worldwide are showing that a strong appetite exists not only for additional uranium but also for a new supplier that can demonstrate credibility and security of supply in the market.

As had been previously stated the price of uranium has been increasing steadily over the past five years and significant upward price pressure remains as a result of forecast shortages of supply. In a situation where new mine production is now essential to meet increasing demand, this places Paladin in an excellent position to become a significant player in the global uranium market.

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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