Paladin Resources Ltd.
TSX : PDN
ASX : PDN

Paladin Resources Ltd.

November 14, 2006 08:23 ET

Paladin Resources Ltd.: Langer Heinrich Uranium Project, Namibia

New Lower Royalty Rate Set for Uranium Improves Economics

PERTH, WESTERN AUSTRALIA--(CCNMatthews - Nov. 14, 2006) - Paladin Resources Ltd. ("Paladin" or "the Company")(TSX:PDN)(ASX:PDN) announces that the long awaited Royalty Framework for the Namibian Mining Industry has been resolved by the Namibian Government. After a long period of consultation with industry, the Namibian Government has now specified that mining operations will be liable to pay to the Mining Commissioner for the benefit of the State Revenue Fund, a royalty levied in accordance with the following rates:



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ROYALTY SCHEDULE
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Group of Minerals Percentage of market value of
minerals leviable as royalty
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Precious metals 3%
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Base and rare metals 3%
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Semi-precious stones 2%
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Nuclear fuel minerals 2%
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Industrial minerals 2%
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Non-nuclear fuel minerals 3%
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The Namibian Government first advised its intentions to introduce a uranium royalty in January 2004, indicating a royalty range up to 5% ad valorem would be considered for implementation. As a conservative measure, Paladin incorporated a 5% royalty into its Bankable Feasibility Study (completed April 2004) and all financial modeling of Langer Heinrich.

The 2% Royalty now specified by the government to be levied on nuclear fuel minerals (including uranium) has a positive uplift on the project economics when compared against impact of the 5% royalty factor used previously by Paladin.

A.C.N. 061 681 098

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