Paladin Resources Ltd.
TSX : PDN
ASX : PDN

Paladin Resources Ltd.

March 02, 2007 06:00 ET

Paladin Resources Ltd.: Media Briefing Notes

PERTH, WESTERN AUSTRALIA--(CCNMatthews - March 2, 2007) - Paladin Resources Ltd (TSX:PDN)(ASX:PDN) ("Paladin") has noted the rapid Reject Recommendation which has been announced by the Summit Resources Limited ("Summit") Board today.

Paladin is of the view that its Bidders Statement adequately explains the offer and arguments for Summit shareholders to accept the offer. However, in the light of several of the assertions made by Summit today, we felt it necessary to release a number of observations by Paladin Chairman, Rick Crabb:

- "Summit has suggested that 'Paladin shareholders are exposed to more downside than upside risk'. We would suggest that Summit shareholders reviewing our offer place more weight on the research and recommendations of respected investment banks that cover Paladin - these include UBS, RBC, Dundee, BBY, ABN Amro and Deutsche Bank - than on comments from Summit's Board until they are prepared to support those comments with fact based research.";

- "In relation to Summit's expected revaluation of its shares post the potential Federal ALP policy change in late April 07, we remind Summit shareholders that Paladin has offered a 34% premium (at date of announcement) to the recent trading prices of Summit. Furthermore, that trading was being undertaken by shareholders whom we assume had already formed their views on the likelihood of this change of policy";

- "Summit has indicated that Paladin will stop the litigation if it gets control of Summit. This is false. We have clearly stated that if we own 100% of Summit post the offer, we will not continue to Sue ourselves. However, if we own less than 100% post the offer, then the non-Paladin, independent Directors of Summit will have responsibility and authority for management of the litigation";

- "Summit has warned shareholders that they may face capital gains tax on the consideration they receive. This warning is relevant and we encourage Summit shareholders to review our comments on tax issues in the Bidders Statement and also to seek independent advice. It is our understanding that Summit's comments with respect to shareholders who have held stock for less than 12 months are factually incorrect";

- "Paladin takes comfort from the fact that in the four short days post announcement of the bid, 7.7% of the Summit stock has been traded at prices broadly in line with the implied offer price at the time of trading. Clearly, at least 7.7% of the shareholders believed the implied offer price was more than adequate."; and

- "Despite the Summit Board's reject recommendation, which was not unexpected, Paladin is resolved to move forward with its offer and looks forward to having that offer considered by Summit's shareholders".

A.C.N. 061 681 098

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