Paladin Resources Ltd.
TSX : PDN
ASX : PDN

Paladin Resources Ltd.

March 19, 2007 04:47 ET

Paladin's Releases Second Supplementary Bidders Statement and Goes Unconditional

PERTH, WESTERN AUSTRALIA--(CCNMatthews - March 19, 2007) - Paladin Resources Ltd. ("Paladin")(TSX:PDN)(ASX:PDN) -

The Paladin Offer for Summit is open, unconditional and accepting shareholders will receive their Paladin shares within seven days of acceptance.

The key points included in the Second Supplementary Bidders Statement are as follows (these are further detailed in the Second Supplementary Bidders Statement available on the Paladin website):

1. Contrary to Summit's Board Assertion, which is made without any independent support, the valuation of Summit implied by the Offer is fair and reasonable.

(a) Summit's litigation is not likely to succeed - Paladin's view is that Summit is not likely to succeed in the litigation it commenced. Further, the fact that Resolute and Mt Isa have counterclaimed against Summit (a fact not disclosed by Summit until after it was disclosed in Paladin's Bidder's Statement) highlights that Summit shareholders are also exposed to downside risk from the litigation. It is also very unlikely that the Court's decision will be received by the May/June timetable suggested by the Summit Board.

(b) A change in Labor Party uranium mining policy has been long anticipated and is already priced in.

(c) The proposed Pacific Mines spin-off does not offer hidden value - there is nothing new or inherently valuable to Summit shareholders in the Pacific Mines spin-off.

(d) The addition of JORC resources is long anticipated, and has been frequently delayed - the inconsistency of Summit's announcements over the past 12 months point to real doubts as to the ability of its management to deliver on what should be a core competency for any exploration company: proving up resources in a timely manner.

(e) The Offer is fully valued on a pound of U3O8 (JORC/NI 43-101 compliant) basis - the Offer values Summit at US$27.7 per pound of U3O8 (JORC/NI 43-101 compliant), compared to Paladin at US$20.7

(f) The Georgina Basin assets offer limited potential - Summit has referred to the Georgina Basin greenfield uranium project as another potential source of upside. However, you should note that only seven months ago Summit effectively valued this asset at A$10m, by granting Newland Resources Limited (Newland) the option to take up 50% of the asset through a A$5m farm-in agreement. Under the terms of the agreement, the $5m was not even paid to Summit, but through expenditure on the project. Furthermore, in the seven months since the farm-in was announced, there has been no material advancement. Newland, which is sole funding the exploration, spent nothing on exploration last quarter.

There have been no new material developments announced by Summit since Paladin announced its Offer.

2. Summit shareholders and the market believe the Offer is fair

Even before the Offer was open for acceptance, Summit shareholders were voting with their feet. In the 14 trading days following the announcement of the Offer, approximately 31% of Summit's shares changed hands. This included the total sell down by Summit's largest shareholder (Firebird Global Master Fund, Ltd), which sold its entire 8.2% stake at a 7.6% discount to Summit's daily VWAP at that time. Turnover of approximately 31% far exceeds the typical level of trading in Summit Shares: typically, 4.5% of Summit Shares would have changed hands over 14 trading days.

Summit shareholders should insist that Summit include in its Target's Statement an independent expert's report by a reputable organisation with relevant experience in this area.

3. Paladin is better equipped than Summit to develop Mt Isa

(a) Paladin has a proven ability to manage and complete construction of large scale uranium projects

(b) Paladin has a team of professionals experienced in uranium geology and mining

(c) Paladin will be better able to negotiate attractive offtake agreements

(d) Summit has not supported its 2010 target production date for Valhalla

4. Paladin continues to enjoy excellent upside potential

Paladin provides a materially lower risk profile through having existing cash-flow generating assets and exposure to jurisdictions currently favourable to uranium production.

(a) Both Paladin and Summit offer exposure to uranium prices should these continue to improve in the medium term.

(b) Both Paladin and Summit offer exposure to upside (and downside) associated with changes in State Government uranium mining policy. However, Paladin provides a balance of exposure across Northern Territory, Western Australia and Queensland assets. On the other hand, all of Summit's uranium assets are located in Queensland.

(c) Paladin has upcoming positive milestones at Langer Heinrich

(d) Paladin has upcoming positive milestones at Kayelekera

Furthermore, Summit's claimed downsides for accepting shareholders should be disregarded. Shareholders should note that Summit recently conceded that certain concerns it raised in its 2 March 2007 announcement in relation to the form of consideration to be received by "foreign holders" and tax consequences of the Offer were incorrect.

In particular, Summit shareholders whose address on the register of members of Summit is in Australia or New Zealand, will be entitled to receive Paladin Shares.

Paladin has also taken steps to ensure that Shareholders with a registered address in the United States will receive Paladin Shares under the Offer.

Furthermore, there is no requirement in Australia for shareholders to hold their Summit stock for 12 months or more to CGT enjoy roll over relief, if Paladin achieves at least 80% ownership of Summit under the Offer.

The conclusion: Summit shareholders should ACCEPT THE OFFER IMMEDIATELY

A.C.N. 061 681 098

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