Paladin Energy Ltd: Quarterly Activities Report for Period Ending-30 September 2009

PERTH, WESTERN AUSTRALIA, Oct 29 (MARKET WIRE) --
Paladin Energy Ltd ("Paladin" or "the Company") (TSX: PDN)(ASX: PDN) is
pleased to provide its Quarterly Activities Report for the three month
period ended 30 September, 2009.

HIGHLIGHTS

- September quarter overall production of 744,188lb - slight increase
from last quarter.

-- Langer Heinrich to achieve Stage 2 production of 3.7Mlb pa for Dec 09
quarter.

-- Kayelekera ramp-up behind schedule, however, design production of
3.3Mlb pa still on target for March 2010 quarter.

- Financial Year 2010 guidance revised to a range of 5.6Mlb to 6.1Mlb due
to slower production ramp-up at Langer Heinrich and Kayelekera.

- Sales of 703,000lb at an average price of US$54.5/lb for revenue of
US$38.3M for quarter.

- Major new production expansion plans for Africa (increasing from 8.5Mlb
pa to 13.8Mlb pa) to clearly establish Paladin as a Tier 1 producer.

-- Stage 4 Langer Heinrich expansion targeting 10Mlb pa (includes 1Mlb
heap leach) with nameplate production by mid 2014.

-- Kayelekera optimisation to 3.8Mlb pa by mid 2013.

- US$374M private placement completed.

OVERALL SAFETY

The Kayelekera Mine suffered two fatalities in August and early October
both related to mobile equipment/vehicles. The second fatality involved a
bus overturning with 20 employees on board, which resulted in several
additional injuries.

Paladin management has taken immediate actions to audit and, where
necessary, improve safety throughout the organisation. Both Kayelekera
and Langer Heinrich will initiate the National Occupational Safety
Association (NOSA) system by mid November. NOSA, which combined with the
strengthening safety culture at Langer Heinrich, is expected to
consolidate the necessary improvements in safety performance.

Evidence clearly points to vehicle traffic as a major safety risk for
both operations and Paladin Senior Management is committed to developing
an appropriate safety regime also focussing on the Company's global
transportation requirements.

LANGER HEINRICH MINE, Namibia

Production

For the quarter, Langer Heinrich produced 654,516lb U3O8 (Stage 1
nameplate capacity), which was less than that of the previous quarter,
due to numerous interruptions from Stage 2 integration (plant tie-ins and
equipment commissioning) and low equipment availability on the front end
of the plant. At quarter end, all major Stage 2 integration had been
completed and ramp-up to the Stage 2 production level was in progress.
Although significant improvements to the scrubber units on the plant
front end have been completed in the past, the 40% increase in tonnage
necessitated adjustments to their operation and maintenance schedules,
particularly for the liners. Additionally, the two new leach tanks in the
second leach circuit required a replacement of faulty agitators.

Recent production figures indicate that Stage 2 levels are now almost
being realised with the October production forecast to be approximately
275,000lb U3O8 (90% of Stage 2 nameplate design).

Sales

Sales for the quarter were 703,000lb U3O8 at a value of US$38.3M,
representing an average sales price of US$54.48/lb U3O8.

Mining

Mining has continued in both Pit A and Pit D. A new pit, Pit F, which
lays adjacent to the temporary tailings facility, will be prepared for
mining early in 2010 to facilitate the planned tailings management
systems and to provide an optimal blend of feed material to the plant.

The plant ore feed during the quarter was as follows:

-------------------------------
July Aug Sept Total
----------------------------------------------------------------------------
Crushed tonnes,
dry 130,436 141,434 151,086 422,956
----------------------------------------------------------------------------
Feed Grade, ppm 896 939 917 918
----------------------------------------------------------------------------

Process Plant

Process efficiencies were affected by the stopping and starting of the
plant as Stage 2 equipment was brought on line and the processes
fine-tuned. Despite these disruptions, an overall efficiency of 78.5% was
achieved for the quarter. Scrub efficiency dropped from previous high
levels but is expected to improve by mid October once the remaining
upgrades to the screens are completed. Leach efficiency for the quarter
was excellent (93.2%) despite the issues with the new agitators. Iron
exchange (IX) efficiency was briefly affected by the carryover of solids
from prepared reagent solutions that were not completely dissolved.

Tailings

Current emphasis is on the design and construction of extensions to the
berm walls of the existing temporary tailings facility. The design of the
first in-pit new tailings facility to the west of the plant is in
progress with construction expected to commence in early 2010.

Preparation for the establishment of Pit F, adjacent to the temporary
tailings facility, commenced during the quarter. Once mined out, this pit
will be utilised for flood water control and rain water harvesting,
thereby releasing Pit A and Pit B for tailings storage much earlier than
previously planned.

Stage 2 Upgrade Progress

Despite some initial problems with scrubber availability, screen
efficiency and leach agitators, the plant feed tonnage was increased
during the quarter, particularly in the last half of September. Daily
tonnages of over 6,000t per day have been achieved for 60% of this time
(Stage 2 design is 6,453tpd) reaching close to 7,000t on occasions.

All outstanding items for Stage 2 commissioning have now been brought
online, with the exception of a second dryer, which has no significance
to current plant production. Difficulties experienced during the
commissioning period included delays to front end installation, dust
controls and pumping and piping issues from the new counter current
decantation (CCD) thickeners.

All these issues have been addressed and resolved during the quarter and
the Stage 2 production target is now expected to be achieved for this
current December quarter.

Stage 3 Upgrade

In accordance with previously released information, the final design
parameters have been set for a Stage 3 expansion on the following basis:

- Nominal production to increase to 5.2Mlb pa U3O8 (an increase of 1.5Mlb
pa or 40% from the nominal Stage 2 level of 3.7Mlb pa)

- Target completion date set for the December quarter 2010

- Capital cost estimated at US$71M

- No significant additional infrastructure

The flowsheet will involve a number of significant upgrades across the
processing plant, particularly a second crushing & scrubbing feed line
with increases to the existing screening plant, an additional leach tank
(with heat exchangers etc), two additional CCD thickeners and expansion
of the ion exchange circuit.

The Stage 2 expansion has already incorporated capacity for the Stage 3
expansion in the pre-leach thickening, precipitation, product drying and
some reagent dosing facilities.

No upgrade to the water supply, nor expansion of the power supply
facilities are necessary with ample grid and generator capacities already
available.

Exploration Activity EPL3500

Exploration drilling on EPL3500, west of the Langer Heinrich Mining
Lease, was undertaken during the quarter. A total of 27 RC holes, for
2,199m were drilled. All holes were downhole gamma logged and equivalent
U3O8 grade values have been calculated.

The drilling succeeded in extending the Langer Heinrich mineralised
palaeochannel by approximately 300m further west and the mineralisation
appears to be still open in this direction. Better intersections
included:

----------------------------------------------------------------------------

Hole Depth From Depth To Intersection Grade (ppm eU3O8)
----------------------------------------------------------------------------
EPL3 58 81 23 278
----------------------------------------------------------------------------
EPL4 54 62 8 738
----------------------------------------------------------------------------
EPL6 68 74 7 334
----------------------------------------------------------------------------
EPL7 66 75 7 258
----------------------------------------------------------------------------
EPL10 51 60 9 614
----------------------------------------------------------------------------

The intersections shown above were calculated using a cut off grade of
100ppm and a maximum width of internal waste of 1m. All holes were
drilled on a nominal 100m x 50m grid.

KAYELEKERA URANIUM PROJECT, Malawi

Production

Kayelekera production of 89,672lb for the quarter was hampered by a
slower than expected ramp-up in July and August, however September
results were improved and this upward trend should continue towards the
anticipated nameplate production rates in the March 2010 quarter. Most
significantly, the entire Resin-In-Pulp (RIP) circuit has now proven to
be effective and with a number of mechanical availability issues
rectified, the ramp-up should continue on-track.

The first shipment of product was trucked from Kayelekera to the Walvis
Bay port (Namibia) in August, with a second shipment of two containers
leaving site on 12 October. Sulphuric acid continues to be trucked to
site as commissioning of the acid plant has been delayed (acid production
is expected to commence in late October). Project Development

Construction of the sulphuric acid plant was completed during the
quarter. Acid production is expected to commence by the end of October
after some initial commissioning delays.

The construction workforce has been progressively demobilised with only a
small workforce retained to complete work on the Tailings Storage
Facility (TSF) and acid plant completion.

The Malawi Government's road building contractor continues to work on two
bridges and some culverts/drains in the first 13km section of the M26
public road that was recently sealed. Work is on schedule to be completed
in the next quarter. Major roadworks on the final 19km section to the
mine access road have commenced.

Operations - Commissioning and Ramp-up

Ramp-up over the past quarter has been slower than anticipated due to
mechanical availability of certain equipment (numerous pumps) and pipe
work, which have been identified and are in the process of being replaced.

At quarter end, the Kayelekera employee workforce totaled 234 of which
71% were Malawian. The contractor workforce totaled 641 persons with the
mining contractor, the largest single group, having 191 people.

Mining

A total of 246,400t of ore grading 1,364ppm U3O8 and 264,800t of waste
were removed from the pit in this quarter. Currently there is about
700,000t of ore either on the Run of Mine (ROM) pad or exposed in the
pit. The mining fleet, not required for open pit mining, has been
mobilised to assist with the construction of the outstanding TSF wall.

Process Plant

The front end of the plant is still in the process of ramp-up with a
temporary semi-mobile jaw crusher planned for installation to augment
crushing requirements. The crushing/grinding circuit has been able to
handle current throughputs in spite of some mechanical availability
issues which are currently being addressed. This crusher is expected to
be operational in November.

The RIP circuit has been working very well, showing a higher loading of
resin than planned. The elution circuit, although initially very
problematic, is now operating at the design flow rate, with a few
additional minor modifications to the system expected to further improve
its operation.

The plant chemistry is performing well, and it is anticipated that once
the outstanding issues mentioned above have been addressed, final plant
ramp-up check throughout should be possible. Most of the rectification
work is planned to be completed in the next quarter.

Electricity

The power station (10MW) is operating as expected with the final load
test completed in August.

Exploration Activity

The 2008 reserve drilling at the mine site had shown that the
mineralisation was not yet fully delineated, particularly to the
north-west and west, and thus the potential existed to easily identify
additional resources with further drilling which was expected to provide
in-pit extensions.

To close off the western portion of the orebody, and better define the
total resource, a 67 hole, 7,061m RC drilling programme was completed in
August 2009. The results will be evaluated in the next quarter and a new
resource statement for the Kayelekera orebody is expected late in 2009.

The drilling programme at Juma North included 25 RC holes totalling
3,915m. The drilling programme confirmed the presence of the prospective
zones and oxidation states but has intersected only sub-economic uranium
mineralisation to date. Drilling in 2010 will concentrate on the southern
part of the area where further work is needed to better define
appropriate targets and allow access for drill rigs.

OVERALL PRODUCTION GUIDANCE FOR FINANCIAL YEAR 2010

Langer Heinrich and Kayelekera continued ramp-up activities during the
quarter and, although ramp-up was slower than anticipated, results
continue to trend positively. Overall production for the September
quarter was 744,188lb (764,527lb drummed) compared to a total of
727,716lb in June quarter. Overall, considerable progress has been made
towards removing identified production bottlenecks and achieving
nameplate production levels as evidenced by the recent Langer Heinrich
production figures.

Previous guidance forecasting annual production rates for Paladin had
been based on a faster ramp-up of production than has been realised to
date. Significant progress has been made during the quarter and
management is confident the main delays have been absorbed into this
period. Through late September and October the Langer Heinrich Mine has
successfully incorporated the Stage 2 equipment into operation and, with
mining stockpiles healthy, the remainder of the financial year is
expected to realise a further 2.8Mlb, which should result in a total
yearly production of 3.45Mlb.

As a new production centre in ramp-up, Kayelekera is more difficult to
forecast. Certainly the process plant has proven its flowsheet, and is
well equipped to steadily increase throughput to required levels. The ore
feed stockpiles are in excellent shape and thus an annual production of
between 2.2Mlb and 2.6Mlb is expected.

For financial year 2010 guidance for overall production is forecast in
the range of 5.6Mlb to 6.1Mlb, revised from the previously stated
guidance of 6.6Mlb.

MAJOR NEW EXPANSION PLAN FOR LANGER HEINRICH AND KAYELEKERA, PRODUCTION
INCREASE FOR 2012 to 2014

A major component of Paladin's stated strategy is focused organic growth
through long term commitment and planning. This planned rigorous
expansion programme which, when complete, is expected to place the
Company firmly amongst the Tier 1 uranium producers. This development
programme is expected to result in Paladin having an annual production of
approximately 13.8Mlb pa U3O8 by mid 2014 from its African projects alone
and will demonstrate a progressive increase in production beyond the
Stage 3 expansion. (see Paladin news release of 30 June, 2009).

An extensive in-house study has examined a range of expansion options for
Langer Heinrich and has determined that an increase in production to a
level around 10Mlb pa U3O8 is sustainable for the current mineral
resources, will add significant value to its flagship asset, and bring
the project to an optimal performance level.

The Stage 4 investigation, initiated in 2008 during the Stage 3 expansion
study period, looked at various production levels taking cognisance of
the need to maximise value whilst maintaining a long-term production
profile. It is believed that with current resources this balance can best
be achieved by a plant production level of around 9Mlb pa, and a
remaining mine life of 15 years. Investigations to date also suggest that
this can be supplemented by a 1Mlb pa heap leaching facility.

The ROM operation is planned to crush approximately 8Mtpa at an average
grade of 600ppm. This crushed ore will then be upgraded through an
expanded scrubbing circuit to give a leach feed grade of around 920ppm.
The heap leach feed material is expected to comprise 42Mt of low grade
(175ppm) material.

Off-site infrastructure requirements include the installation of a second
water supply pipeline and an upgrade to the existing electrical power
supply line. Paladin does not believe that there will be any problems
associated with sourcing both water and power as Namibia is planning on
increasing the availability of both in the region within the envisaged
project development time frame. The key will be to negotiate a reasonable
cost base for the additional water and electricity requirements.

To develop the project further, Paladin will undertake a feasibility
study, including environmental permitting, to be completed during
calendar year 2010 in parallel with in-fill drilling designed to increase
the confidence in the current inferred resources and expand the reserve
base. This study is not expected to be difficult to complete as there is
a vast amount of operational project data and in-house expertise now
available across the key technical, environmental and financial areas to
ensure its smooth development. This study would be followed by a 6-month
approvals period and a 2 year design and construction period targeting
mechanical completion by mid 2013. Ramp-up to nameplate is expected to
take 12 months. The flowsheet for the main plant would essentially remain
as present with substantial upgrades in all sections of the plant except
for final packaging.

Onsite capital expenditure for the main plant has been estimated at
+/-US$300M whilst operating costs are estimated to remain within the
US$25-$30/lb range of current operations. Infrastructure costs will be
determined in the feasibility study and structured financing options with
third party ownership will be considered.

The capital cost for the heap leach facility has been estimated at
+/-US$50M with an OPEX of under US$35/lb, and will undergo a detailed
evaluation in parallel with the main feasibility study.

Langer Heinrich is currently in the process of ramping up its Stage 2
expansion to 3.7Mlb pa and implementation of Stage 3 to 5.2Mlb pa is
scheduled for completion by late calendar 2010. This latest proposed
expansion further emphasises Paladin's determination for organic growth
and its long term commitment to uranium mining in Namibia.

In addition to its plans for Langer Heinrich, Paladin is to conduct an
optimisation study at Kayelekera whereby it intends exploiting some
additional resource by extending the west wall of the current planned
pit. This study will be targeting an increased production rate of 3.8Mlb
pa (from current 3.3Mlb pa) with minimal capital requirement (estimated
at US$10-$15M) by utilising existing excess capacity. It is expected this
production rate will be achieved by mid calendar 2012.

Paladin's strengthened balance sheet, maturing producer status and strong
in-house development capability make, in the opinion of management, an
expansion of this nature a realistic and achievable target. ISA URANIUM
JOINT VENTURE, Queensland - (Paladin Energy Ltd 50%, Summit Resources
(Aust) Pty Ltd 50% Operator)

Valhalla Uranium Deposit

A resource estimate conforming to the JORC guidelines for the Valhalla
uranium deposit has now been completed following validation and
compilation of data from drilling undertaken earlier in the year. The
estimate covers the original Valhalla deposit as well as the south
eastern extension, Valhalla South.

The updated Mineral Resource estimate for the Valhalla uranium deposit is
quoted using a cut-off grade of 230ppm U3O8.

Grade ppm t Mlb
Mt U3O8 U3O8 U3O8
----------------------------------------------------------------------------
Measured Resources 12.66 833 10,549 23.2
Indicated Resources 18.53 900 16,680 36.7
----------------------------------------------------------------------------
Total Measured & Indicated 31.20 874 27,229 60.0
----------------------------------------------------------------------------
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Inferred Resources 5.2 859 4,494 9.9
----------------------------------------------------------------------------
(Figures in the table above may not add due to rounding)

Measured and Indicated Mineral Resources increased by 9.9% to 60.0Mlb
U3O8 (27,229t U3O8) from previously announced 55.4Mlb U3O8 (25,153t
U3O8). Total Resources increased from previous 67.5Mlb U3O8 to 69.9Mlb
U3O8.

The main Valhalla deposit now has a strike length in excess of 1,100m
with mineralisation extending from surface to a depth of over 650m. It is
structurally controlled with a characteristic southerly plunge. Valhalla
South is located approximately 600m along strike to the south-east of the
main mineralised zone and has a strike length of at least 400m and
appears open both along strike and at depth. Summit completed the planned
drilling programme of 52 holes for 11,739m at both Valhalla and Valhalla
South by the end of June 2009. These holes have been drilled on a nominal
80m x 40m grid pattern to infill the existing drill holes and replace
some historic drill holes as well as extend the known mineralisation at
Valhalla South along strike and at depth. The majority of these drill
holes have been gamma logged down hole and gyroscopically surveyed to
obtain an accurate hole orientation using company owned equipment. The
resource dataset is a combination of chemical assays and appropriately
calibrated down hole gamma logging. Gamma derived grades have been
validated against both XRF and chemical assay derived grades.

Skal Uranium Deposit

At Skal a total of 13 RC holes and 28 diamond core holes (for 5,724m)
were completed by the end of June 2009 and this data has been validated
and incorporated into the existing Skal dataset. The drilling was
successful in confirming the resource potential at Skal East, located
approximately east of Skal North and South.

Updated resource estimation for the Skal East deposit has now been
completed and incorporated into the greater Skal Mineral Resource
(detailed below). All Skal Mineral Resources conform to the JORC
guidelines. The resource dataset used is a combination of chemical assays
and appropriately calibrated downhole gamma logging. Gamma derived grades
have been validated against both XRF and chemical assay derived grades.
Whilst Skal East in particular has been closed off along strike there
still appears to be potential for the resource to be open at depth in the
centre. Drilling in the future will be targeted at confirming both the
depth extensions to Skal East and North as well as depth and strike
extensions to Skal South.

Skal Mineral Resource
(Individual mineral resource figures are quoted on a 100% of project basis)

Updated Skal East Mineral Resource at 250ppm U3O8 Cut-off
---------------------------------------------------------
Grade ppm Tonnes Mlb
Mt U3O8 U3O8 U3O8
----------------------------------------------------------------------------
Indicated Mineral Resource 4.3 575 2,458 5.4
----------------------------------------------------------------------------
Inferred Mineral Resource 0.8 448 348 0.8
----------------------------------------------------------------------------

The Skal East resources tabled above show the initial Indicated
Mineral Resources estimated for the deposit and represent a 38% increase
on the previously estimated Inferred Only resource of 3.9Mlb U3O8.

OVERALL PALADIN ATTRIBUTED MINERAL RESOURCES IN THE MOUNT ISA PROJECTS

The resource updates at Valhalla and Skal have resulted in a 19.7%
increase in combined Measured and Indicated Mineral Resources. Resources
at either 230ppm or 250ppm U3O8 cut-off grade at the Mount Isa Uranium
Project including the updated Valhalla and Skal resources are now:

----------------------------------------------------------------------------

Measured and Indicated Inferred Mineral Paladin
Deposit Mineral Resources Resources Share
----------------------------------------------------------------------------
Cut-off
ppm Grade Grade
U3O8 Mt ppm t U308 Mt ppm t U308
----------------------------------------------------------------------------
Valhalla 230 31.2 874 27,229 5.2 859 4,494 91.0%
----------------------------------------------------------------------------
Skal 250 4.3 575 2,458 8.4 491 4,129 91.0%
----------------------------------------------------------------------------
Bikini 250 10.1 517 5,200 82.0%
----------------------------------------------------------------------------
Andersons 230 2.0 1,050 2,100 82.0%
----------------------------------------------------------------------------
Watta 230 4.2 410 1,720 82.0%
----------------------------------------------------------------------------
Duke
Batman 250 0.5 780 388 1.6 630 1,016 100%
----------------------------------------------------------------------------
Honey Pot 250 2.6 700 1,799 100%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
30,075 20,458
Total 36.0 837 (66.3Mlb) 34.1 600 (45.1Mlb)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total Resource
Attributable 27,373 18,049
to Paladin 32.8 836 (60.3Mlb) 29.9 604 (39.8Mlb)
----------------------------------------------------------------------------

(Figures in the table above may not add due to rounding)

Total Measured, Indicated and Inferred Mineral Resources under
management by Paladin in the Mount Isa region increased to 111.4Mlb
(50,533t U3O8) from previous 106.6Mlb U3O8 (48,381t U3O8). Measured and
Indicated Mineral Resources increased to 66.3Mlb U3O8 (30,075t U3O8 at
837ppm) from previous 55.4Mlb U3O8 (25,153t U3O8 at 889ppm).

BIGRLYI URANIUM JOINT VENTURE, Northern Territory - Australia (Paladin
42.06%, Energy Metals Ltd 53.74% Operator)

Following the updated resource estimate announced in May 2009 by Energy
Metals, new mining studies indicated that additional open pit resources
would be required to maintain the viability of the project at current
uranium prices. Based on these assumptions a new budget was approved in
July 2009 by the Joint Venture partners to concentrate on both resource
extension drilling and a limited grade control study. These programmes
commenced in August 2009.

ANGELA JOINT VENTURE, Northern Territory - Australia (Paladin 50% -
Cameco 50% Operator)

The 2009 exploration and geotechnical drilling programme was completed
during the quarter. A total of 111 holes including 8 large diameter
geotechnical drillholes, were completed. A total of 27,017m has now been
drilled at the project including 16,684m RC and 10,333m diamond core.

The data is currently being evaluated and a new geological model is in
the process of being developed. All recent, and a significant proportion
of the historic holes, have been down hole gamma logged in an effort to
confirm historical values. After all confirmation assays have been
received, a new resource model estimation is expected to be completed
late in the March 2010 quarter.

Metallurgical samples totalling 79kg have been sent to the Cameco
laboratories in Canada for scouting leach tests. This work is in the
early stages and no results are yet available.

CORPORATE

US$167M Project Finance Completed for Kayelekera

Paladin has drawndown US$132M under the Kayelekera Project Financing Loan
(Facility) to the end of September 2009.

The Facility is provided by a syndicate of banks made up of Societe
Generale, Standard Bank and Nedbank Capital, the same syndicate of banks
that provided project finance for Langer Heinrich Stage 1. The US$167M
project finance package consists of; US$145M Project Financing Facility -
currently drawn to US$84.5M, US$12M Cost Overrun Facility - currently
funded with US$8M cash and US$10M Performance Bond Facility. US$110M of
the US$145M project finance facility is backed by the Export Credit
Insurance Corporation of South Africa.

A$429M (US$374M) Private Placement

Paladin completed an institutional private placement during the quarter
with RBC Capital Markets and UBS AG, Australia Branch acting as Global
Joint Lead Placing Agents and Cormark Securities Inc., Dundee Securities
Corporation and GMP Securities L.P. as Co-Managers to the placement.
Azure Capital acted as Corporate Adviser to Paladin. A total of
93,450,000 ordinary shares were issued raising A$429M at a price of
A$4.60 per share. The pricing represented a negligible discount of 0.5%
to the Company's 5 day VWAP.

Participation in A$5.3M placement by NGM Resources Limited

Paladin has increased its shareholding in NGM from 16.7% to 19.9% by
contributing A$1.77M towards the placement. The placement was completed
in two stages at A$0.15 per share.

Market Comments

The Ux spot price moved from US$52/lb U3O8 at the beginning of July to
US$42.75/lb U3O8 at the end of September reflecting a seasonal slowing of
activity during the northern summer. Concerns about US Department of
Energy proposed uranium sales added to market hesitancy in September
before buyers returned in early October. The long term indicator price
eased one dollar from US$65/lb U3O8 (in April 2009) to US$64/lb U3O8 at
the end of August.

As the shock of the global financial crisis slowly recedes, governments
are once again focussing on climate change and the forthcoming Copenhagen
conference. The importance of nuclear power in a CO2 constrained energy
mix is now so widely recognised that the significant growth in nuclear
power, which Paladin has long predicted, has moved from hypothetical to
inevitable. The International Energy Agency's special paper prepared for
the recent Bangkok UNFCC meeting identifies a doubling of nuclear
capacity by 2030 in its "450ppm CO2 Scenario" and specifically calls for
"...a much faster roll-out of renewables and nuclear..." amongst other
strategies. Similarly both the World Nuclear Association and the
International Atomic Energy Agency have recently revised upwards their
forecast of nuclear capacity in 2030 significantly from their earlier
reports in 2007 and 2008 respectively.

In Europe, the change in attitude towards nuclear is reflected in the new
German Government's plan to review and abandon the German nuclear
phase-out policy, and the recent decision by Belgium to offer a ten year
lifetime extension for existing nuclear plants. Even Greenpeace UK has
dropped its anti-nuclear position in its recent climate change manifesto.

Declaration

The information in this announcement that relates to Exploration, Mineral
Resources and Ore Reserves is based on information compiled by Eduard
Becker B.Sc, David Princep B.Sc and Andrew Hutson B.E., all of whom are
members of the AusIMM. Messrs Becker, Princep and Hutson each have
sufficient experience that is relevant to the style of mineralisation and
type of deposit under consideration and to the activity that he is
undertaking to qualify as Competent Persons as defined in the 2004
Edition of the "Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves", and as a Qualified Person as defined
in Canadian National Instrument 43-101. Messrs Becker, Princep and Hutson
are full-time employees of Paladin Energy Ltd and consent to the
inclusion of the information in this announcement in the form and context
in which it appears.

Caution Regarding Forward Looking Statements:

The forward-looking statements made in this quarterly activities report
are based on management's assumptions and judgments regarding future
events and results. Such forward-looking statements, including but not
limited to those with respect to the Company's plans for expansions of
the Langer Heinrich and Kayelekera mines and Financial Year 2010
production guidance, involve known and unknown risks, uncertainties and
other factors which may cause the Company's actual results, performance
or achievements to be materially different from any anticipated future
results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among others, the
actual market prices of uranium, changes in project parameters as plans
continue to be evaluated, and the possibility of cost overruns, as well
as those factors disclosed in the Company's filed documents. There can be
no assurance that the expansion of the Langer Heinrich and Kayelekera
mines will proceed as planned or be successfully completed within
expected time limits and budgets or that, when completed, the expanded
facilities will operate as anticipated.

A.C.N. 061 681 098

Contacts:
Paladin Energy Ltd
John Borshoff
Managing Director/CEO
+61-8-9381-4366
+61 (8) 9381 4978 (FAX)
Email: john.borshoff@paladinenergy.com.au

Paladin Energy Ltd
Greg Taylor
Investor Relations Contact
905 337-7673 or Mob: 416 605-5120 (Toronto)
Email: greg.taylor@paladinenergy.com.au
Website: www.paladinenergy.com.au

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