Paladin Energy Ltdgy

The New Energy In The Market

John Borshoff – Managing Director/CEO

1Investor Presentation

February 2009

Disclaimer

This presentation includes certain statements that may be deemed “forward-lookingstatements”. All statements in this presentation, other than statements of historical facts, thataddress future production, reserve or resource potential, exploration drilling, exploitationactivities and events or developments that Paladin Energy Ltd (the “Company”) expects tooccur, are forward-looking statements.

Although the Company believes the expectations expressed in such forward-lookingg p y p p gstatements are based on reasonable assumptions, such statements are not guarantees offuture performance and actual results or developments may differ materially from those in theforward-looking statements. Factors that could cause actual results to differ materially fromthose in forward looking statements include market prices, exploitation and explorationsuccesses and continued availability of capital and financing and general economic marketsuccesses, and continued availability of capital and financing and general economic, marketor business conditions.

Investors are cautioned that any such statements are not guarantees of future performanceand actual results or developments may differ materially from those projected in the forward-looking statements The Company does not assume any obligation to update or revise itslooking statements. The Company does not assume any obligation to update or revise itsforward-looking statements, whether as a result of new information, future events orotherwise.

2

Presentation Outline

• Paladin Status• Projects Update• Future Outlook

Paladin Statuskey takeawayskey takeaways

• Paladin reaches significant growth operational milestones– Langer Heinrich sustaining above nameplate and commissioninga ge e c susta g abo e a ep ate a d co ss o g– Kayelekera in commissioning phase

• Committed to growth and expanding production base• Committed to growth and expanding production base– Stage III Langer Heinrich– Mount Isa

M&A ( FUSION k )– M&A (eg FUSION takeover)

• Demonstrating clear action to support its strategic vision– foresaw transformational changes in nuclear industry

• Sufficient funding available to support envisaged growthSufficient funding available to support envisaged growth

• Stable, effective Board and growing management

Paladin’s Suite of Uranium Properties staged for sequential developmentstaged for sequential development

Ad d E l ti Pre Development

Construction of MineReserves of 25Mlb

Advanced Exploration ProjectResources of 23Mlb

Pre Development ProjectResource - 85Mlb

Resources of 35Mlb

pro uranium

pro uranium

Re-activate EvaluationManyingee Resource of 24Mlb

New ProjectAngela/Pamela DepositsHistorical ~28Mlb

pro uranium

Operating Mine plus expansion

Reserves of 65.8Mlb

Resources of 164MlbPaladin 100% Paladin 85%

Attributable Pounds

Resources of 164MlbPaladin 42.06% Paladin 50% (plus 81.99% control of Summit –

in its 100% owned properties) Paladin 50% JV Cameco

5Fusion 100% & Deep Yellow 19.29%

Recent Dec Qtr Results

• Gross profit of US$6.4M, with LHUP contributing US$5.3M.Gross profit of US$6.4M, with LHUP contributing US$5.3M.

• Record production levels on upward trend - 673,982lb, up from650 554lb for the previous quarter650,554lb for the previous quarter.

• Declining costs, projected to decline further.

• Reduced sales revenue reflects delivery schedules, not shortfall in sales e.g. 208,000lb sold 2 Jan 09.

• Elected to impair Mount Isa exploration assets (US$527.6M net of DTL) and required to impair investment in Deep Yellow Ltd (US$26.0M).

6

Presentation Outline

• Paladin Status• Projects Update• Future Outlook

Questions?• STAGE I - at above design production • STAGE II - expansion being commissioned

• STAGE III - expansion in design phase

• Large Resource Upgrade

Langer Heinrich Mountain

Open Pits

Plant Tailings

Langer Heinrich Projectlarge resource/reserve upgradelarge resource/reserve upgrade

MINERAL RESOURCES

250ppm Cut-off Mt Grade % U O t U O Mlb U O250ppm Cut-off Mt Grade % U3O8 t U3O8 Mlb U3O8

Measured Resources 32.8 0.06 19,582 43.171

Indicated Resources 23.6 0.06 13,276 29.269

Measured + Indicated 56.4 0.06 32,858 72.440 46% increaseMeasured Indicated 56.4 0.06 32,858 72.440

Inferred Resources 70.7 0.06 41,557 91.617

Conforms to both JORC and NI 43-101 guidelines

64% increase

g

MINING RESERVES @ US$60/lb U3O8

250ppm Cut-off Mt Grade % U3O8 Tonnes U3O8250ppm Cut off Mt Grade % U3O8 Tonnes U3O8

Proven Ore Reserves 30.0 0.06 17,924 (39.50Mlb)

Probable Ore Reserves 20.6 0.06 11,950 (26.34Mlb)

Total 50.6 0.06 29,874 (65.84Mlb) 75% increase* , ( )

Conforms to both JORC and NI 43-101 guidelines

* Stage I Mine plan

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- 900ppm U3O8 ore feed for 12 years- 420ppm (low grade stock piles) ore feed for 5 years

Langer Heinrich Projectproduction – 6 months at designproduction 6 months at design

300,000

January 2009, production lbs U3O8

100 000

150,000

200,000

250,000

DrummedDesign

-

50,000

100,000 g

8 months over Nameplate, lbs U3O8

1 200 0001,400,000 1,600,000 1,800,000 2,000,000

400,000 600,000 800,000

1,000,000 1,200,000

Actual Drummed

Design

-200,000

June to Jan/09

Langer Heinrich Production quarter by quarterquarter by quarter

600,000650,000

650,054

673,982Stage I Design

390 807

490,800

568,670

400,000

500,000

lb88%

100%

104%

259,755

390,807

100 000

200,000

300,000U3O8

%

60%

75%

88%

0

100,000

Q1 Q2 Q3 Q4 Q1 Q2

40%

Q1Sept 07

Q2Dec 07

Q3Mar 08

Q4Jun 08

Q1Sept 08

Q2Dec 08

Langer HeinrichStage II expansionStage II expansion

IX Columns

Pre leach

Front–end Upgrade

Larger Leach TanksCCD Thickeners

Langer HeinrichStage II construction statusStage II construction status

New Crushing System Pre-Leach &CCD Thickeners

Leach Tanks Power StationPower Station

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Kayelekera Uranium Project

Kayelekera Uranium Projectcurrent statuscurrent status• US$200M CAPEX – (final within 5%)

– construction 90% complete Exploration Targetsconstruction 90% complete

– commissioning started January 2009

– 3.3Mlb U3O8 pa using acid leach/Resin in Pulp

d ti i M h 2009Karonga

Targets

Hot Targets

– production ramp-up in March 2009

– 1600 people on site

– high safety achievement 2.9Mhrs injury free

• Tailings Dam and other water structure construction completed

O it d t t k ili

Juma

• Open-pit down to ore zone, stockpiling commenced

• Developing strong uranium experiencedoperational team.

• Excellent satellite targets for resource expansion (Juma and Mpata)p ( p )

• Project financing (US$167M) near drawdown 15

Kayelekera Uranium Projectlarge resource/reserve upgradelarge resource/reserve upgrade

MINERAL RESOURCES300ppm Cut off Mt Grade ppm Tonnes Mlb300ppm Cut-off Mt Grade ppm

U3O8

Tonnes U3O8

MlbU3O8

Measured Resources 3.42 1,211 4,141 9.1Indicated Resources 18.78 725 13,626 30.0Total 22.20 800 17,757 39.1Inferred Resources 3.9 552 2,152 4.7 29% increase

Conforms to both JORC and NI 43-101 guidelines

MINING RESERVES400ppm Cut-off Mt Grade

ppmU O

Tonnes U3O8

MlbU3O8

U3O8Proven Ore Reserve 2.87 1,373 3,943 8.7Probable Ore Reserve 9.75 959 9,342 20.6Total 12.62 1,053 13,285 29.3 17% increase, ,

Conforms to both JORC and NI 43-101 guidelines

27% Increase in total Resources

Kayelekerain commissioning phaseg p

Mill Pre Leach

17Water Retention Dam Tailings Dam

Mount Isa Uranium Projectcurrent status• Uranium resource attributable to

Paladin increased by 198% to 85 2Mlb

current status

Fusion DepositsPaladin increased by 198% to 85.2Mlb– Skal resource update due March 09

• Focused metallurgical scoping test

p

Focused metallurgical scoping test work underway

• Environmental baseline work ongoing

• Fusion takeover adds resources and potential for more

VALHALLA

SKAL

• Preparing for Bankable Feasibility Study to start early 2010

• Ongoing lobbying of QLD Government re uranium policy

• 08/09 budget US$8M

Stated Resources – Summit and Valhalla

Deposit * Measured and IndicatedR

InferredR

PaladinShResources Resources Share

Cut-off ppmU3O8

Mt Grade ppm t U3O8 Mt Grade

ppm t U3O8

Valhalla 230 27.80 891 24,765 7.3 799 5,863 90.9%Skal 250 7.6 508 3,781 90.9%Bikini 250 10.1 517 5,200 81.9%50 0 5 5, 00 8 9%Andersons 230 2.0 1,050 2,100 81.9%Watta 230 4.2 410 1,720 81.9%

24 765 18 664Total 27.80 891 24,765 (54.6Mlb) 31.2 597 18,664

(41.1Mlb)Total Resource Attributable to

P l di25.27 891 22,511

(49 6Mlb) 26.9 601 16,154(35 6Mlb)Paladin (49.6Mlb) (35.6Mlb)

Conforms to both JORC and NI 43-101 guidelines

* Excludes the Fusion 7 06Mlb at 07% U O NI 43 101 Inferred Resources

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Excludes the Fusion 7.06Mlb at .07% U3O8 NI 43-101 Inferred Resources

Presentation Outline

• Paladin Status• Projects Update• Future Outlook

4 Year Production Outlook

8.49.3

8

9

10

Actual Forecast

6.6

6

7

8

Mlb

3.35

3

4

5MlbU3O8

1.71

1

2

3

0

2007/08 2008/09 2009/10 2010/11 2011/12

Langer Heinrich Production Kayelekera Production

Project Pipelineassets acquired & projects developedassets acquired & projects developed

In

Langer HeinrichU i Mi i

In Commissioning

2012Uranium Mining

Operation

Inventory U3O8

351Mlb351Mlb

New production with staged organic g ggrowth 2007 to 2011

Paladin Offers Excellent Upside key outcomes for 2008/09key outcomes for 2008/09

• Langer Heinrich (Namibia)– achieve 1.5Mlb to 1.6Mlb for H2 2008 (CY)– fully integrate Stage II expansion (2.6Mlb to 3.7Mlb pa)– Stage III expansion planned and designed– produce 2.95Mlb U3O8 for 12 month period end June 09

• Kayelekera (Malawi) – fully commission operation and start production ramp-up in March– produce 0.4Mlb U3O8 by June 09produce 0.4Mlb U3O8 by June 09– drilling on hot targets

• Mount Isa Project (Queensland - Australia)– update resource estimate for Skal March 09 and continue drilling– complete prefeasibility study April 09– initiate work on Fusion targets

• Angela/Pamela Uranium Deposit (Northern Territory – Australia)– commence field work June quarter 09

• Manyingee (Western Australia)• Manyingee (Western Australia)– start up preparation for resource confirmation drilling

23

Conclusion

• Multi-mine/multi-country operating status

• Maintaining strong production profile

• Further expansion possibility at Langer Heinrich (Stage III)Further expansion possibility at Langer Heinrich (Stage III)

• Sustained development from project pipelineprogress Mount Isa and Angela Projects for development beyond– progress Mount Isa and Angela Projects for development beyond 2012

• Focussed M&A activity• Focussed M&A activity– opportunity to establish a global uranium mining house

U i k t tl k iti• Uranium market outlook very positive

• Strong balance sheet

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PALADIN ENERGY LTDContact Details

Mr John Borshoff(Managing Director)

Grand Central 1st Floor, 26 Railway RdSubiaco Western Australia 6008(Managing Director)

Mobile: +61 (0) 419 912 571Email: john.borshoff@paladinenergy.com.au

Subiaco Western Australia 6008PO Box 201, Subiaco Western Australia 6904Telephone: +61 (0) 8 9381 4366Facsimile: +61 (0) 8 9381 4978Email: paladin@paladinenergy.com.aup @p gyWebsite: www.paladinenergy.com.au