ann: letter to shareholders

TAKEOVER: SMM: PALADINS TAKEOVER OFFER

PALADIN'S TAKEOVER OFFER

Dear fellow shareholder,

While I understand you are receiving a large amount of information about
Paladin's takeover offer for Summit Resources, I wanted to keep you informed
about the latest developments.

Paladin Resources Ltd will despatch its offer documents to Summit's
shareholders in the next day or so.

NO ACTION IS REQUIRED BY SUMMIT SHAREHOLDERS ON RECEIPT OF PALADIN'S OFFER
DOCUMENTS

Summit directors believe the Paladin offer is inadequate and we unanimously
recommend that you REJECT the offer. To do so, all you need to do is IGNORE
all correspondence and other communication from Paladin.

Your directors believe that the offer does not adequately compensate you for
the unrealised short, medium and long term potential of Summit's uranium
deposits and prospects at Mount Isa, the Georgina Basin greenfields uranium
project, our base metal, iron ore and phosphate exploration interests and our
extensive mineral exploration tenement holdings in northwest Queensland.

None of your directors will be accepting the offer.

We are currently preparing our formal response to Paladin's offer (our
Target's Statement) which we hope to send to you within the next week. You
should wait to receive our Target's Statement before making a final decision
in relation to Paladin's offer.

There is no need for Summit shareholders to take any action in relation to
Paladin's offer before you receive Summit's Target's Statement.

Since Paladin announced its hostile offer, we have received wide ranging
support from our shareholders for which we are very grateful. We look
forward to your continuing support and can assure our shareholders that your
board and management team is committed to working hard to unlock the
tremendous potential of our Mount Isa Uranium Project and our extensive
exploration tenement holdings in northwest Queensland for the benefit of all
of our shareholders.

The shareholder line for all enquiries in relation to Paladin's offer is 1
800 104 758 (toll free within Australia) or +61 2 8268 3961 (international
callers).

To sign off on a positive note, you will no doubt be interested to know that
uranium oxide spot price is now US$90 a pound!

Alan J Eggers
Summit Resources Limited
PERTH 13 March 2007