Ann: Quarterly Activities Report for Period Endin, page-2

re: Ann: Quarterly Activities Report for Peri... The lowlight has to be the sale price of ore but PDN still looks well placed imo.

HIGHLIGHTS

? Key strategic initiatives successfully implemented.
- sale of 25% minority joint venture equity to China National Nuclear Corporation (CNNC) for US$190M.
- Paladin satisfies conditions for US$20M deposit from CNNC to become non-refundable.
- refinancing of Langer Heinrich and Kayelekera facilities, allowing significant reduction in debt repayments
over CY2014 and CY2015.
- decision to place Kayelekera on care and maintenance, saving appreciable cash outflows at current
uranium prices.

? Continued steady production at both Langer Heinrich and Kayelekera mines in March quarter.
- combined production of 2.089Mlb (948t) U3O8.
- production was down slightly by 5% from December quarter mainly due to fewer days in the quarter and
rundown in production at Kayelekera in preparation for care and maintenance.

? Langer Heinrich produced 1,392,694lb (632t) U3O8 for the March quarter, 4% above budget.
- overall recovery for the quarter was 85.8%.
- feed grade for the quarter down to 750ppm U3O8.

? Kayelekera produced 696,710lb (316t) U3O8 for the quarter, in line with the revised care and
maintenance budget.
- recovery of 86.7% for the quarter.
- announcement on 7 February to place the project on care and maintenance due to low uranium price with production expected to continue until early May when reagent stocks will be depleted.

? Revised production guidance of 7.8Mlb to 8.0Mlb for FY14 remains on track.