PALADIN ENERGY LTD ANNOUNCES SUCCESSFUL RAISING OF US$274M...

PALADIN ENERGY LTD ANNOUNCES SUCCESSFUL RAISING OF US$274M THROUGH CONVERTIBLE BONDS

Paladin Energy Ltd. has completed its issue of senior, unsecured convertible bonds due 2017.

The offer size was US$274M.

Commenting on the Convertible Bond issue, Paladin's Managing Director/CEO, John Borshoff, said "The successful completion of this raising significantly strengthens the balance sheet and in conjunction with the tender offer addresses the major portion of the 2013 convertible bonds in good time. The capital raising has placed Paladin in a strong position to pursue its growth objectives and to optimise the benefit to the Company of the strong interest being shown by various potential strategic partners.

Over the past 7 years, Paladin has achieved a unique position in the uranium mine supply landscape. This has created numerous potential opportunities for Paladin to develop having established 2 successful mining operations and a valuable project pipeline all supported by a team of professionals able to turn vision into outcome."

In conclusion John Borshoff said "Paladin represents an opportunity with high credibility in the nuclear industry as a builder/operator. This raising positions Paladin strongly for its ongoing negotiations with the various parties in respect of asset sales for the ultimate benefit of all shareholders while at the same time improving our balance sheet."

The Convertible Bonds carry a coupon of 6.00% per annum payable semi-annually in arrear and are convertible into Paladin shares at an initial conversion price of US$2.190 per share, representing a conversion premium of approximately 25% above the reference price of Paladin shares at the time of pricing (C$1.739 at close of trading on TSX on 20 April 2012 or US$1.752/A$1.690 based on exchange rates at the time of fixing the reference price). The initial conversion price is subject to adjustment in certain circumstances.

Unless previously redeemed, purchased or cancelled, the Convertible Bonds will be redeemed at par on 30 April 2017. Paladin has the right to redeem all outstanding Convertible Bonds at their principal amount plus accrued interest in certain circumstances including, on or after 14 May 2015, if the Paladin share price, translated into US dollars at the prevailing exchange rate, exceeds for a specified period of time 130% of the conversion price.

The Convertible Bonds were offered to institutional, professional and sophisticated investors only. The offering occurred outside the United States in accordance with Regulation S under the US Securities Act of 1933, as amended. The offering was made in Canada in minimum subscription amounts of at least US$200,000 principal amount of Convertible Bonds.

The payment and settlement date of the Convertible Bonds is expected to be on or around 30 April 2012, subject to the receipt of customary approvals, including TSX approval.

The proceeds of the issue will be used in part to fund Paladin's concurrent tender offer (Tender Offer) to acquire up to US$200M (or such higher amount as it determines in its absolute discretion) of its US$325M issue of convertible bonds due in March 2013 (2013 Bonds), with any amount not applied to the Tender Offer being utilised to strengthen the Company's balance sheet and pursue future growth opportunities.

The Canadians liked this announcement they smashed the SP down 7.5%.