PALADIN ENERGY LTD. (‘PALADIN’) – A$64.8 – A$69.4 MILLION...

PALADIN ENERGY LTD. (‘PALADIN’) – A$64.8 – A$69.4 MILLION INSTITUTIONAL PLACEMENT

The following summary of the terms and conditions of the securities is provided for your convenience and information.

Joint Lead Managers
and Bookrunners: UBS AG, Australia Branch and RBC Capital Markets

Issuer: PALADIN ENERGY LTD.

Issuer Description: Paladin Energy Ltd. (PDN) is a uranium production company with two operating mines in Africa, projects in Australia, Niger and Canada and a focused strategy to become a major uranium mining house. PDN's current focus is on its African projects, Langer Heinrich in Namibia and Kayelekera in Malawi

Ticker: PDN (listed on ASX and TSX)

Underwriting: Not underwritten

Offer Type: Non-underwritten primary placement of new fully paid ordinary shares (the “New Shares”)

Offer size ($): Approximately A$64.8 – A$69.4 million

Offer size (shares): Approximately 56.9 million New Shares (approximately 7.3% of issued capital, to be settled on either the Australian or Canadian share register of the Issuer)

Offer Price: Bookbuild from a floor of A$1.14 to A$1.22 per share with final price determined following the bookbuild.

BELLS TO BID AT FINAL PRICE.


Discount: Last Closing Price (ASX): A$1.31 (27 September 2011)

Discount to last close: 13.0% (based on A$1.14 bookbuild floor)
Discount to 5-day VWAP: 19.2% (based on A$1.14 bookbuild floor)

Ranking: New Shares rank pari passu in all respects with existing fully paid ordinary PDN shares from allotment

Use of proceeds: Funds raised will primarily be used to strengthen Paladin’s balance sheet to ensure the Company is well placed to meet all future commitments and pursue identified growth initiatives.


Timetable :

BIDS DUE IN FLOATS AT 4.30PM TODAY AT FINAL PRICE IN DOLLARS