sale of minority interest $190 usd to cnnc

Great News!! More than $200M AUD - Far price??

Paladin Energy Ltd (Paladin or the Company) is pleased to advise that it signed an agreement on 18 January
2014 to sell a 25% joint-venture equity stake in its flagship Langer Heinrich uranium mining operation in Namibia to
China Uranium Corporation Limited, a wholly owned subsidiary of China National Nuclear Corporation (CNNC), the
leading Chinese nuclear utility, for consideration of US$190M.

The offtake component of the agreement will allow CNNC to purchase its pro-rata share of product at the prevailing
market spot price. There is also an opportunity for Paladin to benefit by securing additional long term offtake
arrangements with CNNC, at arm’s length market rates, from Paladin’s share of Langer Heinrich production.

The respective Boards of Paladin and CNNC have approved the transaction. Completion is subject only to certain
Chinese regulatory approvals (including the National Development and Reform Commission), which are expected
to be obtained by mid-2014, and routine consents for the transaction from Paladin’s project financiers and the Bank
of Namibia. CNNC has agreed to pay a US$20M non-refundable deposit to Paladin.

The Langer Heinrich mining operation in Namibia commenced uranium production in 2007 and has subsequently
undergone two stages of expansion. It was the first successful conventional uranium mining operation to have
been built in the world since 1992 when Areva established its McLean Operation in Canada. Langer Heinrich
utilises a unique alkaline leaching process developed by Paladin. Langer Heinrich has a current design capacity of
5.2Mlb of uranium concentrate per annum and, following successful optimisation and debottlenecking, Paladin is
targeting 5.7Mlb of production in FY14. This de-risked operation has a current 20-year mine life and, given
sufficient uranium price incentive, is capable of being expanded further to produce approximately 8.5Mlb per
annum.

The Government of Namibia has been formally informed of the agreement between Paladin and CNNC, which will
be of great significance to the future development of the country’s vitally important uranium mining sector.