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PERTH, WESTERN AUSTRALIA--(Marketwire - May 13, 2010) - Paladin Energy Ltd ("Paladin" or "the Company") (TSX:PDN)(ASX:PDN) announces the release of its Financial Report for the nine months ending 31 March 2010. The Financial Report is appended to this News Release.

Results

• Record total uranium oxide (U₃O₈) production of 1,157,375lb for the March quarter compared to 685,874lb for the comparative period. For the first time quarterly production has exceeded 1Mlb. Record total production of 2,873,284lb achieved for the nine months up from 2,010,410lb for the comparative period.

• Langer Heinrich Mine delivered full quarter production at Stage 2 nameplate capacity with a 10% increase in production over the December 2009 quarter.

• Stage 3 construction to 5.2Mlb per annum remains on track for year end commissioning. Project now 30% complete and remains within approved budget.
• Stage 4 feasibility study resource upgrade drilling for expansion to 10Mlb per annum commenced in January and is progressing as planned.

• Kayelekera uranium production step-change achieved with resin transfer bottleneck remedied.

• Production 228,998lb for the quarter ended 31 March 2010 increasing from 145,315lb for previous quarter.
• April production increases to 156,000lb.
• Operation remains on track for nameplate production in June 2010 quarter.
• Mineral resource upgrade expands project life by 2 years.

• Langer Heinrich Mine cost of sales for the nine months to 31 March 2010 remained at US$26/lb in line with the nine month period to 31 March 2009. This represents an improved performance given the 15% strengthening in the Namibian dollar exchange rate during this period.

• Sales volumes of 1,043,000lb for the quarter ended 31 March 2010 at an average of US$50.49/lb compared to 453,000lb at an average of US$54.47/lb for the comparative period. Total sales volume for the nine months reached 2,841,000lb averaging US$53.80/lb. This represents a significant increase over the 1,576,000lb sold in the nine months ended 31 March 2009 averaging US$56.43/lb.

• Long term contracting strategy continues to be implemented with signing of a long term contract totalling 0.7Mlb commencing in 2011. This builds on the 4Mlb long term contract commencing in 2012 announced in the December 2009 quarter.

• Profit and Loss

Publication Contributing Sources

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