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Press release from Marketwire

Paladin Energy Ltd.- Langer Heinrich Mine, Namibia US$141M Project Finance Facility Drawdown

Monday, September 12, 2011

Paladin Energy Ltd.- Langer Heinrich Mine, Namibia US$141M Project Finance Facility Drawdown07:30 EDT Monday, September 12, 2011PERTH, WESTERN AUSTRALIA--(Marketwire - Sept. 12, 2011) -Paladin Energy Ltd ("Paladin" or "the Company") (TSX:PDN) (ASX:PDN) wishes to note that the Company's Board of Directors advise that financial close has been reached under the Langer Heinrich Project Finance Facility ("Facility"), and Paladin has submitted a drawdown notice for US$127.2M.Paladin has to date funded the Stage 3 expansion from existing cash reserves and as such, the majority of the funds will be used to reimburse Paladin. The undrawn portion of the Facility post drawdown (being US$7.8M) will be used to meet the remaining construction expenditure.The US$141M Facility consists of:-US$135M Project Financing Facility – currently drawn to US$127.2M US$6M Cost Overrun Facility – currently undrawnIn accordance with the terms of the Facility, an equity cost overrun account is funded with a further US$6M.The facilities are being provided by Société Générale (as Agent), Nedbank Capital, Standard Bank Plc, Barclays Capital (the investment banking division of Barclays Bank PLC) and Rand Merchant Bank, a division of FirstRand Bank Limited. With the continued support of our existing Stage 1 financiers together with the addition of two new lenders, Paladin is confident the Stage 3 expansion at Langer Heinrich is on track with construction finalisation and commissioning to reach nameplate capacity in the 1st quarter of 2012. The Stage 3 expansion will increase production capacity from the current 3.7Mlb pa to 5.2Mlb pa.FOR FURTHER INFORMATION PLEASE CONTACT: John BorshoffPaladin Energy LtdManaging Director/CEO+61-8-9381-4366 or Mobile: +61-419-912-571john.borshoff@paladinenergy.com.auORGreg TaylorPaladin Energy LtdInvestor Relations Contact+905 337-7673 or Mobile: +416-605-5120 (Toronto)greg.taylor@paladinenergy.com.au