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Press release from Marketwire

Paladin Energy Ltd Announces Results of Tender Offer

Thursday, May 24, 2012

Paladin Energy Ltd Announces Results of Tender Offer09:00 EDT Thursday, May 24, 2012PERTH, WESTERN AUSTRALIA--(Marketwire - May 24, 2012) - Paladin Energy Ltd(TSX:PDN)(ASX:PDN) (Paladin or the Company) refers to its invitation of tenders for repurchase for cash of up to U.S.$200,000,000 of its outstanding U.S.$325,000,000 5.00 per cent. convertible bonds due 2013 convertible into ordinary shares of Paladin issued on 11 March 2008 and due March 2013 (Bonds), which are listed on Singapore Exchange Securities Trading Limited. Paladin previously announced on 23 April 2012 the launch of a tender offer pursuant to which certain holders of the Bonds (the Bondholders) were invited to tender any or all of their Bonds for repurchase by Paladin for cash (the Offer) (subject to a minimum tender amount of U.S.$200,000 in nominal amount of the Bonds) upon the terms and subject to the conditions contained in the Tender Offer Memorandum dated 23 April 2012 as supplemented by the Supplemental Tender Offer Memorandum dated 16 May 2012 (as so supplemented, the Tender Offer Memorandum). On 23 May 2012, Paladin announced the expiry of the period for Bondholders to tender their Bonds under the Offer. Paladin announces that:(a)prior to 12.00 noon (London time) on 8 May 2012 (the Early Tender Deadline) Paladin received valid tenders in respect of Bonds in an aggregate nominal amount of U.S.$293,400,000;(b)after the Early Tender Deadline but prior to 3.00 p.m. (London time) on 22 May 2012 (the Expiration Deadline) Paladin received valid tenders in respect of Bonds in an aggregate nominal amount of U.S.$2,200,000;(c)as the aggregate nominal amount of Bonds validly tendered for repurchase pursuant to the Offer is greater than U.S.$200,000,000 (the Maximum Acceptance Amount), Paladin has accepted such validly tendered Bonds on a pro rata basis such that the aggregate nominal amount of such Bonds accepted for repurchase is no greater than the Maximum Acceptance Amount. Each tender of Bonds will be scaled by a factor equal to (i) the Maximum Acceptance Amount, divided by (ii) US$295,600,000, being the aggregate nominal amount of the Bonds that have been validly tendered. Each tender of Bonds that is scaled in this manner will be rounded down to the nearest U.S.$200,000. After rounding, Paladin will therefore accept tenders in respect of Bonds in an aggregate nominal amount of U.S.$191,000,000 (the Accepted Bonds), which will be the aggregate nominal amount of Bonds to be repurchased by Paladin on 29 May 2012 (the Settlement Date);(d)each holder of Accepted Bonds in respect of which Paladin received tenders prior to the Early Tender Deadline will receive a repurchase price pursuant to the Tender Offer Memorandum of U.S.$200,000 per U.S.$200,000 in nominal amount of such Accepted Bonds and accrued interest of U.S.$2,166.67 per U.S.$200,000 in nominal amount of such Accepted Bonds on the Settlement Date;(e)each holder of Accepted Bonds in respect of which Paladin received tenders after the Early Tender Deadline but prior to the Expiration Deadline will receive a repurchase price pursuant to the Tender Offer Memorandum of U.S.$198,000 per U.S.$200,000 in nominal amount of such Accepted Bonds and accrued interest of U.S.$2,166.67 per U.S.$200,000 in nominal amount of such Accepted Bonds on the Settlement Date; and(f)the aggregate cash consideration (excluding accrued interest) payable by Paladin for the repurchase of the Accepted Bonds is U.S.$190,988,000. The aggregate amount of accrued interest payable by Paladin pursuant to the Tender Offer Memorandum in respect of the Accepted Bonds is U.S.$2,069,169.85. The aggregate consideration (including such accrued Interest) payable by Paladin for the repurchase of the Accepted Bonds is U.S.$193,057,169.85.Paladin expects to make an announcement on or about 29 May 2012 stating, among other things, that settlement has taken place, the total consideration paid by it for the Bonds repurchased by it pursuant to the Offer and the aggregate nominal amount of Bonds remaining outstanding following completion of the Offer.Caution Regarding Forward-Looking Statements: Statements in this news release regarding the proposed future announcement regarding settlement of the Offer is a forward-looking statement. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ from those expressed or implied by such statements. There can be no guarantee such statements will be realised. In particular, there can be no assurance as to when or if settlement will occur. Reference should be had to Paladin's public disclosure documents, including its most recent Annual Information Form, which are available under Paladin's profile at www.sedar.com, for a discussion of risk factors affecting the Company. ACN 061 681 098FOR FURTHER INFORMATION PLEASE CONTACT: John BorshoffIn Australia:Managing Director/CEO, Paladin Energy Ltd+61 8 9381 4366 or Mobile: +61 419 912 571+61 (8) 9381 4978 (FAX)john.borshoff@paladinenergy.com.auORGreg TaylorIn Canada:Investor Relations Contact905 337-7673 or Mobile: 416 605-5120 (Toronto)greg.taylor@paladinenergy.com.auwww.paladinenergy.com.au