PDN Paladin Energy Ltd

Paladin Resources Ltd ("Paladin" or "the Company") (TSX:PDN)(ASX:PDN) has secured its first sales contract for a portion of its yellowcake (U3O8) production from the Langer Heinrich Uranium Mining Operation, scheduled for commissioning in September 2006. This sales arrangement with a major US utility is subject to finalisation of all necessary legal documentation. The sales contract is for the purchase of 2,145,000lbs U3O8 for delivery between 2007 and 2012. Pricing will be market related to be determined at time of each delivery with escalating floor and ceiling price components. This sales arrangement signifies a very important occasion for Paladin and the uranium supply industry generally. Few new companies have entered into the uranium market in the past 25 years, reflecting a period of dismal outlook and a uranium mining industry essentially in retreat. The timing of new production from Paladin's Langer Heinrich Mine in Namibia, which is expected to be followed into production in 2008 by its Kayelekera Project in Malawi, provides Paladin with a unique window of opportunity. The price of uranium has been increasing steadily over the past five years and significant upward price pressure remains as a result of forecast shortages of supply. In a situation where new mine production is now essential to meet increasing demand, this places Paladin in an excellent position to become a significant player in the global uranium market. Paladin Resources Ltd is an Australian uranium exploration and development company listed on the Australian Stock Exchange ("PDN") and the Toronto Stock Exchange ("PDN"). Paladin is involved in the mineral resource sector with projects both in Australia and Africa. With the Langer Heinrich Uranium Project in Namibia currently under construction, the Kayelekera Project in Malawi undergoing a Bankable Feasibility Study, Paladin is well placed to become a major supplier of primary uranium to world markets. Paladin Resources Ltd. (TSX:PDN) (ASX.:PDN)