PDN Paladin Energy Ltd

Paladin Resources Ltd ("Paladin" or "the Company") (TSX:PDN)(ASX:PDN) is pleased to advise that the Minister of Mines, Natural Resources and Environment has granted three Exclusive Prospecting Licenses (EPL) in northern Malawi to its wholly owned subsidiary Paladin (Africa) Limited (PAL). Figure 1 shows the location of the three new EPL's (Nos. 168, 169 and 170) and in total these cover 1,140 km2. Two licences are contiguous with the Kayelekera EPL070, while the third licence stretches along a coastal section of Lake Malawi. The newly granted EPL's were applied for to secure specific Karoo Sandstone formations which are considered prospective for Kayelekera type uranium deposits. Please note: To view the map titled: Tenement Locations (Figure 1), please click on the following link: www.ccnmatthews.com/docs/pdn0201.doc The area covered by EPL170 has been previously investigated which included the carrying out of geophysical airborne surveys and limited ground follow-up programs. These earlier investigations were carried out during the 1980's by the British Central Electric Generating Board (CEGB), the group that discovered and evaluated the Kayelekera deposit up to a full feasibility study. The tenements cover anomalous areas delineated by CEGB. The large number of airborne radiometric and geochemical anomalies identified on these properties are associated with the target geological formations that host the Kayelekera deposit. Only EPL170 underwent some follow-up exploration and this tenement area is considered to hold the greatest potential for uranium. CEGB drilled 49 holes (30m to 100m depth) to check 10 anomalous areas and 31 intersected numerous low order mineralisation including a maximum of 0.5m at 0.2% U3O8 and identified the existence of critical Redox fronts. The occurrence of such uranium mineralisation and presence of oxidised and reduced rocks in association, is regarded as highly favourable and confirms that mineralising systems operated which were similar to those that generated the Kayelekera Uranium Deposit. The inconclusive exploration results obtained by CEGB are attributed to the limited extent of detailed work and lack of follow-up drilling. The other two licence areas (EPL168 and EPL169) contain numerous radiometric airborne and stream water-stream sediment geochemical anomalies. These cluster to define broad prospective areas. Although these anomalies were briefly ground-checked by CEGB they remain valid targets for re-investigation. CEGB were distracted by their focus on the Kayelekera evaluation and, because of this priority and the dwindling uranium prices at the time, CEGB did not have the opportunity to properly evaluate the regional potential surrounding Kayelekera. As the properties contain significant indications of uranium accumulations further investigations are justified. The extensive prospective areas offered by these tenements provide Paladin with a significant opportunity to expand the existing uranium resource base of the project and has the potential to make any mining operation at Kayelekera a strategic facility for longer term utilisation and benefit. Exploration work for 2006 will initially involve the digitisation and geophysical evaluation of the old helicopter airborne spectrometric data. Also all previous exploration results including drilling results will be evaluated in detail. This work will allow the known uranium prospects, airborne and stream sediment anomalies to be ranked in preparation for the ground follow-up work planned for 3rd quarter 2006. 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)