strategy to become a major uranium mining house. Since 1998, during a period of sustained downturn in global uranium markets, Paladin accumulated a quality portfolio of advanced uranium projects each having production potential.

The Langer Heinrich Mine in Namibia is Paladin’s flagship project. Having reached its initial production of 2.7Mlb U3O8 per annum in 2008, the mine completed its Stage 2 ramp-up to 3.7Mlb per annum in the 2010 financial year. Subsequently, the Company has completed a Stage 3 expansion and is now producing at a 5.2Mlb per annum rate.

The Kayelekera Mine in Malawi, the Company’s second mine, provided an excellent follow-up to Langer Heinrich. A Development Agreement with the Government of Malawi was executed in February 2007, which provides fiscal stability for the project for ten years. KM was officially opened in April 2009 and is capable of operating at design production rates of 3.3Mlb U3O8. Unfortunately, despite improvements to both processing recoveries and costs, the extended downturn in uranium price has resulted in Kayelekera Mine being placed on 'care and maintenance' until there is a significant improvement in the uranium price outlook. Regional exploration is currently focussed on identifying additional resources to extend the expected life of the project when processing at the Kayelekera Mine resumes.