Paladin Energy Ltd

The New Energy In The MarketJohn Borshoff – Managing Director/CEO

Mark Bolton – Acting CFO

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December Quarter 2008 Results & Investor Update

17 February 2009

Disclaimer

This presentation includes certain statements that may be deemed “forward-lookingstatements”. All statements in this presentation, other than statements of historical facts, thataddress future production, reserve or resource potential, exploration drilling, exploitationactivities and events or developments that Paladin Energy Ltd (the “Company”) expects tooccur, are forward-looking statements.

Although the Company believes the expectations expressed in such forward-lookingAlthough the Company believes the expectations expressed in such forward-lookingstatements are based on reasonable assumptions, such statements are not guarantees offuture performance and actual results or developments may differ materially from those in theforward-looking statements. Factors that could cause actual results to differ materially fromthose in forward looking statements include market prices, exploitation and explorationsuccesses, and continued availability of capital and financing and general economic, marketor business conditions.

Investors are cautioned that any such statements are not guarantees of future performanceand actual results or developments may differ materially from those projected in the forward-looking statements. The Company does not assume any obligation to update or revise itsforward-looking statements, whether as a result of new information, future events orotherwise.

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Presentation Outline

• Paladin Status

• Financial Dec Qtr Review

• Projects Update• Projects Update

• Future Outlook

Paladin 2008 Quarterlykey takeaways

• Paladin reaches significant growth operational milestones– Langer Heinrich sustaining above nameplate and commissioning

– Kayelekera in commissioning phase

• Committed to growth and expanding production base– Stage III Langer Heinrich

– Mount Isa

– M&A (eg FUSION takeover)– M&A (eg FUSION takeover)

• Demonstrating clear action to support its strategic vision– foresaw transformational changes in nuclear industry

• Sufficient funding available to support envisaged growth

• Stable, effective Board and growing management

Paladin’s Suite of Uranium Properties staged for sequential development

Construction of Mine

Reserves of 25Mlb

Resources of 35Mlb

Advanced Exploration Project

Resources of 23Mlb

Pre Development Project

Resource - 85Mlb

pro uranium

Re-activate Evaluation

Manyingee Resource of 24Mlb

Operating Mine plus expansion

Reserves of 65.8Mlb

Resources of 164MlbPaladin 42.06% Paladin 50% (plus 81.99% control of Summit –

in its 100% owned properties)

New Project

Angela/Pamela Deposits

Historical ~28Mlb

Paladin 50% JV Cameco

Paladin 100% Paladin 85%

Attributable Pounds

pro uranium

pro uranium

5Fusion 100% & Deep Yellow 19.29%

Presentation Outline

• Paladin Status

• Financial Dec Qtr Review

• Projects Update• Projects Update

• Future Outlook

Key HighlightsDec 08 Qtr

• Langer Heinrich – record underlying performance

– US$14.2M revenue, US$6.4M gross profit

– 673,982lb produced, up from 650,554lb for the previous quarter

– Represents annualised production of 2.7Mlb

– Operating costs per pound continue to decline

– Stage II expansion to 3.7Mlb/pa currently commissioning

• Kayelekera• Kayelekera

– Construction near complete with commissioning started

– Production ramp-up from beginning of Mar Qtr 2009

– Long term sales contract with major Asian utility in Sept 08 Qtr

– Second sales contract currently subject to documentation

• Strong balance sheet

– US$192.2M of cash and equivalents

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Financial Performance Dec 08 Qtr

December 08 Quarter

September 08 Quarter

June 08 Quarter

2008Full Year

Production (lb)673,982 650,554 568,670 1,710,032

Annualised

(lb pa) 2.7M 2.6M 2.3M 1.7M

Sales (lb)245,000 878,000 601,614 1,411,000

Sales (lb)245,000 878,000 601,614 1,411,000

Average Sales Price(US$/lb U3O8) 54 58 60 66

Sales Revenue (US$M) 14.2 51.0 36.3 93.8

Gross Profit (US$M) 6.4 22.0 21.2 35.5

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Income StatementDec 08 Qtr

• Gross profit of US$6.4M, with LHUP contributing US$5.3M.

• Exploration expenditure of US$3.6M with US$2.2M of this spenton the Mount Isa Project. Impact of large exchange ratemovements limited.

• Impairment of Mount Isa exploration assets (US$527.6M net of• Impairment of Mount Isa exploration assets (US$527.6M net ofDTL) and investment in Deep Yellow Ltd (US$26.0M).

• Loss after tax for Dec qtr US$566.3M with US$470.8M attributedto members of parent entity (i.e. after minority interests inSummit).

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Income Statement (Continued)Dec 08 Qtr

• Impairment of Mount Isa assets

– Board elected to impair for transparency of Balance Sheet andprudence given the impact of the global financial crisis

– carrying value now not significantly different from Summit ResourcesLimited market cap

– no impairment of operating assets

– Paladin not wavering whatsoever in its belief in a highly positive– Paladin not wavering whatsoever in its belief in a highly positiveuranium outlook and remains resolutely committed to the developmentof the Mount Isa assets

– assuming a positive feasibility study, Paladin would develop the assetsas soon as the Queensland State Government Policy allows

• Impairment of investment in Deep Yellow Ltd

– required under the accounting standards

– written down to DYL market price as at 31 December 2008

– Board remains confident in DYL’s resource potential and outlook

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Income Statement (Continued)Dec 08 Qtr

• Other expenses of US$7.8M

Major components comprised:

– share based payments expense, US$2.3M (non-cash)

– employee benefits expense (salaries etc.), US$1.4M after allocation to exploration

– corporate and marketing costs US$2.7M– corporate and marketing costs US$2.7M

– no further impairment of uranium inventory in December quarter

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Balance Sheet and Cash FlowDec 08 Qtr

• Cash and cash equivalents of US$192.2M at end of Dec qtr -held in Australian banks with minimum AA rating

• The significant cash outflows during the quarter were:

– US$59.8M for Kayelekera mine construction

– US$10.8M for LHUP Stage II

– US$3.1M exploration (mainly QLD)– US$3.1M exploration (mainly QLD)

• Net assets decreased during quarter by US$938.2M primarily as a result of:

– US$780M impairment of Mount Isa assets and Deep Yellow investment

– US$505.8M FX impact on Australian denominated exploration assets from the devaluation of the Australian dollar

– US$259.9M decrease in Deferred Tax Liability and US$106.9M increase in Future Tax Benefit as a result of impairment and FX impact on Australian denominated exploration assets

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Presentation Outline

• Paladin Status

• Financial Dec Qtr Review

• Projects Update• Projects Update

• Future Outlook

Questions?

Langer Heinrich Mountain

• STAGE I - at above design production

• STAGE II - expansion being commissioned

• STAGE III - expansion in design phase

• Large Resource Upgrade

Plant

Open Pits

Tailings

Langer Heinrich Projectlarge resource/reserve upgrade

MINERAL RESOURCES

250ppm Cut-off Mt Grade % U3O8 t U3O8 Mlb U3O8

Measured Resources 32.8 0.06 19,582 43.171

Indicated Resources 23.6 0.06 13,276 29.269

Measured + Indicated 56.4 0.06 32,858 72.440

Inferred Resources 70.7 0.06 41,557 91.617

Conforms to both JORC and NI 43-101 guidelines

46% increase

64% increase

Conforms to both JORC and NI 43-101 guidelines

MINING RESERVES @ US$60/lb U3O8

250ppm Cut-off Mt Grade % U3O8 Tonnes U3O8

Proven Ore Reserves 30.0 0.06 17,924 (39.50Mlb)

Probable Ore Reserves 20.6 0.06 11,950 (26.34Mlb)

Total 50.6 0.06 29,874 (65.84Mlb) 75% increase

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Conforms to both JORC and NI 43-101 guidelines

* Mine plan for Stage I 900ppm ore feed, 12 years

*

Production – 6 months at design

Production last 6 months (tonnes U3O8)

smoothed averages

80.0

100.0

120.0

-

20.0

40.0

60.0

80.0

July Aug Sept Oct Nov Dec

Acc't prod

drummed

Nameplate

Langer Heinrich Production quarter by quarter

390,807

490,800

568,670

300,000

400,000

500,000

600,000

lb

U3O8

650,000

75

%

88%100%

650,054

673,982Stage I Design

104%

259,755

0

100,000

200,000

Q1

Sept 07

Q2

Dec 07

Q3

Mar 08

Q4

Jun 08

Q1

Sept 08

Q2

Dec 08

40%

60% %

Operating Costs

Adminstration costs4%

Production costs8%

Mining costs18%

LHU Costs for the three months ended 30 September 2008

Adminstration costs4%

Production costs9%

Mining costs22%

LHU Costs for the three months ended 31 December 2008

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Staff costs14%

Reagents30%

Maintenance7%

Depreciation9%

Electricity and diesel10%

Staff costs12%

Reagents29%Maintenance

7%

Depreciation8%

Electricity and diesel

9%

Langer HeinrichStage II expansion

IX Columns

Pre leach

Front–end Upgrade

Larger Leach TanksCCD Thickeners

Langer HeinrichStage II construction status

Leach Tanks CCD Thickeners

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IX Columns Power Station

Kayelekera Uranium Project

Kayelekera Uranium Projectcurrent status

• US$200M CAPEX – (final within 5%)

– Construction 90% complete

– Commissioning started January 2009

– 3.3Mlb U3O8 pa using acid leach/Resin in Pulp

– Production ramp-up in March 2009

– 1600 people on site

– high safety achievement 2.9Mhrs injury free

Karonga

Exploration Targets

Hot Targets

– high safety achievement 2.9Mhrs injury free

• Tailings Dam and other water structure construction completed

• Open-pit down to ore zone, stockpiling commenced

• Developing strong uranium experiencedoperational team.

• Excellent satellite targets for resource expansion

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Kayelekera Uranium Projectlarge resource/reserve upgrade

MINERAL RESOURCES

300ppm Cut-off Mt Grade ppm U3O8

Tonnes U3O8

MlbU3O8

Measured Resources 3.42 1,211 4,141 9.1

Indicated Resources 18.78 725 13,626 30.0

Total 22.20 800 17,757 39.1

Inferred Resources 3.9 552 2,152 4.7 29% increase

Conforms to both JORC and NI 43-101 guidelines

MINING RESERVES

400ppm Cut-off Mt Grade ppmU3O8

Tonnes U3O8

MlbU3O8

Proven Ore Reserve 2.87 1,373 3,943 8.7

Probable Ore Reserve 9.75 959 9,342 20.6

Total 12.62 1,053 13,285 29.3

27% Increase in total Resources

17% increase

Conforms to both JORC and NI 43-101 guidelines

Kayelekerain commissioning phase

Pre Leach ThickenerLeach Tanks

24Tailings Thickener Tailings Dam

• Uranium resource attributable to Paladin increased by 198% to 85.2Mlb

– Skal resource update due March 09

• Focused metallurgical scoping test work underway

• Environmental baseline work ongoing

Mount Isa Uranium Projectcurrent status

• Fusion takeover adds resources and potential for more

• Preparing for Bankable Feasibility Study to start end 2009/early 2010

• Ongoing lobbying of QLD Government re uranium policy

• 08/09 budget US$8M

VALHALLA

SKAL

Stated Resources – Summit and Valhalla

Deposit * Measured and IndicatedResources

InferredResources

PaladinShare

Cut-off ppmU3O8

MtGrade ppm

t U3O8 MtGrade ppm

t U3O8

Valhalla 230 27.80 891 24,765 7.3 799 5,863 90.9%

Skal 250 7.6 508 3,781 90.9%

Bikini 250 10.1 517 5,200 81.9%Bikini 250 10.1 517 5,200 81.9%

Andersons 230 2.0 1,050 2,100 81.9%

Watta 230 4.2 410 1,720 81.9%

Total 27.80 89124,765

(54.6Mlb)31.2 597

18,664 (41.1Mlb)

Total Resource Attributable to Paladin

25.27 89122,511

(49.6Mlb)26.9 601

16,154(35.6Mlb)

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Conforms to both JORC and NI 43-101 guidelines

* Excluding Fusion 7.06Mlb at .07% U3O8 published inferred resource

Presentation Outline

• Paladin Status

• Financial Dec Qtr Review

• Projects Update• Projects Update

• Future Outlook

4 Year Production Outlook

6.6

8.4

9.3

5

6

7

8

9

10

Mlb

Actual Forecast

1.71

3.35

0

1

2

3

4

5

2007/08 2008/09 2009/10 2010/11 2011/12

Mlb

U3O8

Langer Heinrich Production Kayelekera Production

Project Developmentestablished team and sequential development capability

BFS CONSTRUCTION - US$92M PRODUCTION 2.6Mlb pa 3.7Mlb pa

Stage II US$50M Stage III

BFS ~ US$2.3MPRE-FEASIBILITY

UPDATECONSTRUCTION

US$200M PRODUCTION3.3Mlb pa

BFSM&A ACTIVITIES CONST.

Through Project Generation Activities

Project Pipelineassets acquired & projects developed

Langer HeinrichUranium Mining

In Commissioning

2012

Inventory U3O8

351Mlb

New production with staged organic growth 2008 to 2011

Uranium MiningOperation

Paladin Offers Excellent Upside key outcomes for 2008/09

• Langer Heinrich (Namibia)– achieve 1.5Mlb to 1.6Mlb for H2 2008 (CY)

– fully integrate Stage II expansion (2.6Mlb to 3.7Mlb pa)

– Stage III expansion planned and designed

– produce 2.95Mlb U3O8 for 12 month period end June 09

• Kayelekera (Malawi) – fully commission operation and start production ramp-up in March

– produce 0.4Mlb U3O8 by June 093 8

– drilling on hot targets

• Mount Isa Project (Queensland - Australia)– update resource estimate for Skal March 09 and continue drilling

– complete prefeasibility study April 09

– initiate work on Fusion targets

• Angela/Pamela Uranium Deposit (Northern Territory – Australia)– commence field work June quarter 09

• Manyingee (Western Australia)– start up preparation for resource confirmation drilling

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Conclusion

• Achieved multi-mine/multi-country operating status

• Maintaining strong production profile

• Further expansion possibility at Langer Heinrich (Stage III)

• Sustained development from project pipeline

– progress Mount Isa and Angela Projects for development start – progress Mount Isa and Angela Projects for development start 2012+

• Focussed M&A activity

– opportunity to establish a global uranium mining house

• Uranium market outlook very positive

• Strong balance sheet

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PALADIN ENERGY LTDContact Details

Mr John Borshoff(Managing Director/CEO) Mobile: +61 (0) 419 912 571Email: john.borshoff@paladinenergy.com.au

Mr Greg TaylorInvestor Relations (North America) Tel: +905 337-7673 or Mobile: +416-605-5120 (Toronto)Email: greg.taylor@paladinenergy.com.au

Head Office Grand Central 1st Floor, 26 Railway RdSubiaco Western Australia 6008PO Box 201, Subiaco Western Australia 6904Telephone: +61 (0) 8 9381 4366Facsimile: +61 (0) 8 9381 4978Email: paladin@paladinenergy.com.auWebsite: www.paladinenergy.com.au

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