Mr. John Borshoff reports

PALADIN ENERGY LTD ANNOUNCES PROPOSED INSTITUTIONAL PLACEMENT OFSHARES

Paladin Energy Ltd. intends to undertake an institutional private placement of ordinary shares for up to 15 per cent of Paladin's issued share capital. The placement is to be conducted by way of a variable price bookbuild.

As at June 30, 2013, Paladin's cash position was $78.1-million (U.S.) compared to cash of $112.9-million (U.S.) at March 31, 2013. The movement in cash position from March to June was affected by working capital changes and timing of receipts from sales. The company has continued to achieve significant improvement in operational performance at both Langer Heinrich and Kayelekera and recently delivered record operational results for the June quarter. Paladin also expects only modest capital expenditure requirements at its operating assets following the successfully concluded expansions of capacity at Langer Heinrich and Kayelekera over recent years. Furthermore, Paladin has identified a number of material optimization and cost reduction measures to further enhance its operational and financial results.

Today's equity raising and these previously announced initiatives are expected to provide adequate financing for the company into the September quarter of 2014 even in the event that the spot uranium price was to remain at the average level of the past 12 months of $42.50 (U.S.) per pound.

While Paladin's uranium market analysis indicates likely uranium price increases over the near and medium term, the board has decided to pursue this equity raising to provide the company with enhanced financing flexibility. The raising will also allow Paladin to defer consideration of a potential divestment of equity in Langer Heinrich until such a time when a price reflective of the asset's fundamental value can be obtained.

The placement will be made pursuant to exemptions from prospectus requirements under applicable securities laws and is subject to receipt of all applicable regulatory approvals, including approval of the Toronto Stock Exchange.

The bookbuild process for the placement will occur during trading halts in Australia and Canada which are expected to remain in place until the markets reopen on the Australian Securities Exchange on Monday, Aug. 5, 2013, and on the Toronto Stock Exchange on Friday, Aug. 2, 2013.

We seek Safe Harbor.