Mr. Alexander Molyneux reports

PALADIN ENERGY LIMITED: REPURCHASE OF US$11-MILLION OF CONVERTIBLE BONDS DUE 2017

Paladin Energy Ltd. has repurchased a principal amount of $11-million (U.S.) of its outstanding $254-million (U.S.) 6.00-per-cent convertible bonds due 2017.

The cash expenditure for the repurchase was approximately $9.9-million (U.S.) as the bonds were bought back at an average price of 90 per cent. The repurchase has resulted in approximately $2.0-million (U.S.) of cash savings to Paladin in the form of avoided principal and coupon payments over the period to maturity of the 2017 convertible bonds.

The company has financed the repurchase out of operating cash flow, which has been building since the commencement of the December quarter in line with previous guidance. The initiative was also conducted to take advantage of trading conditions, which continue to see the 2017 convertible bonds trading at a discount to their face value.

This repurchase of $11-million (U.S.) together with the earlier repurchase of the $20-million (U.S.) announced on Sept. 8, 2015, has reduced the principal amount outstanding of the convertible bonds due April 30, 2017, from $274-million (U.S.) to $243-million (U.S.).

Due to the opportunistic nature of the initiative, the impact (and net savings) was not included in the fiscal year 2016 guidance provided in the Sept. 30, 2015, quarterly financial report released Nov. 12, 2015.

The 2017 convertible bonds (ISIN: XS0775195562) were issued on April 30, 2012, and are listed on the Singapore Exchange Securities Trading Ltd.

The settlement date for the repurchase is expected to take place on or about Nov. 27, 2015, or such other date as may be agreed with the repurchase agent. Upon settlement for the repurchase, the repurchased 2017 convertible bonds will be cancelled.

Paladin has financed the consideration payable for the repurchase from its internal cash resources.

None of the directors or the substantial shareholder of Paladin has any interest, direct or indirect, in the repurchase.