Page 34 - Paladin_Annual_Report_2008

32 Annual Report 2008

Angela Joint Venture

Cameco Australia Pty Ltd 50% and Manager Paladin Energy Minerals NL 50%

The Angela Uranium Project is located 15km south of Alice Springs Airport in the Northern Territory. Access is by dirt road from the airport.

In February 2008 the Northern Territory Government advised the 50:50 Joint Venture between Paladin Energy Minerals NL and Cameco Australia Pty Ltd (operator) that it had been awarded the Angela-Pamela Project which gave the Joint Venture the right to lodge an exploration licence application over the Angela and Pamela uranium deposits, located near Alice Springs in the Northern Territory. The Joint Venture’s bid was selected from a highly competitive field. The licence application is now progressing through the administrative procedures set out in the Northern Territory’s Mining Act.

The Angela Uranium Project Joint Venture parties have committed to a comprehensive confirmatory and exploration work programme as well as a pre-feasibility study which if successful, will then progress to a Bankable Feasibility Study and an Environmental Impact Assessment.

Extensive evaluation work was undertaken on the Angela and Pamela uranium deposits by Uranerz Australia Pty Ltd between 1972 and 1983. Historic uranium mineralisation defined at the time comprised approximately 12,000t to 13,000t of U

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in the general range of 0.10% to 0.13% U

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and remains open at depth and laterally. Paladin owns all the original drill hole data for the deposit, including geology, geochemistry, downhole gamma surveys and feasibility studies. This information, together with Paladin’s extensive in-house knowledge of the deposits, will enable the Joint Venture to move rapidly into the pre-feasibility assessment.

Cameco, the Project Manager, has opened an office and is starting to set up facilities to support the project in Alice Springs. Cameco has been successful in attracting a senior project manager with experience in bringing a uranium project to development.

Angela is a very exciting project for Paladin and offers the Company the opportunity to develop a mine in the Northern Territory, which has a very positive policy on uranium development. It will fully complement Paladin’s Mount Isa project, which is currently scheduled for development post 2012.

WESTERN AUSTRALIA

Manyingee Uranium Project

Paladin Energy Minerals NL 100%

The Manyingee Uranium Project is located in the northwest of Western Australia, 1,100km north of Perth and 85km inland from the coastal township of Onslow. The property is comprised of three mining leases covering 1,307 hectares.

Paladin purchased the Manyingee Project in 1998 from Afmeco Mining and Exploration Pty Ltd (AFMEX), a subsidiary company of Cogema of France. Paladin’s 100% interest in Manyingee is held through its wholly owned subsidiary, Paladin Energy Minerals NL.

AFMEX (previously named Total Mining Australia Pty Ltd) discovered uranium mineralisation at Manyingee in 1973 during regional exploration. Between 1973 and 1984 some 400 holes were drilled and this established the extent and continuity of the sediment hosted uranium mineralisation in permeable sandstone in palaeochannels. Field trials by AFMEX demonstrated that the Manyingee sandstone hosted uranium deposit is amenable to extraction by in-situ recovery (ISR).

The Manyingee Project contains JORC (1999) Code compliant Mineral Resources as shown in Table 6:

4ABLE -ANYINGEE 2ESOURCE 3TATEMENT

Jorc Cut-Off Resource Grade U

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Category %U

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Mt %U

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Kt (1999)

Indicated 0.03 7.9 0.10 8.1 Inferred 0.03 5.5 0.05 2.8

Total 13.4 0.08 10.9

The current State Government of Western Australia maintains a policy that it will not grant approval for mining or processing uranium in the State. As a result of this policy, Paladin has deferred feasibility studies and other work on the Manyingee Project for some time. It is Paladin’s belief that changing views about global energy supplies will lead to a change of policy in Western Australia at some time in the future that will allow development of Manyingee to proceed.

Pictures left to right: (1) and (2) Queensland

Management Discussion and Analysis

Review of Operations