Page 32 - Paladin_Annual_Report_2009

The Oobagooma project area was explored by AFMEX in the period from 1983 to 1986 during which time extensive zones of uranium mineralisation were discovered. An estimate of the uranium resources using geostatistical methods was carried out by AFMEX. This work was done before the JORC Code had been formulated and was thus not carried out in accordance with the Code. The AFMEX historical estimate is shown in the following table:

Non-JORC Cut-off Resource Grade U

3

O

8

%U

3

O

8

Mt

%U

3

O

8

Kt

Historic 0.03 8.3 0.12 10.0 Resources

Previous tonnages, grades, assays and other technical data are taken from historical records prior to the implementation of JORC or NI 43-101. While the data are believed to have been acquired, processed and disclosed by persons believed to be technically competent, it is unverifable at present. A Competent Person as defned under the JORC Code or Qualifed Person as defned under NI 43-101 has not done suffcient work to classify the historical estimate as current Mineral Resources. Paladin is not treating the historical estimates as current Mineral Resources as defned in either the JORC Code or NI 43-101 and the historical estimates should not be relied upon.

In November 2008 the State Government of Western Australia changed and the restrictions on uranium mining were lifted. Subsequently Paladin started to engage the Commonwealth Government Departments of Finance and Defence to obtain permission to carry out exploration on the Oobagooma tenement applications. The tenements can be granted by the Western Australian Department of Mines and Energy after consent from the land owners, the Federal Government, has been obtained.

SOUTH AUSTRALIA

Quasar Uranium Joint Venture

Paladin Energy Ltd 15-20%

Quasar Resources Pty Ltd 80% And Manager

The Joint Venture with Quasar Resources Pty Ltd, established in 2001, encompasses two exploration licences covering 1,051km 2 in the north-east of South Australia. Paladin holds a 15% free carried interest in Exploration Licence 3903 at Mount Yerila and a 20% free carried interest in Exploration Licence 4134 at Petermorra. The Joint Venture is managed by Quasar Resources Pty Ltd, a wholly owned subsidiary of Heathgate Resources Pty Ltd, operator of the Beverley ISR (in-situ recovery) uranium mine which is situated immediately south of the Joint Venture tenements. Heathgate Resources Pty Ltd is an Australian subsidiary of General Atomics of the USA.

The two exploration licences are located in the northern part of the Curnamona Province, a 90,000km 2 block of shallow to outcropping basement rocks that extends from Olary, in the north-east of South Australia, 450km north-east of Adelaide, to east of Broken Hill across the New South Wales border. The exploration licences are considered prospective for palaeochannel uranium mineralisation similar to that found and successfully developed at Beverley. Quasar is actively exploring the Joint Venture tenements and has conducted a number of drilling campaigns on the ground.

The information above relating to exploration, mineral resources and ore reserves is, except where stated, based on information compiled by Eduard Becker B.Sc, David Princep B.Sc and Andrew Hutson B.E., all of whom are members of the AusIMM. Messrs Becker, Princep and Hutson each have suffcient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as Competent Persons as defned in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”, and as a Qualifed Person as defned in NI 43-101. Messrs Becker, Princep and Hutson are full-time employees of Paladin Energy Ltd and consent to the inclusion of this information in the form and context in which it appears.

URANIUM DATABASE

Paladin 100%

Paladin owns a substantial uranium database, compiled over 30 years of investigations by the international uranium mining house Uranerzbergbau in Germany, incorporating all aspects of the uranium mining and exploration industry worldwide and including detailed exploration data for Africa and Australia.

Uniquely among Australian exploration companies, the primary focus of Paladin’s activities for the past years has been uranium. In that time the Company has maintained and expanded the library of databases consisting of extensive collections of technical, geological, metallurgical, geophysical and geochemical resources including resource evaluations, drill hole data, downhole logging data, airborne radiometric surveys results, open-fle data, and photographic archives.

The library also holds a large collection of topical industry reference material and country specifc information such as mining laws or investment conditions comprising an estimated 60,000 individual monographs and conference papers, project evaluation and exploration reports, documents, reprints, maps and technical journals kept in hardcopy, microfche and a rapidly increasing number of resources in electronic format, including networked or internet databases and full-text resources.

MANAGEMENT DISCUSSION AND ANALYSIS

Review of Operations

30 Annual Report 2009