PERTH, WESTERN AUSTRALIA--(Marketwire - June 12, 2007) - Paladin Resources Ltd. (TSX:PDN)(ASX:PDN) responded today to an article that appeared on May 28, 2007 on the Mineweb website reporting a news article published in Malawi suggesting that the Kayelekera Uranium Project start up date may not be achievable because the Malawi Electricity Supply Company (ESCOM) could not afford to construct major power distribution infrastructure and, to avoid this, Paladin would need to invest a considerable amount of capital on grid power supply.
Due to the identified unreliable grid power supply, the Kayelekera Bankable Feasibility Study (BFS) only considered on-site diesel power generation for its electricity supply and all costings that have been presented in the BFS are calculated on this basis. The Government of the Republic of Malawi was fully appraised of this during the preparation of the BFS. Grid power may be used at a later date if and when ESCOM can deliver required quality and reliability of electricity.
Paladin has already placed an order for its 10MW power generation facility and this is expected to be on site in the scheduled project time frame. This key element is therefore not expected to delay the September 2008 commissioning date that has been set for the project.
Caution Regarding Forward Looking Statements: Statements regarding the Company's plans to develop the Kayelekera Project are forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ from those expressed or implied by such statements. There can be no guarantee such statements will be realised. In particular, there can be no assurance that Paladin will be able to successfully build, develop and operate a uranium mine or that it will be able to raise the funds necessary to complete such tasks. Furthermore, there can be no assurance that if completed, any mine will be profitably operated.
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