Paladin Energy Ltd. : Quarterly Activities Report for period ending 31 December 2013

HIGHLIGHTS

• Sales revenue of US$101.75M for the quarter, selling 2,774,814lb U3O8at average price of US$36.67/lb.
  
• Record combined production for Langer Heinrich and Kayelekera mines in December quarter, demonstrating stable operation near or above budget production and below budget unit cost.
  - combined production of 2.208Mlb
  (1,001t) U3O8.
  
• Langer Heinrich produced a record 1,431,307lb (649t) U3O8for the December quarter, 4% above budget.
  - overall recovery for quarter of 87.8%.
  - feed grades for the quarter down to
  771ppm U3O8.
  - previous water issues resolved.
  
• Kayelekera produced 777,015lb (352t) U3O8for the quarter, 8% below budget.
  - record production for December of
  280,082lb U3O8.
  - recovery of 85.9% for the quarter.
  - acid recovery plant successfully commissioned.
  
• CY13 production.
  - Langer Heinrich produced 5.444Mlb
  (2,469t) U3O8in CY13, an increase
  of 7% over CY12.
  - Kayelekera produced 2.943Mlb (1,335t)
  U3O8in CY13, an increase of 3% over CY12.
  - combined production of 8.387Mlb (3,804t)
  U3O8in CY13, an increase of 5% over CY12.
  
• Cost saving and optimisation initiatives continue to make significant improvements.
  
• Positive progress continues on the sale of a minority interest in Langer Heinrich.