Paladin Energy

Financial Report for the Six Months Ended 31 December 2014

PERTH, WESTERN AUSTRALIA--(Marketwired - February 12, 2015) - Paladin Energy Ltd ("Paladin" or "the Company") (TSX: PDN) (ASX: PDN) announces the release of its consolidated Financial Report for the six months ended 31 December 2014. The Financial Report is attached here (http://media3.marketwire.com/docs/141231_31December2014HalfYearReport.pdf).

HIGHLIGHTS

OPERATIONS

• Langer Heinrich Mine (LHM) produced 1.304Mlb U₃O₈ for the three months ended 31 December 2014, up 27% from the last quarter.
• C1 cost of production⁽¹⁾: 
  • LHM C1 unit cost of production for the quarter decreased by 14% from US$35.1/lb in the September 2014 quarter to US$30.2/lb in the December 2014 quarter.
• FY2015 production guidance revised to 5.2 - 5.5Mlb U₃O₈.

SALES AND REVENUE

• Sales revenue of US$108.6M for the six month period ended 31 December 2014, selling 3.161Mlb U₃O₈. 
• The average realised uranium sales price for the six months was US$34.35/lb U₃O₈ compared to the average UxC spot price for the period of US$34.30/lb U₃O₈. 
• Uranium spot price continued to demonstrate significant volatility, having risen from US$28.10/lb in mid-CY2014, reaching US$44.00/lb by the middle of November 2014 and declining to US$35.50/lb at 31 December 2014. During CY2015, the spot price has risen to US$38.25/lb at 10 February 2015.
• Japan reactor restart programme continued to make progress.

CORPORATE

• Successful recapitalisation was completed in December 2014. Two capital raising initiatives were completed to strengthen the balance sheet and deal with repayment of its US$300M convertible bond due in November 2015. These included the introduction of a cornerstone strategic investor -- HOPU Clean Energy (Singapore) Pte. Ltd. (HOPU), via a 15% placement, and an entitlement offer (fully underwritten by JP Morgan), together raising A$205M.
• On 12 February 2015, the Board resolved to launch an offering to raise US$100M of senior, unsecured convertible bonds due 31 March 2020. There may be up to an additional US$50M of senior, unsecured convertible bonds issued to current or potential strategic partners, on the same terms, at the discretion of the Company for additional balance sheet flexibility. These issues will be subject to shareholder approval at a General Meeting scheduled to be held at the end of March 2015. The proceeds of the US$100M issue along with the existing cash balance will be used to fund Paladin's concurrent tender offer to acquire any or all of its US$300M convertible bonds due November 2015 issued by the Company on 4 November 2010.
• Future cost optimisation focus continues for both production and corporate costs.

⁽¹⁾ C1 cost of production = cost of production excluding product distribution costs, sales royalties and depreciation and amortisation before adjustment for impairment. C1 cost, which is non-IFRS information, is a widely used 'industry standard' term.