Paladin Energy Ltd: PRELIMINARY FINANCIAL REPORT

30 JUNE 2008 APPENDIX 4E

PERTH, WESTERN AUSTRALIA–(EMWNews – Aug. 25, 2008) – Paladin Energy Ltd (“Paladin” or “the Company”) (TSX:PDN)(ASX:PDN) announces the release of its 30 June 2008 Appendix 4E – Preliminary Financial Report.

Projects:

– Production of 1.71Mlb of U3O8 at the Langer Heinrich Uranium Project in Namibia achieved by year end.

– Langer Heinrich Stage II production expansion project to 3.7Mlb pa on budget and on schedule for completion by end of calendar year 2008. Expenditure to 30 June was US$8.9M. Components of Stage II capital will support Stage III expansion to 6.0Mlb pa.

– Sales of Langer Heinrich U3O8 for the year were 1.4Mlb at an average realised price of US$66. Sales and shipping are now in alignment.

– The Kayelekera Uranium Project construction remained on time and budget with a CAPEX of US$200M. Project expenditure to 30 June 2008 totaled US$100M with a further US$45M committed. The project is scheduled for commissioning and ramp up starting January 2009. All senior operations staff have now been recruited.

– The focus of exploration and evaluation continued in with the Bigrlyi Uranium Joint Venture in Northern Territory and in the Mount Isa Uranium Joint Venture and Isa North Uranium Project in Queensland. Total expenditure was US$13.1M for the year.

– Awarded the Angela Uranium Joint Venture in Northern Territory in 50:50 joint venture with Cameco Corporation.

Corporate:

– Loss after tax for the year ending 30 June 2008 of US$36.0M – consisting of US$11.0M profit for Langer Heinrich as a consequence of improved performance; US$13.1M investment in exploration and evaluation expenditure; US$30.7M finance costs; and US$25.1M in other expenses including corporate/marketing costs and employee benefits. During the year a total of US$10.6M relating to non-cash share based payments was expensed.

– Strong balance sheet at 30 June 2008 with net assets of US$1.4Bn including US$338M in cash (US$250M invested in US treasury bonds).

– Issue of US$325M in Convertible Bonds on 11 March 2008 with a coupon rate of 5%, maturity 11 March 2013 and conversion price of US$6.59 for Company shares.

– Credit committee approved offers received for finance totalling US$167M for the Kayelekera Uranium Project, subject to legal documentation and fulfillment of other conditions precedent usual for this type of funding.

– Strategic inventory build up for Paladin Nuclear Limited has commenced with 530,000lb U3O8 acquired at a cost of US$31.8M.

– Management team continued to strengthen during year.

– Investment in ASX listed Deep Yellow Ltd increased by US$17.8M.

These results may be found shortly with the Company’s other documents filed on Sedar (http://www.sedar.com) or through the Company’s website (http://www.paladinenergy.com.au.). The documents filed comprise Appendix 4E including the Management Discussion and Analysis and Consolidated Financial Statements (unaudited). The audited financial statements for this period are expected to be released in mid September, however, it is not expected there will be any material changes from those presented with this release.

ACN 061 681 098