Paladin Energy Ltd.: Kayelekera - Minor Storm Damage

PERTH, WESTERN AUSTRALIA--(Marketwired - Jan 7, 2015) - Paladin Energy Ltd (TSX:PDN)(ASX:PDN) ("Paladin" or the "Company") wishes to advise that the Company's Kayelekera Mine ("KM") in northern Malawi suffered some minor storm damage during the night of January 5, 2015 when a 20-minute, high-intensity storm resulted in some 25mm of rain falling at the Site.

The resultant surge of stormwater caused the liner in the plant run-off tank to rupture, releasing up to 500m³ of material to the bunded areas of the site. Up to 0.05m³ (50 litres) may have overtopped one of the containment bunds due to the nature of the rainfall event at the time.

Following discovery of the damaged tank, the Company immediately commenced protection and remediation procedures and the site remains secure. A sampling programme to analyse water from within the local stream system was also initiated to confirm no contamination occurred.

The Company has formally advised relevant Government of Malawi authorities of the incident.

ACN 061 681 098