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

Contact Information:

Paladin Energy Ltd
John Borshoff
Managing Director/CEO
+61-8-9381-4366
Mobile: +61-419-912-571
john.borshoff@paladinenergy.com.au

Paladin Energy Ltd
Greg Taylor
Investor Relations Contact
+1 905 337-7673
Mobile: +1 416-605-5120 (Toronto)
greg.taylor@paladinenergy.com.au