PERTH, WESTERN AUSTRALIA--(Marketwire - Oct. 2, 2012) - Paladin Energy Ltd. (TSX:PDN)(ASX:PDN) (Paladin or the Company) is pleased to note that, on 15 August 2012, the Company advised the successful negotiation of a milestone long term off-take uranium sales contract with a US$200M prepayment to be paid in tranches before 31 January 2013.

In this regard, Paladin is pleased to announce that in accordance with the payment schedule agreed with the major utility involved, the first tranche of US$50M was received on 28 September. The remaining amount of US$150M is scheduled to be received in a second and final tranche by 31 January 2013.

As advised previously these funds will be used to repay the balance of the March 2012 convertible bonds (US$134M) with remainder retained for balance sheet strength as working capital.

ACN 061 681 098