Use Plan. These tools have created a structured and stable legislative and regulatory environment for the Nunatsiavut Government to assess large-scale resource developments, such as mining operations.

In June 2015 the Canadian Government granted an exemption to Paladin to the current Non-Resident Ownership Policy under which, by the stage of first production, Canadian resident ownership must be at least 51%. The exemption, which followed an extensive and rigorous appraisal process by the Government allows Paladin, at the appropriate time, to proceed to production on its own account with no requirement for a majority Canadian partner.

ResourcesPaladin’s identified uranium mineral resource in the Central Mineral Belt (CMB) is contained in six deposits: Michelin, Jacques Lake, Rainbow, Nash, Inda, and Gear.

The following table summarises the JORC and NI 43-101 compliant mineral resources within these deposits:

Deposit Measured Mineral Resources

Indicated Mineral Resources

Inferred Mineral Resources

Cut-off 0.05% & 0.02/0.025% U3O8

Mt Grade%

tU3O8

Mt Grade%

tU3O8

Mt Grade%

tU3O8

Michelin* 15.6 0.10 15,458 21.9 0.10 22,701 8.8 0.11 10,378

Jacques Lake 0.9 0.09 747 6.0 0.07 4,327 8.1 0.05 4,103

Rainbow 0.2 0.09 193 0.8 0.09 655 0.9 0.08 739

Inda 1.2 0.07 826 3.3 0.07 2,171

Nash 0.7 0.08 564 0.5 0.07 367

Gear 0.4 0.08 270 0.3 0.09 279

Total 16.6 0.10 16,398(36.2Mlb)

31.0 0.09 29,343(64.7Mlb)

21.9 0.08 18,037(39.8Mlb)

*JORC (2012)

Project Update

Michelin ProjectJuly 2015

IntroductionPaladin Energy Ltd (“Paladin” or “the Company”), through its wholly-owned subsidiary Aurora Energy Ltd. (“Aurora”), holds rights to 91,500 hectares within the Central Mineral Belt of Labrador, Canada, approximately 140km north of Happy Valley-Goose Bay and 40km southwest of the community of Postville. In this area, Aurora had previously identified a substantial uranium resource and the Company believes there is significant potential for resource growth. Paladin’s objectives for the Michelin Project comprise expanding its existing uranium resource in the region through a three to four year exploration programme and developing this resource in the 2018-2022 timeframe into a long-life mining and milling operation, subject to economic viability.

CanadaCanada has an established uranium mining industry that has been active for almost a century. In 2011, Canada produced 9,145t of uranium, making it the second-largest producer of uranium in the world. Newfoundland and Labrador has a regulatory framework which is supportive of the responsible development of mineral resources, including uranium. A large portion of the Michelin Project area lies within an area administered at the local level by the Inuit of Labrador through the Nunatsiavut Government, a regional aboriginal government formed in 2005. The Nunatsiavut Government is also supportive of uranium exploration on its lands. In March 2012, the Government enacted its Environmental Protection Act and subsequently approved a draft Regional Land

Project Update | Michelin Project

Michelin deposit and potential growth

GeologyThe larger uranium deposits are associated with a belt of Proterozoic (1850 Ma) felsic volcanic rocks of the Aillik Group which extends from the coast in the north-east to Michelin in the south-west. Deposits of the Inda Lake trend (Inda, Gear, Nash and Kitts) are hosted by underlying volcaniclastic metasediments and mafic metavolcanics of the Post Hill Group (2100 Ma). The main deformational event within the CMB is the ~1800 Ma Makkovian Orogeny.

The mineralisation at Michelin occurs in a strongly deformed package of intercalated finely and coarsely porphyritic metavolcanic rocks of the Aillik group. These host rocks have a rhyolite composition comprising K-feldspar, quartz with minor plagioclase, biotite, magnetite and traces of apatite, titanite and zircon. The Aillik group lithologies in the immediate area also include metamorphosed mafic volcanics, banded siltstones and volcanoclastic sediments.

This volcano-sedimentary package has been intruded by granites and granodiorites in form of plutons, sheets and dykes dating at ca. 1650Ma. They are generally undeformed and display equigranular to porphyritic textures.

The Michelin host rocks were subject to intense sodic metasomatism. This is displayed by the replacement of K-feldspar by albite, and biotite by sodic amphibole and sodic pyroxene. Furthermore, quartz phenocrysts show dissolution textures and are partly replaced by albite.

The sodic metasomatism is the precursor for the uranium mineralisation with an increase in zirconium, yttrium, niobium and REE. The ore is dominated by uraninite, with some uranium in zircon and rarely in brannerite. Uranium minerals tend to occur with titanite, pyroxene, amphibole and hematite. Carbonate minerals are not abundant and sulphide minerals are also uncommon, typically comprising <1% of ore.

Paladin’s Central Mineral Belt claim area and six uranium deposits. The area of focus for the current exploration

programme is highlighted in yellow

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The resources are reported at a cut-off grade of 0.05% U3O8 cut-off for underground mining and 0.02% U3O8 cut-off for open pit mining. Michelin reported a 0.025% U3O8 cut-off for the open pit portion.

Michelin contains the bulk of the Mineral Resource and studies indicate that up to one third of the deposit could be mined by open pit methods. Michelin is hosted within a N60°E trending, 55° southeast dipping, mylonite in felsic metamorphic rocks. The ore is confined to two 60°SW west plunging shoots and has been drilled to over 800m depth. Mineralisation is currently open at depth down plunge and along strike in both directions. Mineralisation contains minimal carbonate which is expected to result in a low acid consumption. Metallurgical testing completed previously indicates consistent recoveries in excess of 90%.

Exploration drilling in summer

Michelin Project | Project Update

3Mafic dykes with diorite to gabbro composition crosscut the felsic metavolcanics as well as the mineralization. All these mafic dykes were at least partially affected by deformation and hydrothermal alteration in form of biotite. Post tectonic EW-trending magnetic gabbro dykes are clearly imaged in airborne magnetic.

Current StatusMichelin is situated in a highly prospective area that extends for 8 by 3km with a northeasterly strike. Numerous radiometric anomalies are present (shown in the figure below), which form several mineralised trends and include known prospects such as Chitra, Running Rabbit, Mikey Lake, and Rainbow that have received limited drilling. However the majority of the area (>90%) is covered by till, soil, and vegetation, which potentially obscures additional deposits.

Exploration is aiming initially at increasing the resources within the Michelin “mineralised trend”, located inside a 5 to 10km radius of the Michelin site. Additional exploration will target the highly prospective area surrounding the Michelin deposit and the nearby White Bear and Otter Lake properties. Concurrent with resource and exploration drilling, Paladin will be developing a more detailed understanding of all the geological domains and styles of uranium mineralisation in the CMB. Paladin has seconded specialist exploration geologists to Aurora to work with the experienced local crew. This will ensure efficient and cost effective resource and future reserve development. Over the next three to five years, Paladin is planning to carry out continuous exploration within the CMB to expand known resources sufficiently to develop a significant mining operation.

Work in the project area included re-establishment of the camp and support infrastructure. Drilling commenced in August 2012 and ground geological and geophysical work has taken place to define further drill targets. The last drilling programme was carried out in the winter between January and March 2014.

Maximising the involvement of local stakeholders through employment and business opportunities is a priority for Paladin. All of the people hired by Paladin to support the exploration programme are from Labrador. Contractors hired

to provide services to the work programme are likewise expected to be sourced locally whenever possible.

The Company’s approach of engaging local companies on a competitive basis to supply goods and services has been successful. A variety of Labrador suppliers have been selected to support the exploration efforts.

Ground radiometric (total count) image of the Michelin trend

Winter exploration camp

Exploration drilling in winter

Exploration drilling in winter

Corporate/Contact Details

Project Update | Michelin Project

Aurora Energy Ltd - CanadaJohn Jory(Exploration Manager, Aurora Energy Ltd)Email: john.jory@aurora-energy.ca

Suite 600, TD Place140 Water St.St. John’s, NL A1C6H6 Canada

Tel: +1 (709) 726 2223Fax: +1 (709) 726 0138Email: info@aurora-energy.cawww.aurora-energy.ca

Paladin Energy Ltd - AustraliaAndrew MircoInvestor RelationsEmail: andrew.mirco@paladinenergy.com.au

Level 4, 502 Hay Street,Subiaco, Western Australia 6008PO Box 201, Subiaco, Western Australia 6904

Tel: +61 (0) 8 9381 4366Fax: +61 (0) 8 9381 4978Email: paladin@paladinenergy.com.auwww.paladinenergy.com.au

North AmericaGreg TaylorInvestor RelationsBus/Cell: +1 (416) 605 5120Fax: +1 (905) 844 6532Email: greg.taylor@paladinenergy.com.auToronto, Ontario, Canada

The information in this document relating to exploration and mineral resources is, except where stated, based on information compiled by David Princep B.Sc who is a Fellow of the AusIMM. Mr Princep has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”, and as a Qualified Person as defined in NI 43-101. Mr Princep is a full-time employee of Paladin Energy Ltd and consents to the inclusion of this information in the form and context in which it appears.

Unless otherwise stated, information on mineral resources was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with JORC Code 2012 on the basis that the information that the estimates are derived from has not materially changed since it was last reported.

Follow Paladin at www.paladinenergy.com.au

The March 2011 Great East Japan Earthquake and resultant tsunami inflicted severe damage on the Fukushima- Daiichi rectors causing most countries to undertake comprehensive safety reviews of existing nuclear power plants. Reactor construction was temporarily suspended in some countries, but only Germany has taken the decision to eventually phase-out its commercial nuclear power programme.

In response to new safety standards promulgated by the independent Nuclear Regulatory Authority (NRA) of Japan, Japanese nuclear utilities have applied for safety reviews of 24 reactors (located at 13 sites) idled since the Fukushima earthquake. As of June 2015, the NRA has approved safety evaluations for a total of five reactors with phased reactor restarts to commence during September 2015 (Sendai 1 & 2 operated by the Kyushu Electric Power Company). Paladin anticipates that up to two-thirds of operable Japanese nuclear capacity will reinitiate operations over the next few

Ecological land classification surveying; one of many environmental baseline studies carried out for the Michelin Project

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years and that Japan will pursue a nuclear power programme representing 20-22% of total electricity generation by 2030.

Elsewhere, post-Fukushima, worldwide reactor plans have been re-affirmed and work resumed on reactors under construction accompanied by governmental approvals for more units. Worldwide, there are now 66 nuclear power plants under construction, four more than at the time of the Fukushima events. In China, the installed nuclear capacity has risen from 13 reactors (March 2011) to the current total of 26 operating units with 24 additional reactors being built.

Currently, there are 437 operational reactors consuming more than 170Mlb pa U3O8. Paladin forecasts that global uranium demand will reach 230Mlb pa U3O8 by 2020 and that the uranium production industry will struggle to meet that rapidly growing demand. Negatively impacted by persistent low uranium prices, total global uranium production declined to 145 Mlb in 2014, a decrease of 9Mlb from the 2013 total.

The Uranium Market