[Goldfisch]

AUGUST 24, 2006 - 09:16 ET

Paladin Resources Ltd: Condition Regarding Valhalla Jorc Compliant Resource

PERTH, WESTERN AUSTRALIA--(CCNMatthews - Aug. 24, 2006) - Paladin Resources Ltd ("Paladin" or "the Company") (TSX:PDN)(ASX:PDN) confirms that Condition 12.8(k) to Paladin's offer for Valhalla Uranium Ltd ("VUL") (Valhalla resource) (see Paladin news release of July 10, 2006) has been fulfilled. Although the resource specified in the condition has been reached as a result of using a substantially lower cut-off grade than was used in the previous VUL announcements, Paladin is satisfied that, with the resources it has established, this continues to endorse the high potential of this emerging uranium province.

In response to an ASX release made by VUL on 22 August 2006 (refer asx.com.au reference VUL) Paladin announced yesterday that it had concerns regarding aspects of the resource reported and needed time to consider whether the resource statement did satisfy Condition 12.8(k) and/or trigger other conditions. Paladin has had to rely solely on information in the public domain together with its own extrapolations between the two cases announced by the Joint Venture Participants in reviewing the resource statement and reconciling the result to the previous resource announced in VUL's prospectus. The VUL prospectus resource was based on a 450 ppm U3O8 cut off grade while the resource announced yesterday was at both 230 ppm U3O8 and 640 ppm U3O8 cut off grades. This has taken some time to do.

While Paladin notes that the grade is somewhat lower than it had expected based on the earlier VUL resource statement and other information in the public domain, it is comfortable that the 12.8(k) condition has been met.

Should Paladin be successful in the offer for VUL and have full access to the Joint Venture project data, the cut-off grade used for future Paladin JORC and Canadian NI 43-101 compliant resource statements may differ from that used by the present Joint Venture Partners in their announcements yesterday.

Paladin Resources Ltd is an Australian uranium exploration and development company listed on the Australian Stock Exchange ("PDN") and the Toronto Stock Exchange ("PDN"). Paladin is involved in the mineral resource sector with projects both in Australia and Africa. With the Langer Heinrich Uranium Project in Namibia currently under construction, the Kayelekera Project in Malawi undergoing a Bankable Feasibility Study, Paladin is well placed to become a major supplier of primary uranium to world markets.

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