U.S. Markets closed

Paladin Energy Ltd-Malawi Diesel Shortage

PERTH, WESTERN AUSTRALIA--(Marketwire - Feb. 17, 2011) - Paladin Energy Ltd. (TSX:PDN - News; ASX:PDN - News; "Paladin" or the "Company") notes that, as announced by the Government of Malawi and reported in various media outlets, the country is currently facing a severe shortage in availability of diesel due to foreign exchange constraints. As a consequence, regular supply of diesel to the Kayelekera Mine has been affected.Paladin has consulted with the Government of Malawi and its fuel supplier and expects fuel deliveries to resume in the next few days. In order to mitigate the impact of this short term disruption on production, Paladin has brought forward the March scheduled maintenance to reduce near term fuel consumption and expects normal production to resume again on Monday 21 February.This short term disruption is not expected to affect the current guidance as drummed production to date has exceeded our internal target for this period.ACN 061 681 098