LOCATION

The Langer Heinrich Uranium Project (“the Project”) is located in the west of central Namibia , Southern Africa . It lies 85km east of the coastal town of Swakopmund with seaport access to nearby Walvis Bay

BACKGROUND INFORMATION

In August, 2002 Paladin Resources Ltd (“Paladin”), an Australian publicly listed company, acquired 100% of Langer Heinrich Uranium (Pty) Ltd (“LHUPL”), the Namibian registered company holding the Project rights. Subsequently, a Pre-Feasibility Study was completed on the Project, which strongly justified undertaking a Bankable Feasibility Study (“BFS”). The year-long BFS was completed in April 2005 by GRD Minproc (Pty) Ltd. After full management review of the BFS, the Board resolved on 9 May to proceed with development of the project. Key points to note are:

PROJECT HISTORY

General Mining and Finance Corporation Limited (“Gencor”), previously a major South African mining house before it evolved into Billiton , now part of BHP-Billiton, carried out extensive evaluation work on the project over an 8-year period. This followed the discovery of the calcrete hosted uranium mineralisation in the early 1970's. Gencor completed a full project evaluation study in 1980 based upon a conventional open pit mining operation. The study indicated that the Project had good potential for development but it was subsequently placed on care and maintenance due to depressed uranium prices. In 1998 the Project held in LHUPL was sold to the Australian listed public company, Acclaim Uranium NL (“Acclaim”). Acclaim completed a highly favourable Pre-Feasibility Study that included drilling, geochemistry, geostatistics, ore resource re-evaluation, metallurgical, engineering and baseline environmental studies. Gencor and Acclaim spent over A$20M exploring and evaluating Langer Heinrich. However adverse uranium market conditions and low prices in the late 1990's again curtailed development and Acclaim sold its holding in LHUPL to Paladin in 2002.

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