Paladin Resources Ltd.: Third Quarter Financial Results-To March 31, 2006

Paladin Resources Ltd. ("Paladin" or "the Company") (TSX:PDN)(ASX:PDN) announces the Company's operational and financial results for the three months ended March 31, 2006.

HIGHLIGHTS

- Excellent progress on construction at Langer Heinrich

- Second and third major uranium sales contracts secured

- Three Exclusive Prospecting Licences granted in northern Malawi

- Kayelekera BFS continuing on schedule

- Uranium spot price at quarter end US$40.50/lb U3O8 (up US$4.00 for the

quarter)

WORLD URANIUM PRODUCTION STILL WELL BELOW ANNUAL REQUIREMENTS

World uranium production in 2005 increased by only 5% to 108.4 million pounds (up from 102.8 million pounds in 2004) despite an almost quadrupling of the uranium price from $10.90 per pound in mid-2003. The World Nuclear Association estimates that total world uranium requirements in 2005 were 168 million pounds, leaving a shortfall of 59.6 million pounds which is supplied from diminishing secondary sources. Data published by Ux Consulting confirms that the major uranium mines are operating at close to full capacity and there are only limited means to expand production significantly in the near term. Paladin's Langer Heinrich is the only new uranium project scheduled to be commissioned during 2006.

The uranium market will continue to experience strong growth as the demand from existing nuclear power plants is supplemented by the emergence of India and China into the world uranium market as potentially significant buyers of uranium, while Russia, which is a major supplier of nuclear materials and technology, has announced that it will add 40 new reactors to its fleet at the rate of two a year from 2008 to 2028 and move from being a uranium exporter to potentially a uranium importer unless significant new resources in Russia are discovered and developed by 2015.

The spot and long term prices of uranium continued to rise and by mid-April were reported by UxC to be US$41/lb U3O8 (spot) and $42/lb U3O8 (long term) , with upward price pressure still apparent.

LANGER HEINRICH URANIUM PROJECT (100%)

Project Construction

Project construction is progressing well, on budget and on schedule for a September 2006 start of commissioning. By the end of March 2006, the project was 61% complete, with on-site work at 24% completion. A construction workforce of 450 is deployed at Langer Heinrich with no lost time incidents recorded for the project to date.

The structural, mechanical, plate work and piping (SMPP) contract has been awarded and contractor mobilisation is on schedule for May. The mining contract has also been awarded and mobilisation will commence in June for a July start.

The six 15m x 11m concrete leach tanks have been constructed and are now awaiting to be fully fitted out including the internal lining. The crusher and scrubber concrete foundation work is also finished. Work has commenced on the installation of the steelwork including plating for the thickeners. The piping for the 80km water line from the coast to the project has been delivered and installation on pre-erected concrete plinths is being undertaken by Namwater.

A 8,000-m grade control drilling programme is underway to define the first six months of mining. This drilling will be completed by June 2006 after which the planned resource drilling work will start to complete full resource definition work on the eastern half of Langer Heinrich Mining Lease (Details 3, 4, 5 and 6).

The key operations senior management team has been recruited, comprising 90% Namibian citizens, with at least half of the team having prior uranium experience. Recruitment of the remaining operational staff is progressing well.

Three Yellowcake Sales Contracts Secured

In January, Paladin secured its first sales contract for a portion of its yellowcake (U3O8) production from the Langer Heinrich Uranium Mining Operation. Paladin was subsequently successful in securing two additional sales contracts, both with US power utilities, covering the period 2007 to 2012 for an aggregate of slightly more than 4.5 million pounds of U3O8. The three sales contracts account for more than 6.6 million pounds of Langer Heinrich production over the period 2007 to 2012 and underline Paladin's confidence in the success of this project. Pricing in all three contracts is market-related at time of delivery and is subject to escalating floor and ceiling components.

KAYELEKERA URANIUM PROJECT (100%)

Bankable Feasibility Study Progress

Work on the Bankable Feasibility Study continues under the management of GRD Minproc, the BFS Manager. The mining study for the open pit is now completed with preliminary scheduling undertaken. The open pit design has a 1.75:1 waste to ore strip ratio. Metallurgical testwork is almost completed and Minproc are confident a viable progress flowsheet can be developed for the project.

Site visits were undertaken during the quarter to better establish local and regional road transport issues and project site layout.

The Environmental Impact Assessment (EIA) process has begun. A project brief including the terms of reference for the study prepared by Knight Piesold Consulting, the study consultants, has been submitted to the director of the Department of Environmental Affairs in Malawi. EIA fieldwork will begin in May.

Discussions are continuing with representatives from Ministries and Departments of the Government of Malawi to finalise the terms of the State Development Agreement.

Prospective Tenements Granted

The Minister of Mines, Natural Resources and Environment has granted three Exclusive Prospecting Licences (EPL) in northern Malawi to Paladin (Africa) Limited (a wholly owned subsidiary of Paladin Resources) covering specific Karoo Sandstone formations which are considered prospective for Kayelekeratype uranium deposits.

Figure 1 shows the location of the three new EPL's (Nos. 168, 169 and 170) and in total these cover 1,140km2. Two licences are contiguous with the Kayelekera EPL070, while the third licence stretches along a coastal section of Lake Malawi. The newly granted EPL's were applied for to secure specific Karoo Sandstone formations which are considered prospective for Kayelekera type uranium deposits.

To view figure 1,Tenement locations, please click the following link: http://www.ccnmatthews.com/docs/malawi.jpg

The area covered by the newly granted EPL's has been previously investigated which included the carrying out of geophysical airborne surveys and limited ground follow-up programmes. These earlier investigations were carried out during the 1980's by the British Central Electric Generating Board (CEGB), the group that discovered and evaluated the Kayelekera deposit up to a full feasibility study. The tenements cover anomalous areas delineated by CEGB. The large number of airborne radiometric and geochemical anomalies identified on these properties are associated with the target geological formations that host the Kayelekera deposit.

CEGB were distracted by their focus on the Kayelekera evaluation and, because of this priority and the dwindling uranium prices at the time, CEGB did not have the opportunity to properly evaluate the regional potential surrounding Kayelekera. As the properties contain significant indications of uranium accumulations, further investigations are justified.

The extensive prospective areas offered by these tenements provide Paladin with a significant opportunity to expand the existing uranium resource base of the project and has the potential to make any mining operation at Kayelekera a strategic facility for longer term utilisation and benefit.

Exploration work for 2006 will initially involve the digitisation and geophysical evaluation of the old helicopter airborne spectrometric data. In addition, all previous exploration results including drilling results will be evaluated in detail. This work will allow the known uranium prospects, airborne and stream sediment anomalies to be ranked in preparation for the ground follow-up work planned for 3rd quarter 2006.

CORPORATE

Team Expansion

With Paladin's continued growth, the executive team is undergoing expansion to accommodate the additional technical, administrative and corporate needs.

General Manager - Sales & Contract Administration appointed

During the quarter Paladin secured the services of Mr James Eggins professional with person of 25 years experience in the uranium industry in the marketing and sales administration areas.

Mr James Eggins, has joined Paladin Resources' staff in the Perth head office to oversee the development of Paladin's commercial sales contracting, administration and delivery systems, as the Company moves into full production and delivery of uranium.

Mr Eggins holds a BA and LLB and has been working in the Australian uranium industry in various marketing and business development roles since 1981. For 15 years Mr. Eggins held senior roles with Olympic Dam Marketing, part of WMC's Olympic Dam business unit, where he managed the marketing, product distribution, and sales realization functions for Olympic Dam's uranium, copper, and precious metals output.

During his period with WMC, Olympic Dam undertook a major expansion which involved the tripling of uranium sales and a similar increase in copper output. Prior to this, Mr Eggins worked on the Kintyre uranium project with CRA (now Rio Tinto) and the Nabarlek uranium project with Queensland Mines. The Company considers itself in a very fortunate position to be able to attract executives of the quality of Mr Eggins into the Paladin management team. Given Paladin's uranium production forecast for Langer Heinrich and Kayelekera and its future, broader uranium growth strategies, building a high level skill base in management is a crucial objective of the Board.

Detailed results will be available shortly with the Company's other documents filed on Sedar (http://www.sedar.com). The Quarterly Report for the period includes a Report to Shareholders, Management Discussion and Analysis and the Nine Month Report December 31, 2005.

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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