Paladin Completes Acquisition of Blane & Enoch Fields

Paladin Resources has completed the acquisition from companies in the Royal Dutch/Shell Group of their operated interests in the Blane and Enoch oil discoveries which are located in the UK Central North Sea, adjacent to the UK/Norwegian median line.

With immediate effect, Paladin has also assumed operatorship of the discoveries. The planned new Framework Treaty for cross-border activity combined with Paladin's involvement on both sides of the median line, presents the Company with two attractive development opportunities, which will be pursued in the coming months.

The consideration paid on completion was US$10 million, funded by drawdown from existing bank facilities; there were no material adjustments for working capital as at the effective date of July 1, 2003, or for cash flows in the period between the effective date and completion.