Paladin Enters New US$600 Million Corporate Credit Facility

Paladin has signed a US$600 million five year Senior Secured Revolving Credit Facility with a syndicate of sixteen major international oil and gas lending banks led by J.P.Morgan plc.

Given the Company's recent and projected future growth, the market was initially approached for a US$500 million facility, which was increased to US$600 million following a strong reception to the transaction in the banking market. The facility will be used for general corporate purposes, including the funding of the Company's active capital investment program to enhance production from its existing assets, the financing of future acquisitions, and the refinancing of existing indebtedness.

Roy Franklin, Chief Executive of Paladin, commented:

'Paladin is entering into a new phase of organic growth through active investment in our recently acquired assets. This new facility puts the Company in excellent shape to fund that investment program and provide headroom for further acquisitions. I am delighted with the level of support shown by all of the banks in our enlarged syndicate.'