Paladin Completes Acquisition of Stake in Laminaria & Corallina Fields

Paladin's wholly owned subsidiary, Paladin Oil & Gas (Australia) Pty Limited ('Paladin Australia'), having received all necessary partner and regulatory approvals, has completed the acquisition of part of Shell Development (Australia) Pty Ltd's interests in the Laminaria and Corallina Fields and the Northern Endeavour FPSO, and its entire interest in the AC/P8 permit, all located in the Timor Sea, offshore northwestern Australia.

The headline purchase price as at the effective date of July 1, 2004 was US$46.87 million.

Completion of this transaction also effects completion of Paladin Australia's farm-in agreement with Woodside announced on March 24, 2005, under the terms of which Paladin will earn an 18.33% interest in the AC/P8 exploration permit.