Disposal

Caledonia Investments PLC
20 October 2005


                Sale of shareholding in Paladin Resources plc

Caledonia Investments plc ('Caledonia') announces that it has sold 25,000,000
shares in the British independent oil and gas exploration and production
company, Paladin Resources plc ('Paladin'), representing 7.3% of Paladin's total
issued share capital, to Talisman Energy Resources Limited ('Talisman').  The
shares have been sold at 355p per share, and the proceeds of £88.75m will be
placed on deposit.

Talisman has today announced a firm intention to make an offer to acquire the
entire issued share capital of Paladin not already owned by it, at the same
price of 355p per share (the 'Offer').  Caledonia has provided an undertaking
to accept the Offer in respect of the balance of its shareholding, being
5,468,614 shares, representing 1.6% of Paladin's total issued share capital.

The 30,468,614 Paladin shares referred to above were held in Caledonia's balance
sheet at 31 March 2005 at a value of £55.7m and at 30 September 2005 at a value
of £95.7m.

Tim Ingram, Chief Executive of Caledonia, commented:

'Caledonia has backed Paladin's management since the early 1990s when they
successfully developed and eventually sold Clyde Petroleum.  We congratulate
them on again delivering another successful outcome for their shareholders.'

20 October 2005

ENQUIRIES:

Caledonia:                                                         020 7802 8080

Tim Ingram, Chief Executive 
Jonathan Cartwright, Finance Director

College Hill:                                                      020 7457 2020

Tony Friend 
Richard Pearson


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