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Paladin Resources (PLR)

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Tuesday 04 February, 2003

Paladin Resources

Disposal & Acquisition

Paladin Resources PLC
04 February 2003

                             Paladin Resources plc
                           ("Paladin" or "the Group")

US$5.4 million Sale of Fort Chadbourne interests, onshore USA, and Completion of
Acquisition of a 16.33 per cent interest in the Ross Field, UK sector of the
North Sea

Disposal of Fort Chadbourne interests

Paladin announces that its wholly owned subsidiary, Pittencrieff America, Inc.,
has completed the sale of its interests in the Fort Chadbourne Field to St Mary
Energy Company (the current operator of Fort Chadbourne) for a consideration (at
completion) of approximately US$5.4 million. Reference to this transaction was
set out in the prospectus published by the Company on 12 December 2002 in
connection with the proposed acquisition of a portfolio of North Sea assets from
BP and Amerada Hess.

Proven and probable reserves attributable to the Group's interests in the Fort
Chadbourne Field were approximately 1.2 million barrels of oil equivalent at 31
December 2002 (representing approximately 1 per cent of the Group total), at
which time the field was contributing approximately 350 barrels of oil
equivalent to production (approximately 1 per cent of the Group total).

Completion of the Acquisition of a further 16.33 per cent interest in the Ross
Field from AGIP

Further to the announcement made on 19 December 2002, Paladin announces that its
wholly owned subsidiary, Paladin Expro Limited, has completed the acquisition of
AGIP's 16.33 per cent fixed, unitised interest in the Ross Field in the UK
Central North Sea, thereby raising its overall stake in the field to 30.82 per
cent. Completion of the acquisition of AGIP's interests in adjacent acreage will
take place on a later date, subject to the non-exercise of pre-emptive rights by
existing joint venture partners.

Roy Franklin, Chief Executive of Paladin, commented:

"Sale of the Fort Chadbourne interests effectively brings the Group's
involvement in onshore US oil and gas production to an end. We have a growing
portfolio of UK, Norwegian and Danish assets, and will focus available resources
primarily on reinvestment opportunities in the North Sea."

                                                                 4 February 2003


Paladin Resources plc                                   Tel:     020 7024 4500
Cuth McDowell, Commercial Director

College Hill                                            Tel:     020 7457 2020
James Henderson
Justine Hibbert

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