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Paladin Resources (PLR)

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Thursday 04 December, 2003

Paladin Resources

Second Tunisian Oil Discovery

Paladin Resources PLC
04 December 2003


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

                         Second Tunisian Oil Discovery


Paladin announces the discovery and successful testing of oil in its Hawa-1
exploration well in the Borj el Khadra production concession in southern
Tunisia.

The well operated by ENI Tunisia B.V. ("ENI") was spudded on 18th September and
encountered an aggregate 46 metres of net oil pay and 9 metres of net gas pay in
the
Acacus A and Tannezuft Formations over a gross interval of approximately 280
metres at a depth of approximately 3,300 metres. These zones are equivalent to
productive zones in the nearby producing Adam Field, discovered in the Borj el
Khadra concession in 2002.

During preliminary testing of the oil-bearing Acacus A intervals, the well
produced at a rate of 2,460 bopd of 41 degrees API oil with a gas-to-oil ratio 
of c. 700 scf/bbl and flowing top hole pressure of 1,740 psi.

The drilling rig is currently being moved off location and more extensive
production testing of all intervals considered to be hydrocarbon bearing will be
conducted during the second half of December. The well will then be suspended as
a production well pending approval of a field development plan and hook up to
existing process and export facilities some 13 km distant. Paladin anticipates
that field production will commence in early 2004.

Subject to the Tunisian state oil company, ETAP, confirming their intent to
participate, Paladin will have a 7% interest in the Hawa Field. Paladin's
partners' interests will be ETAP (30%), ENI (35%), and Pioneer Natural Resources
(28%).


Roy Franklin, Chief Executive of Paladin, commented:

"This is the Company's second exploration success in Tunisia. The discovery can
be rapidly tied back to existing facilities to complement our existing
production from the nearby Adam Field."




                                                                 4 December 2003




ENQUIRIES


Paladin Resources plc                                Tel. 020 7024 4500
Roy A. Franklin, Chief Executive
Cuth McDowell, Finance Director

College Hill                                         Tel. 020 7457 2020
James Henderson




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