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Paladin Resources (PLR)

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Monday 10 May, 2004

Paladin Resources

Drilling Update

Paladin Resources PLC
10 May 2004

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

             Well Confirms Significant Extension of Montrose Field

Paladin announces the completion of the drilling of well 22/17-2, its first
operated well in the UK sector of the North Sea, using the GSF 140
semi-submersible rig.

The well has proved up a significant extension of the Montrose Field to the
northwest and has successfully achieved all of its objectives. A complete
Forties Sandstone interval some 400 ft thick was encountered. The top of this
reservoir section was 23 ft high to prognosis at 8,254 ft subsea and reservoir
quality was as anticipated with a net:gross ratio of ca. 80 per cent and average
porosity of ca. 21 per cent. Preliminary analysis of log and pressure data from
the well indicates good pressure communication with the nearest Montrose Field
well ca. 1.8 km to the south, and that the oil-water contact at the well
location is at the deepest level previously observed in the field. The detailed
well results will now be fully integrated into the existing reservoir
engineering models to quantify the impact on the field's reserves and to
establish the optimum way of developing this field extension.

The well, which was engineered as a "finder" well, has been plugged and
abandoned as planned and the GSF 140 rig is now preparing to drill the Brechin
exploration prospect in Block 22/23, 3.5 km to the east of the Arkwright Field.

The Company is also pleased to announce that it has entered into a Letter of
Intent with Prosafe Drilling Services UK Ltd. to install a modular drilling rig
on the Montrose platform with a view to commencing a multi-well infill and
stepout drilling programme by year end; this will be some six months earlier
than originally anticipated when Paladin assumed operatorship of the field in
May 2003.

Joint-venture partners in the Montrose Field and well 22/17-2 are Paladin Expro
Limited (58.97436 per cent), a wholly owned subsidiary of Paladin, and Energy
North Sea Limited (41.02564 per cent).

Roy Franklin, Chief Executive of Paladin, commented:

"This is an excellent well result for the joint-venture confirming a significant
extension of the Montrose Field to the northwest of the existing producing area,
particularly when taken in combination with our plans to accelerate the field's

                                                                     10 May 2004

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

College Hill
James Henderson                                             Tel: 020 7457 2020
Nick Elwes                                                  Tel: 020 7457 2020

                      This information is provided by RNS
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