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Paladin Resources (PLR)

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Monday 07 June, 2004

Paladin Resources

Exploration Update

Paladin Resources PLC
07 June 2004



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

               Oil Discovery Adjacent to Arkwright Field


Paladin announces that exploration well 22/23a-7 drilled on the Brechin
prospect, 3.5 km to the east of the Arkwright Field, is an oil discovery.


The well, the first exploration well to be operated by Paladin in the UK sector
of the North Sea, penetrated an oil bearing zone of at least 110ft in the
Palaeocene Forties Sandstone, the producing horizon in the nearby
Paladin-operated Montrose, Arbroath and Arkwright Fields. Reservoir quality is
in line with pre-drill expectations with average porosity of 22 per cent and a
net:gross ratio of ca.78 per cent.


A comprehensive suite of log and pressure data has been acquired and the well is
being suspended for potential use as a future producer.  As the discovery is
structurally well-defined on existing 3D seismic data, an early decision on the
development of Brechin as a sub-sea satellite to the Arkwright Field is
anticipated. The well results have also upgraded the potential of a comparable
prospect 2.5 km to the south, which is now a candidate for early drilling.



Participants in the well were Paladin Expro Limited (58.97436 per cent), a
wholly owned subsidiary of Paladin, and Energy North Sea Limited (41.02564 per
cent). Paladin's share of well costs were met by Energy North Sea under the
terms of an exchange agreement entered into by both parties in late 2003 to
align their interests in the acreage adjacent to the Montrose, Arbroath and
Arkwright Fields.



Roy Franklin, Chief Executive of Paladin, commented:

"This is another excellent well result for Paladin and Energy North Sea to
follow our recent success on North Montrose, and is further demonstration of the
organic growth potential in the Monarb area. We will now be assessing the scope
for the earliest possible development of Brechin as a satellite to the Arkwright
Field; as incremental production through our existing facilities, these will be
high value barrels."



                                                                     7 June 2004
ENQUIRIES:

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




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