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Paladin Resources (PLR)

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Thursday 08 September, 2005

Paladin Resources

IFRS Statement

Paladin Resources PLC
08 September 2005



Paladin Resources plc

("Paladin")


Restatement of financial information for the year ended 31 December 2004 and at
1 January 2005 under International Financial Reporting Standards


Paladin today publishes its restated consolidated financial information for the
year ended 31 December 2004 and its Balance Sheet at 1 January 2005 under
International Financial Reporting Standards ("IFRS"). These statements are
reconciled to Paladin's UK GAAP financial information, showing the effect of the
transition to IFRS.


Paladin intends to announce its results, under IFRS, for the half-year ended 30
June 2005 on 21 September 2005. The restated 2004 half-year IFRS comparative
financial information will be included with that statement.


The principal changes to the financial information for the year ended 31
December 2004 and at 1 January 2005 are summarised below:



Year ended 31 December 2004                                                UK GAAP                       IFRS
                                                                              £000                       £000
Profit before finance costs and taxation                                   119,850                    119,200
Profit after taxation                                                       35,782                     37,256
Earnings per share (basic)                                                  11.06p                     11.52p
Net assets                                                                 169,603                    179,750



The most significant elements contributing to the change in financial
information for 2004 are:

  • the inclusion of a fair value charge in respect of outstanding employee
    share options;
  • the change in recognition of special tax allowances;
  • the change in treatment of exchange gains and losses on certain tax
    balances; and
  • the recognition of dividends when paid or authorised only.




1 January 2005 restatement                                        31 December 2004               1 January 2005
                                                                              IFRS                         IFRS
                                                                              £000                         £000
Net assets                                                                 179,750                      160,015



The change to the financial information at 1 January 2005 results from the
inclusion of financial instruments at their fair value.


The Group has continued to apply the full cost accounting policy to both
exploration and development activities. IFRS 6 permits this policy for
exploration and evaluation expenditure. However, as at the date this restatement
was authorised for issue, there was a lack of clarity in the authoritative
literature concerning the treatment of development expenditure. No agreement has
been reached amongst the UK oil industry and the accounting profession on the
acceptability of applying full cost accounting policies under IFRS to
development expenditure and, as a result, the matter has been referred to IFRIC
for consideration. The timing and outcome of IFRIC's deliberations are currently
uncertain and, until such time as some certainty has been provided on the issue,
the Directors have determined it appropriate to continue to apply the full cost
accounting policies that were in effect immediately prior to the Group's
transition to IFRS, subject to the changes in accounting policy required under
IFRS 6. The Directors will reconsider the appropriateness of the full cost
accounting policy for the Group's annual financial statements in the light of
any guidance or clarification issued by IFRIC.


The financial information for the full year ended 31 December 2004 and the
restated 1 January 2005 figures have been audited by Ernst & Young LLP.  The
full text of the restatement can be found on the Company's website, which can be
accessed by clicking on the link below.


http://www.paladinresources.plc.uk/files/pdf/IFRS%20Statement.pdf



                                                                8 September 2005


ENQUIRIES

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

College Hill                                             Tel :    020 7457 2020
Jim Joseph
Ben Brewerton



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