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Paladin Resources (PLR)

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Wednesday 21 September, 2005

Paladin Resources

Acquisition of Interest

Paladin Resources PLC
21 September 2005

Paladin Resources plc


Acquisition of Interest in JPDA PSC 03-01, Offshore Northwestern Australia

Paladin announces that it and its wholly-owned subsidiary, Paladin Oil & Gas
(Australia) Pty Limited ("Paladin Australia"), have signed a Share Sale
Agreement with Santos Limited ("Santos"), under the terms of which Paladin
Australia will acquire from Santos its wholly owned subsidiary, Santos (JPDA
91-01) Pty Ltd. This company holds a 25 per cent interest in PSC 03-01 ("the PSC
") which lies in the Joint Petroleum Development Area between Australia and
Timor Leste, immediately to the east of the Laminaria and Corallina Fields in
which Paladin holds interests of 40.1 per cent and 33.33 per cent respectively.

The consideration is the issue of 3.5 million Paladin shares to Santos and, in
addition, the reimbursement of Santos' expenditure on the PSC between the
effective date of 1 July 2005 and completion, which is expected to take place in
the near future. An additional payment of US$3 million in cash would be payable
to Santos in certain circumstances following any oilfield development in the PSC

Within the PSC area, there are several existing oil discoveries, notably the
Jahal and Kuda Tasi discoveries, with the potential to be developed as
satellites to the Northern Endeavour FPSO, in which Paladin Australia has a
33.33 per cent interest as a result of its stake in the Corallina Field. A 3D
seismic grid is shortly to be acquired over these discoveries and also over the
more prospective parts of the PSC area.

Woodside Energy Ltd. is the operator of both the Laminaria and Corallina Fields
and the PSC.

Roy Franklin, Chief Executive of Paladin, commented:

"This deal very much complements our involvement in the Laminaria and Corallina
Fields, in particular, as there is already a work programme underway to
establish whether the existing discoveries can be economically tied back to our
Northern Endeavour FPSO. In addition, the PSC area contains several attractive
exploration prospects and we would hope, with the benefit of the 3D seismic
programme, to progress one or more of these to early drilling. "

                                                               21 September 2005

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

College Hill                                         Tel:  020 7457 2020
Ben Brewerton
Nick Elwes
Jim Joseph

                      This information is provided by RNS
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