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Paladin Resources (PLR)

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Wednesday 21 September, 2005

Paladin Resources

Transfer of Interest

Paladin Resources PLC
21 September 2005

Paladin Resources plc

Transfer of Norwegian Exploration Interest to Pertra AS in return for US$35
million Carry

Paladin Resources plc announces that its wholly owned subsidiaries Paladin
Resources Norge AS and Paladin Resources (Norway) Limited (together "Paladin")
have signed a Sale and Purchase Agreement with Pertra AS ("Pertra") under which
Pertra will acquire a 10 per cent interest in Paladin-operated Licence PL316 
("the Licence"). As a result, Paladin's equity in the Licence will reduce from 
50 per cent to 40 per cent.

As consideration for the transfer of the interest, Pertra will carry Paladin
through its share of the costs of the forward work programme up to a total of
US$35 million, net to Paladin's 40 per cent share, from an effective date of 1
July 2005. These costs can include exploration, appraisal, and development
drilling, seismic acquisition and any other related expenditure. The transaction
is subject to the approval of the Norwegian regulatory authorities.

Paladin has contracted a rig to drill an exploration well in the Licence area on
the Aimee Prospect during the fourth quarter of 2005 at an estimated gross cost
of US$16 million and is currently acquiring a 3D seismic survey, which will be
used to evaluate other prospects within the area. In addition, Paladin is
undertaking pre-project studies for re-development of the decommissioned Yme
Field, which also lies within the Licence area.

                                                              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

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