Paladin Achieves Record Uranium Sales For March 2011 Quarter

Published on Friday April 15 2011 (AEST)-Australia

Paladin Energy Has Reported Record Uranium Sales For The Quarter Ended March, Despite a 4% Decrease In Production Figures.

During the three months to March, Paladin sold around 1,4-million pounds of uranium oxide (U3O8), generating a record revenue of $92,5-million.

Overall production for the quarter also reached around 1,4-million pounds, which was a 4% decrease on the 1,46-million pounds of U3O8 produced in the December quarter, but an increase on the 1,1-million pounds of U3O8 produced in the previous corresponding quarter.

The Kayelekera mine, in Malawi, hit record production during the quarter, with a step-change in plant performance achieved during the quarter, Paladin reported.

The uranium miner told shareholders that the project had produced 606 034 lb of U3O8 during the quarter under review, which was a 14% increase on the previous quarter.

Production during the month of March at the Kayelekera operation reached 93% of the plant capacity, with the operation producing some 253 036 lb of U3O8.

The Langer Heinrich operation, in Namibia, however, saw a 14% decrease in production, owing to abnormal rainfall in the three months to March, particularly during the latter part of the quarter.

Paladin noted that this had restricted access to higher-grade mining areas and increased the difficulty in treating wet ore. As a consequence, the Langer Heinrich operation only produced 795 815 lb of U3O8 during the period, compared with a nameplate 925 000 lb.

Meanwhile, Paladin reported that the Langer Heinrich stage three expansion project was progressing, and has entered the commissioning phase. The stage three expansion would see the operation increase its current capacity to around 5,2-million tons a year.

The uranium miner said on Friday that the front-end feed preparation, crushing and scrubbing circuit was on track for production ramp-up during April, while the increased throughput capacity and scrubbing efficiency at the front-end was expected to quickly add to the production capacity of the processing plant.

The stage three expansion was currently 92% complete.

Paladin also reported that the stage four feasibility study, which was targeting a combined 8,7-million tons a year production level, remained on schedule for completion during the December quarter.

The environmental impact assessment documentation was nearly ready for final submission and work on the process design of the new plant has advanced significantly.

A new mining design and production schedule has also been completed and a conceptual design for the tailings deposit was being reviewed.

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Global X Uranium ETF Fund Holdings Overview

 

New York-based ETF provider, Global X Funds, has added Uranium ETF to its cleantech fund range. The Global X Uranium ETF tracks the performance of the Solactive Global Uranium Index.

The index tracks the performance of the largest and most liquid listed companies globally in the Uranium Mining Industry. Its three largest components are Cameco, Paladin Energy and 

Uranium One, as of Nov. 1, 2010. 

Global X Uranium ETF (URA) began trading November 5, 2010 as the first ETF to track companies involved in uranium mining. Listed below are the 23 listed Uranium plays that make up this newly listed Uranium ETF.
 

(Complete list of 23 holdings).

% of Net                        Company  Name

Assets

	18.10%	CAMECO CORPORATION
	13.44%	URANIUM ONE INC
	11.91%	PALADIN RESOURCES LIMITED
	4.95%	EXTRACT RESOURCES LTD
	4.94%	DENISON MINES CORP
	4.52%	URANIUM ENERGY CORP
	4.49%	KALAHARI MINERALS PLC
	3.92%	HATHOR EXPLORATION LTD
	3.86%	USEC INCORPORATED
	3.69%	ENERGY RESOURCES OF AUST
	3.01%	URANERZ ENERGY CORP
	2.84%	FIRST URANIUM CORP - CAD
	2.81%	FORSYS METALS CORP
	2.31%	MANTRA RESOURCES LTD
	2.24%	URANIUM RESOURCES INC
	2.22%	UEX CORP
	2.19%	GREENLAND MINERALS LTD
	1.98%	MEGA URANIUM LTD
	1.66%	BERKELEY RESOURCES LTD
	1.58%	BANNERMAN RESOURCES LTD
	1.17%	DEEP YELLOW LTD
	1.14%	LARAMIDE RESOURCES
	0.99%	TORO ENERGY LTD

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Uranium - Turn $1,000 into $1 Million Investing In Quality Uranium Stocks

Big money will go to experienced teams with high-grade deposits near people, roads, and other mines

Can you turn $1,000 into $1 million in just a few years?

You can if you time a bull market in uranium stocks correctly

In September 2003, an Australian uranium company, Paladin Energy, traded for just 1¢ per share. Things were horrible for the uranium industry.

Back then, uranium sold for around $11 per pound. But it cost the industry $15 per pound to produce. That meant uranium companies lost $4 on every pound they sold. Except for expert contrarian investors, nobody wanted to own uranium stocks.

But 2003 was the very beginning of a huge bull market in uranium. By 2005, the uranium price had climbed to $20... By the end of the year, it was selling for $35 a pound. Investors went wild for uranium plays.

In January 2005, Paladin Energy was up to 47¢. That's a 4,600% gain from 2003 levels. By the end of 2005, it hit $2 per share… a 19,900% gain in just 30 months.

The uranium bull market peaked in 2007. Paladin topped out at $10.40 per share… an incredible 100,000%-plus gain. Every $1,000 invested turned into more than $1 million.

The uranium bull died in June 2007, thanks in part to the global economic collapse. The ride down was steep. Uranium fell from $136 per pound to $40 per pound in just two years.

But there's a new bull market getting started right now. The price just broke out to a new 52-week high. And the next Paladin is getting ready to take off. Before I get to that, let me explain what's driving the new move in uranium prices...

The bull case for uranium – the chief fuel for nuclear reactors – is simple: Emerging Asian nations, particularly China and India, are Westernizing. Their populations want air conditioning, refrigerators, iPods, and YouTube. That means electricity.

To meet its growing electricity demand, China plans to build 60 new nuclear reactors within the next 10 years. China's high-growth cousin, India, needs 40 new reactors in the next 20 years. That would increase the number of nuclear power plants in the world by 23%.

This new Asian nuclear boom is expected to be the largest period of nuclear power growth since OPEC's oil embargo. At its peak, back in the 1980s, the nuclear industry started up a new reactor every 15 days. By 2015, we could see a new reactor coming online every five days.

Both China and India understand the implications of that growth. According to Bloomberg, both countries are stockpiling the fuel. China could purchase more than twice as much uranium as it will use this year. The proposed reactors in China alone could consume more than 30% of the uranium mined today. That's why the country signed a 10-year, 10,000-ton deal with giant uranium miner Cameco.

But there is a real lack of new, near-term uranium production. That means supply won't increase as much as demand... and uranium prices will rise.

In fact, it's already begun. A small uranium firm I just recommended to my S&A Resource Report readers has climbed 50% for us in just two months. Many other uranium plays, like blue chip uranium miner Cameco (NYSE: CCJ, Stock Forum), are entering uptrends as well. But it's still early days and the masses haven't caught on. That's our opportunity. It's unlikely you'll score an unbelievable 100,000% gain... but hundreds of percent gains are easily within reach.

We have time to sleuth out the great junior miners and buy cheap. Focus on the little things: management's experience, burn rate (the amount of cash spent versus amount of cash in the bank), and projects.

The big money will go to experienced teams with high-grade deposits near people, roads, and other mines. That's what the expert contrarian investors are looking for now.

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Paladin Energy Video Presentation - March 2010

Paladin Corp March2010 from Westmedia on Vimeo.

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Paladin Energy Bid for NGM Resources Defeating Conditions Triggered

Paladin Energy Ltd will allow its $27 Million takeover offer for NGM Resources Ltd to lapse, after terrorist activity in North Africa raised concerns about the future of NGM's exploration and development in the area.


The abduction of seven employees of French uranium company Areva and its contractor, from Arlit, a Nigerian uranium mining town, meant the conditions of Paladin's all-scrip offer could not be fulfilled, the company said in a statement.

"In the light of these material unforeseen events, NGM's ability to safely access, explore and develop the resource base of its exploration tenements following the completion of the takeover bid would be seriously compromised," Paladin said.



"Safety concerns would prevent Paladin Group expatriate personnel from working in Niger’s uranium region within a suitably secure environment for an, as yet, unknown period of time."

According to an Associated Press report, al-Qaida-linked gunmen took responsibility for the kidnapping, during which they breached the security cordon of one of the world’s most heavily guarded mining towns.

Such action “shows a new level of brazenness", the report said.

Paladin will allow the offer, of one of its shares for every 23.9 NGM shares held, to lapse on October 8. But it said it plans to keep the 22.5 per cent stake in NGM that it already owns.
It said it would monitor the state of security in Niger before deciding its future plans in the country.

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Paladin Energy Increases Sales Revenue 78% to $204.3Million

Uranium producer Paladin Energy Ltd has dramatically narrowed its full year loss to $US52.9 million ($A59.7 million), from the previous corresponding 12 months, on record sales volumes.

The loss for the year to June 30 compares with a $US480.2 million loss in 2008/09.

RBS Morgans resources analyst Lyndon Fagan said the latest result was a little below his expectations.

Paladin posted record uranium oxide production of 4.32 million pounds, a 60 per cent increase from the prior year.

The company had previously said it planned to expand its uranium production from a targeted seven million pounds in 2011 to 14 million pounds by calendar 2015.

In its report to the stock exchange on Friday, Palandin said it achieved record sales volumes for fiscal 2010, 84 per cent higher than the previous year.

Sales revenue for the year increased 78 per cent to $204.3 million, but the cost of sales more than doubled from $53.0 million to $131.6 million.

"During the year the company continued its strategy of placing more uranium into the term market," Paladin told the stock exchange.

The company made a loss per share of eight US cents, compared to 78 US cents in the 2008/09.

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ASX- Listed Paladin Energy Signs MOU With Chinese Group CGNPC

Paladin Energy has signed a wide ranging Memorandum of Understanding (MOU) with Chinese based CGNPC Uranium Resources setting up a framework of co-operation for long term sales of uranium.

In a statement Paladin said the agreement could also include potential participation by CGNPC in Paladin's growth strategies and expansion of joint venture relations in the Northern Territory with Energy Metals, in which CGNPC through its subsidiary China Uranium Development holds a 69 per cent interest.

The agreement is a non-exclusive MOU.

CGNPC is a large nuclear utility in China and its expects its reactor build programs will account for about 50 per cent of China's anticipated growth in nuclear power to 2020.

Paladin shares were up 20 cents or 5.24 per cent to $4.02 at 10.45am following the announcement.



See full company statement:

Paladin is pleased to advise that it has signed a wide ranging Memorandum of
Understanding (MOU) with CGNPC Uranium Resources Co., Ltd ("CGNPC-URC"), setting a framework of co-operation for long term sales of uranium, potential participation in Paladin's growth strategies, and possible expansion of joint venture relationships in the Northern Territory with Energy Metals Limited (EME), in which CGNPC-URC, through the subsidiary China Uranium Development Company Limited, holds a 69.34% interest.

Although this MOU is non exclusive, it provides a further platform from which Paladin
can build upon its already impressive growth.

Paladin has a strong project development pipeline and remains the only fully independent publically listed uranium company with a geographically diversified production base.
About China Guangdong Nuclear Power Holding Corporation (CGNPC)

CGNPC-URC is the wholly owned subsidiary of CGNPC.

CGNPC is the premier nuclear utility in China and its reactor build programs will account for about 50% of China's anticipated growth in nuclear power to 2020. CGNPC-URC is a wholly owned affiliate of CGNPC responsible for uranium procurement either through purchase of uranium product or development of new mines.

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PALADIN ENERGY REPORTS RECORD QUARTER JUMP IN URANIUM PRODUCTION

CEO John Borshoff
Paladin Energy

Australian uranium miner Paladin Energy had second quarter production of 1,442,851 pounds of uranium oxide, or U3O8, up 110% on the second quarter of 2010, the company said Monday. Financial year 2010 production was up 60% over the prior year, coming in at 4,316,126 lb U3O8, Paladin said. Financial year 2010 ended June 30. Paladin has two operating mines--Langer Heinrich in Namibia and Kayelekera in Malawi.

Most of the increased production came from the Kayelekera mine, which has been ramping up and went into commercial production in the second quarter. Sales for the second quarter were 855,000 lb U3O8 generating revenue of US$49.1 million, representing an average sales price of US$55.50/lb, the company said. Sales for FY 2010 amounted to 3,726,000 lb U3O8 generating revenue of US$202 million at an average sales price of US$54.21/lb; when the average spot price for the same period was US$43.99/lb, Paladin said.

The company said it has concluded a new medium term contract with a major Asian utility for the delivery of approximately 1.5 million lb U3O8 between 2011 and 2015 on undiscounted market price terms subject to an appropriate floor price and market risk-sharing ceiling price conditions.

Paladin did not disclose additional details about the deal. Paladin said it expected to produce 7 million lb U3O8 in FY 2011, which runs July 1, 2010 to June 30, 2011.

__________________________

Here's an insight of CEO John Borshoff
Paladin Energy


In 1991, when his West German employer withdrew from the dying Australian uranium industry, John Borshoff acquired the company’s databases and used them to found Paladin Energy. When Paladin listed on the ASX in 1994, the geological, metallurgical and environmental data gave the company enormous credibility.

John sees the years following Paladin’s listing as "character building". To survive in a period where funding for resources, and particularly uranium, was almost impossible, Paladin diversified its activities into software and IT companies.

In 2002, Paladin purchased the Langer Heinrich Project in Namibia for A$15,000 and John waited patiently for two years until funds became available to grow his company. In January 2004, he was able to start building two uranium mines in Africa – the world’s first new conventional uranium mines in 20 years.

Developing a uranium mine in Malawi was particularly difficult. The mine was the largest private investment in Malawi’s history, which would increase GDP by 10%. But the government had no precedent or framework to deal with the complexity of establishing this type of project, and John had to placate numerous, divergent interest groups.

Despite the challenges, both mines proved successful. Today, Paladin remains the second largest pure play uranium mining company in Australia and Canada and the eighth largest mineral resource company in Australia. The company has a market capitalization of $2.6 billion and employs 500 people. In addition to developing a strong pipeline of projects in Australia, John plans to expand Paladin into Africa, North America and Asia, taking advantage of the nuclear revival he expects in future decades.

SIGNS OF UPWARD TREND FOR PALADIN ENERGY

Paladin Energy: Positive action


With uranium projects in Namibia and Malawi, Paladin's share price has been traveling down from 2007, accelerating in late 2008. Rising into 2009, the price halted in resistance at about $5.50 last June and resumed the downward path.

Following the test of the $3.40-$3.50 support in February/March, the price action has become more positive with the potential to tackle its downward barriers around $4.30 and then in the $4.50-$4.70 range.

Once clear, a new direction would be established towards $5.40-$5.60 and potentially higher. A drop below $3.50 would endanger the upward potential.

RUSSIANS THREATEN EXTRACT'S URANIUM SITE IN NAMIBIA

MINERS operating in Africa have been keen to play up the benefits of owning assets on that continent as opposed to the local economy with its now threatening resource super-profits tax, but there are still sovereign risks in the developing world.

Three weeks ago Extract Resources, one of the most successful emerging miners with its world-class Rossing South uranium deposit in Namibia, woke up to a rude surprise.

It came in the form of Russia's Prime Minister, Vladimir Putin, and his state-owned Russian State Atomic Energy Corp (Rosatom).

Talks in Moscow on May 20 between Mr Putin, Russian President Dmitry Medvedev and Namibian President Hifikepunye Pohamba resulted in a five-year memorandum of co-operation between the countries to develop Namibian uranium deposits.

Uranium is a natural resource with geopolitical issues unlike any other, thanks to its nature and the market structure -- most buyers are state-owned or controlled.

That bilateral agreement may have been a worry for Extract's chief executive, Jonathan Leslie, as it indicated a heavyweight encroachment into its region, but what came a few hours later would have been even more disconcerting. As reported by several Russian news agencies, including RIA Novosti, Rosatom issued a statement that same day in relation to the Namibian agreement saying that it had "sent an application on developing (the) Rossing South uranium deposit".

Extract's prinicpal asset is the wholly owned Husab Uranium Project that contains the very same Rossing South deposit, as well as the Ida Dome deposit.

Senior uranium industry sources believe that Rosatom is seeking to exploit apparent frustrations within parts of the Namibian government at Extract's slow pace in bringing the project through to production.

But Extract's Mr Leslie is emphatic that this is not the case.

"We have seen no evidence of (that frustration). We have also been assured at the very highest level that the Namibian government will not interfere with commercial negotiations with third parties," Mr Leslie told The Australian in an email from London.

Rosatom head Sergei Kiriyenko vowed his company was ready to invest $US1 billion ($1.2bn) in uranium deposits in Namibia.

"We are ready to guarantee investments," he boasted, emphasising that Rosatom could bring a deposit like Rossing South to production quickly and efficiently.

It is not known what rights the Namibian state would have to either appropriate the mine or transfer the mining rights to another company on the basis that Extract was not properly exploiting the deposit for the nation's benefit.

But it appears to some industry watchers that Rosatom is encouraging that outcome.

"There can be no question of failure to develop the mine in a timely manner, and no suggestion from the Namibian government that this is the case," Mr Leslie says. "Extract keeps the government closely informed.

"The company has moved rapidly from the initial discovery in February 2008 to the current level of activity, where we have one of the largest drilling campaigns in Africa, with 19 drill rigs on site.

"The definitive feasibility study is due in the fourth quarter this year, with a clear timetable to commissioning in 2013."

Extract owns an exploration prospecting licence over the Husab Project, and Mr Leslie reckons it has "far exceeded our renewal requirements".

"As part of the normal process we will apply for a mining licence," he said.

Rossing South has the potential to produce 15 million pounds of uranium a year, which would be equivalent to the second-largest uranium mine in the world behind BHP's Olympic Dam. It is, therefore, a strategic asset valuable to nations reliant on nuclear energy such as Russia, France, India and China.

Hype around the deposit fanned Extract's shares to as high as $11.45, but they closed on Friday at $6.98 for a still healthy market capitalisation of $1.7 billion.

Last year Extract -- which is 15 per cent owned by Rio Tinto and 41 per cent by London investor Kalahari Minerals -- began seeking a partner to develop Rossing South through a process run by investment bank Rothschild.

Potential strategic partners included Korea Electric Power Corp and state-run Korea Resources Corp, which admitted in March that they were considering buying a stake from Extract in Rossing South as part of a consortium.

The Australian understands that Extract, as part of the Rothschild strategic review, also held informal talks to merge with Paladin Energy to create a $4 billion-plus independent uranium player, but the price expectations of shareholders such as Kalahari meant a deal was not possible.

Paladin owns the nearby Langer Heinrich project in Namibia, which is fully operational and running at near-capacity. A merger between the pair would make strategic sense and alleviate tensions with the Namibian government over the pace of development at Extract's Rossing South.

According to Extract's most recent investor presentation, the company aims to have Rossing South in production at the end of 2013. But the prolonged nature of the Rothschild review, and more specifically the lack of an outcome, is said to have Namibia anxious and frustrated.

The appointment in February of Mr Leslie, a former manager of the nearby, established Rossing mine owned by Rio Tinto, should assist Extract. He told Boardroom Radio, ironically the same day as the Rosatom statement on May 20, that he "knows the Namibian government very well".

"The proposals received through the Rothschild process have demonstrated the strong level of global interest in Rossing South, and the potential capabilities and value that partners could bring to the project," Mr Leslie told The Australian.

"Extract remains in discussions with potential partners, but they remain incomplete and no decision has been made by Extract to finalise discussions with one or more of the potential partners.

"The Namibian government has been kept closely informed of these discussions."

The Namibian government-owned Epangelo Mining has signalled to Kalahari that it wants to take an ownership stake in Rossing South ahead of the project moving into production, according to a report in the Namibian newspaper New Era. Investors may well ask: is Rosatom talking about funding Epangelo into a minority stake in the project? Or is it a proposal to develop Rossing South with Epangelo and without Extract?

Whether the Rosatom application on Rossing South is simply a cheeky commercial broadside or a serious play threatening Extract's interests, it will heap pressure on the Perth-based company to move swiftly to finalise a partnership deal or merger agreement to ensure its future.

RUSSIANS POUNCE ON AUSTRALIAN URANIUM MINER "PALADIN ENERGY"

THE disclosure that Uranium One -- a Canadian-based uranium producer in which the Russian government holds a significant stake -- has taken a shareholding in Paladin Energy should provoke interest in Canberra.

That's because, under Australia's foreign investment guidelines, Uranium One should have sought approval before acquiring any shares in Paladin. It's thought that it did not do so.

The holding to date is small -- 9.84 million shares, or 1.37 per cent of Paladin's capital.

Uranium One has confirmed the holding and says the shares were purchased for "investment purposes", that the company continually reviews its investment alternatives and may, from time to time, acquire additional shares or dispose of its holding.

Maybe.But if the intention was to acquire a strategic shareholding in Paladin, then presumably Uranium One won't make any further purchases without first notifying FIRB and seeking the approval of federal Treasurer Wayne Swan.

Uranium One's buying was only flushed out as a result of regular monthly monitoring by Paladin of purchases of its shares.

The buying was conducted through a Credit Suisse nominee company in the US. Paladin sent out tracing notices on April 15, which revealed that the beneficial owner was Cheetah Resources, a Luxembourg-domiciled entity, which at that stage held 4.345 million shares. A further tracing notice on April 28 revealed that Cheetah's holding at that stage had risen to 9.84 million shares.

It's suggested that Paladin suspects Uranium One might hold further shares through another entity and that additional tracing notices have been sent in an endeavour to ascertain whether that is the case.

If Uranium One was hoping to build a bigger stake in Paladin, its cover has now been blown. Not only will FIRB have been alerted but investors also know of its buying and the Canadian group would find it more difficult to dislodge sellers.

Paladin's share price jumped from $3.68 to $4 on the disclosure of Uranium One's stake, but has since drifted back to $3.65, in line with the overall market decline.

The uranium industry is closely held, but there has been speculation there might be further consolidation, with Canada's Cameco mentioned as a possible bidder for Paladin.

Paladin has positioned itself uniquely within the uranium supply industry and is currently the only independent uranium producer with developed, proven reserves and significant volumes of uncommitted production.

An Australian company, Paladin has brought two uranium mines into production in Africa: Langer Heinrich in Namibia and Kayelekera in Malawi.

Paladin has not had any formal approaches from third parties, but is believed to have received numerous soundings, including from government-controlled entities, Asian trading houses and uranium producers. But to date it has preferred its independence.

Uranium One's uranium production is predominantly in Kazakhstan, although the company also owns 51 per cent of the Honeymoon deposit in South Australia, which recently received the go-ahead from the South Australian government and is scheduled to come into production around the end of this year.

The Canadian group is said to be looking for assets in Africa to diversify its production base from Kazakhstan.

Under the federal government's foreign investment policy, direct investments made by foreign governments and their agencies, irrespective of their size, are notifiable to FIRB, and the ownership or control of the investor by a foreign government raises additional factors for examination.

Paladin has ascertained that Cheetah is wholly owned by Uranium One, which in turn is 16.6 per cent owned by Japan Uranium Management (JUM), 19.3 per cent by Atomredmetzoloto (ARMZ) and 64.1 per cent by institutional and retail investors.

JUM is a Japanese consortium made up of Tokyo Electric Power (40 per cent), Toshiba (40 per cent) and the Japan Bank for International Co-operation (JBIC), a Japanese state-owned company, while ARMZ, the world's fifth-largest uranium producer with operating mines in Russia and Kazakhstan, is a Russian state-owned uranium mining company.

ARMZ is part of Rosatom, the Russian state corporation that controls the Russian Federation's nuclear activities. ARMZ supplies strategic feedstock to the Russian nuclear industry.

ARMZ director-general Vadim Zhivoc is a director of Uranium One and the Canadian company has agreed to appoint a second ARMZ representative to the board, subject to shareholder approval.

In June last year, Uranium One and ARMZ entered into a framework agreement under which they agreed to work together to build Uranium One's global platform and develop it into one of the largest uranium producers in the world.

In particular, they agreed to discuss areas of potential co-operation in the uranium industry and that ARMZ would use commercially reasonable efforts to allow Uranium One to participate in investments in uranium exploration projects, or any form of joint venture, to develop or operate uranium exploration properties outside of the Russian Federation.

Moreover, Japan and Russia last year signed a new nuclear co-operation agreement under which Japan can send nuclear material to Russia for enrichment and return to Japan.

However, concerns have been expressed that some of the enriched fuel might be sent to third countries -- including, perhaps, Iran.

The agreement also opens the way for joint mining and oil ventures between the two countries.

As ARMZ owns more than 15 per cent of Uranium One, it would almost certainly be deemed under section 9 of the Foreign Acquisitions & Takeovers Act (FATA) to have a controlling interest in Cheetah's 1.37 per cent stake in Paladin.

There's also JUM's 16.6 per cent stake in Uranium One.

The association provisions of FATA are sweeping and given that the state-owned JBIC owns more than 15 per cent of Uranium One -- together with the nuclear co-operation agreement between Russia and Japan -- it's possible that JUM and ARMZ might be taken to jointly control close to 40 per cent of Uranium One.

Uranium is a sensitive industry as far as the foreign investment policy is concerned, so it may well be that now that Paladin has outed Uranium One, the FIRB and the Australian government will play close attention should there be any further developments.

URANIUM ONE ACQUIRES INVESTMENT IN PALADIN ENERGY

VANCOUVER and JOHANNESBURG, April 30 /CNW/ - Uranium One Inc. ("Uranium One" or the "Company") today confirmed that it has acquired an investment in ordinary shares of Paladin Energy Ltd. ("Paladin"). The share purchases were made through Uranium One's 100% owned Luxembourg-based subsidiary Cheetah Resources SARL.

The shares of Paladin were purchased for investment purposes. Uranium One continually reviews its investment alternatives and may, from time to time, acquire additional shares or dispose of its holdings of shares in Paladin.

Although not at a level requiring the lodgement of a substantial shareholder notice, the shareholding raises questions about the identity of the buyer.

Based on publicly available information, Cheetah Resources appears to be a 100% owned subsidiary of TSX/JSX listed uranium company, Uranium One Inc (TSX:UUU).

Uranium One has a market capitalisation of approximately US$1.5 billion. However, upon further investigation, the company has links to Rosatom, the State Corporation controlling all of Russia’s nuclear activities.

Paladin is the largest independent, pure play publicly traded global uranium producer with a market capitalisation of approximately A$2.7 billion. Paladin has two operating mines in Africa and advanced exploration and development assets globally.

A strong production growth profile is expected to expand Paladin’s current production base to in excess of 14Mlb of U3O8 by 2014.

John Borshoff, Managing Director, said to date, Paladin has not been contacted by either Cheetah Resources or Uranium One in regard to this shareholding and is not aware of their intentions in relation to the holding.

As at 22 April 2010, and based on available information, Paladin believes a minimum of 9,839,156 shares has been purchased, which would be equivalent to 1.4% of issued capital.

Interestingly, Uranium One’s largest shareholder is Effective Energy NV, a 100% owned subsidiary of ARMZ Uranium Holding Co. (ARMZ), which is the appointed and authorised uranium feedstock supplier to the Russian Nuclear Industry.

ARMZ is part of Rosatom. According to the World Nuclear Association, Russia is moving steadily forward with plans for a much expanded role of nuclear energy, with the intention to double output by 2020.

Paladin said the information should be conveyed to the market for the purposes of keeping the market fully informed, particularly in view of the concentrated nature of the global uranium industry and the role Paladin plays in this exclusive sector.

About Uranium One

Uranium One is one of the world's largest publicly traded uranium producers with a globally diversified portfolio of assets located in Kazakhstan, the United States and Australia.