Paladin Energy : Investor Presentation - BMO Conference

BMO 29th GLOBAL METALS & MINING CONFERENCE

24th-26th February 2020

ASX: PDN

DISCLAIMER AND NOTES

JORC MINERAL RESOURCES AND ORE RESERVES

This presentation contains summary information about the Company's activities current as at the date of this presentation. The information in this presentation is of a general background nature and does not purport to be complete or contain all the information investors would require to evaluate their investment in the Company, nor does it contain all the information which would be required in a prospectus or product disclosure statement prepared in accordance with the Corporations Act 2001 (Cth). The Company is not responsible for updating, nor undertakes to update, this presentation. This presentation should be read in conjunction with the Company's other periodic and continuous disclosure announcements, available at http://www.paladinenergy.com.au.

This presentation includes statements that may be deemed "forward-looking statements". All statements in this presentation, other than statements of historical facts, that address future production, reserve or resource potential, exploration drilling, exploitation activities and events or developments that the Company expects to occur, are forward-looking statements.

Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from the expectations expressed in the forward-looking statements. Factors that could cause actual results to differ materially from the expectations expressed those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing and general economic, market or business conditions and risk factors associated with the uranium industry generally.

Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Readers should not place undue reliance on forward-looking information. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise. No representation is made or will be made that any forward-looking statements will be achieved or will prove to be correct.

The information in this presentation relating to the Mineral Resources and Ore Reserves for all of the Company's deposits other than Langer Heinrich, Michelin, Jacques Lake and Manyingee was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that this information has not materially changed since it was last reported. Refer to the Resource and Reserve Tables slide in the Appendix of this presentation.

Competent Persons Statement

Figures for Mineral Resources and Ore Reserves detailed in this presentation were compiled by David Princep of Gill Lane Consulting from Paladin Annual Reports and ASX announcements as noted in the Appendix. Mr. Princep is a Fellow of the Australasian Institute of Mining and Metallurgy and a Chartered Professional Geologist. Mr. Princep has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC 2012). Mr Princep approves of and consents to the inclusion of the information in this announcement in the form and context in which it appears.

PALADIN ENERGY LTD	2

CORPORATE PROFILE

WHO IS PALADIN?

ASX listed independent uranium company with a focus in Africa, Australia and Canada

14 years of production history across two mines in Africa, Langer Heinrich (Namibia) and Kayelekera (Malawi)

Both mines are on care and maintenance (C&M), preserving our resource and shareholder value in the current low uranium price environment

Non-core assets reviewed to preserve cash leading to the proposed sale of the Kayelekera mine

Large and globally diversified uranium exploration portfolio - ~320Mlb1

MARKET SNAPSHOT ASX: PDN

Shares on issue	2.027B
Share price (as at 17 February 2020) A$	0.09c
Market capitalisation A$	178.5M
Market capitalisation US$2	121.3M
Unrestricted Cash US$3	37.7M
Debt US$4	138.8M

SUBSTANTIAL SHAREHOLDERS4

Paradice, Maso (Form 604 dated 20/10/19)	13.55%
Tembo Capital Management	13.05%
Value Partners	8.03%
Hopu Clean Energy	7.03%

1. Measured, indicated and inferred resources for the Michelin, Mount Isa and Manyingee Projects (including Carley Bore) on a 100% Project basis
2. A$/US$ exchange rate 0.68
3. As at 31 December 2019 and excluding restricted cash of US$11M
4. As at 31 December 2019

PALADIN ENERGY LTD	3

MEET THE NEW BOARD AND CEO

Cliff Lawrenson - Non-Executive Chairman

Mining executive with deep expertise in the minerals and energy sectors derived from global experience having worked extensively in project development and investment banking. A successful track record of leading strategic direction in companies and executing corporate transactions.

Peter Main - Non-Executive Director

Mining and finance professional with extensive experience of the financial markets with a wealth of industry experience, having spent almost 15 years in a variety of roles in the mining industry from operations through to CEO of a TSX-V listed mining company

Peter Watson - Non-Executive Director

Chemical engineer with extensive experience in the global resources sector across senior technical, project, and management roles as well as running ASX-listed companies. His

experience includes project development, project delivery, asset optimization and mining facilities operations across multiple commodities and global jurisdictions.

Ian Purdy - Chief Executive Officer

Highly-respected executive with over three decades' experience within Australian and international resources companies.

Ian has delivered significant shareholder value through managing and optimizing operations, delivering large projects and executing on business improvements and asset sales. Ian also has extensive capital markets experience and a proven track record of delivering company funding requirements.

PALADIN ENERGY LTD	4

A FIRST PRODUCER IN A RECOVERED URANIUM MARKET

LANGER HEINRICH

A low cost, long life uranium mine

LANGER HEINRICH MINE

• A strategic, tier one mine, historical production capacity 5.2Mlb pa
• Langer Heinrich is fully permitted and licensed
• 17-yearmine life remaining
• Our relationships and products are market proven
• Proven top 10 uranium mine by production when operated1
• Replacement cost >US$600M today and approximately five years to plan, design, construct and commission
• Langer Heinrich has produced and marketed approximately 43Mlb2 of U3O4 over 10 years of production history

1 UxC Uranium Production Cost Study - August 2017 2 Approximately 43Mlb of U3O4 produced from 2007 to 2018

PALADIN ENERGY LTD	6

NAMIBIA - PREMIER GLOBAL URANIUM JURISDICTION

• Namibia is a premier uranium jurisdiction
• Supplies 5% of the world's uranium (>15Mlb pa)
• 40+ years production history
• Stable government with history of supporting investment
• Politically/socially supportive
• Excellent infrastructure:
• • Port
  • Road
  • Rail
  • Water
  • Power

PALADIN ENERGY LTD	7

PREFEASIBILITY STUDY HIGHLIGHTS

• Prefeasibility Study confirms 12-month execution lead time to low risk restart Langer Heinrich
• Aspirational average life of mine AISC target US$30/lb achievable
• Capital and Operations start up costs (including asset debottlenecking and efficiency improvements) of US$80M
• Opportunity to increase production at restart to 6.5Mlb pa with additional, high return discretionary capital of US$30M
• Potential for further AISC improvements as identified in the Concept Study of approximately US$4.50/lb through significant process changes

PALADIN ENERGY LTD	8

PFS1 HAS CONFIRMED RAPID RESTART PLAN

• PFS1 confirms Concept Study results of comparatively low initial restart expenditure requirements of ~US$80M for ~5.2Mlb pa production capacity

Plant Repair & De-	Operations Restart Costs
Preservation Costs	US$42M
US$38M	(includes: first fill of reagents,
	recommissioning, mobilisation of
	equipment and tailings dam
	costs)

PALADIN ENERGY LTD	9

PALADIN IDENTIFIES LOW COST EXPANSION OPPORTUNITY BEYOND 5.2MLB PA

Low Cost

US$30M (in addition to the

US$80M) for 1.3Mlb capacity expansion

2021 Production Potential

Potential to recommence production during 2021 if the right market conditions materialise in the near term (price and funding dependent)

Low Risk

No novel technology or processes. Grow by optimising our current approach

Expand

Production

to 6.5Mlb Capacity

Care and Maintenance

Activities

Undergoing full review of Care and Maintenance for risk management assurance and to reduce holding costs

High return expansion

Capital intensity of US$23/lb (leach debottlenecking, surge capacity, water storage, automation & reliability program)

PALADIN ENERGY LTD	10

WORLD-WIDE PRODUCT COST CURVE - ALL PROJECTS

Full Production Cost ($US/lb U O ) 3 8

80
70
60
50
40
	PFS1 US$33/lb for 5.2Mlb1,2	Langer
30	Concept Study Aspirational Target US$30/lb1	Heinrich
	PFS1 US$29/lb for 6.5Mlb1,2	AISC Costs
20
10

0

0

100

200

300

400

500

Cumulative Annual Production (Mlbpa)

Source: UxC Production Cost Report 2019 - August 2019

Note 1 AISC: All in Sustaining Cost based on the results of Paladin's Langer Heinrich Concept Study completed in February 2019; 2 ASX Prefeasibility Study Announcement 14 October 2019

PALADIN ENERGY LTD	11

OTHER ASSETS

Exploration across two continents

KAYELEKERA MINE SALE IN PROGRESS

• Paladin (Africa) Ltd, which holds an 85% interest in Kayelekera Mine to be sold to Lotus Resources Ltd
• Consideration for the sale:
• • A$5M
  • • A$200,000 cash
    • A$4.8M in shares (A$1.8M on completion subject to 12 month escrow, A$3M on third anniversary)
  • Deferred Royalty of 3.5% from production capped at A$5M
• US$10M Environmental performance bond to be refunded
• • US$4M on completion; US$1M first anniversary; US$2M second anniversary; US$3M third anniversary
• Awaiting final Malawi Government consents

PALADIN ENERGY LTD	13

A QUALITY GLOBAL SUITE OF EXPLORATION ASSETS

Canada

Manyingee

41.5Mlb

Michelin

127.7Mlb

148.4Mlb

Mount

Isa

Australia

Mount Isa (100%)

• Six Mineral Development Licences
• Largest uranium deposit in Queensland
• Potential for future development of uranium mine

Status: Pre-development exploration

Manyingee (100%)

	Three mining licences covering
	1,307ha
	Over US$17.9M of exploration and
	testing to date including 55,764m

Global Exploration Project

Resource1

203Mt at 710ppm U3O8 for 317.6Mlb

Michelin (55%)

• 69,825ha mineral licence in Labrador
• 256,771m of cumulative linear drilling
• US$75M of total historical in ground exploration to-date
• Among largest deposits in North America

Status: Pre-development exploration

Carley Bore (100%)

Two exploration licences with retention status 100km south of Manyingee

• Acquired in 2015 for US$13M
• Potential for "stand alone" or satellite
  ISR to Manyingee ISR project

Status: Advanced exploration

of cumulative drilling and field

leach trial

 Potential for 1-2Mlb pa ISR mine

Status: Advanced exploration

Source: Paladin Research

1 Measured, indicated and inferred resources for the Michelin, Mount Isa and Manyingee Projects (including Carley Bore) on a 100% Project basis as at June 2018.

PALADIN ENERGY LTD	14

PROVEN PRODUCER

WHY PALADIN

Paladin Energy Ltd (PDN.ASX)

INVESTMENT DRIVERS

Owner of the globally significant Langer Heinrich deposit in mining friendly Namibia

Existing infrastructure and historic mine development at Langer Heinrich results in a lower incentive price to restart operations than peers require to develop new mines

Langer Heinrich has all the required permits to restart

Production anticipated within 12 months of the commencement of restart works for US$80M of capital

Langer Heinrich is well positioned on the cost curve with an expected All In Sustaining Cost of between US$29/lb and US$33/lb

Nuclear energy remains a global source of low cost and low carbon energy. The nuclear power industry is consuming more uranium now than pre-Fukushima

Appointment of new CEO and a restructured board to provide the technical and commercial skill sets necessary to restart mining activities

PALADIN ENERGY LTD	16

WHY URANIUM?

A solid long-term outlook

U308 Spot price (US$/lb)

THE URANIUM STORY IS COMPELLING

				Spot Price 2000 - 2020							250.0	Demand Fulfilment 2011 - 2019
160																				"Under buying"
140																		200.0
120
																		150.0
100																	8	lb
																O	M		Mlb
																U
																	3
80																Mlb	100.0
60
40																		50.0
20																		0.0
0	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
2003	Russian Demand		Utility Spot
																		Utility Term		4Q19 UxC Base UMO Demand
											Source: IRESS 17 Feb 2020		TradeTech Q419 UMS Requirements	Source: Paladin Research

Cumulative supply cuts

2016	2017	2018	2021
0												Langer Heinrich
-5
-10												Cominak
-15
											McArthur River
-20
											Kazakh-Production
-25
-30												Ranger
-35
											Rabbit Lake
-40
-45												Compound
-50												Reduction

-55

Source: Paladin Research

Spot uranium prices	The nuclear power	Since 2013, utilities have	European and US utilities are	Mined supply has
are near historic	industry is consuming	been "under buying" at	running down stockpiles and	been rapidly cut
lows	more uranium than pre-	an average rate of 90Mlb	contract positions put in	back
	Fukushima with growth	per year relative to	place pre-Fukushima
	in China, India and	consumption" (635Mlb
	elsewhere	divided by 7 years)

PALADIN ENERGY LTD	18

DEMAND GROWTH FAR EXCEEDS SUPPLY CAPABILITY

Future Contracted Coverage Rates of US & European Utilities

	120.00%
requirements)	100.00%
80.00%
of total	60.00%
(%
Coverage	40.00%
Contract	20.00%
	0.00%

			US Utilities Coverage 2018		Euratom Utilities Coverage 2018*
 Current supply unable to meet even base case demand	 US contract coverage reaching critical lows

Source: Paladin Research and UxC Uranium Production Cost Study - September 2019

Note*: Euratom - European Atomic Energy Community

PALADIN ENERGY LTD	19

SUPPLY SIDE FACTORS

KEY MARKET OBSERVATIONS

Stocks drawn down	Significant decrease
>400Mlb and +40Mlb	in exploration spend
taken out of the	since Fukushima,
supply side in recent	supply side projects
years (including	reduced by 90%
Ranger 2019)	(670 projects to 90
	now)

New project development timelines stretched:

• Permitting uncertainty remains in many jurisdictions
• May require significantly higher incentive prices +US$60-$80/lb
• Production from new mines likely many years after incentive prices reached

When long-term

contracting returns, enrichment tails will increase, reducing the contribution of secondary production to the market

Kazakhstan production

flat @ <60Mlb to

2021. 15% IPO + (ve)

for transparency.

Changed from volume- based to value-based marketing

MARKET OPPORTUNITIES

The rate of

development of new mines is unlikely to match the demand growth case

Source: UxC Uranium Production Cost Study - September 2019

Potential for	Mines currently
recovery in	on C&M have a
uranium prices	significant restart
timeline
	advantage

PALADIN ENERGY LTD	20

APPENDIX

RESOURCE & RESERVE TABLES

30 June 2019

			Grade ppm	Mlb	Paladin Ownership	Paladin
Ore Reserves		Mt	Attributable
	U3O8	U3O8	(%)
			(Mlb)
Namibia	Langer Heinrich
Proven16		42	525	48.5	75	36.4
Probable16		13.1	485	14.0	75	10.5
Stockpiles16		30.8	355	24.0	75	18
Total Namibia		85.9	455	86.5	75	64.9
Malawi	Kayelekera
Proven16		0.4	1,170	1.0	85	0.85
Probable16		5.3	880	10.4	85	8.84
Stockpiles16		1.6	755	2.6	85	2.21
Total Malawi		7.3	870	14.0	85	11.9
Total Ore Reserves		93.2	490	100.5		76.8
Vanadium Mineral Resources	Mt	Grade ppm V2O5	Mlb V2O5	Paladin Ownership Paladin Attributable
(100% basis)	(%)	(Mlb)
Namibia	Langer Heinrich
Measured1		66.2	160	23.3	75	17.5
Indicated1		18.8	140	5.8	75	4.4
Inferred1		6.3	135	1.9	75	1.4
Stockpiles1		30.8	115	7.8	75	5.9
Total Namibia		122.1	145	38.8	75	29.1

1Refer ASX Announcement dated 14.10.2019 "Prefeasibility Study Delivers Improved Financials and Production Capacity For Langer Heinrich" p6; 2Refer ASX Announcement dated 21.11.08 "Significant Resource Upgrade for Kayelekera"; 3Refer ASX Announcement dated 31.01.2018 "Correction to 30 June 2017 Annual Report" pp13-15;4Refer SEDAR lodgment (TSX:FRG) dated 8.9.2009 "Fronteer Reports Positive Preliminary Economic Assessment for Michelin Uranium Project"; 5Refer Announcement (ASX:SMM) dated 19.10.2010 "Resource Upgrade for the Valhalla Uranium Deposit"; 6Refer ASX Announcement dated 16.04.2012 "Quarterly Activities Report for period ending 31 March 2012"; 7Refer ASX Announcement dated 15.04.2011 "Quarterly Activities Report for period ending 31 March 2011; 8Refer ASX Announcement dated 31.08.2011 "30 June 2011 Annual Report" p29; 9Refer ASX Announcement dated 17.01.2012 "Quarterly Activities Report for period ending 31 December 2011"; 10Refer ASX Announcement dated 13.07.2012 "Quarterly Activities Report for period ending 30 June 2012" ; 11Refer ASX Announcement (ASX:EMX) dated 12.02.2014 "Energia Delivers Significant Uranium Resource Upgrade"; 12Refer ASX Announcement dated 14.01.2014 "Manyingee Minerals Resources - Amendment"; 13Refer ASX Announcement dated 10.12.2008 "Maiden Uranium Resource at Valhalla North Project"; 14Refer ASX Announcement dated 30.08.12 "30 June 2012 Annual Report" p27 and 129; 15Refer ASX Announcement dated 29.08.2013 "30 June 2013 Annual Report" p24; 16Refer ASX Announcement dated 27.08.2019 "30 June 2019 Annual Report" p14.

The Group is not aware of any new information or data that materially affects the information in the relevant market announcements all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.

Mineral Resources		Mt	Grade ppm U3O8	Mlb U3O8	Paladin Ownership Paladin Attributable
	(100% basis)	(%)	(Mlb)
Namibia	Langer Heinrich
Measured1		66.2	490	71.9	75	53.9
Indicated1		18.8	435	18.0	75	13.5
Inferred1		6.3	420	5.8	75	4.4
Stockpiles1		30.8	355	24.0	75	18.0
Total Namibia		122.1	445	119.6	75	89.7
Malawi	Kayelekera
Measured2		0.7	1,010	1.7	85	1.4
Indicated2		12.7	700	19.6	85	16.7
Inferred2		5.4	620	7.4	85	6.3
Stockpiles2		1.6	755	2.6	85	2.2
Total Malawi		20.4	695	31.3	85	26.6
Canada
Measured	Michelin3	17.6	965	37.6	55	20.7
	Rainbow4	0.2	920	0.4	55	0.2
Indicated	Gear4	0.4	770	0.6	55	0.3
	Inda4	1.2	690	1.8	55	1.0
	Jacques Lake3	13.0	630	18.0	55	9.9
	Michelin3	20.6	980	44.6	55	24.5
	Nash4	0.7	830	1.2	55	0.7
	Rainbow4	0.8	860	1.4	55	0.8
Inferred	Gear4	0.3	920	0.6	55	0.3
	Inda4	3.3	670	4.8	55	2.6
	Jacques Lake3	3.6	550	4.4	55	2.4
	Michelin3	4.5	985	9.9	55	5.4
	Nash4	0.5	720	0.8	55	0.4
	Rainbow4	0.9	810	1.6	55	0.9
Total Canada		67.6	860	127.7	55	70.2
Australia
Measured	Valhalla5	16.0	820	28.9	100	28.9
Indicated	Andersons6	1.4	1,450	4.6	100	4.6
	Bikini7	5.8	495	6.3	100	6.3
	Duke Batman8	0.5	1,370	1.6	100	1.6
	Odin9	8.2	555	10.0	100	10.0
	Skal10	14.3	640	20.2	100	20.2
	Valhalla5	18.6	840	34.5	100	34.5
	Carley Bore11	5.4	420	5.0	100	5.0
	Manyingee12	8.4	850	15.7	100	15.7
Inferred	Andersons6	0.1	1,640	0.4	100	0.4
	Bikini7	6.7	490	7.3	100	7.3
	Duke Batman8	0.3	1,100	0.7	100	0.7
	Honey Pot13	2.6	700	4.0	100	4.0
	Mirrioola14	2.0	560	2.5	100	2.5
	Odin9	5.8	590	7.6	100	7.6
	Skal10	1.4	520	1.6	100	1.6
	Valhalla5	9.1	640	12.8	100	12.8
	Watta15	5.6	400	5.0	100	5.0
	Warwai15	0.4	360	0.3	100	0.3
	Carley Bore11	17.4	280	10.6	100	10.6
	Manyingee12	5.4	850	10.2	100	10.2
Total Australia		135.4	635	189.9	100	189.9
Total Mineral Resources	345.4	615	468.6		376.4

PALADIN ENERGY LTD	22

CONTACTUS

HEAD OFFICE

Level 4, 502 Hay Street

Subiaco Western Australia 6008 T: [phone]

1. [e-mail]

www.paladinenergy.com.au

This presentation has been authorised for lodgement by Ian Purdy, CEO, Paladin Energy Limited