Paladin Energy Ltd.: Quarterly Activities Report For the period ending 31 December 2024

22 January 2025

Paladin Energy Ltd (ASX:PDN, TSX:PDN, OTCQX:PALAF) (“Paladin” or the “Company”) provides an update for investors on significant corporate, operational and production achievements for the quarter ended 31 December 2024.

The ramp up of operations at the Langer Heinrich Mine (LHM) continued with operational gains embedded during the quarter. Following the successful completion of improvement works during the November planned plant shutdown, December 2024 recorded the highest monthly production volumes since the restart of commercial production at the LHM in March 2024. Notable achievements from the planned shutdown included a significant improvement in recovery rates and the stabilisation of water supply to the plant.

During the quarter, Paladin successfully completed the acquisition of Fission Uranium Corp. (Fission) and the listing of Paladin shares on the Toronto Stock Exchange (TSX). The Company has now added the world-class Patterson Lake South (PLS) project to its Canadian growth portfolio, so as to become one of the world’s largest pure play uranium companies.

HIGHLIGHTS

⦁ Production for the quarter was in line with management expectations, with the LHM remaining on track to meet the revised production guidance of 3.0 – 3.6Mlb U3O8 for FY2025

⦁ The best month of production to date at the LHM was December with 308,604lb U3O8 produced, with an average plant recovery of 88% for the quarter

⦁ The acquisition of Fission was completed on 24 December 2024, with 27 December 2024 being the first day of Paladin’s dual-listing on both the ASX and TSX

⦁ Integration of the Fission business and team advanced to plan, resulting in the establishment of the Paladin Canada business unit combining all Canadian operations (including the Michelin Project)

⦁ As at 31 December 2024, the Company held US$166M in unrestricted cash and short term investments, along with undrawn debt facilities of US$50M (US$100M in debt drawn).

Paladin CEO, Ian Purdy said “It was pleasing to see benefits from the planned plant shutdown and other operational initiatives positively impact production from the LHM. We continue to de-risk the operation, but recognise the LHM is still ramping up to full production and patience is required as our local team steadily achieves their goals. The completion of the Fission acquisition and the addition of the PLS project during the quarter provides decades of future development opportunities for Paladin Canada. We are creating a leading Canadian development hub for the uranium sector, with exploration upside across all our properties in the Athabasca Basin and in Newfoundland and Labrador. Shareholders now benefit from Paladin’s increased scale, with a combined Mineral Resource that is one of the largest in pure play uranium companies globally.”

Production for the quarter was in line with management expectations and the LHM remains on track to meet the revised production guidance of 3.0 – 3.6Mlb U3O8 for FY2025.

Following the successful completion of a number of improvement works during the planned plant shutdown in November, 308,604lb U3O8 were produced during December, which was the highest monthly production volume since the restart of commercial production at the LHM in March 2024. Notably the LHM has experienced significant improvements in recovery rates and the stabilisation of water supply to the plant following the shutdown.

The shutdown was completed within schedule (12 days), and included a number of plant improvements and routine maintenance activities. Plant improvements included the installation of improved burner technology in the leach steam circuit, pump and pipe improvements in the CCD circuits, and reconditioned and improved heat exchange infrastructure in the leach circuit.

The significant improvements in plant recovery were achieved as a result of improvements to operational controls identified and completed by the LHM operations team, as well as various other plant improvements and optimisation measures implemented during the shutdown.

Water deliveries from NamWater improved significantly following the shutdown. Post shutdown, water flows achieved the highest sustained rates since the LHM restart, with no water related disruptions to operations during December. The shutdown also allowed the operation to increase water levels at its water storage facilities, which is expected to provide a buffer to better manage the water balance at the LHM plant.

1. Paladin has a 75% interest in the LHM
2. Cost of Production includes stockpile rehandling costs, processing costs & site administration costs, excludes G&A costs
3. Reversal of Previous Stockpile Impairment is calculated as average cost per pound, based on the 31 December 2023 impairment reversal on existing stockpiles of US$92M. The cost per pound varies based on grade, recovery and contained uranium realised for the period water levels at its water storage facilities, which is expected to provide a buffer to better manage the water balance at the LHM plant.

The operation continued to experience variability in the stockpiled ore grade and quality during the quarter. The Company is reviewing optimisation opportunities, including advancing mining and ore blending strategies in order to reduce the level of variability in ore feed to the plant.

Sustaining capital expenditure for the period was primarily related to cost of construction of the next tailings storage facility (TSF6).

LHM Sales and Marketing

Sales to the Company’s Western customers were recognised during the quarter with deliveries of uranium concentrates to conversion facilities in the US and Europe. Quarterly sales and realised prices are dependent on the mix of contract pricing mechanisms and the timing of individual deliveries from quarter to quarter. Sales volume and realised price were lower than the previous quarter due to a market-related delivery being delayed to January 2025 as a result of changes in shipping schedules.

Paladin continues to develop its world-class offtake contract book with one additional sales agreement signed during the quarter6. The Company now has 11 offtake contracts with tier-one global customers, with approximately 50% of the LHM production contracted over its life of mine7.

The Company will continue to layer its contract book, leveraging the strong uranium market conditions and focusing on top tier global counterparties.

Acquisition of Fission Uranium Corp.

During the quarter, Paladin successfully completed the acquisition of all the issued and outstanding shares of Fission by way of a court-approved plan of arrangement under the Canada Business Corporations Act. The transaction completed on 24 December 2024 and Paladin shares commenced trading on the TSX on 27 December 2024.

The combination of Paladin and Fission creates a globally significant uranium company listed on the ASX and TSX with a portfolio of production, development and exploration assets. The acquisition also creates a leading Canadian development hub, with a high quality multi-asset portfolio with exposure to Canada’s highly prospective Athabasca Basin and Paladin’s existing Michelin asset in Newfoundl and Labrador, with exploration upside across all properties. The combined uranium resource represents one of the largest amongst pure play uranium companies.

4. Includes 200,000lb loan material delivered into an existing contract
5. Average Realised Price is calculated as the average revenue received per pound sold
6. Subject to customary regulatory approvals
7. Based on LHM’s life of mine production on a 100% basis, as detailed in the ASX Announcement “Langer Heinrich Mine Restart Plan Update, Mineral Resource and Ore Reserve Update” dated 4 November 2021. Calculations are based on nominal contract volumes of executed offtake agreements. Assumes CNNC takes 25% of production post 2025 under the life of mine offtake agreement and Labrador, with exploration upside across all properties. The combined uranium resource represents one of the largest amongst pure play uranium companies.

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