Paladin Energy Annual Report 2023

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FY2023 Annual Report · Paladin Energy

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ANNU AL REPORT
20 23

PALADIN ENERGY LTD: ANNUAL REPORT 2023Contents

Chair’s Letter

Insights from the CEO

Operating and Financial Review

Ore Reserves and Mineral Resources

Environmental, Social and Governance

Corporate Governance Statement

Directors’ Report

Remuneration Report

Auditor’s Independence Declaration

Contents of Financial Report

Consolidated Income Statement

Consolidated Statement of Comprehensive Income

Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Notes to the Consolidated Financial Statements

Directors’ Declaration

Independent Audit Report

Additional Information

Corporate Directory

120

121

126

131

PALADIN ENERGY LTD: ANNUAL REPORT 2023

As the world continues to
move towards a decarbonised
economy, Paladin is in the
enviable position of being
able to make a significant
contribution, underpinned by
a world class, long life mine
located in a premier jurisdiction.

PALADIN ENERGY LTD: ANNUAL REPORT 2023
Chair’s Letter

Dear Shareholders,

The 2023 Financial Year saw Paladin continue to
execute on our strategy of returning the Langer
Heinrich Mine (LHM) to production. The Restart Project
is well advanced. The work executed combined with
our well-defined pathway to production and the quality
of our on-site operational and project management
team ensure the project remains on track and on
budget for first production in the first quarter of
CY2024.

The restart of production at the LHM builds on the
10 year production history of the asset. The project
has reserve life to support 17 years of operations
with annual peak production representing around 4%
of annual global uranium production1 – a considerable
contributor to the evolution to a carbon-free energy
economy.

We have secured a strong uranium offtake portfolio
with leading top tier global counterparties that will
underpin the restart of the LHM. The LHM production
is in strong demand from global utilities given the
strategic importance of Namibia as a reliable,
independent jurisdiction and the proven nature of our
product. We will continue to layer our offtake contracts
to ensure we provide a financially robust offtake
position for the project. Importantly our contract
book remains overweight to market-related pricing
mechanisms to ensure that our Company continues to
benefit from the strong demand and pricing outlook
for uranium.

Nuclear energy remains one of the most cost
effective and lowest carbon emitting forms of energy
generation and the only viable long-term source of
low carbon emission baseload power. Nuclear energy
has received bipartisan political support in the United
States of America and will benefit from the funds
and grants available via the Inflation Reduction Act.
Government support for nuclear is also significant
across Europe where it has been recognised as
a green source of energy by the European Union.

The growing global support for nuclear as a low carbon
source of energy will continue to drive the underlying
demand for uranium. With limited investment in new
uranium mines, there is a growing supply deficit that
is anticipated to remain at over 40Mlb per annum over
the next decade. The LHM is set to deliver production
into an increasingly supportive demand and price
environment and Paladin stands ready to be part of a
sustainable future.

Paladin is wholly committed to a best practice, globally
accredited Environmental, Social and Governance
(ESG) framework that sets standards of organisational
behaviour and holds us firmly accountable. Our
activities are underpinned by our ESG framework
which is vitally important to us, and we work hard to
ensure that both our personal and our organisational
values and actions align with these standards. Paladin
was delighted to welcome Dr Jon Hronsky OAM
and Mrs Lesley Adams to the Paladin Energy Board
during the year. Their extensive experience expands
the complimentary skill set of the Paladin Board and
reflects the Company’s commitment to maintaining the
highest standards of leadership and governance.

I would like to extend my thanks to all of our
stakeholders who continue to support our Company
as we work towards restarting the LHM. In particular, I
would like to thank all of our staff, led by our CEO Ian
Purdy, for your ongoing hard work and commitment.
Finally, and most especially I wish to express my
thanks to shareholders for continuing to offer trust and
support as we return Paladin to production.

Together, we look forward to building a positive and
sustainable future for our Company and for the planet.

Yours faithfully

Cliff Lawrenson
Chair

1UxC 2Q 2022. Production includes existing and returning production during Paladin’s peak production phase (as noted in the ASX Announcement
“Langer Heinrich Mine Restart Plan Update, Mineral Resource and Ore Reserve Update” dated 4 November 2021)

PALADIN ENERGY LTD: ANNUAL REPORT 2023Insights from the CEO

Dear Shareholders,

Paladin is on a clear pathway to becoming a globally
significant independent uranium producer, helping the
transition to a low-carbon global economy. Activities to
restart production at the Langer Heinrich Mine (LHM)
advanced during the year and the project remains on
track and budget for first production in the first quarter
of CY2024. The low risk, brownfield restart activities at
LHM are supported by a combination of:

• Well defined pathway to production

• Strong in-country management and EPCM team

• Industry leading offtake portfolio

• Growing demand for uranium supported by

increasing government support and incentives for
nuclear energy

• Strong balance sheet

• Supportive local government and communities in

Namibia.

With a structurally improving demand environment for
uranium, an exceptional world-class project and strong
sustainability credentials, Paladin remains positioned
to continue to deliver sustainable returns to our
shareholders.

The Restart Project is well advanced and the following
activities were progressed over FY2023:

• Over 850,000 lost time injury free project manhours

executed at the end of FY2023

• Contractor workforce fully ramped up to anticipated
peak with over 1,000 personnel on site, many from
local communities

• Delivery of critical construction materials, plant and
equipment to site, including the Hydrosort classifier,
agitators, thickeners, cyclones, structural steel,
prefabricated tanks and tank strakes

• Progression of Growth Project steel fabrication

activities, including construction of the Hydrosort
structure, other structural steel, plate works and
leach surge tanks

• Workshop site assembly and testing of the
automated and dustless drumming plant

• Mobilisation of the Project Commissioning Manager

and commissioning team

• Shipment of the ion-exchange resin, required for the

uranium extraction process

• Onboarding of the General Manager, Langer Heinrich

Operations – Mining and the Process Manager

• An independent operational readiness gap

ACTIVITIES AT THE LHM REMAIN ON
TRACK AND BUDGET

assessment was completed, confirming the LHM is
well placed for operations

Paladin’s owner team, alongside EPCM partner, ADP,
continue to progress and execute activities focused on
returning the LHM to production.

• Recruitment strategies for the operational workforce

and initial engagements with potential mining
contractors have commenced.

The Restart Project site works remain focused on
general Repairs and Refurbishment activities to return
the existing process plant to operational readiness.
In parallel, ADP continues to provide engineering and
procurement services for the delivery of the Growth
Project's process upgrades to increase throughput
capacity and operational availability.

Activities for FY2024 until first production include:

• Completion of the Repair & Refurbishment and

Growth Project works

• Introduction of stockpile ore

• Completion of the operational readiness programme

• Completion of commissioning and handover to LHM

Operations.

PALADIN ENERGY LTD: ANNUAL REPORT 2023The extensive body of work
conducted in FY2023, coupled
with years of detailed planning
are ensuring that the project
remains on track and on budget
for production in the first
quarter of CY2024.

PALADIN ENERGY LTD: ANNUAL REPORT 2023
All permits and licenses for the project remain in good
standing and we have secured the necessary water
and power contracts. The extensive body of work
conducted in FY2023, coupled with years of detailed
planning are ensuring that the project remains on track
and on budget (US$118M) for first production in the
first quarter of CY2024.

GOVERNMENT SUPPORT FOR
NUCLEAR ENERGY TO DRIVE
URANIUM DEMAND

Nuclear energy will continue to play an important role
in the transition to a low carbon economy. Increasingly,
governments around the world are recognising the
importance of uranium’s base load power capabilities
to power grids that are becoming increasingly supplied
by intermittent renewable power.

In the USA, there is bipartisan political support for
nuclear energy, and in the EU, nuclear has been
recognised as a green source of energy. Globally there
are over 59 new reactors under construction1. And in
China, the commitment to nuclear energy continues to
strengthen with demand expected to grow from 18%
to 35% of global requirements by 20402.

Whilst there is strengthening support for demand
for nuclear energy and uranium, the supply remains
tight with limited sources of production growth. Large
recent uranium mine closures such as Cominak and
Ranger, combined with the lack of new mine supply,
are anticipated to see approximately a 40Mlb per
annum supply deficit persist to the end of this decade.
Global uranium production in 2023 is forecast to be at
142Mlb3, significantly below total demand of 177Mlb.
In recent years, the deficit has been met by secondary
supplies and inventory drawdowns by utilities.

Inventory overhang is largely over and utilities are
returning to contracting with primary producers.
CY2022 saw over 125Mlb of term contracts signed, a
74% increase on the prior year, as utilities look to lock
in their future uranium demand requirements4. The
pricing environment has strengthened significantly
across the entire nuclear value chain, including
uranium, conversion and enrichment.

Paladin has taken advantage of the nuclear industry’s
growing demand for long term uranium supply by
constructing a leading offtake contract book to
underpin the restart of the LHM.

At Paladin, we are committed to making a valuable
contribution to the reduction in carbon emissions.
The uranium that will be mined and processed at the
LHM will be used to resource nuclear power plants,
displacing gas and coal-fired electricity.

SECURING AN INDUSTRY LEADING
CONTRACT BOOK

As part of our decision for restarting production at
LHM, Paladin put in place a strategy to secure a global
contract book with industry leading counterparties
to underpin the financial security of our Company.
Furthermore, our very targeted uranium marketing
activities were aimed at reducing the impact of our
supply on the spot market and ensuring that Paladin
remains overweight to market pricing early in the
uranium market up-cycle.

That strategy has been highly successful. In addition
to our Life of Mine offtake with CNNC5, a leading
Chinese nuclear utility and one of the largest
consumers of uranium in the world, we have secured
offtake agreements with five leading counterparties
in the United States and Europe. These organisations
have a combined market capitalisation of over US$200
billion and represent the leading offtake parties in
the global uranium industry. The strong demand for
our product has been driven by a combination of the
known quality of the LHM production and the due
diligence that the counterparties conducted on our
ability to bring the LHM back into production.

Our contracts have secured approximately 48% of
our production estimate from CY2024 to CY20306.
Importantly only 19% of the volume over that period
is exposed to base-escalated price mechanisms,
ensuring we retain our exposure to strengthening
uranium pricing fundamentals.

We will continue to layer our contract book to ensure
we provide the right balance of risk protection and
pricing upside to our shareholders.

1WNA, May 2023
2TradeTech Uranium Market Study, 2Q 2023. Based on Western world demand
3TradeTech Uranium Market Study, 2Q 2023, FAM2
4UxC Uranium Market Outlook 2Q 2023
5CNNC Overseas Limited
6Based on Langer Heinrich Uranium Life of Mine production to CY2030, as detailed in the ASX Announcement “Langer Heinrich Mine Restart Plan
Update, Mineral Resource and Ore Reserve Update” dated 4 November 2021. All material assumptions underpinning the production target continue to
apply and have not materially changed. Contract coverage and pricing mechanism calculations are based on nominal contract volumes of executed
offtake agreements. Assumes CNNC takes 25% of production post 2025 (Life of Mine offtake). Base-escalated contracts include a contract with a fixed
price mechanism incorporating a specified escalation rate. Subject to customary conditions precedent contained in offtake agreements, including the
requirement to receive Namibian Government and other regulatory approvals

PALADIN ENERGY LTD: ANNUAL REPORT 2023
SUSTAINABILITY AND PAL ADIN

OUTLOOK

Our core strategic focus is to execute at the LHM and
return Paladin to being a globally significant uranium
producer. With a strong project team on the ground
in Namibia delivering on our robust and low risk
project pathway, we expect the LHM will be producing
uranium again in the first quarter of CY2024. I look
forward to updating you over the course of the
upcoming year on our progress.

I would like to thank our Board of Directors for their
ongoing commitment and support. I would also like
to thank our employees, contractors and consultants
for their dedication, professionalism and efficiency
throughout the year.

Finally, I would like to express my gratitude to you,
our shareholders, for demonstrating your continued
support for our Company. The advanced execution
of the Langer Heinrich Mine Restart Project, a robust
outlook for uranium markets and the knowledge that
we actively contribute to the decarbonisation of global
electricity generation positions us strongly to achieve
future success.

Yours faithfully

Ian Purdy
Chief Executive Officer

Paladin is committed to the core principle of delivering
value through sustainable development. At Paladin, we
are guided by four key values that are at the core of
everything we do:

Integrity: We act with integrity and honesty in all
we do and say

Respect: We respect and value all people equally

Courage: We meet all challenges and seize
opportunities with courage

Community: We invest in our communities to
create lasting value

Our values are supported by the Board, management
and employees at all levels throughout Paladin, and
are central to relationships between all employees and
stakeholders. These values and their aligning value
statements, define who we are as a Company and
provide the foundation of our culture.

As Paladin moves towards production, the structured
implementation of Sustainability Accounting Standards
Board (SASB), Global Reporting Initiative (GRI) and
Task Force on Climate-related Financial Disclosures
(TCFD) frameworks will increase the level of detail
reported over time, and will provide a more complete
representation of Paladin’s performance to all key
stakeholders.

Paladin is pleased to provide further details of our
Sustainability Commitment on pages 32 to 38 and
we look forward to releasing our annual Sustainability
Report in October 2023.

OUR PEOPLE

We put the health, safety and wellbeing of our
workforce and all stakeholders at the forefront, with
a positive culture of safety that underpins all our
decisions and actions. Importantly, during the year we
recorded no lost-time injuries.

Our strategic recruitment processes ensure that our
organisation has the expertise to successfully execute
the Company’s strategy. We have bolstered our
management team by the addition of Paul Hemburrow
as Chief Operating Officer. In Namibia, we have
expanded our in-country management team with the
technical and leadership skills required to bring the
LHM back into production, ensure its ongoing safe
operation and continued positive engagement with
local communities and the Government.

I would like to take this opportunity to thank all of our
staff and contractors for your tireless and safe work
over FY2023.

PALADIN ENERGY LTD: ANNUAL REPORT 2023Operating and
Financial Review

OVERVIEW OF OPERATIONS

Paladin Energy Ltd (ASX:PDN OTCQX:PALAF) is
an Australian listed uranium company focused
on returning the Langer Heinrich Mine (LHM) to
commercial production in the first quarter of CY2024.

The LHM is a globally significant, long life operation,
having already produced over 43Mlb U3O8 over
ten years prior to operations being suspended in
2018 due to low uranium prices. The mine’s future-
facing focus includes a robust Environmental, Social
and Governance framework in place to support its
contribution to decarbonisation.

Beyond the LHM, the Company also owns a
large global portfolio of uranium exploration and
development assets. Nuclear power remains a leading
sustainable source of low-carbon global electricity
generation.

The Company is incorporated under the laws of
Australia with a primary share market listing on
the Australian Securities Exchange (ASX) and the
Namibian Stock Exchange (NSX). The Company also
trades on the OTCQX market in the United States
of America.

1 0

PALADIN ENERGY LTD: ANNUAL REPORT 2023Operating and

Financial Review

HIGHLIGHTS

Health and Safety

• Paladin had no lost-time injuries or reportable

environmental incidents during FY2023

• Over 850,000 lost time injury free project manhours

had been executed at the end of FY2023

• The LHM has adopted an upgraded Health, Safety

and Environment framework with additional
systems and processes as part of the Restart
Project ramp up.

Operational Performance

• On 19 July 2022, Paladin announced the decision
to return the LHM to production, with first volumes
targeted for the first quarter of CY2024

• Mr Paul Hemburrow was appointed as Paladin’s
Chief Operating Officer and commenced in
February 2023

• Paladin’s owner team, alongside EPCM partner, ADP,
continue to progress and execute activities focused
on returning the LHM to production

• Restart project activities are focused on general
Repairs and Refurbishment to return the existing
process plant to operational readiness, coupled with
the delivery of Growth Projects such as process
upgrades to increase throughput capacity and
operational availability

• The project is well advanced and remains on track

and on budget (US$118M)

• All permits and licenses for the project remain in

good standing

• Necessary power and water contracts have

been secured

• The contractor workforce is fully ramped up to the
anticipated peak with over 1,000 personnel on site,
many from local communities

• Critical construction materials, plant and equipment
have been delivered to site and Growth Project steel
fabrication activities are progressing

• Mobilisation of the Project Commissioning Manager
and commissioning team, and onboarding of the
General Manager, Langer Heinrich Operations
– Mining and the Process Manager have been
completed

Exploration

• During the year, the Company undertook the work
required to meet minimum tenement commitments
at its exploration projects in Canada and Australia,
and rehabilitation monitoring continued across all
locations without incident

• The Michelin Joint Venture owns the Michelin

advanced exploration project in Labrador, Canada.
Under the terms of the Michelin Joint Venture
Agreement, a mandatory transfer of 5% from
Michelin Nominees Ltd to Aurora Energy Ltd (a
wholly owned subsidiary of the Company) was
completed, increasing Aurora’s interest from 70%
to 75%

• Paladin will retain its 75% interest in the Michelin
Joint Venture, having completed the process
required under the Michelin Joint Venture
Agreement to use best efforts to sell the entirety of
the joint venture on commercially acceptable terms

• The FY2024 summer field exploration program

at Michelin will commence shortly, with detailed
geological and structural mapping of the entire
tenement to be undertaken. Ground electrical
geophysics activity planning and refurbishment of
the camp due to increased exploration activities will
also be initiated.

Uranium Marketing Activities

• Paladin has secured cornerstone offtakes with

foundation customers and has six offtake contracts
executed with top tier counterparties in the US,
Europe and China. The contract book for CY2024
is now closed. These contracts range in type and
duration and provide base-escalated, fixed-price
and market related price mechanisms. Along with
the market-related contract in place with CNNC,
Paladin will retain significant upside exposure to the
strengthening uranium market fundamentals

• The Company is continuing to engage with top-tier
industry counterparties, via RFP processes and off
market discussions

• The Company’s marketing team continues to

progress commercial negotiations with conversion
facilities and shipping providers ahead of the
Company’s return to production.

Corporate

• An independent operational readiness gap

• Dr Jon Hronsky OAM and Mrs Lesley Adams were

assessment has been completed, confirming the
LHM is well placed for operations

appointed as independent non-executive directors
of the Company during FY2023

• Recruitment strategies for the operational workforce

• The Group had cash and cash equivalents at 30

and initial engagements with potential mining
contractors have commenced.

June 2023 of US$126.6M (excluding restricted cash
of US$1M).

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PALADIN ENERGY LTD: ANNUAL REPORT 2023
FINANCIAL PERFORMANCE

Key financial performance metric

Year ended 30 June

2023

2022

% Change

Earnings

Average selling price

U3O8 sold

Revenue

Cost of sales

US$/lb

US$’000

47.00

100,000

4,700

(4,693)

Net loss after tax from continuing operations

US$’000

(27,058)

(43,939)

Cash Flows

Cash flows from operating activities

US$’000

(9,375)

US$’000

(39,599)

US$’000

(48,974)

(10,221)

(6,794)

(3,427)

Capital expenditure

Free cash flows

Financial Position

(100)

(38)

1,056

379

Unrestricted cash and cash equivalents

US$’000

126,636

177,066

(28)

Debt (principal amount + accrued interest)

Net debt

Total equity

US$’000

335,084

358,412

Gearing ratio (Net debt / (net debt + equity))

(7)

• Shareholder loans advanced – advance from CNNC
to Langer Heinrich Uranium (Pty) Ltd of US$85,000

• Langer Heinrich Restart Project costs – project

expenditure of US$35,955,000

• Langer Heinrich expenditure – expenditure for

care and maintenance at Langer Heinrich Mine of
US$7,358,000

• Corporate expenditure – corporate expenditure of

US$6,272,000

• Exploration expenditure – minimum tenement
commitments at its exploration projects of
US$1,910,000

• Property, plant and equipment – payments for
property, plant and equipment of US$734,000

• Effect of movement in exchange rates on cash held
– an adverse movement of US$5,346,000 arose
predominantly on the Australian dollar holdings.

Earnings

Net loss after tax from continuing operations
decreased by 38%, mainly reflecting reduced
depreciation costs of US$2,738,000 (2022:
US$15,106,000) arising from a change in the basis for
depreciating the LHM Plant as a result of the decision
to return the LHM to production. In addition, there
was a small foreign exchange gain of US$584,000
(2022: foreign exchange loss US$8,179,000) which is
predominantly due to the foreign exchange translation
of the environmental rehabilitation provision in
Namibia. The Namibian dollar depreciated by 16%
against the USD during the year, from US$1:N$16.1471
at 30 June 2022 to US$1:N$18.7246 at 30 June 2023.

Cash Flows

The Group had unrestricted cash and cash equivalents
at 30 June 2023 of US$126.6M. Unrestricted cash and
cash equivalents decreased by US$50.4M during the
year comprising of the following cash flows:

• Proceeds from sale of investments – receipts from

sale of 393,363 shares in Global Atomic Corporation
(TSX:GLO) of US$805,000

• Proceeds from sale of Paladin (Africa) Ltd – receipt

of the fourth and final tranche of repayment of funds
advanced to provide security for the US$10,000,000
environmental performance bond from Lotus
Resources Ltd of US$3,000,000

1 2

PALADIN ENERGY LTD: ANNUAL REPORT 20231 3

PALADIN ENERGY LTD: ANNUAL REPORT 2023Financial Position

• Restarting operations

Unrestricted Group cash and cash equivalents
decreased by 28% to US$126,636,000. At 30 June
2023 Paladin holds no corporate debt. The Company’s
gearing ratio was Nil% from 30 June 2022 to 30
June 2023.

Key Business Risks

This section describes the key business risks
of Paladin:

• Uranium prices

The price of, and demand for, uranium remains
sensitive to a number of external economic and
political factors beyond Paladin’s control, including
(among others): global uranium supply and demand
trends, political developments in uranium producing
and nuclear power generating countries/regions,
unanticipated destabilising events (such as Fukushima
Daiichi nuclear accident in 2011 and the recent war in
Ukraine), currency exchange rates, general economic
conditions and other factors. As a result, the Company
cannot provide an assurance as to the prices it will
achieve for its uranium product in the future.

Nuclear energy is in direct competition with other
more conventional sources of energy, including
gas, coal and hydroelectricity and is the subject of
negative public opinion due to political, technological
and environmental factors. This may have a negative
impact on the demand for, and the price of, uranium.

For example, the Fukushima Daiichi nuclear accident
in 2011 negatively affected the uranium market,
principally by reducing demand and impacting the
spot and term prices for uranium. More recently,
the Russian shelling of the Zaporizhzhia nuclear
power plant in Ukraine has created further significant
volatility in the uranium price. There is the potential for
events to occur in the future that negatively impact
the attractiveness of nuclear energy and therefore the
demand for, and the price of, uranium.

Factors beyond the control of the Company may
affect the marketability of uranium discovered. The
uranium mining industry is competitive and there is
no assurance that, even if significant quantities of
uranium are discovered or extracted, a profitable
market will exist for the sale of the uranium produced.
In particular, there can be no assurance that uranium
prices will be such that Paladin’s properties can be
mined at a profit.

Derivative instruments to manage and mitigate
uranium price movements are not available in the
market at this time. In any event, Paladin has no
current exposure to uranium price movements except
insofar as it relates to the restart of production at the
Langer Heinrich Mine (LHM).

Paladin is moving towards the restart of the LHM in Q1
CY2024.

The Company faces customary risks relating to
the restart of mining operations which could delay
the recommencement of operations at the LHM
or adversely affect the Company's recoverability
of uranium from this mine. These include, without
limitation, delays in renewals and approvals of
requisite regulatory permits that are required to
commence operations for mining, securing the
required funding in connection with the work
required to restart mining operations, recruitment of
the necessary personnel, initiation of contracts for
logistical suppliers and equipment and any inclement
weather conditions. The recommencement of
operations of the LHM may require working capital
expenditure, experienced personnel, regulatory
renewals and accessory works approvals.

If operations at the LHM are successfully commenced,
Paladin’s ability to achieve production, development,
operating cost and capital expenditure estimates on a
timely basis cannot be assured.

Further, the Company does not expect to have any
material revenues from its mining assets until after
the recommencement of production of the LHM.
Accordingly, Paladin is subject to all of the risks
inherent in companies that have business that may not
have cash flow or earnings. This may make it difficult
for current and prospective investors to assess the
likely future performance of the Company's mining
assets.

• Cost estimates

Whilst care has been taken in estimating the
capital cost and future operating costs for Paladin's
projects, including contingency, the actual cost to
restart operations at the LHM, constructing facilities
and operating mines or process plants may vary
from current estimates. Any such variations could
adversely affect Paladin's future financial position and
performance.

Capital resources may be required to be used in
ways not previously anticipated or disclosed. The
results and effectiveness of the application of capital
resources are uncertain. If they are not applied
effectively, Paladin's financial and/or operational
performance may be adversely affected.

1 4

PALADIN ENERGY LTD: ANNUAL REPORT 2023• Security of tenure

All tenements in which Paladin has interests are
subject to renewal conditions or are yet to be
granted, which will be at the discretion of the relevant
Ministries in Namibia, Canada and the various states
and territories in Australia where Paladin has projects.
The maintenance of tenements, obtaining renewals, or
getting tenements granted often depends on Paladin
being successful in obtaining required statutory
approvals for proposed activities. Paladin may lose title
to, or interests in, its tenements if the conditions to
which those tenements are subject are not satisfied or
if insufficient funds are available to meet expenditure
commitments.

In the jurisdictions in which Paladin operates, both
the conduct of operations and the steps involved
in acquiring interests will involve compliance with
numerous procedures and formalities. It is not always
possible to comply with, or obtain waivers from, all
such requirements and it is not always clear whether
requirements have been properly completed, or
that it is possible or practical to obtain evidence of
compliance. In particular, tenements are subject to
expenditure and work commitments which must
be complied with in order to keep the tenements
in good standing. In certain circumstances, these
commitments may be varied at the discretion of
the relevant mining authority. Failure to meet these
commitments could lead to forfeiture of the tenement.
Where tenement expenditures and work commitments
or other regulatory requirements are not complied
with, regulatory exemptions may need to be applied
for within specified periods. Should exemptions not
be applied for in time, or are applied for in time but are
not ultimately granted, fines may be payable to avoid
the tenements being forfeited or, in extreme cases,
the tenements may be forfeited.

While Paladin anticipates that subsequent renewals
or mineral tenure grants will be given as and when
sought, there is no assurance that such renewals or
grants will be given as a matter of course and there is
no assurance that new conditions will not be imposed
in connection therewith.

• Mineral Resources and Ore Reserves

The Mineral Resources and Ore Reserves for Paladin's
assets are estimates only and no assurance can
be given that any particular recovery level will in
fact be realised. Paladin's estimates are prepared
in accordance with either the reporting standard
JORC 2004 or the reporting standard JORC 2012
but they are expressions of judgment from qualified
professionals based on knowledge, experience,
industry practice and resource modelling. As such,
Mineral Resource and Ore Reserve estimates are
necessarily imprecise and depend to some extent
on interpretations, which may ultimately prove to
be inaccurate and require adjustment or revision.

Adjustments and revisions to Mineral Resources
and/or Ore Reserves could in turn affect Paladin's
development and mining plans, including the ability to
sustain or increase levels of production in the longer
term.

Often Mineral Resource and Ore Reserve estimates are
appropriate when made, but may change significantly
over time as new information becomes available.
Should Paladin encounter mineralisation or geological
formations different from those predicted by past
drilling, sampling and interpretations, estimates may
need to be adjusted in a way that could adversely
affect Paladin's operations and may have an impact
on development and mining plans. There is also a risk
that exploration targets will not be met and Mineral
Resources cannot be converted into Ore Reserves.

Due to the uncertainty which may attach to inferred
Mineral Resources, there is no assurance that inferred
Mineral Resources will be upgraded to measured or
indicated Mineral Resources or proven or probable Ore
Reserves as a result of continued exploration.

• Speculative nature of mineral exploration and

development

Development of Paladin’s mineral exploration
properties is contingent upon obtaining satisfactory
exploration results. Mineral exploration and
development involves substantial expenses and a
high degree of risk, which even a combination of
experience, knowledge and careful evaluation may
not be able to adequately mitigate. The degree of risk
increases substantially when a company's properties
are in the exploration phase as opposed to the
development, construction and operational phase.
There is no assurance that commercial quantities of
ore will be discovered on any of Paladin’s exploration
properties. There is also no assurance that, even if
commercial quantities of ore are discovered, a mineral
property will be brought into commercial production.
The discovery of mineral deposits is dependent upon
a number of factors including the technical skill of the
exploration personnel involved.

The commercial viability of a mineral deposit, once
discovered, is also dependent upon a number of
factors, some of which are the particular attributes
of the deposit such as size, grade, metallurgy
and proximity to infrastructure, metal prices and
government regulations, including the availability of
required authorisations, permits and licences and
regulations relating to royalties, allowable production,
importing and exporting of minerals and environmental
protection.

1 5

PALADIN ENERGY LTD: ANNUAL REPORT 2023In the context of environmental permitting, including
the approval of reclamation plans, the Company must
comply with known standards, existing laws and
regulations which may entail greater costs and delays
depending on the nature of the activity to be permitted
and how stringently the regulations are implemented
by the permitting authority. Environmental legislation
is evolving in a manner which will require stricter
standards and enforcement, increased fines and
penalties for non-compliance, more stringent
environmental assessments of proposed projects and
a heightened degree of responsibility for companies
and their officers, directors and employees. There is
no assurance that future changes in environmental
regulation, if any, will not adversely affect the
Company's operations.

The Company's ability to exploit Mineral Resources
and its other activities are also subject to obtaining
necessary authorisation, permits and licences from
relevant authorities. Such authorisations, permits and
licences may not be granted in a timely manner or at
all, or may be granted on conditions which impose
significant additional cost on the Company and/or
other participants in its joint ventures or which causes
Paladin and/or such other participants in its joint
ventures to become unwilling to proceed with the
relevant development or operations.

While it is possible that costs and delays associated
with compliance with such laws, regulations and
permits could become such that the Company will
not proceed with the development or operation of
a mine, the Company is not aware of any material
environmental constraint affecting its proposed
mining activities or exploration properties that would
preclude the economic development or operation of
any specific mine or property except as otherwise
described in this Annual Report.

The Company's projects may be subject to the effect
of political changes, war and civil conflict, terrorist
attacks, changes in government policy, lack of law
enforcement, labour unrest and the creation of new
laws. These changes (which may include new or
modified taxes or other government levies as well as
other legislation) may impact on the profitability and
viability of its properties.

Successful development is also subject to a number
of operational and other risks, including unexpected
geological formations, conditions involved in the
drilling and removal of material (which could result in
damage and/or destruction to plant and equipment,
loss of life or property, environmental damage and
possible legal liability), obtaining governmental and
stakeholder approvals, changes in Ore Reserves,
commodity prices, exchange rates, construction
costs, design requirements, delays in construction and
expansion plans.

In addition, assuming discovery of a commercial ore
body, several years can elapse (depending on the
type of mining operation contemplated) from the
initial phase of drilling until commercial operations are
commenced.

Most of these factors are beyond the control of
Paladin. In the event that the Company’s exploration
activities prove unsuccessful as a result of one or
more of the above factors, Paladin may experience a
diminution in the value of its projects, a reduction in its
cash reserves and possible relinquishment of part or
all of its projects.

• Political risks and government actions

The Company's activities are subject to extensive laws
and regulations controlling not only the mining of and
exploration for mineral properties, but also the possible
effects of such activities upon the environment and
upon interests of native and/or indigenous peoples.
Permits from a variety of regulatory authorities are
required for many aspects of mine operation and
reclamation. Future legislation and regulations could
cause additional expense, capital expenditures,
restrictions and delays in the development of the
Company's properties, the extent of which cannot
be predicted. In particular, uranium extraction and
processing has become the subject of increased
environmental scrutiny and future legislation and
government policy may impose additional obligations
and costs on the Company in this regard.

Possible sovereign risks associated with Paladin’s
business and operations include, without limitation,
changes in the terms of mining and tenure legislation
(and its interpretation), changes in foreign ownership
requirements, changes to royalty arrangements,
changes to taxation rates and concessions,
currency and other monetary controls, high inflation,
expropriation and changes in the ability to enforce
legal rights. Changes in community attitudes on
matters such as environment and land rights issues
may also bring about reviews and changes in
government policy, which in turn could result in delays
in operational activity and increases in capital or
operating costs.

1 6

PALADIN ENERGY LTD: ANNUAL REPORT 2023

• Foreign jurisdictions

• Exchange rates

The Company incurs expenditure in Australian,
Canadian and Namibian dollars, whereas funds on
hand are typically held in Australian or US dollars. As
a result, the Company is subject to foreign currency
fluctuations which may materially affect its financial
position and operating results. The Company may
consider hedging or derivative instruments to manage
foreign exchange rate movements.

• Funding risk

Exploration and development of the various mineral
properties in which Paladin holds interests depends
upon Paladin’s ability to obtain funding through
operational cash flows, joint ventures, debt financing,
equity financing or other means.

In addition, the Company is required in the ordinary
course of operations and development to provide
financial assurances (including insurances and
performance bond or bank guarantee instruments)
to secure statutory and environmental performance
undertakings and commercial arrangements. The
Company’s ability to provide such assurances is
subject to the willingness of financial institutions and
other third party providers of such assurances to issue
such assurances for the Company's account.

Volatile uranium markets, or the factors affecting
financial institutions and other third parties’
assessments of the Company and its prospects,
may make it difficult or impossible for the Company
to obtain facilities for the issuance of such financial
assurances or of other debt financing or equity
financing on favourable terms or at all. Failure to
obtain such facilities or financing on a timely basis
may cause the Company to postpone its development
plans, forfeit rights in some or all of its properties or
joint ventures or reduce or terminate some or all of its
operations, which may have a material adverse effect
on the Company's financial position and performance.

The Company's future operations are exposed to
political, economic and other risks and uncertainties
associated with operating in a foreign jurisdiction.
These risks and uncertainties vary from country to
country and include, but are not limited to, currency
exchange rates; high rates of inflation; labour unrest;
renegotiation or nullification of existing concessions,
licenses, permits and contracts; changes in taxation
policies; restrictions on foreign exchange; changing
political conditions; terrorism, war and other hostilities;
and currency controls and governmental regulations
that favour or require the awarding of contracts to
local contractors or require foreign contractors to
employ citizens of, or purchase supplies from, a
particular jurisdiction or otherwise benefit residents of
that country or region.

Changes, if any, in mining or investment policies
or shifts in political attitude in any of the countries
in which it operates may adversely affect the
Company's operations or profitability. Operations
may be affected in varying degrees by government
regulations with respect to, but not limited to,
restrictions on production, price controls, export
controls, currency remittance, income taxes, foreign
investment, maintenance of claims, environmental
legislation, land use, land claims of local people,
water use, black economic empowerment or similar
policies, employment, contractor selection and mine
safety. Failure to comply strictly with applicable laws,
regulations and local practices relating to mineral right
applications and tenure could result in loss, reduction
or expropriation of entitlements.

The occurrence of these various factors adds
uncertainties which cannot be accurately predicted
and could have an adverse effect on the Company's
operations or profitability.

• Namibian regulatory matters

The LHM is located in Namibia, where mining is
subject to specific regulation. There are also various
regulations in place in this jurisdiction that relate to
the exploration, development, production, exports,
taxes, royalties, labour standards, occupational health,
waste disposal, protection and rehabilitation of the
environment, mine reclamation, mine safety, toxic
and radioactive substances and other matters. The
cost of compliance with such laws and regulations
will ultimately increase the cost of exploring, drilling,
developing, constructing, operating and closing mines
and other production facilities.

There is a risk that government approvals may not be
granted, may be significantly delayed or may make the
LHM uneconomic.

1 7

PALADIN ENERGY LTD: ANNUAL REPORT 2023

• Revenue and cash flow risks

The Company cannot provide assurance of its ability to
operate its projects profitably. While Paladin intends to
generate working capital through operating its uranium
mines, there is no assurance that the Company
will be capable of producing positive cash flow on
a consistent basis or that any such funds will be
available for exploration and development programs.

Future operating results depend to a large extent
on management's ability to successfully manage
growth. This necessarily requires rapid expansion and
consolidation of all aspects of the business operations,
such as the development of mining operations,
revenue forecasting, an effective Mineral Resources
marketing strategy, addressing new markets,
controlling expenses, implementing infrastructure and
systems and managing its assets and contractors. The
inability to control the costs and organisational impacts
of business growth, an unpredicted decline in the
growth rate of revenues without a corresponding and
timely reduction in expenses or a failure to manage
other issues arising from growth can have a material
adverse effect on the Company’s operating results.

• Future growth opportunities

The Company's business involves the acquisition and
disposal of business ventures or interests in business
ventures from time to time. There is a risk that Paladin
may be unable to identify and/or execute suitable
growth opportunities, and a failure to do so could have
an adverse impact on the value of Paladin.

Further, business acquisitions entail a number of
inherent risks, including (without limitation) the
effective integration of the relevant asset or business
(including the realisation of synergies), significant
one-time write-offs or restructuring charges
and unanticipated costs and liabilities. Any such
acquisitions potentially expose Paladin to the risks
commonly associated with undertaking such activities,
including a failure to identify material adverse issues
as part of due diligence, a failure to take sufficient
mitigating action in respect of identified material
issues, or underestimating the materiality of such
issues. The Company may also become liable for
the past acts, omissions or liabilities of companies
or businesses or properties it has acquired or
disposed of, which may be unforeseen or greater than
anticipated.

• Joint ventures, agreements and other strategic

partnerships may not be successful

The Company participates in several joint venture and
shareholder arrangements and it may enter into similar
arrangements in the future.

Although the Company has sought to protect its
interests, existing and future joint ventures and
agreements necessarily involve special risks.

Whether or not Paladin holds majority interests or
maintains operational control in its joint ventures and
agreements, its partners may:

- have economic or business interests or goals that
are inconsistent with, or opposed to, those of the
Company;

- exercise veto rights to block actions that the

Company believes are in its or the joint venture’s
or agreement’s best interests;

- take action contrary to the Company's policies or

objectives with respect to its investments; or

- be unable or unwilling to fulfil their obligations
under the joint venture or other agreements,
such as contributing capital to expansion or
maintenance projects.

Accordingly, the financial performance of Paladin will
be exposed to any failure by participants of a joint
venture to agree on a plan or any plan to develop a
jointly owned asset, a refusal or inability of any joint
owner of an asset to contribute its share of funding of
the cost of development of a jointly owned asset, and
to a risk of legal or other disputes with participants
in any joint venture to which the Company is or may
become a party.

Where projects and operations are controlled and
managed by entities other than the Company, the
Company may provide expertise and advice but it
has limited control with respect to compliance with
its standards and objectives. Improper management
or ineffective policies, procedures or controls could
adversely affect the value of related non managed
projects and operations and, by association, damage
the Company's reputation thereby harming the
Company's other operations and access to new
assets.

• Incorporated joint venture

The Company is a party to a shareholders agreement
(Shareholders’ Agreement) with CNNC Overseas
Limited (CNNC), a subsidiary of China National
Nuclear Corporation, in respect to the operations of
Langer Heinrich Mauritius Holdings Limited (LHMHL),
the ultimate owner of the LHM.

The Company holds a 75% interest in LHMHL whilst
CNNC holds a 25% interest in that company. Under
the Shareholders’ Agreement, there are a number of
“Fundamental Matters” which must be approved by a
majority of directors of which at least one must be a
CNNC nominee (for so long as CNNC holds at least
a 14% interest), in effect giving the CNNC nominee a
veto right over such matters.

1 8

PALADIN ENERGY LTD: ANNUAL REPORT 2023The list of Fundamental Matters includes, but is
not limited to, the approval of a mine expansion
(and entering into financing arrangements to fund
a mining expansion), any acquisition or disposal of
LHMHL’s assets for a market value greater than $5
million, LHMHL entering into agreements with one
of its shareholders (including shareholder loans), the
issue of shares or convertibles, and amendments to
the constituent documents of LHMHL. There can be
no certainty or assurance that CNNC will approve
any Fundamental Matter which it is required to
consider, and it is possible that the failure to obtain
such approvals could have an adverse impact on the
viability of the Company’s interest in LHMHL as well
as the success and profitability of the joint venture
arrangement.

The joint venture arrangements with CNNC are also
subject to other risks normally associated with the
conduct of an incorporated joint venture of this
nature. These risks include, but are not limited to, the
Company’s inability to exert influence over certain
strategic decisions (especially if they constitute
Fundamental Matters); disagreement between the
Company and CNNC over how to operate the LHM
or any future variation or expansion of the LHM; the
ability to fund LHMHL; the inability of shareholders
to meet their obligations; and deadlocks or litigation
between shareholders in relation to joint venture
matters. Disputes between the joint venture partners
have the potential to have a material adverse effect
on the Company’s financial performance and/or
prospects.

• CNNC Offtake Agreement

Langer Heinrich Uranium (Pty) Ltd, the wholly owned
subsidiary of LHMHL and the entity that holds the
LHM, has entered into an offtake agreement with
CNNC. Under that offtake agreement, CNNC is
entitled to a pro-rata share of production from the
LHM at a small discount to spot market prices for the
life of the LHM. Recovery of product delivered under
that offtake agreement may be difficult in the event
of non-payment. Paladin is exposed to these risks
through its 75% interest in LHMHL.

• Production risks

Commissioning of restart activities prior to the
recommencement of production at the LHM may not
proceed to plan, with potential for delay in the timing
of targeted production and/or a failure to achieve the
level of targeted production.

These potential delays or difficulties may necessitate
additional funding for the Company and its related
bodies. In addition to potential delays, there is a risk
that capital and/or operating costs will be higher
than expected or that there will be other unexpected
changes in variables upon which expansion and
commissioning decisions were made, such as the
fall in the price of uranium which contributed to the
Company's decision to place the LHM on care &
maintenance. These potential scope changes and/or
cost overruns may also lead to reductions in revenues
and profits and/or additional funding requirements.

The Company’s activities may be affected by
numerous other factors beyond the Company’s control.
Mechanical failure of the Company’s operating plant
and equipment and general unanticipated operational
and technical activities may adversely affect the
Company’s operations. Operating risks beyond
the Company’s control may expose it to uninsured
liabilities.

The business of mining, exploration and development
is subject to a variety of risks and hazards such as
cave-ins and other accidents, flooding, environmental
hazards, the discharge of toxic chemicals and other
hazards and the use of contractors including contract
miners. Such occurrences may delay production,
increase production costs or result in damage to
and destruction of, mineral properties or production
facilities, personal injury, environmental damage and
legal liability. The Company has insurance to protect
itself against certain risks of mining and processing
within ranges of coverage consistent with industry
practice. However, the Company may become subject
to liability for hazards that it cannot insure against or
that it may elect not to insure against because of high
premium costs or other reasons. The occurrence of
an event that is not fully covered, or covered at all, by
insurance, could have a material adverse effect on its
financial condition and results of operations.

The Company has in the past undertaken, and is
currently undertaking, a number of cost management
and optimisation initiatives, but it cannot be assured
that these will be delivered fully or in the timeframes
intended, or that the extent of the savings delivered
will be as anticipated.

1 9

PALADIN ENERGY LTD: ANNUAL REPORT 2023

• Processing operations

Paladin’s operations will be subject to the operating
risks associated with processing uranium, including
performance of processing facilities against design
specification and the related risks associated with
storage and transportation of raw materials, products
and residues. The hazards associated with Paladin’s
mining and processing operations and the related
storage and transportation of products and residues
include, but are not limited to:

- Pipeline and storage tank leaks and ruptures

- Explosions and fires

- Mechanical failures

- Chemical spills and other discharges or releases
of toxic or hazardous substances or gases and

- Residue storage and tailings dam failures

These hazards may cause personal injury and loss
of life, damage to property and contamination of
the environment, which may result in suspension
of operations and the imposition of civil or criminal
penalties, including fines, expenses for remediation
and claims brought by governmental entities or
third parties, as well as damage to the Company’s
reputation. Although Paladin has detailed and closely
managed plans to mitigate these risks and maintains
property and casualty insurance of types and in the
amounts that it believes is customary for its industry,
Paladin is not fully insured against all potential hazards
incidental to its businesses.

• Availability of key inputs including water

Infrastructure in most of Africa for utilities such
as electricity and water supply is under strain and
underdeveloped. Paladin depends on the reliable
and continuous delivery of sufficient power and
water supply to its projects. A serious failure of basic
infrastructure or occurrences of power outages across
the country could adversely affect production at the
Company's operations in Africa.

Uranium mining activity is resource intensive and, as a
result, the Company’s costs and net earnings may be
adversely affected by the availability or cost of energy,
water, fuel or other key inputs. If the prices of key
inputs rise significantly more than expected, or if the
Company experiences interruptions in, or constraints
on, its supply of key inputs, the Company's costs could
increase and its results could be adversely affected.

• Offtake risk

The operations and revenues of Paladin are dependent
on the counterparties to existing and future
offtake agreements performing their obligations. If
counterparties do not take their obligated quantities
of product or seek to renegotiate the price or quantity
of product, Paladin’s revenue could be adversely
affected. The risk of non-performance or attempted

renegotiations of terms by offtake customers is
enhanced by the prevailing demand and pricing
sensitivities currently impacting the global market for
uranium products. If Paladin is not able to achieve the
required product specification to satisfy customer
offtake agreements, there is no guarantee Paladin
will be able to sell its product. There is no certainty
that Paladin will be able to continuously meet product
specifications particularly on account of the inherent
risks associated with the extraction and processing of
uranium.

• Supply chain and counterparty risk

The LHM operates within a complex supply chain.
The Company depends on suppliers of raw materials,
services, equipment and infrastructure to ensure its
mine and process plant can operate and on providers
of logistics to ensure products are delivered. Failure
of significant components of this supply chain due to
strategic factors such as business failure or serious
operational factors, could have an adverse effect on
the Company's business and results of operations.

The Company relies on various key customer and
supplier relationships and on contractors to conduct
aspects of its operations including mining operations.
As such, the Company is exposed to risks related to
their activities.

Although contracted services will be supervised
by Paladin's employees, such arrangements with
contractors carry with them risks associated with the
possibility that the contractors may (among other
things):

- have economic or other interests or goals that are

inconsistent with Paladin

- take actions contrary to Paladin's instructions or

requests or

- be unable or unwilling to fulfil their obligations

There can be no assurance Paladin will not experience
problems with respect to its contractors and service
providers in the future or that it will be able to find
replacement contractors on acceptable terms in the
event that contractors do not perform as Paladin
expects and this may materially and adversely affect
its business, results of operations, financial condition
and prospects. Financial failure or default by any of
the contractors or service providers used by Paladin
in any of its activities may impact on operating and/or
financial performance.

A loss or deterioration in any of these key customer
and supplier relationships or a failure by customers,
contractors or other counterparties to perform and
manage their obligations to an acceptable standard
and in accordance with key contracts could have
a material adverse effect on Paladin’s operations,
financial condition and prospects. This is beyond the
Company’s control.

2 0

PALADIN ENERGY LTD: ANNUAL REPORT 2023An interruption in raw material, electricity, gas or water
supply, a deterioration in the quality of raw materials
or inputs supplied or an increase in the price of those
raw materials or inputs could also adversely impact the
quality, efficiency or cost of production.

Any or all of these events could have an adverse
impact on the Company's operations, its financial
condition and financial performance and are beyond
the Company's control.

• Logistics

Paladin depends on the availability and affordability
of reliable transportation facilities, infrastructure and
certain suppliers to deliver its products to market. A
lack of these could impact Paladin's production and
development of projects.

Logistical risk relates to long supply lines and lack of
engineering and other support facilities close to the
Company's operating sites. In Africa, the shipment of
uranium concentrate for export could be subject to
disruptions through shipment licensing delays, political
disputes and natural disasters.

• Reliance on key personnel

Retaining qualified personnel is critical to the
Company's success. The Company may face
risks from the loss of key personnel as it may
be difficult to secure and retain candidates with
appropriate experience and expertise. One or more
of the Company's key employees could leave their
employment and this may adversely affect the
Company's ability to conduct its business and,
accordingly, affect the profitability, financial position
and performance and prospects of the Company.

The Company's success also depends on its ability to
identify, attract, accommodate, motivate and retain
additional suitably qualified personnel. The number
of persons skilled in the acquisition, exploration,
development and operation of mining properties is
limited and competition for such persons is high.
If Paladin’s business activity grows, it will require
additional personnel to meet its growing needs. If
Paladin is unable to access and retain the services of a
sufficient number of qualified personnel, this could be
disruptive to Paladin’s development and may materially
adversely affect its profitability, financial position and
performance and prospects.

• Environmental

Uranium exploration and mine development is an
environmentally hazardous activity which may give rise
to substantial costs for environmental rehabilitation,
damage control and losses.

The Company’s operations may use hazardous
materials and produce hazardous waste, which may
have an adverse impact on the environment or cause
exposure to hazardous materials. Despite efforts to

conduct its activities in an environmentally responsible
manner and in accordance with all applicable laws,
Paladin may be subject to claims for toxic torts,
natural resources damages and other damages. In
addition, Paladin may be subject to the investigation
and clean-up of contaminated soil, surface water
and groundwater. This may delay the timetable of
the projects and may subject Paladin to substantial
penalties including fines, damages, clean-up costs or
other penalties.

With increasingly heightened government and
public sensitivity to environmental sustainability,
environmental regulation is becoming more stringent.
Paladin could be subject to increasing environmental
responsibility and liability, including laws and
regulations dealing with discharges of materials into
the environment, plant and wildlife protection, the
reclamation and restoration of certain of its properties,
the storage, treatment and disposal of wastes and
other issues.

Paladin operates in various markets, some of which
face greater inherent risks relating to security,
enforcement of obligations, fraud, bribery and
corruption. Paladin has a comprehensive Anti-Bribery
and Corruption Policy, and honours the OECD
Convention on Combating Bribery of Foreign Public
Officials in International Business Transactions.

Sanctions for non-compliance with these laws and
regulations may include administrative, civil and
criminal penalties, revocation of permits, reputational
issues, increased licence conditions and corrective
action orders. These laws sometimes apply
retroactively. In addition, a party can be liable for
environmental damage without regard to that party's
negligence or fault. Increased costs associated with
regulatory compliance and/or with litigation could
have a material and adverse effect on Paladin's
financial performance. Mining operations are subject
to hazards normally encountered in exploration,
development and production. These include weather,
natural disasters and other force majeure events;
unexpected maintenance or technical problems;
unexpected geological formations; rock falls, flooding,
dam wall failure and other incidents or conditions
which could result in damage to plant or equipment or
the environment and which could impact production
throughput; increases in labour costs, industrial
action and other factors. Although it is intended to
take adequate precautions to minimise risk, there
is a possibility of a material adverse impact on the
Company's operations and its financial results should
any of these hazards be encountered.

2 1

PALADIN ENERGY LTD: ANNUAL REPORT 2023• Climate change

• Community acceptance and reputation

Increased regulation of greenhouse gas emissions
could adversely affect the Group's cost of operations.
Mining of Mineral Resources including uranium is
relatively energy intensive and depends on fossil fuels.
Regulatory change by governments in response to
greenhouse gas emissions may represent an increased
cost to Paladin’s profitability. Increasing regulation of
greenhouse gas emissions, including the progressive
introduction of carbon emissions trading mechanisms
and tighter emission reduction targets or the
introduction of a carbon tax in any jurisdiction in which
the Company operates is likely to raise energy costs
and costs of production.

• Health and safety

It is Paladin's intention to conduct its activities to the
highest standards of occupational health and safety.
Paladin has systems in place for the management
of risks, however uranium exploration and mining is
inherently a high risk environment with little margin
for error. In addition, where Paladin has an interest
located in a developing country, embedding systems
for managing occupational health and safety risks,
and maintaining and ensuring compliance with these
systems may present challenges for Paladin. Interests
in countries where HIV/AIDS, ebola, malaria, COVID-19
and other diseases may represent a threat to
maintaining a skilled workforce in Paladin's projects.

There can be no assurance that such infections will
not affect project staff, and there is the risk that
operations and production could be affected in the
event of such a safety threat. If there is a failure to
comply with necessary occupational health and safety
requirements, this could result in safety claims, fines,
penalties and compensation for damages against
Paladin, as well as reputational damage.

• Corporate culture and business conduct

Corporate culture can greatly influence individual and
group behaviours. The behaviours that could expose
Paladin to conduct risk include, but are not limited to:

- delays in appropriately escalating regulatory and

compliance issues;

- failure to resolve issues in a timely manner; and

- failure to deliver on product and service

commitments.

If Paladin’s conduct and ethics related controls,
frameworks and practices were to fail significantly,
be set inappropriately, or not meet legal, regulatory,
or community expectations, then Paladin may be
exposed to reputational damage through fines,
regulatory intervention or investigation, temporary or
permanent loss of licenses, litigation and/or permanent
loss of business.

The ongoing support of the local communities in which
Paladin operates and the appropriate management
of local community expectations is important to the
successful operation of Paladin’s projects and assets.
Paladin’s failure to effectively maintain and develop its
relationships with local communities and stakeholders
could result in those stakeholders being dissatisfied
with Paladin and result in adverse outcomes for
Paladin and its operations.

• Tax and royalty risks

Any change to the current rate of Company income
tax or mineral royalties in jurisdictions where the
company operates will impact on the profitability and
performance of Paladin.

The Company is subject to complex tax laws. Paladin
and its related bodies have incurred tax losses in
Namibia, including during the period of care and
maintenance. The Company considers that at this
stage the recognised tax losses are able to be carried
forward, however there is no guarantee that these
tax losses will be available for utilisation under the
Namibian tax legislation.

Changes in tax laws could adversely affect the
Company’s tax position, including the effective tax
rate or tax payments. The Company often relies on
generally available interpretations of applicable tax
laws and regulations. There cannot be certainty that
the relevant tax authorities are in agreement with
the Company’s interpretation of these laws. If the
Company’s tax positions are challenged by relevant
tax authorities, the imposition of additional taxes could
require the Company to pay taxes that it currently
does not collect or pay, or increase the costs of the
Company’s services to track and collect such taxes,
which could have a negative effect on the Company’s
business, financial condition and results of operations.
The occurrence of any of the foregoing tax risks could
have a material adverse effect on the Company’s
business, financial condition and results of operations.

• Legal action

Paladin is subject to litigation risks. All industries,
including the mining industry, are subject to legal
claims, where claims may be with or without merit.
Defence and settlement costs of legal claims can be
substantial, even with respect to claims that have
no merit. Due to the inherent uncertainty of the
litigation process, the resolution of any particular legal
proceeding to which Paladin is or may become subject
could have a material effect on its financial position,
results of operations or Paladin’s mining and project
development operations.

2 2

PALADIN ENERGY LTD: ANNUAL REPORT 2023• General legal matters

• Australia’s uranium policy

Future earnings, asset values and the relative
attractiveness of the Company's shares may be
affected by changes in law and government policy in
the jurisdictions in which the Company operates, in
particular changes to taxation laws (including stamp
duty and goods and services tax).

• Market competition

Significant and increasing competition exists for
mineral acquisition opportunities throughout the
world. As a result of this competition, some of which
is with large, better established mining companies
with substantial capabilities and greater financial and
technical resources, the Company may be unable
to acquire rights to exploit additional attractive
mining properties on terms it considers acceptable.
Accordingly, there can be no assurance that the
Company will acquire any interest in additional
operations that would yield reserves or result in
commercial mining operations.

• Labour and employment matters

While Paladin has good relations with its employees,
these relations may be impacted by changes in the
scheme of labour relations which may be introduced
by the relevant country governmental authorities
which regulate its operations. Adverse changes in such
legislation may have a material adverse effect on the
Paladin’s business.

As the Company's business grows, it will require
additional staff for operations as well as additional key
financial, administrative, mining, marketing and public
relations personnel. In addition, given the remote
location of the properties, the lack of infrastructure
in the nearby surrounding areas and the shortage of
a readily available labour force in the mining industry,
the Company may experience difficulties retaining the
requisite skilled employees in Namibia. It is important
for the Company's continued success that it attracts,
develops, retains and engages the right employees.
A limited supply of skilled workers could lead to an
increase in labour costs or Paladin being unable to
attract and retain the employees it needs. When new
workers are hired, it may take a considerable period
of training and time before they are equipped with the
requisite skills to work effectively and safely on some
of the inherently dangerous tasks associated with
the uranium mining industry. Failure to retain without
appropriate replacement or to attract employees with
the right skills for Paladin’s businesses could have a
material adverse effect on the Company’s business.
While the Company believes that it will be successful
in attracting and retaining qualified personnel and
employees, there can be no assurance of such
success.

At the national level of Australian politics, both the
Federal Coalition parties and the Federal Labor Party
support the development of the uranium industry.
However, the granting of licences to mine uranium is a
decision made within the residual jurisdiction of each
State government and the government of the Northern
Territory (NT).

The attitude of the various State and Territory
governments to uranium mining differ. For example,
the State government of South Australia supports
existing mines and the government of the NT is also
generally supportive of existing mines and is receptive
to new uranium projects. The State government of
Queensland permits uranium exploration, but bans
uranium mining, whilst the current State government
of Western Australia currently has a no-development
uranium mining policy. The Company’s prospects of
developing its Australian uranium interests depends
upon the extent to which government policy is
supportive of uranium exploration and development
activities.

Through membership of industry bodies, such as the
Minerals Council of Australia, the Company is involved
in initiatives focused on facilitating government
support. There can be no assurance that State or
Territory governments that currently permit uranium
mining will continue to do so, or that they will not be
replaced in elections with governments that will re-
institute the moratorium on uranium mining in Australia,
or that uranium mining will be allowed in States (such
as Western Australia or Queensland) where uranium
mining is currently not allowed. Any adverse change in
State or Territory governmental policy may materially
adversely affect the financial condition and results of
operations of the Company and its related bodies.

• Native Title

In the context of interests of native and/or indigenous
peoples in Australia, the Native Title Act 1993 (Cth)
recognises and protects the rights and interests in
Australia of Aboriginal and Torres Strait Islander people
in land and waters, according to their traditional laws
and customs. The risks arising because of native title
and aboriginal land rights may affect the Company's
ability to gain access to prospective exploration
areas to obtain production titles. Mining tenement
applications and existing tenements may be affected
by native title claims or procedures (which may
preclude or delay the granting of exploration and
mining tenements), with the possibility of considerable
expenses and delays involved in negotiating
and resolving issues or obtaining clearances.
Compensatory obligations may be necessary in
settling native title claims lodged over any of the
tenements held or acquired by the Company. The level
of impact of these matters will depend, in part, on the
location and status of the Company's tenements.

2 3

PALADIN ENERGY LTD: ANNUAL REPORT 2023• Aboriginal Title and consultation issues – Michelin

• Major shareholder risk

There is a risk that Paladin’s substantial shareholders
may seek to sell down their shareholdings in Paladin.
A significant sale of shares, or a perception that a sell
down may occur, could adversely affect the price of
Paladin’s shares.

• Certain directors are involved in other mining

interests

Certain directors of Paladin may be involved in the
mining and mineral exploration industry through
their direct and indirect participation in corporations,
partnership or joint ventures which may be potential
competitors of the Company. Situations may arise in
connection with potential acquisitions in investments
where the other interests of these directors and
officers may conflict with the interests of the
Company. Directors and officers of the Company with
conflicts of interest will be subject to and will follow
the procedures set out in applicable corporate and
securities legislation, regulations, rules and policies.

• Estimates and assumptions are used in preparing

consolidated financial statements

Preparation of the consolidated financial statements
requires the Company to use estimates and
assumptions. Accounting for estimates requires
Paladin to use its judgement to determine the
amount to be recorded on its financial statements in
connection with these estimates.

The Company reviews the carrying value of its tangible
and intangible assets periodically to determine
whether there is any indication that the carrying
value of those assets may not be recoverable through
continuing use. If any such indication exists, the
recoverable amount of the asset is reviewed in order
to determine the amount of the impairment, if any.
Changes in assumptions underlying the carrying
value of certain assets, including assumptions
relating to uranium prices, production costs, foreign
exchange rates, discount rates, tax rates, the level
of proved and probable reserves and measured,
indicated and inferred Mineral Resources and market
conditions, could result in impairment of such assets.
No assurance can be given as to the absence of
significant impairment charges in future periods,
including as a result of further restructuring activities
or changes in assumptions underlying carrying values
as a result of adverse market conditions in the industry
in which Paladin operates.

Project

The Michelin Project is located within the traditional
territory of the Inuit residing in Labrador, Canada.
The area is governed by a modern day treaty
which recognises the Inuit of Labrador's right to
self-government through the Inuit Nunatsiavut
Government. Five of the Company's deposits that
comprise the Michelin Project fall within the Labrador
Inuit Lands, use and access to which are governed by
the Inuit Nunatsiavut Government.

Development of the Michelin Project requires the
collaboration and support of the Inuit and potentially
other aboriginal groups. There can be no assurance
that title claims as well as related consultation issues
will not arise on or with respect to the Company's
properties, or with respect to access to the properties
that comprise the Michelin Project. Failure to resolve
such issues could result in delays to a potential project
development.

• Access to land

The Company will experience delays and cost
overruns if it is unable to access the land required
for its operations. This may be as a result of weather,
environmental restraints, native title, harvesting,
landholder’s activities or other factors.

The Company’s exploration activities are also
dependent upon the grant, or as the case may be,
the maintenance or renewal of appropriate licences,
concessions, leases, permits and regulatory consents
which may be withdrawn or made subject to
limitations. The maintenance, renewal and granting
of tenements often depends on the Company being
successful in obtaining required statutory approvals.
There is no assurance that the Company will be
granted all the mining tenements for which it has
applied or that licences, concessions, leases, permits
or consents will be renewed as and when required or
that new conditions will not be imposed in connection
therewith. To the extent such approvals, consents
or renewals are not obtained, the Company may
be curtailed or prohibited from continuing with its
exploration activities or proceeding with any future
exploration or development.

• Subsidiaries

Paladin is a holding company with no significant assets
other than cash and the shares of its wholly-owned
and non-wholly-owned Subsidiaries. Accordingly,
any limitation on the transfer of cash or other
assets between the Company and its subsidiaries
could restrict Paladin’s ability to fund its operations
efficiently and to meet its payment obligations. Any
such limitations, or the perception that such limitations
may exist now or in the future, could also have an
adverse impact on Paladin’s valuation and share price.

2 4

PALADIN ENERGY LTD: ANNUAL REPORT 2023• Dividends

Paladin expects to retain all earnings and other cash
resources in the short term for the future operation
and development of its business. Payment of any
future dividends will be at the discretion of Paladin's
Board of Directors after taking into account many
factors, including Paladin's operating results, financial
condition and current and anticipated cash needs.
Paladin has not historically paid dividends and the
payment of dividends in the future is not guaranteed.

• Insurance

Paladin seeks to maintain a range of insurance
covers for its business operations. However, Paladin's
insurance will not cover every potential risk associated
with its operations. The occurrence of a significant
adverse event, the risks of which are not fully covered
by insurance, could have a material adverse effect on
Paladin's financial condition and financial performance.

Without limitation, the Company may become subject
to liability for accidents, pollution and other hazards
against which it cannot insure, or against which it may
elect not to insure because of premium costs or for
other reasons, or in amounts, which exceed policy
limits.

The Company's estimates and assumptions used in
the value of its rehabilitation provisions represents
the discounted value of the present obligation to
rehabilitate its mines and to restore, dismantle and
close its mines. The discounted value reflects a
combination of the Company’s assessment of the cost
of performing the work required, the timing of the
cash flows and the discount rate. A change in any, or a
combination, of the three key assumptions (estimated
cash flows, discount rates or inflation rates), used to
determine the provision could have a material impact
on the carrying value of the provision. On an ongoing
basis, the Company re-evaluates its estimates and
assumptions. However, the actual amounts could differ
from those based on estimates and assumptions.

• General economic conditions

Economic conditions, both domestic and global,
may affect the performance of the Company.
Adverse changes in macroeconomic conditions,
including global and country-by-country economic
growth, the cost and general availability of credit,
the level of inflation, interest rates, exchange rates,
government policy (including fiscal, monetary and
regulatory policies), general consumption and
consumer spending, employment rates and industrial
disruption, amongst others, are outside the control
of the Company and may result in material adverse
impacts on the Company's business and its operating
results. Changes in global macroeconomic conditions
may result in reduced global economic activity, and
therefore reduced demand for electricity. This may
have a negative impact on the demand for, and price
of, uranium.

• Share market conditions

The Company is listed on the ASX, the Namibian Stock
Exchange (NSX) and certain exchanges in Germany
and the price of the Paladin’s shares is subject to the
numerous influences that may affect both the trends
in the share market and the share prices of individual
companies, including movements in international
and local stock markets, changes in the outlook
for commodities (and, more specifically, uranium
prices), inflation, interest rates, general economic
conditions, changes in government, fiscal, monetary
and regulatory policies. In the future, these factors
may cause Paladin’s shares to trade below current
prices and may affect the income and expenses of the
Company.

• Risk of dilution

The Company may undertake offerings of securities
in the future to raise capital as well undertaking as
equity-funded acquisitions, which may also dilute
the holdings of investors. The increase in the number
of shares issued and the possibility of sales of such
shares may have a depressive effect on the price of
shares already on issue.

2 5

PALADIN ENERGY LTD: ANNUAL REPORT 2023Ore Reserves and
Mineral Resources

PROJECT LOCATIONS AND RESOURCE OVERVIEW

Canada
Michelin
Advanced
Exploration

Namibia
Langer Heinrich
Returning to Production

Australia
Manyingee &
Carley Bore
Advanced
Exploration

Australia
Head Office

Australia
Mount Isa
Advanced
Exploration

Unless specifically noted, Mineral Resources were prepared and first disclosed under the JORC Code 2004. These estimates have not been updated since to
comply with JORC Code (2012) on the basis that the information that the estimates are derived from have not materially changed since it was last reported.

2 6

PALADIN ENERGY LTD: ANNUAL REPORT 2023
NAMIBIA

Langer Heinrich

Langer Heinrich is located in central western Namibia,
approximately 80km east of Swakopmund. Langer
Heinrich is a surficial calcrete type uranium deposit
containing a JORC Code (2012) compliant Mineral
Resource of 140Mt containing 128.1Mlb U3O8 at a
grade of 415ppm U3O8 and 41.5Mlb V2O5 at grade of
135ppm V2O5 at a cut-off of grade of 200ppm U3O8
with a cut-off grade of 250ppm U3O8 applied to
stockpiles.

The deposit is situated in the 15km long paleo drainage
system located within the Gawib River valley between
the Langer Heinrich and Schifferberg Mountains.

Langer Heinrich Mine Ore Reserves are estimated at
84.8Mt at a grade of 448ppm U3O8 containing 83.8Mlb
U3O8.

The Langer Heinrich Mine transitioned to care and
maintenance in August 2018, and the decision
to return the Langer Heinrich Mine to production
was announced in July 2022. The project is well
advanced and remains on track and on budget for first
production in the first quarter of CY2024. Paladin owns
a 75% interest in Langer Heinrich.

CANADA

Michelin Project

Paladin, through its wholly owned subsidiary Aurora
Energy Ltd (Aurora), holds rights to 52,250 hectares
of mineral claims within the Central Mineral Belt of
Labrador (CMB), Canada, approximately 140km north
of Happy Valley-Goose Bay and 40km southwest of
the community of Postville.

Paladin currently holds a 75% interest (which increased
from 70% in May 2023) in a special purpose joint
venture (the Michelin Joint Venture) which owns the
Michelin Project. The Michelin Joint Venture included
a farm-out agreement over a five-year period whereby
Paladin received an additional 5% participating interest
in the Michelin Project on an annual basis until May
2023, in return for Paladin funding all obligations for
the Michelin Project over this period. This farm-out is
now completed.

The mineral claims cover a significant area of
prospective ground over the CMB. The claims contain
105.6Mlb U3O8 Measured and Indicated Mineral
Resources as well as an additional 22Mlb U3O8 Inferred
Mineral Resource in six deposits. The largest of these
deposits is Michelin which contains a total JORC Code
(2012) compliant Mineral Resource of 92.0Mlb U3O8,
82.2Mlb of which is classified Measured and Indicated.
Michelin is still open along strike and at depth. Cut-off
grades for all deposits except Jacques Lake reflect
the use of open cut (200ppm) and underground

(500ppm) mining methodologies in the determination
of prospects for eventual economic extraction.
For Jacques Lake, there was insufficient Mineral
Resources remaining after pit optimisation studies to
warrant any portion being considered for underground
mining.

As required under the terms of the Michelin Joint
Venture Agreement, Paladin conducted a sales
process for the Michelin Project using best efforts to
sell the entirety of the joint venture on commercially
acceptable terms. Subsequent to year end the sales
process was completed with no offers received for the
Michelin Project that were considered acceptable.

QUEENSL AND

Mount Isa Project

The Mount Isa Project, which is wholly owned by
Paladin, is located 40km north of Mount Isa and
consists of six Mineral Development Licences.

The Mount Isa Project includes 10 deposits containing
106.2Mlb U3O8 Measured and Indicated Mineral
Resources as well as 42.2Mlb U3O8 Inferred Mineral
Resources at a cut-off grade of 250ppm U3O8 for all
deposits except Valhalla, which utilised a cut-off grade
of 230ppm U3O8.

WESTERN AUSTRALIA

Manyingee Project

Manyingee is located in the north-west of Western
Australia, 1,100km north of Perth and 85km inland
from the coastal township of Onslow. The property
is comprised of three mining leases covering 1,307
hectares. Field trials by AFMEX demonstrated that
the Manyingee sandstone-hosted uranium deposit is
amenable to extraction by in-situ recovery (ISR)
in 1985.

Manyingee contains an Indicated Mineral Resource
of 15.7Mlb U3O8 grading 850ppm and an Inferred
Mineral Resource of 10.2Mlb U3O8 grading 850ppm
(JORC Code (2012) compliant) at a cut-off grade of
250ppm U3O8.

Carley Bore

Carley Bore is located approximately 100km south of
Manyingee in Western Australia. Carley Bore consists
of two contiguous exploration licences with granted
retention status.

The Carley Bore deposit contains JORC Code (2012)
compliant Mineral Resources, 5.0Mlb U3O8 grading
420ppm in the Indicated category and 10.6Mlb U3O8
grading 280ppm in the Inferred category at a cut-off
grade of 150ppm U3O8. Potential exists for extensions
to mineralisation north and south of the estimated
Carley Bore Mineral Resource.

2 7

Australia

Mount Isa

Advanced

Exploration

PALADIN ENERGY LTD: ANNUAL REPORT 2023
MINERAL RESOURCES AND ORE RESERVES SUMMARY

The following tables detail the Group's Mineral Resources and Ore Reserves and the changes that have occurred
within FY2023. There were no material changes to the Group’s Mineral Resources and Ore Reserves.

30 June 2022

30 June 2023

Change

Grade
ppm
U3O8

Mlb
U3O8

Grade
ppm
U3O8

Mlb
U3O8

Uranium Mineral Resources

NAMIBIA: Langer Heinrich1 2

Measured

In-situ

MG ROM stockpiles

LG ROM stockpiles

Total Measured

79.1

6.3

20.2

105.6

450

510

325

430

78.6

7.1

79.1

6.3

14.5

20.2

100.2

105.6

450

510

325

430

78.6

7.1

14.5

100.2

23.5

375

19.5

23.5

375

19.5

11.0

140.1

345

415

8.4

11.0

128.1

140.1

345

415

8.4

128.1

30 June 2022

30 June 2023

Change

Grade
ppm
U3O8

Mlb
U3O8

Grade
ppm
U3O8

Mlb
U3O8

17.6

0.2

0.4

1.2

13.0

20.6

0.7

0.8

0.3

3.3

3.6

4.5

0.5

0.9

965

920

770

690

630

980

830

860

920

670

550

985

720

810

37.6

0.4

0.6

1.8

18.0

44.6

1.2

1.4

0.6

4.8

4.4

9.9

0.8

1.6

17.6

0.2

0.4

1.2

13.0

20.6

0.7

0.8

0.3

3.3

3.6

4.5

0.5

0.9

965

920

770

690

630

980

830

860

920

670

550

985

720

810

37.6

0.4

0.6

1.8

18.0

44.6

1.2

1.4

0.6

4.8

4.4

9.9

0.8

1.6

Indicated

Inferred

TOTAL

In-situ

Uranium Mineral Resources

CANADA

Measured Michelin3

Rainbow

Indicated

Gear

Inda

Jacques Lake3

Michelin

Nash

Rainbow

Inferred

Gear

Inda

Jacques Lake3

Michelin3

Nash

Rainbow

TOTAL Canada

67.7

860

127.7

67.7

860

127.7

Figures may not add due to rounding.

1JORC Code (2012) compliant. Cut-off of grade of 200ppm U3O8 applied to in-situ, with a cut-off grade of 250ppm U3O8 applied to stockpiles.
2ASX Announcement “Langer Heinrich Mine Restart Plan Update, Mineral Resource and Ore Reserve Update“ dated 4 November 2021
3JORC Code (2012) compliant

2 8

PALADIN ENERGY LTD: ANNUAL REPORT 2023Uranium Mineral Resources

AUSTRALIA

30 June 2022

30 June 2023

Change

Grade
ppm
U3O8

Mlb
U3O8

Grade
ppm
U3O8

Mlb
U3O8

Measured

Valhalla

16.0

820

28.9

16.0

820

28.9

Indicated

Andersons

Bikini

Duke Batman

Odin

Skal

Valhalla

Carley Bore4

Manyingee

Inferred

Andersons

Bikini

Duke Batman

Honey Pot

Mirrioola

Odin

Skal

Valhalla

Watta

Warwai

Carley Bore4

Manyingee4

1.4

5.8

0.5

8.2

14.3

18.6

5.4

8.4

0.1

6.7

0.3

2.6

2.0

5.8

1.4

9.1

5.6

0.4

17.4

5.4

1,450

495

1,370

555

640

840

420

850

1,640

490

1,100

700

560

590

520

640

400

360

280

850

4.6

6.3

1.6

10.0

20.2

34.5

5.0

15.7

0.4

7.3

0.7

4.0

2.5

7.6

1.6

12.8

5.0

0.3

10.6

10.2

1.4

5.8

0.5

8.2

14.3

18.6

5.4

8.4

0.1

6.7

0.3

2.6

2.0

5.8

1.4

9.1

5.6

0.4

17.4

5.4

1,450

495

1,370

555

640

840

420

850

1,640

490

1,100

700

560

590

520

640

400

360

280

850

4.6

6.3

1.6

10.0

20.2

34.5

5.0

15.7

0.4

7.3

0.7

4.0

2.5

7.6

1.6

12.8

5.0

0.3

10.6

10.2

TOTAL Australia

135.4

635

189.8

135.4

635

189.8

Figures may not add due to rounding.

4JORC Code (2012) compliant

2 9

PALADIN ENERGY LTD: ANNUAL REPORT 2023Vanadium Mineral Resources

NAMIBIA: Langer Heinrich5 6

Measured

30 June 2022

30 June 2023

Change

Grade
ppm
V2O5

Mlb
V2O5

Grade
ppm
V3O5

Mlb
V2O5

In-situ

MG ROM stockpiles

79.1

6.3

LG ROM stockpiles

20.2

Total Measured

105.6

145

165

105

140

25.5

2.3

4.7

79.1

6.3

20.2

32.5

105.6

145

165

105

140

25.5

2.3

4.7

32.5

In-situ

23.5

120

6.3

23.5

120

6.3

Indicated

Inferred

In-situ

TOTAL Namibia

11.0

140.1

115

135

2.7

11.0

41.5

140.1

115

135

2.7

41.5

Uranium Ore Reserves

NAMIBIA: Langer Heinrich5 6

Proved

Probable

Stockpiles

TOTAL Namibia

30 June 2022

30 June 2023

Change

Grade
ppm
U3O8

Mlb
U3O8

Grade
ppm
U3O8

Mlb
U3O8

48.3

10.0

26.5

84.8

488

464

369

448

52.0

10.2

21.6

48.3

10.0

26.5

83.8

84.8

488

464

369

448

52.0

10.2

21.6

83.8

Figures may not add due to rounding. Ore Reserves reported at a 250ppm U3O8 cut-off grade. Mineral Resources and Ore Reserves quoted on a 100%
basis. Mineral Resources are reported inclusive of Ore Reserves.

All the Group’s Mineral Resources and Ore Reserves are internally peer reviewed at the time of estimation and
are subject to ongoing review, as and when required. Should any Mineral Resources or Ore Reserves be utilised
within a Bankable or Definitive Feasibility Study, it is expected that an audit by independent experts would be
conducted.

The information in this Annual Report that relates to Mineral Resources is based on, and fairly represents,
information and supporting documentation compiled by David Princep BSc, P.Geo FAusIMM (CP), a Competent
Person who has sufficient experience that is relevant to the style of mineralisation and type of deposit under
consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the
reporting standard JORC 2012. Mr Princep is a full-time employee of Gill Lane Consulting Pty Ltd and consults to
Paladin and is a current Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Princep consents to the
inclusion of this information in the form and context in which it appears.

The information in this Annual Report that relates to the Ore Reserves estimation for the Langer Heinrich Uranium
Project is based on, and fairly represents, information and supporting documentation compiled by Mr David
Varcoe, Principal Mining Engineer, for AMC Consultants Pty Ltd. Mr Varcoe is an employee of AMC Consultants
Pty Ltd and is a Competent Person who is a current Fellow of the Australasian Institute of Mining and Metallurgy
(AusIMM No: 105971). Mr Varcoe has sufficient experience that is relevant to the style of mineralisation and type
of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined
in the reporting standard JORC 2012. Mr Varcoe consents to the inclusion of this information in the form and
context in which it appears.

5JORC Code (2012) compliant
6ASX Announcement “Langer Heinrich Mine Restart Plan Update, Mineral Resource and Ore Reserve Update“ dated 4 November 2021

3 0

PALADIN ENERGY LTD: ANNUAL REPORT 2023
3 1

PALADIN ENERGY LTD: ANNUAL REPORT 2023Environmental, Social
and Governance

Paladin is wholly committed to a best practice, globally
accredited Environmental, Social and Governance
(ESG) framework that sets standards of organisational
behaviour and holds us firmly accountable. At Paladin,
ESG is core to our business, and we want to be held
accountable for what we do – not just for what we say.
When our performance is measured, we expect that
outcomes clearly reflect our behaviours.

Paladin adopted the Sustainability Accounting
Standards Board (SASB) framework for inclusion in the
FY2022 Sustainability Report. Following the decision
in July 2022 to return the Langer Heinrich Mine (LHM)

to production, the Board approved the future addition
of the Global Reporting Initiative (GRI) standards
and Task Force on Climate-related Disclosures
(TCFD) framework for implementation as production
commences at the LHM.

Paladin will comply with all reporting and requirements
under the Modern Slavery Act (Cth) 2018, including the
maintenance of responsible and transparent supply
chains, when production recommences in CY2024.

A roadmap for Paladin’s Sustainability Reporting is
provided below:

Paladin Energy Sustainability Reporting Road Map

3 2

PALADIN ENERGY LTD: ANNUAL REPORT 2023Independent Review Sustainability Reporting BenchmarkingFID Restart Decision to Restart LHMPlan Roll-out of GRI, TCFD. Modern SlaveryIssue FY2024 Sustainability Report Implement GRI, TCFD, Modern SlaveryFirst Production PlannedMature ReportingDecision to Implement SASBIssue FY2022 Sustainability ReportIssue FY2023 Sustainability ReportQ2 FY2022Q2 FY2023Q3 FY2022Q3 FY2024Q1 FY2023Q2 FY2024Q2 FY2025Pre-ProductionDetailed Engineering & ConstructionCommissioningProductionAs Paladin moves towards production, the structured implementation of these three reporting frameworks
(SASB, GRI and TCFD) will increase the level of detail reported over time, and will provide a more complete
representation of Paladin’s performance to all key stakeholders. The focus and audience of the frameworks are
provided below:

Combining the complimentary SASB / GRI / TCFD frameworks provides a comprehensive integrated
sustainability reporting framework

FINANCIAL REPORTING

SUSTAINABILITY REPORTING:
FINANCIAL MATERIALITY

SUSTAINABILITY REPORTING:
IMPACT MATERIALITY

SASB Focus: ESG issues expected to have financially
material impact on the company itself (Internal Focus)

Audience: Investors and other providers of financial
capital – Enterprise Value

Metrics: SASB Standards reference metrics already in
use by industry

GRI Focus: External impacts of a company’s activities
(Economic, Environmental, Social)

Audience: Broad range of external stakeholders,
including investors. Many companies use both
SASB and GRI standards to meet the needs of their
audiences – Stakeholder Value

SUSTAINABILITY REPORTING:
CLIMATE-REL ATED
FINANCIAL INFORMATION

TCFD Focus: Risks related to climate change & potential
financial implications associated with transitioning to a
lower-carbon economy

Audience: Investors, other providers of financial capital
and insurance underwriters – Enterprise Value

As part of the implementation of the SASB framework, the Paladin Executive and management team carried out a
materiality assessment informed by inputs taken from Paladin’s existing sustainability, ESG and Risk Management
reporting frameworks, SASB sustainability standards for Metals & Mining and benchmarking against peer
companies. The result was a list of material ESG topics and priorities relevant to Paladin during the pre-production
phase at the LHM and the exploration phase for the Canadian and Australian asset portfolio, with additional
topics and priorities that will become material when the LHM returns to production.

Material Topics
& Priorities

Pre-production

Production

Environmental

Social

Governance

Biodiversity
Tailings Management
Rehabilitation

Air Quality
Water Management
Waste Management
Energy Management
Greenhouse Gas Emissions
Land Disturbance

Occupational Health and Safety
Radiation
Diversity
Community and Stakeholder Relations

Nuclear Safeguards
Product Safety and Transportation
Labour Practices
Employee Opportunities
Relationships with Indigenous People

Corporate Governance
Business Ethics and Transparency
Risk Management
Cyber Security
Tax Transparency

GRI
TCFD
Modern Slavery Reporting

3 3

PALADIN ENERGY LTD: ANNUAL REPORT 2023ESG Highlights and FY2023 Performance

Our ESG Reporting Framework

Over 850,000 Lost-Time Injury Free project
manhours achieved

SASB reporting to be included in FY2023
Sustainability Report

No environmental non-compliances or
breaches

100% compliance with laws, regulations,
licence and permit conditions

Strong local community commitment through
jobs, education and procurement

Development of a detailed implementation plan
for roll out of ESG frameworks

Extend SASB reporting to include GRI
framework when the LHM returns to production
in 2024

Commitment to TCFD principles to include and
manage systemic financial risks associated with
climate change

Further developing our Modern Slavery
assessment, reporting and governance to
address modern slavery risks across our global
supply chain

ENVIRONMENT

We protect the environment and work to
minimise our impacts on it, achieving continuous
improvements in sustainability practices and
committing to support emission reductions to
achieve the goals of the 2021 United Nations
Climate Change Conference (COP26) and the
Glasgow Climate Pact.

Paladin recognises that excellence in environmental
performance is essential to business success and to
achieving our sustainable development objectives.
Paladin is committed to ensuring our projects are
delivered with a keen focus on sustainability and
reducing our own Scope 1 and Scope 2 carbon
emissions and environmental impact. Paladin aims to
minimise its impact on the environment through:

• Effective environmental management across all

aspects of its portfolio

• Preventing, minimising, mitigating and remediating

any adverse impacts of its operations on the
environment

• Achieving continuous improvement in environmental

performance.

Paladin’s environmental approach is managed
through its Environmental Policy with a suite of
underlying policies, and management, monitoring and
mitigation plans. Our robust policies and guidelines
focus primarily on water and land use management,
rehabilitation, mineral waste and reducing greenhouse
gas emissions. The LHM Environmental Policy and
underlying policies are being reviewed and updated as
the LHM returns to production.

The LHM produces a Bi-Annual Environmental
Management Progress Report to comply with reporting
requirements under the LHM Environmental Clearance
Certificate (ECC) issued in August 2020 in compliance
with the mining license obligations, as well as the LHM
Environmental Management Plan. The bi-annual report
is a comprehensive report on environmental monitoring
of air, water quality, energy, land-use, radiation, and
biodiversity within the LHM mining license areas as
well as surrounding community support, as the LHM
carries out activities within our framework of legal
and regulatory requirements. This report is submitted
to the Ministry of Environment, Tourism and Forestry,
the Ministry of Mines and Energy and the Ministry of
Agriculture, Water and Land Reform.

Paladin has met all applicable regulatory and other
compliance obligations and holds all applicable permits
and licences across the Company’s global operations.

As Paladin moves towards the restart of production,
the LHM is establishing a baseline of the historical
carbon footprint and environmental impact by
reviewing the water and fuel consumption and carbon
emissions. This is being undertaken to allow the
continuation of efforts to minimise the LHM footprint,
and improve our operation’s future performance. The
Restart Project incorporates measures to reduce
our environmental footprint and impacts, including
upgraded tailings dewatering, increasing process
water return and reducing water loss to tailings.
Paladin is reviewing the LHM’s historical consumption
and emissions data and will set meaningful targets
once the footprint has been confirmed in operations.

3 4

PALADIN ENERGY LTD: ANNUAL REPORT 2023

Uranium mining and processing are critical
components of the nuclear fuel cycle as they provide
the raw material for producing clean, sustainable
base-load electricity. With growing global demand for
electricity, and targets set for reduced CO2 emissions,
nuclear energy will continue to play a key role in the
decarbonisation of global power generation.

Nuclear energy provided approximately half of the
USA’s carbon-free electricity in 2022, making it their
largest domestic source of low carbon energy. Nuclear
power plants do not emit greenhouse gases while

generating electricity, and every reduction in CO2
emissions reduces the impacts of climate change
and global warming. Importantly, uranium is a highly
efficient fuel source.

Lifecycle greenhouse gas emissions (GHG) for
different energy sources and technologies shows
nuclear power to have one of the lowest GHG
emissions intensity, comparable with solar and wind
and up to 100 times lower than coal which averages
~1,000 grams CO2 equivalent / kWh

Average life-cycle carbon dioxide-equivalent emissions

h
W
k

r
e
p
t
n
e

i
l

a
v
u
q
e
2

O
C
g

900

820

740

600

300

490

230

C oal

Bio m ass - co-firin g

N atural g as

Bio m ass

S olar P V - utility

S olar P V - ro of

G e oth er m al
S olar - co ncetrate d

H ydro p o w er

N uclear

W in d offsh ore

W in d o nsh ore

Source: IPCC - Average life-cycle carbon dioxide-equivalent emissions for different electricity generators

The uranium mined and processed at the LHM will
be used to resource nuclear power plants, helping
drive the global energy transition to a carbon-free,
sustainable future. During peak production, the LHM
will produce enough uranium fuel annually to fully
supply over ten 1,000 MWe nuclear power plants.
Over the life of the LHM, achieving this level of
power generation through coal-fired electricity would
generate an average of 58 million tonnes of carbon
dioxide emissions per annum. This equates to a total
of around 1.3 billion tonnes carbon dioxide emissions
that would be generated by the equivalent coal-fired
electricity, over the projected 17-year life of the LHM.

Paladin recognises the increasing global impacts of
climate change, however the financial impact, and any
other impacts, of climate change on our operations is
currently expected to be minimal. Paladin is focused
on our role in providing a low carbon fuel source to
reduce CO2 emissions as part of the world’s energy
transformation in order to achieve climate change
goals.

3 5

PALADIN ENERGY LTD: ANNUAL REPORT 2023

SOCIAL

We value and respect all people – our workforce
and stakeholders – putting their health, safety and
wellbeing at the forefront of a positive culture. We
embrace diversity, promote equal opportunities
to thrive, and we engage actively with local
communities, listening and contributing to their
social prosperity and development with integrity.

The Company is fully committed to providing
and maintaining a safe, secure and healthy work
environment with the aim of zero harm from
occupational injuries and illness in the workplace.
Paladin fosters the safe behaviour of employees and
contractors by establishing a mindset that all injuries
are preventable. Throughout the year we continued to
promote safety and responsibility to all our employees
and contractors.

Excellence in radiation management performance
is an essential part of Paladin’s occupational health
and safety commitment and Paladin drives a wide
range of preventative monitoring measures to achieve
occupational health, hygiene and safety. Radiation
exposure controls are key aspects of occupational
monitoring at the LHM.

Strict procedures are followed as part of our radiation
protection measures, and calibrated equipment is
used to monitor employees, contractors, visitors and
specific work area exposure levels. The results are
provided on an annual basis to the Namibian National
Radiation Protection Authority for assessment, for
which the LHM has received annual approval.

During FY2023, we once again recorded no lost-time
injuries or reportable incidents and achieved more
than 850,000 Lost Time Injury Free project hours.
We continued to deliver operationally targeted safety
interventions and training programs, which included
risk mitigation assessment and measures, employee
engagement sessions and sharing of industry best
practice. Continuous improvement of our advanced
safety processes was also a focus of our activity
during the year.

Paladin is committed to workplace diversity and
recognises the benefits of employee and board
diversity arising from the recruitment, development
and retention of a talented, diverse and motivated
workforce. At Paladin we recognise that our people
are crucial to our business. We strongly support them
and encourage them to grow. We are committed to
fostering a positive culture, promoting employee
engagement and encouraging a diverse and inclusive
workplace.

Paladin’s employees are provided with growth
opportunities, and the continued development of skills
and expertise through structure and informal learning
and training. The LHM also supports employee

study as an opportunity for career development. We
provide local and regional employment opportunities
wherever possible. We embrace our diverse mix of
people, including different ages, cultural backgrounds,
genders, education and experience levels, and actively
foster the benefits from collaboration.

Our commitment to the community and social
investment is embedded in our Company Values. At
Paladin we are committed to our local communities
and are focused on having a positive impact and
making meaningful contributions to their lives and
livelihoods. We achieve this through a range of
initiatives, including local recruitment practices,
establishing community development programs, and
procuring from local industries to support growth
and economic value to local regions. Stakeholder
engagements with local and government authorities
are key priorities, in addition to supporting local
community causes.

As the Langer Heinrich Restart Project continues to
progress, and we move towards production in the first
quarter of CY2024, Paladin continues to engage with
the local community in Namibia to ensure we make
a positive contribution to the community and we are
recognised as a good corporate citizen committed to
providing opportunities for the local community.

GOVERNANCE

We conduct our business and all operations adhering
to the highest ethical standards and with absolute
integrity. We are openly committed to full compliance
with all applicable laws and regulations, and we
take accountability seriously in being proactively
transparent.

The Paladin Board of Directors has a clear
understanding that it is responsible for Paladin’s
corporate governance. The Board recognises the
importance of our corporate governance framework
in establishing accountabilities, guiding and regulating
activities, monitoring and managing risks and
optimising Paladin’s performance. Governance is a
core function at the heart of the Company’s
sustainability efforts.

The Board also recognises the need to regularly review
its system of corporate governance as best practice
evolves. Our current Paladin corporate governance
framework (Governance Framework) uses as a
reference the Corporate Governance, Principles and
Recommendations of the ASX Corporate Governance
Council. The Governance Framework depicted in
the diagram below includes policies and practices
to ensure that we are not only compliant with
good governance principles, but that we also meet
stakeholder expectations.

3 6

PALADIN ENERGY LTD: ANNUAL REPORT 2023STAKEHOLDERS

COMMUNITY

GOVERNMENT &
REGUL ATORS

SHAREHOLDERS

CUSTOMERS &
SUPPLIERS

EMPLOYEES

BOARD OF DIRECTORS

BOARD SUB-COMMITTEES

AUDIT & RISK
COMMITTEE

GOVERNANCE,
REMUNERATION
& NOMINATION
COMMITTEE

TECHNICAL &
SUSTAINABILITY
COMMITTEE

POLICIES &
PROCEDURES

CORPORATE
CULTURE & VALUES

RISK MANAGEMENT
& INTERNAL CONTROL
SYSTEM

CEO

Our corporate governance practices for the year
ended 30 June 2023 are outlined in our 2023
Corporate Governance Statement.

At Paladin, one of our four core values is integrity.
Our Code of Conduct guides how we uphold our
value of integrity. The Code requires Paladin’s
officers, employees and Board to observe the highest
standards of business and personal ethics while
carrying out their duties and responsibilities. Paladin
is committed to complying with all applicable laws and
regulations in the countries where we operate, and we

conduct our business in line with the highest ethical
standards and absolute integrity. Our framework of
compliance with legislative requirements, government
policies and our internal policies ensures that our
standards are encompassed in all our business
dealings and practices globally. Paladin exercises zero
tolerance for corruption and bribery in any manner
or situation in which it may arise. An Anti-Bribery and
Corruption Policy provides practical advice on ethical
business conduct, and in addition, the Company’s
Whistleblower Policy and procedure facilitates
disclosure of any alleged corruption.

3 7

PALADIN ENERGY LTD: ANNUAL REPORT 2023Paladin recognises that the identification and effective
management of risk, including prudent, informed
risk taking, is an essential part of Paladin’s aim of
creating long-term shareholder value. Paladin’s Risk
Management Policy aims to integrate risk management
into Paladin’s strategy and business and undertake
activities in line with Paladin’s Risk Appetite as defined
by the Board. The Risk Management Policy is the
overarching document that provides the foundation
which supports the framework and processes for the
integration of risk management into the Company’s
business activities.

The Board is responsible for satisfying itself that
management has developed and implemented a sound
system of risk management and internal control.
The Audit & Risk Committee (ARC) is mandated to
provide oversight of the Risk Management Framework.
The ARC’s role is to provide assurance to the Board
that risk is being managed effectively across the
Company. Management is responsible for designing,
implementing, reviewing and providing assurance as
to the effectiveness of the Risk Management Policy.
Every employee of Paladin is responsible for managing
risks on a day to day basis by adhering to Paladin’s risk
management policies and internal control systems.

Paladin has a cyber security framework which was
benchmarked and subject to an independent Cyber
Security Architecture Assessment during FY2022. A
program of works is being undertaken to build further
resilience and enhance the cyber security framework
as the LHM moves towards the restart of production.

Cyber security risks are incorporated into Paladin’s risk
management framework and managed accordingly.
Paladin has an established IT Policy which is being
updated as Paladin moves towards the restart
of production.

Paladin is committed to ensuring compliance with all
tax laws that apply to our operations, and to managing
all tax related matters in a transparent manner. As
Paladin moves towards the restart of production,
ensuring compliance with the tax laws and relevant
legislation in the various jurisdictions remains a
key commitment.

Paladin’s Board recognises the risks posed by climate
change, economic, environmental and social factors
and is committed to being an active partner in
addressing these risks. Paladin is committed to the
core principle of delivering value through sustainable
development and aims to promote sustainable
business practices by integrating climate-related,
economic, environmental and social risks and
opportunities into our governance, strategy and risk
management process.

Paladin is further developing our reporting and
disclosures structure in alignment with the GRI
and TCFD recommendations as the LHM moves to
the restart of production. It is intended that future
reporting in line with GRI and TCFD recommendations
will help investors and other stakeholders understand
how we integrate the external impact of the
Company’s activities, and the climate-related,
economic, environmental and social risks and
opportunities into our governance, strategy, and risk
management process.

For the Restart Project Paladin has fully implemented
and is compliant with the Ethical Procurement Policy
of ADP, the LHM’s EPCM contractor. The Ethical
Procurement Policy is applied to all potential supplier
and contractor recommendations by the project team,
for Paladin’s approval.

We will maintain responsible and transparent supply
chains and require contracts we enter into for
production pass through modern slavery qualifications,
setting the standards for those who provide goods
and/or services to the LHM.

Paladin condemns all forms of modern slavery.
Paladin’s commitment to actively engaging in ways to
ensure that there is no forced labour or child labour
within its supply chain operations is embedded in the
Code of Conduct. Paladin is reviewing its policies in
relation to human rights and modern slavery as part of
the LHM restart, and we will comply with all reporting
and other requirements under the Modern Slavery Act
(Cth) 2018.

3 8

PALADIN ENERGY LTD: ANNUAL REPORT 20233 9

PALADIN ENERGY LTD: ANNUAL REPORT 2023Corporate Governance
Statement

GOVERNANCE FRAMEWORK

The Board of Directors of Paladin Energy Ltd
recognises the importance of its corporate governance
framework in establishing accountabilities, guiding
and regulating activities, monitoring and managing
risks and optimising Paladin’s performance. Paladin,
as a listed entity, must comply with the Corporations
Act 2001 (Cth), Australian Securities Exchange Listing
Rules (ASX LR) and other Australian and international
laws.

Paladin reviews and amends its corporate governance
policies as appropriate to reflect the growth of the
Company, current legislation and best practice.
Paladin’s website www.paladinenergy.com.au includes
copies or summaries of key corporate governance
policy documents. The website also contains copies of
all Board and Committee Charters.

Paladin’s Corporate Governance Statement, dated 30
June 2023 and approved by the Board on 24 August
2023, outlines the key governance principles and
practices of the Company which, taken as a whole,
sets out the Company’s governance framework.
The Board believes that the governance policies
and practices adopted by the Company during the
reporting period ended 30 June 2023 follow the
recommendations contained in the fourth edition of
the ASX Corporate Governance Council’s Corporate
Governance Principles and Recommendations
published in February 2019 (ASX Principles and
Recommendations). Paladin’s Corporate Governance
Statement can be found in the Corporate Governance
section of its website at www.paladinenergy.com.au,
together with the ASX Appendix 4G, a checklist cross-
referencing the ASX Principles and Recommendations
to disclosures in this statement and the current
Annual Financial Report. The Corporate Governance
Statement, together with the Appendix 4G, has been
lodged with the ASX.

4 0

PALADIN ENERGY LTD: ANNUAL REPORT 2023Our Values

At Paladin, we are guided by four key values that are at the core of everything we do:

Integrity
We act with integrity
and honesty in all we
do and say

Respect
We respect and value all
people equally

Courage
We meet all challenges
and seize opportunities
with courage

Community
We invest in our
communities to create
lasting value

Our values are supported by the Board, management and employees at all levels throughout Paladin, and
are central to relationships between all employees and stakeholders. These values and their aligning value
statements, define who we are as a Company and provide the foundation of our culture.

4 1

PALADIN ENERGY LTD: ANNUAL REPORT 2023Directors’ Report

The Directors of Paladin Energy Ltd present their report together with the financial report of the Group consisting
of Paladin Energy Ltd (Company) and the entities (Group) it controlled at the end of, or during, the year ended
30 June 2023 and the auditor’s report. There were two additional appointments to the Board of Directors during
the financial year.

DIRECTORS

The following persons were independent non-executive directors of Paladin Energy Ltd and were in office for the
financial year:

Mr Cliff Lawrenson BCom (Hons)
(Non-Executive Chair)

Mr Peter Watson BEng (Hons), FIEAust, GAICD, RPEQ
(Non-Executive Director)

Mr Cliff Lawrenson is an experienced non-executive
director having served on or chaired public and
private companies for over 15 years after a successful
career in executive leadership, including in investment
banking. Mr Lawrenson holds postgraduate
qualifications in commerce and finance, and has
worked extensively in the resources and energy
sectors across the world. He has a successful track
record of leading strategic direction in companies and
executing complex corporate transactions.

Current Directorships: Non-Executive Chair of
Australian Vanadium Limited (ASX:AVL) and Caspin
Resources Limited1 (ASX:CPN) and Non-Executive
Chair of privately owned Pacific Energy Limited.

Former listed company Directorships (last three years):
Atlas Iron Limited and Canyon Resources Limited.

Mr Peter Watson is a chemical engineer with more than
35 years’ experience in the global resources sector
across senior technical, project, and management
roles as well as corporate experience in running ASX
listed companies. His experience includes project
development, project delivery, asset optimisation
and mining facilities operations across multiple
commodities and global jurisdictions, including Africa.

Mr Watson has held technical and senior executive
roles with a number of companies, culminating in
his appointment as the Managing Director and CEO
of Sedgman Limited. Mr Watson has also held a
number of senior and directorship roles at Strandline
Resources Ltd, New Century Resources, Resource
Generation and EvacGroup (private), bringing
significant board level experience at both the public
and wholly owned company level, particularly on
matters covering project development and delivery,
operations re-start, safety, governance, financial
reporting, risk management, strategy and leadership.

Special Responsibilities:

• Chairman of Project Steering Committee

• Chair of Technical & Sustainability Committee

• Member of Audit & Risk Committee

Current listed company Directorships: Non-Executive
Director of Strandline Resources Ltd (ASX:STA) and
Australian Vanadium Limited (ASX:AVL)

Former listed company Directorships (last three
years): Evacuation Services Australia Pty Ltd and New
Century Resources Limited.

1As announced on the ASX Mr Lawrenson ceased to be a director of Caspin Resources Limited effective 14 August 2023

4 2

PALADIN ENERGY LTD: ANNUAL REPORT 2023Special Responsibilities:

• Member of Audit & Risk Committee

• Member of Governance, Remuneration & Nomination

Committee

Current listed company Directorships: Non-Executive
Director of Andromeda Metals Ltd (ASX: ADN).

Former listed company Directorships (last three years):
Silex Systems Limited.

Ms Joanne Palmer FCA (ICAEW), FCA (CAANZ),
GAICD, BSc (Hons Mathematics & Statistics)
(Non-Executive Director)

Ms Joanne Palmer, is a former Registered Company
Auditor, and an existing Fellow of Chartered
Accountants in Australia and in England and Wales. Ms
Palmer brings over 26 years of industry experience in
providing audit and assurance services on company
listings, mergers, acquisitions and takeovers and
significant experience in auditing international mining
companies, particularly in Africa. Ms Palmer is a
council member and treasurer of the Association of
Mining & Exploration Companies (AMEC).

Ms Palmer has had an extensive financial services
career including leading Ernst and Young’s Financial
Accounting Advisory Services team in Perth, working
predominantly in the mining sector assisting both
multinational companies, mid-caps and junior explorers
with technical accounting, regulatory advice and
finance function support services.

Special Responsibilities:

• Chair of Audit & Risk Committee

• Member of Governance, Remuneration & Nomination

Committee

Current listed Directorships: Non-Executive Director of
Sierra Rutile Holdings Limited (ASX:SRX).

Former listed company Directorships (last three years):
None

Mr Peter Main BBus
(Non-Executive Director)

Mr Peter Main is a mining and finance professional
with extensive experience spanning more than 35
years. During that time, Mr Main has developed an
extensive working knowledge in financial markets
centred around the mining sector, developing a
wealth of industry experience. During his career Mr
Main spent 13 years in a variety of roles in the mining
industry through to CEO in the later years of a TSX-V
listed mining company. He spent more than 20 years in
mining finance, more recently advising and managing
the development of gold enterprises in the Northern
Territory and Queensland.

Mr Main primarily worked for investment banks,
including 11 years managing the Royal Bank of
Canada's (RBC) Australian equity sales and trading
business and co-managing RBC's regional business,
and six years at Hartley Poynton as a mining analyst.
Before that he spent nine years in full time service in
the Australian Army.

Special Responsibilities:

• Member of Technical & Sustainability Committee

• Member of Governance, Remuneration & Nomination

Committee

Current listed company Directorships: None

Former listed company Directorships (last three years):
Carbine Resources Limited

Ms Melissa Holzberger LLM Resources Law
(Distinction) (Scotland), Dip. International Nuclear
Law (Hons) (France), LLB (Adel), BA (Adel), GDLP,
FGIA, GAICD
(Non-Executive Director)

Ms Melissa Holzberger is a mining lawyer with over
20 years’ of experience in the international energy
and resources sectors, including the uranium industry.
She is an experienced independent company director
having served on ASX-listed, public, government and
not-for-profit boards spanning a wide range of highly
regulated sectors. She brings specialist uranium
and nuclear law, risk, compliance, corporate ethics
and corporate governance expertise, together with
valuable experience in uranium mining operations and
projects, international uranium trade, logistics, product
stewardship and sustainability.

Ms Holzberger is a member of the Federal
Government’s Australian Radiation Protection and
Nuclear Safety Agency’s Radiation Health and Safety
Advisory Council.

4 3

PALADIN ENERGY LTD: ANNUAL REPORT 2023

Special Responsibilities:

• Chair of Governance, Remuneration & Nomination

Committee

• Member of Technical & Sustainability Committee

Current listed company Directorships: None

Mr Ian Purdy BCom, FCA, FAICD
(Chief Executive Officer)

Mr Purdy is a highly respected executive with more
than three decades’ experience within Australian and
international natural resources companies. In his time
as a CEO and CFO of listed and private companies,
Mr Purdy has delivered significant shareholder
value through managing and optimising operations,
delivering large projects and executing on business
improvements and asset sales.

Mr Purdy was previously the CFO of Quadrant Energy,
Managing Director and CEO of Mirabela Nickel Limited,
Managing Director of Norilsk Nickel Australia, Director
of Finance and Strategy of LionOre Australia, and has
held senior finance and commercial roles at North
Limited and WMC Limited.

COMPANY SECRETARY

Mr Jeremy Ryan LPAB GDLP
(appointed 27 August 2021)

Mr Ryan has extensive experience in corporate
governance and was previously Company Secretary
/ Manager Legal for ASX listed gold miner Saracen
Mineral Holdings Limited.

Mr Ryan was admitted to the Supreme Court of New
South Wales in 1999 and to the Supreme Court of
Western Australia in 2001. Prior to his in-house role
with Saracen, he advised government departments
and worked in the finance and projects team of
a large international law firm. During his time in
private practice Mr Ryan advised companies in the
resources sector including on project development and
operation. In addition to being appointed Company
Secretary, Mr Ryan has also been engaged as Senior
Legal Counsel for Paladin.

Dr Jon Hronsky OAM BAppSci, PhD (Appointed 20
March 2023)
(Non-Executive Director)

Dr Jon Hronsky has more than thirty-five years of
experience in the global mineral exploration industry,
primarily focused on project generation, technical
innovation and exploration strategy development. He
has worked across a diverse range of commodities and
geographies. His targeting work led to the discovery of
the West Musgrave nickel sulfide province in Western
Australia. His experience includes leadership roles
in both major mining and junior mining companies,
and he has consulted globally for the last 16 years. In
January 2019 he was awarded the Order of Australia
Medal for services to the mining industry.

Dr Hronsky is one of the Principals at Western Mining
Services, a global geological consultancy, a partner
in Ibaera Capital, (a mining focused boutique PE
fund) and also an Adjunct Professor at the Centre
for Exploration Targeting at UWA. Jon was previously
Manager-Strategy & Generative Services for BHP
Billiton Mineral Exploration and was Global Geoscience
Leader for WMC Resources Ltd.

Special Responsibilities:

• Member of Audit & Risk Committee

• Member of Technical & Sustainability Committee

Current Directorships: Non-Executive Director of
Encounter Resources (ASX:ENR) and Caspin Resources
Limited (ASX:CPN) and a Non-Executive Director of
Plutonic Limited.

Former listed company Directorships (last three years):
Cassini Resources and Azumah Resources.

Mrs Lesley Adams GAICD, CIPD (Appointed 22
May 2023)
(Non-Executive Director)

Mrs Lesley Adams has more than thirty years of
experience within the global resources industry across
multiple roles including Human Resources, Health &
Safety, Joint Venture Management and Indigenous
and Corporate Affairs. Mrs Adams’ experience includes
leadership roles in global technology, engineering
services and major resource companies. Previously,
Mrs Adams was Executive General Manager of Roy
Hill where she was responsible for implementing and
supporting structural change as the organisation
transitioned to a sustainable operating environment.

Mrs Adams’ other senior roles include Group Executive
HR/Continuous Improvement at Beach Energy, Group
Executive Corporate Services at Quadrant Energy
and General Manager of Human Resources for Santos
Limited. Mrs Adams is a Graduate of the Australian
Institute of Company Directors.

4 4

PALADIN ENERGY LTD: ANNUAL REPORT 2023

BOARD AND COMMITTEE MEETINGS

The number of Directors’ meetings and meetings of committees held during the financial year, and the number of
meetings attended by each Director in the period they held office were:*

Board of Directors

Audit and Risk
Committee

Technical &
Sustainability
Committee

Governance,
Remuneration
& Nomination
Committee

Number
attended

Number
eligible
to attend

Number
attended

Number
eligible
to attend

Number
attended

Number
eligible
to attend

Number
attended

Number
eligible
to attend

Name

Mr Cliff Lawrenson

Mr Peter Watson

Mr Peter Main

Ms Melissa Holzberger

Ms Joanne Palmer

Dr Jon Hronsky

Ms Lesley Adams

*The Company reviewed its Committee composition following the appointment of Dr Jon Hronsky and Lesley Adams as non-exclusive directors to ensure
alignment with skill set and the Company's strategic objectives. These changes became effective on 26 May 2023. The above table reflects the changes
to the composition of the committees and attendance at the same.

PRINCIPAL ACTIVITY

The principal activity of the Group was the development and operation of the Langer Heinrich Mine in Namibia,
together with exploration and evaluation activities in Australia and Canada.

REVIEW AND RESULTS OF OPERATIONS

A detailed operational and financial review of the Group is set out on pages 10 to 25 of this report under the
section entitled Operating and Financial Review.

The Group’s loss after tax from continuing operations for the year is US$27,058,000 (2022: loss after tax
US$43,939,000) representing a decrease of 38% from the previous year.

DIVIDENDS

No dividend has been paid during the financial year and no dividend is recommended for the current year.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

Significant changes in the state of affairs of the Group during the financial year were as follows:

• On 19 July 2022 the Paladin Board announced it had made the decision to return the Langer Heinrich Mine
(LHM) to production with first volumes targeted for the first quarter of CY2024. The restart scope of work
focuses on general repairs and refurbishment required to return the existing process plant to operational
readiness, coupled with the delivery of process upgrades to increase throughout capacity and operational
availability. Total capital expenditure is expected to be US$118M on a 100% project basis

• Paladin’s 2022 Sustainability Report was published on 20 October 2022, confirming the Company’s

commitment to delivering value through sustainable development.

4 5

PALADIN ENERGY LTD: ANNUAL REPORT 2023SIGNIFICANT EVENTS AFTER THE
BAL ANCE DATE

Other than disclosed below, since the end of the
financial year, the Directors are not aware of any other
matter or circumstance not otherwise dealt with in
this report, that has significantly or may significantly
affect the operations of the Group, the results of
those operations or the state of affairs of the Group
in subsequent periods with the exception of the
following, the financial effects of which have not been
provided for in the 30 June 2023 Financial Report:

• On 7 July 2023 Paladin announced that it will retain
its 75% interest in the Michelin Joint Venture, having
completed the process required under the Michelin
Joint Venture Agreement to use best efforts to sell
the entirety of the joint venture on commercially
acceptable terms. The Michelin Joint Venture
owns the Michelin advanced exploration project in
Labrador, Canada.

LIKELY DEVELOPMENTS

DIRECTORS’ INDEMNITIES

During the year Paladin has incurred premiums to
insure the Directors and/or Officers for liabilities
that may be incurred in defending civil or criminal
proceedings that may be brought against the officers
in their capacity as officers of Paladin and or its
controlled entities. Under the terms and conditions of
the insurance contract, the nature of liabilities insured
against and the premium paid cannot be disclosed.

INDEMNIFICATION OF AUDITORS

To the extent permitted by law, Paladin has agreed
to indemnify its auditors, PricewaterhouseCoopers,
as part of the terms of its audit engagement
agreement against claims by third parties arising
from the audit (for an unspecified amount). The
Directors of Paladin Energy Limited have not
provided PricewaterhouseCoopers with any
indemnities. No payment has been made to indemnify
PricewaterhouseCoopers during or since the financial
year.

Likely developments in the operations of the Group
are set out under the section entitled Operating and
Financial Review on pages 10 to 25.

ROUNDING

The amounts contained in this report, the Financial
Report and the Operating and Financial Review
have been rounded to the nearest US$1,000 (where
rounding is applicable) under the option available
to Paladin under ASIC Corporations (Rounding in
Financial/Directors’ Reports) Instrument 2016/191.
Paladin is an entity to which the Instrument applies.

ENVIRONMENTAL REGUL ATIONS

The Group is exposed to environmental risks as
outlined under the section entitled Operating and
Financial Review on pages 10 to 25. The Group is
subject to environmental regulation in respect to its
exploration, evaluation, development
and operational activities for uranium projects
under the laws of the countries in which its
activities are conducted. The Group currently has
a mining and processing operation in Namibia
(transitioning from care and maintenance), as well
as exploration projects in Australia and Canada.
The Group monitors compliance with all applicable
environmental laws and regulations in the countries in
which it conducts business.

Specific environmental regulations, approvals and
licences for the exploration, development and
operation are required to conduct the activities at each
site. In addition, many other international and industry
standards are also applied to the Group’s activities,
including those specified for the global uranium
industry. These environmental laws, regulations and
standards relate to environmental factors such as
radiation, water, flora, fauna, air quality, noise, waste
management and pollution control.

The Directors are not aware of any environmental
matters which would have a significant adverse effect
on the Group.

4 6

PALADIN ENERGY LTD: ANNUAL REPORT 2023TOTAL PERFORMANCE RIGHTS

Issued unlisted employee Performance Rights (PRs) outstanding to employees of the Company are as follows:

Date granted

7 September 20211

3 November 20212

1 July 20221

28 September 20221

28 September 20222

8 November 20221

28 March 20232

28 March 20231

Total

Exercisable date

Fair value

Exercise price

Number

27 September 2023

1 July 2024

31 December 2023

30 June 2025

1 July 2024

31 December 2023

30 June 2025

1 February 2025

A$0.82

A$0.705

A$0.766

A$0.58

A$0.735

A$0.631

A$0.629

A$0.825

A$0.605

A$0.484

A$0.412

A$0.605

A$0.00

2,045,000

2,431,153

2,431,152

225,000

900,000

905,120

1,829,548

1,829,549

82,500

203,401

271,201

500,000

13,924,825

1These PRs have been issued for nil cash consideration and no consideration is payable by the holder upon the vesting of a PR.
2A proportion of these PRs (3,231,410 PRs) are subject to retention based vesting as at 31 December 2023. The remaining PRs will vest subject to the
Total Shareholder return (TSR) of the Company over the three-year performance period commencing on 1 July 2021, relative to the TSR performance of
each constituent of respective peer groups. In benchmarking the TSR performance a weighting of 50% will apply to each of the peer groups.

During the year 1,295,000 Performance Rights were converted to 1,295,000 shares.

TOTAL SHARE APPRECIATION RIGHTS

The outstanding balance of Share Appreciation Rights at the date of this report is as follows:

Date granted

Exercisable date

Expiry date

Fair value

20 October 2015

1 November 2018

1 November 2023

27 September 2016

1 November 2018

1 November 2023

27 September 2016

1 November 2019

1 November 2024

16 April 2018

1 July 2019

16 April 2019

16 April 2024

16 April 2020

16 April 2025

1 July 2020

1 July 2025

1 July 2021

1 July 2026

1 July 2022

1 July 2027

1 October 2019

1 October 2020

1 October 2025

1 October 2019

1 October 2021

1 October 2026

1 October 2019

1 October 2022

1 October 2027

Total

A$0.13

A$0.08

A$0.05

A$0.07

A$0.05

A$0.06

A$0.07

A$0.03

A$0.04

A$0.05

Exercise
price

A$0.20

A$0.15

A$0.1226

Number

37,500

28,000

32,500

700,000

A$0.1226

1,100,000

A$0.12

80,000

70,000

2,878,500

During the year 1,171,750 Share Appreciation Rights were converted to 1,072,445 shares.

4 7

PALADIN ENERGY LTD: ANNUAL REPORT 2023

AUDITOR

PricewaterhouseCoopers were appointed auditors for
Paladin by shareholders at the 2016 Annual General
Meeting on 18 November 2016.

LEAD AUDITOR’S INDEPENDENCE
DECL ARATION

The Lead Auditor’s Independence Declaration is set
out on page 68 of the Financial Report.

Dated this 25ᵗʰ day of August 2023.

NON-AUDIT SERVICES

Signed in accordance with a resolution of the Directors

During the year, non-audit and assurance
services were provided by Paladin’s auditor,
PricewaterhouseCoopers. The Directors are satisfied
that the provision of non-audit and assurance
services is compatible with the general standard
of independence for auditors imposed by the
Corporations Act. The nature and scope of each type
of non-audit and assurance service provided means
that auditor independence was not compromised.

Details of amounts paid or payable to
PricewaterhouseCoopers can be found in Note 26.

Cliff Lawrenson
Chair
Perth, Western Australia

4 8

PALADIN ENERGY LTD: ANNUAL REPORT 2023
4 9

PALADIN ENERGY LTD: ANNUAL REPORT 2023Remuneration
Report

Message from the Chair of the Governance,
Remuneration and Nomination Committee

Dear Shareholders,

On behalf of the Board, I am pleased to present the
Paladin Remuneration Report for the 2023 financial
year on behalf of the Governance, Remuneration and
Nomination Committee.

Company Performance Overview

Building on the decision in July 2022 to resume
operations at the Langer Heinrich Mine, Paladin has
experienced an exceptional year during which we
have successfully secured key offtake contracts
and are efficiently executing the Langer Heinrich
restart project on schedule and budget. As a result,
production is on track to commence in Q1 CY2024.

These achievements are a testament to the dedication
and expertise of our workforce, led by the Chief
Executive Officer, Ian Purdy, and the Executive team.
The unwavering commitment of our staff has played
a pivotal role in positioning Paladin as a leading global
uranium production company.

Independent Remuneration Review

The Board is committed to ensuring our remuneration
framework is focused on driving a performance
culture that closely aligns with the achievement of our
strategic and business objectives, and shareholder
experience over short- and long-term time frames.

The Company engaged Korn Ferry in May 2023 to
complete an independent remuneration benchmarking
and design review of the remuneration framework for
non-executive directors and Executive KMP.

The comprehensive review encompassed:

• Market benchmarking of non-executive director

fees; and

• Market benchmarking of total annual remuneration
for Executive KMP, including incentive schemes.

5 0

PALADIN ENERGY LTD: ANNUAL REPORT 2023

Remuneration Framework FY2024

Retention of highly skilled executives and staff is
of paramount importance for the Board. As Paladin
transitions to a production company in CY2024,
we recognise the need to review and enhance our
remuneration approach. With the aim of aligning with
market practice and acknowledging the increasing
scale and complexity of the Company, we considered
the advice provided by Korn Ferry, and the Board
approved the following changes effective from
1 July 2023:

1. Target Market Position: Adoption of a target

remuneration market position between P50 and
P75 of a peer group of comparable ASX-listed and
general mining organisations

2. Fixed Remuneration: An increase in fixed

remuneration (exclusive of superannuation) for
Executive KMP

3. Short-Term Incentive Plan (STIP): Implementation

of a STIP for Executive KMP to incentivise
performance aligned with the delivery of Paladin’s
strategic objectives

4. Long-Term Incentive Plan (LTIP): The LTIP
opportunity will be reduced, reflecting the
introduction of the STIP, and a partial performance
gateway introduced

5. Non-executive director fees: Introduction of fees
for chairing sub-committees and sub-committee
membership, set between P50 and P75 of the
peer market and an increase to the Chair's fees
which are all encompassing and reflective of the
peer group benchmarking.

Moving forward, the Board remains committed to
monitoring the effectiveness and appropriateness of
our remuneration framework. Our remuneration policy
will continue to focus on linking pay to performance
while ensuring alignment with the interests and
experience of our shareholders. Further details of the
changes effective for FY2024 are outlined on page 60.

The Board is confident the changes to the
remuneration framework effectively establish a strong
alignment between performance, reward, and long-
term value creation for shareholders, and ensure
Paladin is positioned competitively to achieve our
strategic objectives as we enter the next phase
of growth.

On behalf of the Board, I invite you to review the
FY2023 Remuneration Report, which explains the
connections between our strategy, performance,
and Executive KMP remuneration as we move towards
the commencement of operations at the Langer
Heinrich Mine.

We value our shareholders' support and welcome your
feedback as we strive to enhance the transparency
and clarity of our report for the benefit of our
shareholders. Thank you for your continued support of
Paladin. We look forward to our ongoing engagement
with you and sharing in the Company's future success.

Lesley Adams

Chair, Governance, Remuneration and
Nomination Committee

5 1

PALADIN ENERGY LTD: ANNUAL REPORT 2023

REMUNERATION REPORT (AUDITED)

The Directors present the FY2023 Remuneration Report, outlining key aspects of our remuneration policy and
framework, and remuneration awarded this year.

The report is structured as follows:

• Remuneration Governance

• Introduction and FY2023 Key Management Personnel (KMP)

• Remuneration Framework

• Remuneration Framework FY2024

• Linking long term performance and shareholder value

• Reconciliation of performance based remuneration

• Remuneration expenses for Executive Key Management Personnel (KMP)

• Non-Executive Director remuneration

• Additional statutory information.

REMUNERATION GOVERNANCE

Paladin is committed to fostering a culture of innovation, growth, and sustainable development. Central to this is
attracting, motivating, and retaining highly skilled Executives and staff.

To effectively address remuneration matters, the Governance, Remuneration and Nomination Committee (the
Committee) operates as a sub-committee of the Board. Its primary role is to assist the Board in fulfilling its
responsibility to shareholders and other stakeholders, in accordance with the Governance, Remuneration and
Nomination Committee Charter.

The Committee advises the Board on Non Executive Director and KMP remuneration, and, when required,
seeks independent advice to make informed decisions. In addition, the Committee makes recommendations on
incentive plans and associated performance measures together with the quantum of grants awarded, considering
both the individual’s and Paladin’s performance.

Further information on the Committee’s role and responsibilities can be found in the Committee’s charter.

Remuneration Principles

The Company’s remuneration strategy and framework are reviewed regularly by the Board and Committee to
ensure their relevance and alignment with market practice. By regularly evaluating the link between remuneration
and performance, the Company maintains transparency, accountability, and a strong focus on long-term value
creation for shareholders.

Engagement of Remuneration Consultants

From time to time, the Committee will seek advice from independent remuneration consultants on Executive KMP
trends, remuneration benchmarking, and prevailing market practices. During the financial year, advice was sought
from Korn Ferry to benchmark Executive KMP remuneration, including fixed remuneration and incentive structures
and non-executive director fees, against relevant ASX-listed organisations.

2022 AGM Voting Outcome and Comments

At the FY2022 AGM, the Company received an overwhelming vote of more than 99% in favour of the adoption of
its Remuneration Report for the 2022 Financial Year. The Company did not receive any specific feedback on its
remuneration practices at the AGM.

5 2

PALADIN ENERGY LTD: ANNUAL REPORT 2023REMUNERATION REPORT (AUDITED)

INTRODUCTION AND FY2023 KEY MANAGEMENT PERSONNEL (KMP)

The KMP include the directors of Paladin Energy Limited and the Executive KMP (Chief Executive Officer (CEO),
the Chief Operating Officer (COO), the Chief Financial Officer (CFO), Chief Commercial Officer (CCO) and
General Manager Exploration) and those Executives who have authority and responsibility for planning, directing
and controlling the major activities of the Group, directly or indirectly, including any director, whether executive or
otherwise, of the parent company. For the purpose of this report, the KMP for the 2023 financial year are
as follows:

Non-Executive Directors

• Mr Cliff Lawrenson, Non-Executive Chair

• Mr Peter Watson, Non-Executive Director

• Mr Peter Main, Non-Executive Director

• Ms Melissa Holzberger, Non-Executive Director

• Ms Joanne Palmer, Non-Executive Director

• Dr Jon Hronsky OAM, Non-Executive Director1

• Mrs Lesley Adams, Non-Executive Director2

1Appointed 20 March 2023
2Appointed 22 May 2023

These directors were members of the Board of Paladin Energy Limited throughout the whole of the 2023 financial
year except as noted.

Current Executive KMP

• Mr Ian Purdy, Chief Executive Officer

• Mr Paul Hemburrow, Chief Operating Officer1

• Ms Anna Sudlow, Chief Financial Officer

• Mr Jonathon Clements, Senior Vice President – Projects & Development2

• Mr Jess Oram, General Manager Exploration

• Mr Alex Rybak, Chief Commercial Officer

These Executive KMP held their positions throughout the whole of the 2023 financial year except as noted.

1Appointed 1 February 2023
2Resigned 31 July 2022

For the purposes of this report, the term Executives encompasses Executive KMP.

There have been no other changes to Executive KMP after the reporting date.

5 3

PALADIN ENERGY LTD: ANNUAL REPORT 2023

REMUNERATION REPORT (AUDITED)

REMUNERATION FRAMEWORK

Outline of Remuneration Framework

In September 2021, BDO Remuneration completed an independent Executive and non-executive director
Remuneration Review (the ‘BDO Review’). The BDO Review was assessed and changes to the remuneration
framework were adopted by the Committee in August 2022 and subsequently approved by the Company's Board
of Directors. The review included market benchmarking of fixed remuneration for Executives and non-executive
directors, as well as proposals regarding an Executive Long-Term Incentive (LTI) plan and the associated award of
Performance Rights (PRs).

After assessing the BDO Review, the Committee endorsed an LTI plan for Executives, to align performance with
creating long-term value for the shareholders. The structure of this framework is provided in Figure 1 below.

Figure 1: Remuneration Framework

Element

Purpose

Fixed Remuneration
(FR)

Provide market
competitive base salary
including statutory
superannuation and
non-monetary benefits

Long Term Incentive
(LTI). Variable
Performance Linked
Remuneration (“at
risk” remuneration)

Performance
Rights aligned to the
achievement of long
term shareholder value

Performance
Metrics

Base Salary – Nil

Potential Value

Positioned at
median market rate

Changes for
FY2023

Statutory
Superannuation – Nil

Statutory % of base
salary

Nil

Award determined
based on individual
position. Vesting
dependent on
peer group
hurdles creation of
shareholder value
over three-year
period.

CEO Annual
Allocation: 140%
of FR

Executive KMP
Annual Allocation:
110% of FR

Nil

Executive KMP Remuneration FY2023

The Total Incentive Opportunity (TIO) represents the sum of the fixed and LTI opportunities. The TIO Target
Remuneration is shown in Figure 2.

Figure 2: TIO Target Remuneration Mix for FY2023

O
E
C

s
e
v
i
t
u
c
e
x
E

46%

54%

56%

44%

20%

40%

60%

80%

100%

Fixed Remuneration

LTI

5 4

PALADIN ENERGY LTD: ANNUAL REPORT 20235 5

PALADIN ENERGY LTD: ANNUAL REPORT 2023REMUNERATION REPORT (AUDITED)

Fixed Remuneration FY2023

Executives may receive their fixed remuneration as cash, or cash with non-monetary benefits. Fixed remuneration
is reviewed annually by the Committee, with reference to the Company’s performance, individual’s performance
and benchmark information from ASX-listed and general mining organisations. It is determined from the present
value or market rate of the role and is set with reference to the market median, cognisant of each Executive’s
accountability, location, skill set and experience.

Long-Term Incentive Plan FY2023

The LTI Plan is an ‘at-risk’ component of the remuneration intended to align the interests of Executive KMP with
long-term shareholder returns. It is an equity-based award designed to attract, motivate and retain employees.

LTI Plan awards are made under the Performance Share Rights Plan (2020), approved by Shareholders on 17
November 2020.

For FY2023, the Board approved the following peer groups:

• Uranium Peer Group (50% of award); and

• General Mining Peer Group ASX300 (50% of award).

The peer groups are detailed in Figures 3 and 4. The FY2023 LTI Plan award will be assessed at the end of the
financial year 2025.

The key elements of the LTI Plan as it relates to the Executive KMP is as follows:

Vesting Period

Performance is measured over a three-year vesting period commencing on 1
July of the financial year.

LTI Plan Vehicle

LTI Plan awards are delivered in performance rights granted for no
consideration. The performance rights are a right to receive fully paid
ordinary shares subject to meeting the performance and vesting conditions.

LTI Plan Opportunity

Performance Measures

The LTI Plan opportunity is calculated as a percentage of FR.

The maximum opportunity for the CEO is 140% of FR and 110% of FR for the
remaining Executive KMP.

The number of performance rights granted is calculated by multiplying the
LTI Plan opportunity value (eg the applicable percentage of FR) by the Fixed
Remuneration and dividing by the VWAP for Paladin shares over a period
determined by the Board at the time of the award.

The Board has approved relative Total Shareholder Return (rTSR) as the
performance measure as it aligns participants remuneration with the
return received by shareholders and reflects creation of shareholder value
compared to peers.

To ensure the effectiveness and relevance of the rTSR measure, the peer
group(s) against which Paladin is measured will be reviewed annually to
ensure a diverse group of companies against which Paladin’s share price
performance can be appropriately benchmarked.

Dividends and Voting Rights

Performance rights do not carry entitlements to dividend, dividend equivalent
payments or voting.

5 6

PALADIN ENERGY LTD: ANNUAL REPORT 2023REMUNERATION REPORT (AUDITED)

The vesting of the LTI Plan will be dependent on the outcome of Paladin’s rTSR
performance. There is a minimum performance level that must be achieved.

Relative TSR Performance

% Performance Rights to Vest

Vesting Hurdle

Peer TSR Comparison <50ᵗʰ percentile

Assessing

50ᵗʰ percentile < peer TSR comparison
< 75ᵗʰ percentile

Pro-rata between 50% and 100%

Peer TSR comparison > 75ᵗʰ percentile

100%

The Committee is responsible for assessing performance against criteria and
recommending to the Board the LTI Plan award to be paid. To assist in this
assessment a third-party service provider will be engaged to report on the market
performance condition (i.e. rTSR ranking within the comparator group as defined in
each of the LTI Plan at each grant date).

Vesting of the performance rights is subject to continuity of service (unless the
Board determines otherwise) and the assessment of Paladin’s rTSR performance as
set out above.

Vesting of Performance
Rights

To the extent that the applicable performance measures are achieved at the end of
the three-year performance period, LTI Plan awards are delivered by vesting of all
or a portion of performance rights in return for allocation to participants of fully paid
ordinary shares.

Once the performance right vests, participants will have two years to exercise the
performance right, after which it will expire.

Cessation of
employment

If an Executive resigns during this period, they will ordinarily forfeit their
performance rights at the Board’s discretion.

Change of Control

Clawback

If a change of control event occurs the Board may determine in its absolute
discretion the treatment of unvested performance rights and the timing of such
treatment, which may include determining that some or all unvested performance
rights vest, lapse or become subject to substitute or varied conditions. Any
performance rights not vested under the Change of Control rules lapse immediately.

The Board has discretion to reduce or clawback all vested and unvested awards in
certain circumstances to ensure Executives do not obtain an inappropriate benefit.
The circumstances in which the Board may exercise this discretion are extensive
and include situations where an Executive has engaged in misconduct, where
there has been a material misstatement of the Company’s results, behaviours of
Executives that bring the Company into disrepute or any other reasonable factor as
determined by the Board.

5 7

PALADIN ENERGY LTD: ANNUAL REPORT 2023REMUNERATION REPORT (AUDITED)

Figure 3: Uranium Peer Group (50% of award)

Company

Code

Company

Code

Cameco Corporation

TSX:CCO

Uranium Energy Corp.

NYSE:UEC

DB:0ZQ

Global Atomic Corporation

TSX:GLO

JSC National Atomic Company
Kazatomprom

Nextgen Energy Limited

Denison Mines Corp

Energy Fuels Inc.

TSX:NXE

TSX:DML

TSX:EFR

Ur Energy Inc.

Encore Energy Corp.

Deep Yellow Limited

Bannerman Energy Limited

ASX: BMN

Lotus Resources Limited

Boss Energy Limited

ASX: BOE

Fission Uranium Corp.

TSX: FCU

Figure 4: General Mining Peer Group ASX300 (50% of award)

Vimy Resources Limited (merged
with Deep Yellow Limited 5 August
2022)

Company

Code

Company

Code

Company

NYSE:URG

TSXV:EU

ASX: DYL

ASX: LOT

ASX: VMY

Code

WAF

Deterra Royalties Ltd

DRR

Sandfire Resources

SFR

Iluka Resources Ltd

ILU

Perseus Mining Ltd

Whitehaven Coal Ltd

WHC

Regis Resources

Liontown Resources
Ltd

LTR

De Grey Mining

PRU

RRL

DEG

West African
Resources Ltd

Capricorn Metals

CMM

Bellevue Gold Ltd

BGL

Westgold
Resources

WGX

RED

SSR

Coronado Global Res

CRN

Silver Lake Resource

SLR

Red 5 Limited

Nickel Industries
Limited

NIC

Gold Road Res Ltd

GOR

SSR Mining Inc

Champion Iron Ltd

Chalice Mining Ltd

CIA

CHN

Ioneer Ltd

New Hope Corporation NHC

St Barbara Limited

INR

SBM

Ramelius Resources

RMS

Aurelia Metals Ltd

AMI

Details of PRs issued to Executives as part of the FY2023 LTI Plan are provided below in Figure 8.

5 8

PALADIN ENERGY LTD: ANNUAL REPORT 2023REMUNERATION REPORT (AUDITED)

FY2023 Contractual Arrangements with Executive KMP

Remuneration and other terms of employment for the Executives are formalised in Executive contracts.
All contracts with Executives may be terminated by either party providing between three and six months written
notice or providing payments in lieu of the notice period (based on a fixed component of remuneration).

Figure 5: Summary of Contractual Arrangements with Executives

Component

CEO Description

COO Description

CFO Description

Fixed Remuneration
(exclusive of
superannuation)

A$560,000

A$380,000

A$360,500

Other Executive
Description

Range between
A$300,000 and
A$310,000

Contract duration

No fixed term

Notice by the
individual/Company

6 months

3 months

Termination Benefit

Not specified

Termination of
employment (without
cause)

Termination of
employment (with
cause) or by the
individual

Long Term Incentive: On termination notice by Paladin, any rights that have vested, or
that will vest during the notice period, will be released. Rights that have not yet vested
will be forfeited.

5 9

PALADIN ENERGY LTD: ANNUAL REPORT 2023REMUNERATION REPORT (AUDITED)

REMUNERATION FRAMEWORK
FY2024

Attracting and retaining exceptional talent is crucial
for Paladin’s long-term sustainability and achievement
of strategic objectives. In a competitive marketplace,
a remuneration framework that aligns with market
practice and rewards performance is vital in retaining
Executive KMP who can adeptly navigate the
opportunities ahead.

In readiness for first production at the Langer Heinrich
Mine in Q1 CY2024, and the pivot to a production
environment, the Company engaged Korn Ferry to
conduct a comprehensive independent review of the
Company’s remuneration framework in May 2023 ('the
Korn Ferry Review'). Korn Ferry benchmarked Paladin’s
remuneration framework against a peer group of
comparable ASX-listed organisations and considered
the current remuneration framework against market
practice.

As a result of the benchmarking and analysis, Paladin
has adopted a strategic market position for all
components of the remuneration framework, including
fixed remuneration, total annual and aggregate reward
(including STIP and LTIP) targeting a market range of
between the 50% and 75% percentile.

In the current business landscape, there is substantial
competition for top talent, and market forces such as
wage pressures being experienced broadly across
industry can further intensify this competition.
Adopting this target market position ensures Paladin
offers remuneration commensurate with market
practice and competitive with peer companies.

The Korn Ferry Review was assessed and changes
to the remuneration framework were adopted by the
Committee in June 2023 and subsequently approved
by the Company’s Board. Detailed information on
the changes to the Executive KMP remuneration
framework will be disclosed in full in the Company’s
FY2024 Remuneration Report.

Executive Recommendations

The Board has approved the following changes for Executive KMP effective FY2024:

• Increases in fixed remuneration (FR)

• The implementation of a Short-Term Incentive Plan (STIP) to further align Executive KMP rewards with

performance; and

• Long Term Incentive Plan (LTIP) awards, at a reduced opportunity, reflecting the introduction of the STI

Plan. Additionally, introduction of a partial performance gateway to further align Executive KMP rewards with
shareholder experience

The revised framework and remuneration mix of fixed remuneration, short and long-term remuneration is
designed to competitively retain and reward Executive KMP based on their performance.

Figure 6: Total Annual Reward FY2024

Element

Purpose

Performance Metrics

Potential Value

Fixed Remuneration
(FR)

Short Term Incentive
(STI) Variable
Performance Linked
Remuneration (“at
risk” remuneration)

Long Term Incentive
(LTI). Variable
Performance Linked
Remuneration (“at
risk” remuneration)

Provide market competitive
base salary including
statutory superannuation
and non-monetary benefits,
determined by the scope
of the role, experience and
skills

Incentive based on the
achievement of short term
corporate objectives

Performance Rights aligned
to the achievement of long-
term shareholder value

Base Salary – Nil

Statutory Superannuation – Nil

Award determined based
on individual position. Cash
payment based on the
achievement of short-term
objectives over a 12-month
period.

Award determined based on
individual position. Vesting
dependent on peer group
hurdles creation of shareholder
value over three-year period.

Positioned at the 50%-
75% percentile

Maximum
quarterly statutory
superannuation cap

CEO Annual Allocation
of FR: 60% target –
120% stretch

Executive KMP Annual
Allocation of FR: 50%
target -100% stretch

CEO Annual Allocation:
140% of FR

Executive KMP Annual
Allocation: 100% of FR

6 0

PALADIN ENERGY LTD: ANNUAL REPORT 2023REMUNERATION REPORT (AUDITED)

Fixed Remuneration

Executive KMP Fixed Remuneration has been reviewed for FY2024 considering the adopted target market
position and benchmarked against a peer group of comparable ASX listed organisations. As a result, effective 1
July 2024 the following increases have been implemented:

Figure 7: FY2024 Fixed Remuneration

Component

CEO

COO

CFO

CCO

Fixed Remuneration
(exclusive of
superannuation)

A$717,600

A$457,600

A$437,600

A$357,600

LINKING LONG TERM PERFORMANCE AND SHAREHOLDER VALUE

Share Rights Plan Overview

In 2009, Paladin implemented an Employee Performance Share Rights Plan (the 2009 Employee Share Rights
Plan) together with a Contractor Performance Share Rights Plan (the Contractor Rights Plan). These plans are
referred to jointly as the Rights Plans and were reaffirmed by shareholders at the 2018 Annual General Meeting.
The Rights Plans terms were amended and approved by shareholders at the 2020 Annual General Meeting (2020
Employee Share Rights Plan).

The Rights Plan is the mechanism under which Executives have been awarded:

• Long Term Incentive Plan Performance Rights, (current incentive grant)

• Performance Rights on commencement of employment

• Share Appreciation Rights, (previous incentive grant – no longer utilised for new incentive grants).

Performance Rights Terms and Conditions – LTI

The terms, conditions, and valuation of each grant of PRs affecting remuneration in the current or a future
reporting period are as follows:

Figure 8: Performance Rights Terms and Conditions issued to Executives as the FY2023 LTI

Grant date

28 September
2022

28 September
20221

28 September
20222

Vesting and
exercise date

Expiry date

No granted

Exercise
price

Value per PR at
grant date

Performance
achieved

% Vested

31 December 2023

28 September 2027

529,150

A$0.00

A$0.735

Retention based

30 June 2025

28 September 2027

1,390,917

A$0.00

A$0.631

To be determined

30 June 2025

28 September 2027

1,390,917

A$0.00

A$0.629

To be determined

28 March 2023

31 December 2023

28 March 2028

203,401

A$0.00

A$0.605

Retention based

28 March 20231

30 June 2025

28 March 2028

271,201

A$0.00

A$0.484

To be determined

28 March 20232

30 June 2025

28 March 2028

271,201

A$0.00

A$0.412

To be determined

1 The number of PRs that vest is based on the Total Shareholder Return (TSR) of Paladin over the performance period of three years, relative to the TSR
performance of a nominated peer group of 15 international uranium focused companies.
2 The number of PRs that vest is based on the TSR of Paladin relative to the performance of a nominated general mining peer group of 25 ASX listed
companies.

6 1

PALADIN ENERGY LTD: ANNUAL REPORT 2023

REMUNERATION REPORT (AUDITED)

Performance Rights on Commencement of Employment

Performance Rights were issued to Executives appointed in FY2023 at the commencement of their employment.
These PRs were provided as a mechanism to attract and retain Executives in the current market. These PRs have
a two-year vesting period and are contingent on continued employment with the Company. The PRs issued on
commencement are provided below in Figure 9.

Figure 9: Performance Rights issued to Executives on commencement of employment

Grant date

Vesting and
exercise date

Expiry date

No granted

Exercise
price

Value per PR at
grant date

Performance
achieved

% Vested

28 March 2023

31 January 2025

1 February 2028

500,000

A$0.00

A$0.605

Retention based

Share Appreciation Rights Terms and Conditions

Paladin has historically granted Share Appreciation Rights (SARs) to Executives under the Rights Plan.

The number of SARs over ordinary shares in the Company provided as remuneration to Executives is shown in
Figure 10 below. The SARs carry no dividend or voting rights. Figure 10 contains the conditions that must be
satisfied for the SARs to vest.

When exercisable, each SAR is convertible into one ordinary share of Paladin Energy Ltd. The exercise price
of SARs is based on the weighted average price at which the Company’s shares are traded on the Australian
Securities Exchange during the five business days up to and including the date of grant.

The terms, conditions, and valuation of each grant of SARs affecting remuneration in the current or a future
reporting period are as follows:

Figure 10: Share Appreciation Rights vesting during the year and in future periods

Grant date

Vesting and
exercise date

Expiry date

Number

Exercise
price

Value per SAR at
grant date

Performance
achieved

% Vested

1 July 2019

1 July 2022

1 July 2027

1,100,000

A$0.1226

A$0.07

Retention based

100%

RECONCILIATION OF PERFORMANCE BASED REMUNERATION

The number of PRs over ordinary shares in the Company provided as remuneration to Executives is shown in
Figure 11 below. The PRs carry no dividend or voting rights. When exercisable, each PR is convertible into one
ordinary share of Paladin Energy Ltd.

Figure 11 shows for each Executive the value of PRs and SARs that were granted, exercised, and forfeited during
FY2023. The number of PRs and SARs vested/forfeited for each grant during FY2023 are disclosed in Figures 12
and Figure 13 below.

Figure 11: Performance based remuneration granted and forfeited during the year

2023

Ian Purdy

Paul Hemburrow

Anna Sudlow

Jonathon Clements

Jess Oram

Alex Rybak

Performance Rights

Value granted US$

Value exercised US$

Value forfeited US$

461,145

97,005

264,837

368,610

(184,850)

6 2

PALADIN ENERGY LTD: ANNUAL REPORT 2023REMUNERATION REPORT (AUDITED)

The table below shows a reconciliation of PRs held by each Executive from the beginning to the end of FY2023.

No SARs were granted, exercised, or forfeited during the year.

Figure 12: Reconciliation of Performance Rights

Balance at the
start of the year

Vested

Forfeited

Performance achieved

Name

Unvested

Granted as
compensation

Ian Purdy

1,630,8951

1,370,7664

Paul
Hemburrow

Paul
Hemburrow5

745,8093

500,000

Anna Sudlow

820,2931

709,9194

Jonathon
Clements

Jess Oram

Alex Rybak

798,3341

710,5011

615,1514

500,0002

710,5011

615,1514

500,0002

1 Grant date 3 November 2021 as part of the FY2022 LTI
2 Grant date 7 September 2021 as commencement PRs
3 Grant date 28 March 2023 as part of the FY2023 LTI
4 Grant date 28 September 2022 as part of the FY2023 LTI
5 Grant date 28 March 2023 as commencement PRs

Number

Exercised

Number

Vested and
exercisable

(798,334)

100

Unvested

3,001,661

745,809

500,000

1,530,212

1,325,652

500,000

1,325,652

500,000

The table below shows a reconciliation of SARs held by each Executive from the beginning to the end of FY2023.
At the commencement of FY2022, 1,400,000 SARs had vested. On 1 July 2022, a further 1,100,000 SARS vested.

Figure 13: Reconciliation of Share Appreciation Rights

Balance at the
start of the year

Vested

Forfeited

Balance at the end of the year

Name &
grant date

Unvested

Granted as
compensation

Number

Exercised Number

Anna Sudlow1

1,400,000

1,100,000

100

Vested and
exercisable

Unvested

2,500,000

1 Granted 1 July 2019. Fair value per right at grant date was A$0.05, A$0.06 and A$0.07

6 3

PALADIN ENERGY LTD: ANNUAL REPORT 2023

REMUNERATION REPORT (AUDITED)

REMUNERATION EXPENSES FOR EXECUTIVE KMP

The following table shows details of the remuneration expense recognised for the Group’s Executive KMP for the
current and previous financial year measured in accordance with the requirements of the accounting standards.

Figure 14: Compensation of Executive KMP

Fixed Remuneration

Variable
Remuneration

Total

Total Performance
Related

Name

Year

Salary &
Fees1
US$

Other

US$

Superannuation
US$

PRs and SARs
US$

US$

Ian Purdy

2023

375,945

2022

406,000

Paul Hemburrow2

2023

106,294

16,980

461,146

854,071

1,272,207

461,146

54.0

17,087

11,161

289,885

712,972

1,062,029

289,885

40.7

97,005

214,460

319,455

97,005

45.2

Anna Sudlow

2023

242,015

4,7693

16,980

264,837

528,601

787,393

264,386

50.1

2022

253,750

5,151

17,087

145,804

421,792

628,293

145,804

34.6

Jonathon
Clements4

2023

19,021

13,168

1,997

34,186

50,923

0.0

2022

246,500

Jess Oram

2023

207,441

2022

207,614

Alex Rybak

2023

207,441

2022

207,614

17,087

141,901

405,488

604,007

141,901

35.0

16,980

368,610

593,031

883,367

368,610

62.2

20,001

18,180

20,761

242,649

470,624

700,496

242,649

51.6

368,610

594,231

885,155

368,610

62.0

242,649

471,024

701,628

242,649

51.5

Total
Executive KMP
remuneration
expensed

2023

1,158,157

17,937

82,278

1,560,208

2,818,580

4,198,500

1,560,208

2022

1,321,478

5,151

92,023

1,062,888

2,481,540

3,696,453

1,062,888

The FY2022 comparative value has been restated for the under recognition of share-based payment expense as a result of the correction in the
Performance Right's service commencement period. This increases the variable remuneration for Mr Ian Purdy by US$69,266, Ms Anna Sudlow by
US$15,139, Mr Jonathan Clements by US$33,906, Mr Jess Oram by US$26,198 and Mr Alex Rybak by US$26,198.

1 Includes 4 weeks annual leave per annum
2 Appointed 1 February 2023
3 Insurance
4 Resigned 31 July 2022

Notes to the Compensation Tables

Presentation Currency: The compensation table has been presented in US$, Paladin’s functional and presentation
currency. The A$ value has also been shown as this is the most relevant comparator between years, given that
100% of KMP contracts for services were denominated in A$ and this eliminates the effects of fluctuations in the
US$ and A$ exchange rate. Exchange rate used is the average for the 2023 financial year US$1 = A$1.489580
(2022 financial year US$1 = A$1.379310).

For accounting purposes, the fair value at grant date is shown above in accordance with AASB 2 Share Based
Payment. The PRs subject to TSR conditions have been independently valued using a hybrid employee share
option pricing model which uses a correlated simulation that simultaneously calculates the returns from the
Company’s and the individual peer group companies’ TSR (for Peer Groups 1 and 2) on a risk-neutral basis as
at the vesting date with regards to the remaining performance measurement period. The PRs subject to non-
market conditions have been valued with reference to the Paladin share price on grant date. The fair value of PRs
granted are set out in Figures 8 and 9. The fair value at the grant date represents the maximum possible total fair
value of the shares. The minimum value of unvested shares is $Nil.

6 4

PALADIN ENERGY LTD: ANNUAL REPORT 2023REMUNERATION REPORT (AUDITED)

NON-EXECUTIVE DIRECTOR REMUNERATION

Paladin’s non-executive directors’ remuneration policy aims to reward directors fairly and responsibly with regards
to the demands which are made on them, and the responsibilities of, the directors. The Board may seek advice
from external consultants to help review non-executive director fees.

The aggregate annual fees permitted to be paid to non-executive directors may not exceed the fee pool limit,
currently A$1,200,000 (US$805,596) as approved by shareholders at the 2008 Annual General Meeting.

Non-executive director’s remuneration consists of a base board fee see Figure 15 below, inclusive of
superannuation. Non-executive directors are not entitled to retirement benefits other than statutory
superannuation in accordance with applicable laws, nor do they participate in performance-based incentive
plans. There is no entitlement to compensation on termination of non-executive directorships.

Expenses and Additional Fees

Paladin’s Constitution provides for additional compensation to be paid if any of the Directors are called upon to
perform extra services or make any special exertions on behalf of Paladin or the business of Paladin (Additional
Fees). Paladin may compensate such Director in accordance with such services or exertions, and such
compensation may be either in addition to or in substitution for the Directors’ fees referred to in Figure 15 below.
Refer Figure 16 below for details of compensation paid to Directors during FY2023.

Directors are also entitled to be reimbursed for reasonable expenses incurred whilst engaged on Paladin
business. Payments for, or reimbursement of, expenses, and any Additional Fees, are not included in the fee pool
limit.

Figure 15: Non-Executive Directors’ Remuneration Arrangements

Remuneration component Elements

Base fee

Must be contained within aggregate limit

Superannuation

Statutory contributions are included in the
fees set out above

Details (per annum)

Chair
A$150,000 (US$100,700)
Non-Executive Director
A$100,000 (US$67,133)

Fees (inclusive of superannuation) paid for the year to 30 June 2023 total US$463,454 (A$690,353).
No additional fees were paid during the year ended 30 June 2023, other than the Directors’ fees disclosed.

6 5

PALADIN ENERGY LTD: ANNUAL REPORT 2023REMUNERATION REPORT (AUDITED)

Figure 16: Compensation of Non-Executive Directors

Name

Year

Fixed Remuneration

Variable
Remuneration
- LTI

Salary & Fees1

Superannuation

Share rights

Total

Total performance
related

Cliff Lawrenson

2023

91,131

2022

108,750

US$

9,569

Peter Main

2023

46,590

20,543

Peter Watson1

2023

121,507

12,758

2022

72,500

2022

82,386

Melissa Holzberger

2023

60,754

Joanne Palmer

2023

60,754

2022

65,909

Dr Jon Hronsky OAM2

Lesley Adams3

Total non-executive
director remuneration

2022

2023

65,909

17,525

6,991

2023

405,252

58,202

2022

395,454

21,421

8,239

6,379

6,591

6,379

6,591

1,840

734

US$

100,700

150,000

108,750

150,000

67,133

100,000

72,500

100,000

134,265

200,000

90,625

125,000

67,133

100,000

72,500

100,000

67,133

100,000

72,500

100,000

19,365

28,846

7,725

11,507

463,454

690,353

416,875

575,000

1 In FY2022, Peter Watson was requested by the Board to provide additional oversight to the Langer Heinrich Mine Restart Project and a variation
to amend his directors’ fees from A$100,000 to A$200,000, on an arms-length and commercial basis, was approved by the Board effective 1 April
2022. The Board considered that these services are unique, needed, limited in nature and the Board consider that they are in the best interests
of shareholders.
2 Appointed 20 March 2023
3 Appointed 22 May 2023

6 6

PALADIN ENERGY LTD: ANNUAL REPORT 2023

ADDITIONAL STATUTORY INFORMATION (UNAUDITED)

Shareholdings

The table below reconciles the shareholdings of non-executive directors and Executive KMP for FY2023.

Balance at the
start of the
year

Received
during the year
on the exercise
of PRs

Received
during the year
on the exercise
of SARs

Other changes
during the year

Balance at the
end of the year

Figure 17: Shareholdings

Name

Non-Executive
Directors

Cliff Lawrenson

Peter Main

Peter Watson

Melissa Holzberger

Joanne Palmer

Dr Jon Hronsky
OAM

Lesley Adams

Executives

Ian Purdy

Paul Hemburrow

2,235,136

4,094,594

1,000,000

21,743

21,725

8,750,000

Anna Sudlow

6,650,000

Jonathon
Clements

Jess Oram

Alex Rybak

3,000,000

2,235,136

4,094,594

1,000,000

21,743

21,725

(3,750,000)

5,000,000

(4,050,000)

2,600,000

(1,000,000)

2,000,000

None of the shares above are held nominally by the directors or any of the other KMP.

No other KMP held shares during the years ended 30 June 2023 and 30 June 2022.

All equity transactions with KMP have been entered into under terms and conditions no more favourable than
those the Group would have adopted if dealing at arm’s length.

Loans Given to Key Management Personnel

Paladin does not offer any loan facilities to KMP.

Other Transactions with Key Management Personnel

In FY2022, Peter Watson was requested by the Board to provide additional oversight to the Langer Heinrich Mine
Restart Project and a variation to amend his directors’ fees from A$100,000 to A$200,000, on an arms-length and
commercial basis, was approved by the Board effective 1 April 2022. The Board considered that these services
are unique, needed, limited in nature and the Board consider that they are in the best interests of shareholders.

During FY2023, Paladin paid Dr Jon Hronsky OAM US$8,843 (A$13,340) in relation to the provision of geological
consulting services through his company, Western Mining Services Pty Ltd which have been paid on an arms-
length and commercial basis and were approved by the Board.

6 7

PALADIN ENERGY LTD: ANNUAL REPORT 2023
Auditor’s Independence Declaration
As lead auditor for the audit of Paladin Energy Ltd for the year ended 30 June 2023, I declare that to
the best of my knowledge and belief, there have been:

(a)

no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit, and

(b)

no contraventions of any applicable code of professional conduct in relation to the audit.

This declaration is in respect of Paladin Energy Ltd and the entities it controlled during the period.

Justin Carroll
Partner
PricewaterhouseCoopers

Perth
25 August 2023

PricewaterhouseCoopers, ABN 52 780 433 757
Brookfield Place, 125 St Georges Terrace, PERTH WA 6000, GPO Box D198, PERTH WA 6840
T: +61 8 9238 3000, F: +61 8 9238 3999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

6 8

PALADIN ENERGY LTD: ANNUAL REPORT 2023Contents of
Financial Report

Consolidated Income Statement

Consolidated Statement of Comprehensive Income

Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Notes to the Consolidated Financial Statements

6 9

PALADIN ENERGY LTD: ANNUAL REPORT 2023Financial Report

For the year ended
30 June 2023

7 0

PALADIN ENERGY LTD: ANNUAL REPORT 2023Financial Report

For the year ended

30 June 2023

CONSOLIDATED INCOME STATEMENT

For the year ended 30 June 2023

Notes

2023

US$’000

2022

US$’000

Revenue

Cost of sales

Gross profit

Other income

Other losses

Foreign exchange gain/(loss) (net)

Administration, marketing and non-production costs

Loss before interest and tax

Finance costs

Net loss before income tax from continuing operations

Income tax expense

—

4,696

(512)

584

4,700

(4,693)

1,011

(12)

(8,179)

(17,464)

(23,759)

(12,696)

(30,932)

(14,362)

(13,006)

(27,058)

(43,938)

—

(1)

Net loss after tax from continuing operations

(27,058)

(43,939)

Attributable to:

Non-controlling interests

Members of the parent

Net loss after tax

Loss per share (US cents)

(16,486)

(17,196)

(10,572)

(26,743)

(27,058)

(43,939)

Loss after tax from operations attributable to ordinary equity
holders of the Company

continuing operations, basic and diluted
(US cents)

(0.4)

(1.0)

The above Consolidated Income Statement should be read in conjunction with the accompanying notes.

7 1

PALADIN ENERGY LTD: ANNUAL REPORT 2023CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 30 June 2023

Net loss after tax

Other comprehensive income

Items that may be subsequently reclassified to profit or loss

Foreign currency translation

Income tax on items of other comprehensive income

Items that will not be subsequently reclassified to profit or
loss:

Changes in the fair value of equity investments at fair value
through other comprehensive income

Other comprehensive loss for the year, net of tax

Notes

2023

US$’000

(27,058)

2022

US$’000

(43,939)

(870)

—

363

(507)

(1,254)

—

432

(822)

Total comprehensive loss for the year

(27,565)

(44,761)

Total loss attributable to:

Non-controlling interests

Members of the parent

(16,486)

(17,196)

(11,079)

(27,565)

(44,761)

The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

7 2

PALADIN ENERGY LTD: ANNUAL REPORT 2023CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2023

Notes

2023

US$’000

2022

US$’000

ASSETS

Current assets

Cash and cash equivalents

Restricted cash

Trade and other receivables

Prepayments

Inventories

Financial assets held for sale

TOTAL CURRENT ASSETS

Non-current assets

Trade and other receivables

Right-of-use assets

Property, plant and equipment

Mine development

Exploration and evaluation expenditure

Intangible assets

TOTAL NON-CURRENT ASSETS

TOTAL ASSETS

LIABILITIES

Current liabilities

Trade and other payables

Lease liabilities

Provisions

126,636

177,066

1,014

2,756

11,127

5,646

1,590

1,000

5,084

1,263

5,100

—

148,769

189,513

355

817

194

918

197,928

166,274

22,064

95,321

7,793

14,975

101,327

7,793

324,278

291,481

473,047

480,994

9,094

159

331

2,211

335

TOTAL CURRENT LIABILITIES

9,584

2,601

7 3

PALADIN ENERGY LTD: ANNUAL REPORT 2023CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)

As at 30 June 2023

Notes

2023

US$’000

2022

US$’000

Non-current liabilities

Interest bearing loans and borrowings

Lease liabilities

Provisions

TOTAL NON-CURRENT LIABILITIES

TOTAL LIABILITIES

NET ASSETS

EQUITY

Contributed equity

Reserves

Accumulated losses

Parent interests

Non-controlling interests

TOTAL EQUITY

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

89,708

78,558

622

880

38,049

40,543

128,379

119,981

137,963

122,582

335,084

358,412

2,646,644

2,645,778

(70,004)

(71,917)

(2,169,066)

(2,160,834)

407,574

413,027

(72,490)

(54,615)

335,084

358,412

PALADIN ENERGY LTD: ANNUAL REPORT 2023—

—

1,996

—

(2,760)

156,585

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 30 June 2023

Contributed
Equity
(Note 7)

Reserves
(Note 7)

Accumulated
Losses

Attributable
to
Owners of
the Parent

Non-
Controlling
Interests

Total

US$’000

Balance at 30 June 2021

2,489,082

(59,354)

(2,146,511)

283,217

(36,509)

246,708

Loss for the period

Other comprehensive income

Total comprehensive loss for the year net
of tax

—

(26,743)

(17,196)

(43,939)

(822)

—

(822)

—

(822)

(26,743)

(27,565)

(17,196)

(44,761)

Share-based payments

111

1,885

—

1,996

Transfer of gain on disposal of equity
investments at fair value through other
comprehensive income to retained earnings

—

(10,866)

10,866

—

Transfer of reserves on deregistration of
subsidiaries through the income statement

—

(2,760)

Capital raising (net of costs)

156,585

Earn in of 5% share of Michelin Project

Transactions with owners in their capacity as
owners

—

(2,760)

156,585

1,554

(1,554)

—

644

Balance at 30 June 2022

2,645,778

(71,917)

(2,160,834)

413,027

(54,615)

358,412

Loss for the period

Other comprehensive income

Total comprehensive loss for the year net
of tax

—

(10,572)

(16,486)

(27,058)

(507)

—

(507)

—

(507)

(10,572)

(11,079)

(16,486)

(27,565)

Share-based payments

866

3,226

—

4,092

Transfer of gain on disposal of equity
investments at fair value through other
comprehensive income to retained earnings

Earn in of 5% share of Michelin Project

Transactions with owners in their capacity as
owners

—

(806)

806

—

4,092

—

1,534

(1,534)

—

145

Balance at 30 June 2023

2,646,644

(70,004)

(2,169,066)

407,574

(72,490)

335,084

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

7 5

PALADIN ENERGY LTD: ANNUAL REPORT 2023CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 30 June 2023

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers1

Payments to suppliers and employees2

Other income

Interest received

Tax paid

Notes

2023

US$’000

2022

US$’000

—

(13,630)

4,174

—

4,700

(11,718)

158

(1)

NET CASH OUTFLOW FROM OPERATING ACTIVITIES

(9,375)

(6,794)

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for property, plant and equipment

Capitalised exploration expenditure

LHM Restart Project

LHM Restart Study Costs

Proceeds from sale of subsidiary

Proceeds from sale of investments3,4

NET CASH (OUTFLOW)/INFLOW FROM INVESTING ACTIVITIES

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issue of shares

Equity fundraising costs

Funds received from Shareholder5

NET CASH INFLOW FROM FINANCING ACTIVITIES

(734)

(1,910)

(36,955)

—

3,000

805

(35,794)

—

NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS

(45,084)

(180)

(1,005)

—

(2,242)

2,000

13,386

11,959

162,514

(5,929)

811

157,396

162,561

Unrestricted cash and cash equivalents at the beginning of the
financial year

177,066

30,661

Effects of exchange rate changes on cash and cash equivalents

(5,346)

(16,156)

UNRESTRICTED CASH AND CASH EQUIVALENTS AT THE END OF
THE FINANCIAL YEAR

126,636

177,066

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

1 During FY2022 the Company participated in a spot trading opportunity (FY2023: US$Nil).
2
Includes cost of sales relating to the spot trade of US$4,692,500 (FY2023: US$Nil).
3 During FY2022 the Company sold 90M shares in Lotus Resources Ltd
4 During FY2023 the Company sold 390k shares in Global Atomic Corporation shares
5 Funds received by way of loan from CNNC Overseas Limited to Langer Heinrich Uranium Pty Ltd to fund care and maintenance activities.

7 6

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 30 June 2023

BASIS OF PREPARATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

Note 1.

Corporate Information ....................................................................................................................................... 78

Note 2.

Structure of the Financial Report ..................................................................................................................... 78

Note 3.

Basis of Preparation .......................................................................................................................................... 78

SEGMENT REPORTING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

Note 4.

Segment Information ........................................................................................................................................ 80

CAPITAL STRUCTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

Note 5a. Cash and Cash Equivalents ............................................................................................................................. 83

Note 5b

Restricted Cash ................................................................................................................................................ 83

Note 6.

Interest Bearing Loans and Borrowings .......................................................................................................... 83

Note 7.

Contributed Equity and Reserves ................................................................................................................... 85

Note 8.

Financial Risk Management .............................................................................................................................. 87

PERFORMANCE FOR THE YEAR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

Note 9.

Revenue ............................................................................................................................................................ 94

Note 10.

Income and Expenses ...................................................................................................................................... 95

Note 11.

Income and Other Taxes .................................................................................................................................. 96

Note 12.

Earnings Per Share ........................................................................................................................................... 99

Note 13.

Reconciliation of Earnings After Income Tax to Net Cash Flow from Operating Activities ........................ 100

OPERATING ASSETS AND LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101

Note 14.

Trade and Other Receivables ......................................................................................................................... 101

Note 15.

Prepayments .................................................................................................................................................... 102

Note 16.

Inventories ....................................................................................................................................................... 102

Note 17.

Financial Assets – Held for Sale ..................................................................................................................... 103

Note 18.

Property, Plant and Equipment ....................................................................................................................... 104

Note 19. Mine Development .......................................................................................................................................... 106

Note 20.

Exploration and Evaluation Expenditure ........................................................................................................ 107

Note 21.

Intangible Assets ............................................................................................................................................. 108

Note 22. Trade and Other Payables .............................................................................................................................. 109

Note 23. Provisions ......................................................................................................................................................... 110

Note 24.

Employee Share Rights Plan ............................................................................................................................ 111

OTHER NOTES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

Note 25. Key Management Personnel ........................................................................................................................... 113

Note 26. Auditors’ Remuneration .................................................................................................................................. 114

Note 27. Commitments and Contingencies .................................................................................................................. 115

Note 28. Related Parties ................................................................................................................................................ 116

Note 29. Group Information ........................................................................................................................................... 117

Note 30. Events after the Balance Date ........................................................................................................................ 118

Note 31. New Accounting Standards and Interpretations ........................................................................................... 119

7 7

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

BASIS OF PREPARATION

NOTE 1.

CORPORATE INFORMATION

The Consolidated Financial Report of the Group consisting of Paladin Energy Ltd (Paladin) and the entities it controlled at the end of, or

during the year ended 30 June 2023 was authorised for issue by the Directors on 25 August 2023.

The Company is incorporated under the laws of Australia with a primary share market listing on the Australian Securities Exchange

(ASX) and is also listed on the Namibian Stock Exchange (NSX). The Company also trades on the OTCQX market in the United States of

America. The Group’s principal place of business is Level 8, 191 St Georges Terrace, Perth, Western Australia. The nature of the operations

and principal activities of the Group are described in the Operating and Financial Review (unaudited) on pages 10 to 25.

NOTE 2.

STRUCTURE OF THE FINANCIAL REPORT

The Notes to the Consolidated Financial Statements have been grouped into six key categories, which are summarised as follows:

Basis of Presentation

This section sets out the Group’s significant accounting policies that relate to the financial statements as a whole. Where an accounting

policy is specific to one note, the policy is described in the note to which it relates. Accounting policies determined non-significant are

not included in the financial statements.

Segment Reporting

This section compares performance across operating segments.

Capital Structure

This section outlines how the Group manages its capital and related financing costs.

Performance for the Year

This section focuses on the results and performance of the Group. This covers both profitability and the resultant return to shareholders

via earnings per share combined with cash generation.

Operating Assets and Liabilities

This section shows the assets used to generate the Group’s trading performance and the liabilities incurred as a result. Liabilities relating

to the Group’s financing activities are addressed in the Capital Structure section.

Other Notes

This section deals with the remaining notes that do not fall into any of the other categories.

NOTE 3.

BASIS OF PREPARATION

Introduction and Statement of Compliance

The Financial Report is a general-purpose Financial Report, which has been prepared in accordance with the requirements of the

Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards

Board.

The Financial Report complies with International Financial Reporting Standards as issued by the International Accounting Standards

Board. The Financial Report has also been prepared on a historical cost basis unless otherwise stated in the notes to the financial

statements. Where necessary, comparatives have been reclassified and repositioned for consistency with current year disclosures. For

the purposes of preparing the consolidated financial statements, the Company is a for-profit entity.

The Financial Report is presented in US dollars and all values are rounded to the nearest thousand dollars (US$1,000) unless otherwise

stated under the option available to the Company under Australian Securities and Investments Commission (ASIC) Corporations (Rounding

in Financial/Directors’ Reports) Instrument 2016/191.

Changes in Accounting Policies

The accounting policies adopted have been consistently applied to all the years presented, unless otherwise stated.

Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no

effect on the report results of the Group.

7 8

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

The Group has adopted all applicable new and amended Australian Accounting Standards and AASB Interpretations effective from

1 July 2022.

Certain new accounting standards, amendments to accounting standards and interpretations have been published that are not mandatory

for 30 June 2023 reporting periods and have not been early adopted by the Group. These standards, amendments or interpretations are

not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions

(refer Note 31).

Basis of Consolidation

The consolidated financial statements comprise the financial statements of Paladin Energy Ltd and its subsidiaries as at 30 June 2023

(the Group).

Subsidiaries are all entities over which the Group has control. The Group controls an entity where the Group is exposed to, or has rights

to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities

of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from

the date that control ceases. The acquisition method of accounting is used to account for business combinations by the Group.

Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the Statement of

Comprehensive Income from the date the Group gains control until the date the Group ceases to control the subsidiary.

Non-controlling interests in the results and equity of subsidiaries are shown separately in the Consolidated Income Statement, Statement

of Comprehensive Income, Statement of Changes in Equity and Statement of Financial Position respectively.

Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses

are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries

have been changed where necessary to ensure consistency with the policies adopted by the Group.

The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of

the Group.

Foreign Currency Translation

Functional and Presentation Currency

Items included in the Financial Statements of each of the Group’s entities are measured using United States Dollars (US Dollars), the

currency of the primary economic environment in which the entity operates (‘the functional currency’). The Consolidated Financial

Statements are presented in US Dollars.

Transactions and Balances

Foreign currency transactions are converted into the functional currency using the exchange rates prevailing at the dates of the

transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year

end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Consolidated Income

Statement. Translation differences on available-for-sale financial assets are included in the available-for-sale reserve.

Group Companies

Some Group entities have a functional currency of US dollars which is consistent with the Group’s presentational currency. For all other

Group entities, the functional currency has been translated into US dollars for presentation purposes as follows:

• Assets and liabilities are translated using exchange rates prevailing at the balance date

• Revenues and expenses are translated using average exchange rates prevailing for the Consolidated Income Statement year

• Equity transactions are translated at exchange rates prevailing at the dates of transactions. The resulting difference from translation

is recognised in a foreign currency translation reserve.

The functional currency of individual subsidiaries reflects their operating environment.

7 9

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

Onerous contracts

A provision for onerous contracts is recognised when the expected benefits to be derived by the Group from a contract are lower than

the unavoidable cost of meeting the obligations under the contract. The provision is stated at the present value of the future net cash

outflows expected to be incurred in respect of the contract.

Fair value hierarchy

To provide an indication of the reliability of the inputs used in determining fair value, the Group has classified its financial instruments into

the three levels prescribed under the accounting standards.

• Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives and equity securities) is

based on quoted market prices at the end of the reporting period

• Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques that

maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required

to fair value an instrument are observable, the instrument is included in level 2

• Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Material Accounting Judgements, Estimates and Assumptions

The preparation of the Group’s consolidated financial statements requires management to make judgements, estimates and assumptions

that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of

contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to

the carrying amount of assets or liabilities affected in future periods.

Areas involving significant estimates or judgements are:

• Assessment of carrying values of property, plant and equipment, mine development costs, exploration and evaluation expenditure and

intangible assets associated with the Langer Heinrich Mine — Notes 18–21

• Estimated fair value of certain financial liabilities - Note 6

• Environmental rehabilitation provision – Note 23

• Useful lives of property, plant and equipment - Note 18

• Useful lives of mine development costs and intangible assets associated with the Langer Heinrich Mine — Notes 19 and 21

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations

of future events including climate change related matters that may have a financial impact on the entity and that are believed to be

reasonable under the circumstances. Paladin recognises the increasing global impacts of climate change, however the financial impact,

and any other impacts, of climate change on our operations is currently expected to be minimal.

SEGMENT REPORTING

NOTE 4.

SEGMENT INFORMATION

Identification of Reportable Segments

The Company has identified its operating segments to be Exploration, Namibia and Australia, on the basis of the nature of the activity

and geographical location and different regulatory environments. The main segment activity in Namibia1 is the production and sale of

uranium from the mine located in this country’s geographic regions. The Australian segment includes the Company’s sales and marketing,

corporate and administration. The Exploration2 segment is focused on developing exploration and evaluation projects in Australia and

Canada.

Discrete financial information about each of these operating segments is reported to the Group’s executive management team on at least

a monthly basis.

The accounting policies used by the Group in reporting segments internally are the same as those contained in the accounts and in the

prior period.

In May 2018, the Company received the consent of relevant stakeholders to place Langer Heinrich Mine (LHM) into care and maintenance and LHM stopped presenting ore to
the plant. On 19 July 2022, Paladin announced the decision to return the Langer Heinrich Mine to production
In FY2023, the Company has only undertaken the work required to meet minimum tenement commitments.

8 0

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

Corporate charges comprise non-segmental expenses such as corporate office expenses. A proportion of the corporate charges are

allocated to Namibia and Exploration tenements with the balance remaining in Australia.

The following tables present revenue, expenditure and asset information regarding operating segments for the years ended 30 June

2023 and 30 June 2022.

Year ended

30 June 2023

Revenue

Total consolidated revenue

Cost of sales

Gross profit

Other income

Other losses3

Other expenses

Exploration

US$’000

Namibia

US$’000

Australia

US$’000

Consolidated

US$’000

—

(7)

(441)

—

109

(505)

—

4,587

—

4,696

(512)

(9,406)

(7,617)

(17,464)

Foreign exchange gain (net)4

584

Segment loss before income tax and finance
costs

448

(9,802)

(3,030)

(12,696)

Finance costs

(6,813)

(7,549)

(14,362)

Loss before income tax

(448)

(16,615)

(10,579)

(27,058)

Income tax expense

—

Net loss after tax

At 30 June 2023

(448)

(16,615)

(10,579)

(27,058)

Segment assets/total assets

95,631

256,929

120,4875

473,047

Non-current assets (excluding financial assets)
by country

Additions to non-current assets by country

Australia

US$’000

Canada

US$’000

Namibia

US$’000

Consolidated

US$’000

64,201

32,460

227,617

324,278

Property, Plant and Equipment

Exploration and Evaluation Expenditure

334

473

1,470

34,650

34,997

—

1,943

3 Relates to assets demolished as part of the Restart Project
4
5

Individual segment results are managed before the impact of foreign exchange differences
Includes US$116,785,000 in cash and cash equivalents

8 1

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

Year ended

30 June 2022

Revenue

Total consolidated revenue

Cost of sales

Gross profit

Other income

Other losses

Other expenses

Foreign exchange loss (net)6

Segment loss before income tax and finance
costs

Finance costs

Loss before income tax

Income tax expense

Net loss after tax

At 30 June 2022

Exploration

US$’000

—

Namibia

US$’000

4,700

(4,693)

136

(2)

Australia

US$’000

Consolidated

US$’000

—

875

(10)

4,700

(4,693)

1,011

(12)

(18,833)

(4,926)

(23,759)

8,179

(18,692)

(4,061)

(30,932)

(6,417)

(6,589)

(13,006)

(25,109)

(10,650)

(43,938)

—

(1)

(25,109)

(10,651)

(43,939)

Segment assets/total assets

94,601

203,651

182,7427

480,994

Non-current assets (excluding financial assets)
by country

Additions to non-current assets by country

Australia

US$’000

Canada

US$’000

Namibia

US$’000

Consolidated

US$’000

64,299

31,004

196,178

291,481

Property, Plant and Equipment

Exploration and Evaluation Expenditure

645

—

502

971

1,863

1,015

3,010

6
7

Individual segment results are managed before the impact of foreign exchange differences
Includes US$176,514,000 in cash and cash equivalents.

8 2

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

CAPITAL STRUCTURE
The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern, so that it can continue to

provide returns to shareholders and benefits for other stakeholders and to maintain an efficient capital structure to reduce the cost of

capital. Capital includes issued capital and all other equity reserves attributable to the equity holders of the parent. Whilst the Group has

US$126.6M cash on hand at 30 June 2023, it is also exploring corporate debt facilities to provide additional liquidity and flexibility as it

recommences operations at the LHM.

In order to maintain or adjust the capital structure, the Group may issue new shares or sell assets to reduce debt.

The Group monitors capital on the basis of the level of return on capital and also the level of net cash/debt.

NOTE 5A. CASH AND CASH EQUIVALENTS

Cash at bank and on hand

Short-term bank deposits

2023

US$’000

49,279

77,357

2022

US$’000

32,168

144,898

Total cash and cash equivalents

126,636

177,066

NOTE 5B. RESTRICTED CASH

Restricted cash at bank

Total restricted cash

2023

US$’000

1,014

2022

US$’000

1,000

The cash is restricted for use in respect of an environmental guarantee provided by Langer Heinrich Uranium (Pty) Ltd.

Recognition and measurement

Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short term, highly liquid

investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject

to an insignificant risk of changes in value, and bank overdrafts.

NOTE 6.

INTEREST BEARING LOANS AND BORROWINGS

Non-Current

LHU’s loans from CNNC

Total Interest Bearing Loans and Borrowings

2023

US$’000

2022

US$’000

89,708

78,558

8 3

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

Recognition and measurement

Loans and borrowings are initially recognised at fair value, net of transaction costs incurred. Loans and borrowings are subsequently

measured at amortised cost. Any difference between the fair value (net of transaction costs) and the redemption amount is recognised

in the Consolidated Income Statement over the period of the borrowings using the effective interest method.

For the majority of any external borrowings, fair values are based on a discounted cash flow basis using quoted market prices (Level 1)

or observable market data (Level 2) inputs in the fair value hierarchy.

The fair values of shareholder loans are based on discounted cash flows using a rate that the Company considers representative of a

secured borrowing rate available in the market. These are classified as level 3 fair values in the fair value hierarchy due to the use of

unobservable inputs, including Paladin’s own credit risk.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least

12 months after the balance date.

Details of the fair value of the Group’s other interest-bearing liabilities are set out in Note 8.

LHU’s loans from CNNC

As part of the sale of the 25% interest in Langer Heinrich Mauritius Holdings Limited (LHMHL) in 2014 to CNNC Overseas Limited (CNNC),

US$96,000,000 (representing 25%) of the intercompany shareholder loans owing by Langer Heinrich Uranium (Pty) Ltd (LHU) to Paladin

Finance Pty Ltd (PFPL) were assigned to CNNC under the same interest rate and conditions in place at the time. Subsequent to the sale

in 2014 Paladin, PFPL and CNNC have provided further shareholder loans to LHU.

Under the Shareholders’ Agreement between CNNC, PFPL and LHU, each shareholder has agreed not to demand repayment of the loans

without the prior written consent of the other shareholder. As neither CNNC nor PFPL can demand repayment, the repayment of the

loans can be deferred. Repayment is dependent on LHU generating sufficient free cash flows to repay the loans. These loans have not

been guaranteed by Paladin. Interest on shareholder loans is also deferred until there are sufficient cash flows.

On consolidation, PFPL’s 75% share of the LHU intercompany shareholder loans are eliminated against the intercompany shareholder

loans receivable recorded in PFPL and therefore, they do not appear on Paladin’s consolidated statement of financial position. As a result

of the consolidation of 100% of LHU’s assets and liabilities, LHU’s shareholder loan liability to CNNC is recognised on the consolidated

statement of financial position.

On 1 January 2021, two shareholder loan facility agreements were extended with revised terms which included modifications to the term

and interest rate of the loans. The revised terms of the shareholder loans reflected a mix of fixed and floating rate interest and interest

free periods and considered that the LHM was in care and maintenance and not generating revenue. The shareholders loan terms may

not be reflective of market conditions for external borrowings at this time. The face value of the loans remained the same.

These revisions were considered a “substantial” modification under AASB9 Financial Instruments, which required the original loan

facilities to be “extinguished” and new loan facilities to be recognised at fair value. As a result, the book value of the total amount of the

shareholder loans amounting to US$400,438,000 (owing to the Group and CNNC at 31 December 2020) was derecognised and “new”

loans recognised at a fair value of US$247,633,000 at that date with the difference taken directly to equity as a shareholder contribution.

After eliminations, the fair value of the CNNC share of the loan facilities was recognised at US$64,432,000.

The difference between the fair value and face value of the loans was recognised in equity and will be unwound over the term of the

loans through the effective interest rate. At 30 June 2023 US$7,461,000 (2022 US$6,516,000) accretion expense had been recognised

on these loans.

In July 2021, PFPL and CNNC entered into further loan agreements to advance funds to LHU to fund care and maintenance and restart

capital requirements. These loans were also recognized at fair value. After eliminations, the difference between the fair value and face

value of these loans of US$644,000 has also been recognised in equity and will be unwound over the term of the loans through the

effective interest rate. At 30 June 2023 US$40,000 (2022 US$21,000) accretion expense had been recognised on these loans.

8 4

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

NOTE 7.

CONTRIBUTED EQUITY AND RESERVES

Issued and Paid Up Capital

Number of Shares

2023

2022

2023

US$’000

2022

US$’000

Ordinary shares

Issued and fully paid

2,980,146,447

2,977,779,002

2,646,644

2,645,778

Fully paid ordinary shares carry one vote per share and carry the right to dividends.

Recognition and measurement

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a

deduction, net of tax, from the proceeds.

Movements in ordinary shares on issue

Date

Number of
Shares

Issue Price

Exchange Rate
US$: A$

Balance 30 June 2021

2,677,756,397

August 2021

SARs exercised

September 2021

SARs exercised

September 2021

SARs exercised

October 2021

SARs exercised

November 2021

SARs exercised

January 2022

SARs exercised

March 2022

SARs exercised

134,674

95,078

79,804

174,019

600,000

101,015

226,903

—

Total

US$’000

2,489,082

April 2022

May 2022

Institutional offer

277,777,778

Share Purchase Plan

20,833,334

0.72

1.31636

151,934

1.41781

10,580

Balance 30 June 2022

2,977,779,002

Transaction costs

(5,929)

2,645,778

8 5

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

Date

Number of
Shares

Issue Price

Exchange Rate
US$: A$

Balance 30 June 2022

2,977,779,002

September 2022

PRs exercised

September 2022

PRs exercised

September 2022

SARs exercised

100,000

October 2022

PRs exercised

1,095,000

SARs exercised

November 2022

SARs exercised

December 2022

SARs exercised

January 2023

SARs exercised

April 2023

May 2023

SARs exercised

196,828

500,000

100,000

126,875

29,662

19,080

Total

US$’000

2,645,778

649

—

Balance 30 June 2023

2,980,146,447

2,646,644

Consolidation
reserve

Listed option
application
reserve

Share based
payment
reserve

Foreign
currency
translation
reserve

Financial
assets
at FVOCI
reserve

Premium on
acquisition
reserve

Total

Reserves

US$’000

Balance at 30 June 2021

48,319

137

48,042

(180,372)

10,434

14,086

(59,354)

Share-based payments

Foreign currency translation

Transfer of reserves on
deregistration of subsidiaries through
the income statement

Transfer of gain on disposal of equity
investments at fair value through
Other Comprehensive Income

—

1,885

—

(1,254)

—

(2,760)

—

1,885

(1,254)

—

(2,760)

—

(10,434)1

—

(10,434)

Balance at 30 June 2022

48,319

137

49,927

(184,386)

Share-based payments

Foreign currency translation

Revaluation of financial assets

—

3,226

—

(870)

—

(443)

—

14,086

(71,917)

—

3,226

(870)

(443)

Balance at 30 June 2023

48,319

137

53,153

(185,256)

(443)

14,086

(70,004)

Relates to the sale of 90M Lotus Resources Ltd shares

8 6

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

Nature and Purpose of Reserves

Consolidation reserve

This reserve is the result of the difference between the fair value and the net assets of a reduction of interest in controlled entities where

Paladin retained control.

Listed option application reserve

This reserve consists of proceeds from the issue of listed options, net of expenses of issue. These listed options expired unexercised and

no restriction exists for the distribution of this reserve.

Share-based payments reserve

This reserve is used to record the value of equity benefits provided to Directors, employees and consultants as part of their remuneration.

Financial assets at fair value in other comprehensive income

This reserve records the changes in fair value of certain investments in equity securities in Other Comprehensive Income. The Group

transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.

Foreign currency translation reserve

This reserve is used to record exchange differences arising on translation of the Group entities that do not have a functional currency of

US dollars and have been translated into US dollars for presentation purposes, as described in Note 3.

Premium on acquisition reserve

This reserve represents the premium paid on the acquisition of an interest in Summit Resources Ltd.

NOTE 8.

FINANCIAL RISK MANAGEMENT

Financial Risk Management Objectives and Policies

The Group’s management of financial risk is aimed at ensuring net cash flows are sufficient to:

• Meet all its financial commitments; and

• Maintain the capacity to fund corporate growth activities.

The Group monitors its forecast financial position and manages funds on a group basis on a regular frequency.

Market, liquidity and credit risk (including foreign exchange, commodity price and interest rate risk) arise in the normal course of the

Group’s business. These risks are managed under Board approved directives which underpin practices and processes. The Group’s

principal financial instruments comprise interest bearing debt, cash and short-term deposits and available for sale financial assets. Other

financial instruments include trade receivables and trade payables, which arise directly from operations.

Market Risk

Foreign Exchange Risk

The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures.

Foreign exchange risk arises from future commitments, assets and liabilities that are denominated in a currency that is not the functional

currency of the relevant Group company.

The Group’s borrowings and deposits are largely denominated in both US and Australian dollars. Currently there are no foreign exchange

hedge programmes in place. However, the Group finance function manages the purchase of foreign currency to meet operational

requirements.

8 7

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

The financial instruments exposed to movements in the Australian dollar are as follows:

Financial assets

Cash and cash equivalents

Trade and other receivables

Financial assets – held for sale

Financial liabilities

Trade and other payables

Net exposure

2023

US$’000

2022

US$’000

85,452

163,814

197

1,590

201

—

87,239

164,015

(537)

(363)

86,702

163,652

The following table summarises the sensitivity of financial instruments held at balance sheet date to movements in the exchange rate of

the Australian dollar to the US dollar, with all other variables held constant. The 9% sensitivity is based on reasonably possible changes,

over a financial year, using the observed range of actual historical rates for the preceding five year period.

8 8

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

Post-tax gain/(loss)

AUD/USD +9% (2022: +9%)

AUD/USD -9% (2022: -9%)

IMPACT ON PROFIT/(LOSS)

IMPACT ON EQUITY

2023

US$’000

2022

US$’000

2023

US$’000

2022

US$’000

6,002

(5,011)

11,330

(9,459)

110

(92)

—

The financial instruments exposed to movements in the Namibian dollar against the USD are as follows:

Financial assets

Cash and cash equivalents

Trade and other receivables

Financial liabilities

Trade and other payables

Net exposure

2023

US$’000

2022

US$’000

1,988

2,345

4,333

(8,297)

(3,964)

332

139

471

(265)

206

The following table summarises the sensitivity of financial instruments held at balance sheet date to movements in the exchange rate of

the Namibian dollar to the US dollar, with all other variables held constant. The 14% sensitivity is based on reasonably possible changes,

over a financial year, using the observed range of actual historical rates for the preceding five year period.

Post-tax gain/(loss)

NAD/USD +14% (2022: +17%)

NAD/USD -14% (2022: -17%)

Interest Rate Risk

IMPACT ON PROFIT/(LOSS)

2023

US$’000

2022

US$’000

(403)

304

(18)

Interest rate risk is the risk that the Group’s financial position will be adversely affected by movements in interest rates that will increase

the cost of floating rate debt, create opportunity losses on fixed rate borrowings in a falling interest rate environment or reduce interest

income.

The interest rate risk on cash balances is not considered material. Cash at bank earns interest at floating rates based on daily bank

deposit rates. Short-term deposits are made for varying periods depending on the immediate cash requirements of the Group and earn

interest at the respective short-term deposit rates.

8 9

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

The interest rate risk on interest-bearing liabilities is not considered to be a material risk. These loans represent the 25% of intercompany

shareholder loans owing by LHU to Paladin Finance Pty Ltd (PFPL) that were assigned to CNNC upon the sale of a 25% interest in LHMHL

to CNNC in 2014. These loans maintain the same conditions as the intercompany shareholder loans and have a range of fixed and floating

rates. During the previous two years, certain shareholder loans were extended with revised conditions or entered into. Note 6 details

the impact of these arrangements. All other financial assets and liabilities in the form of receivables, investments in shares, payables and

provisions, are non-interest bearing.

The Group currently does not engage in any hedging or derivative transactions to manage interest rate risk.

The floating rate financial instruments exposed to interest rate movements are as follows:

Financial assets

Cash and cash equivalents

Restricted cash

Financial liabilities

Interest-bearing liabilities

Net exposure

Market Price Risk

2023

US$’000

2022

US$’000

126,636

177,066

1,014

1,000

127,650

178,066

(58,912)

(52,732)

68,738

125,334

Price risk is the risk that the Group’s financial position will be adversely affected by movements in the market value of its available-for-

sale financial assets.

The financial instruments exposed to movements in market value are as follows:

2023

US$’000

2022

US$’000

Financial assets

Financial assets – held for sale

1,590

—

The following table summarises the sensitivity of financial instruments held at balance date to movements in the market price of available-

for-sale financial instruments, with all other variables held constant. The 25% sensitivity is based on reasonable possible changes, over

a financial year, using the observed range of actual historical prices.

9 0

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

Post-tax gain/(loss)

Market price +25% (2022: +25%)

Market price -25% (2022: -25%)

Post-tax impact on reserve

Market price +25% (2022: +25%)

Market price -25% (2022: -25%)

Liquidity Risk

IMPACT ON EQUITY

2023

US$’000

2022

US$’000

278

(278)

278

(278)

—

The liquidity position of the Group is managed to ensure sufficient liquid funds are available to meet the Group’s financial commitments

in a timely and cost effective manner. The Group finance function continually reviews the Group’s liquidity position including cash flow

forecasts to determine the forecast liquidity position and maintain appropriate liquidity levels. Sensitivity analysis is conducted on a range

of pricing and market assumptions to ensure the Group has the ability to meet commitments. This enables the Group to manage cash

flows on a long term basis and provides the flexibility to pursue a range of funding alternatives if necessary. Note 6 details the repayment

obligations in respect of the amount of the shareholder loan facilities.

The maturity profile of the Group’s payables based on contractual undiscounted payments is as follows:

PAYABLES MATURITY ANALYSIS

Total

<1 year

1-2 years

2-3 years

>3 years

US$’000

2023

Trade and other payables

9,094

LHU’s loans from CNNC — principal

Interest payable on CNNC loans

Total payables

2022

81,824

31,331

—

122,249

9,094

Trade and other payables

2,211

LHU’s loans from CNNC — principal

Interest payable on CNNC loans

81,739

27,766

—

Total payables

111,716

2,211

—

81,824

31,331

113,155

—

81,739

27,766

109,505

9 1

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

Credit Risk

Credit risk arises from cash and cash equivalents, contractual cash flows from other receivables carried at amortised cost and deposits

with banks and financial institutions, as well as credit exposures to trade receivables. Credit risk is the risk that a contracting entity will

not complete its obligation under a financial instrument that will result in a financial loss to the Group. The carrying amount of financial

assets represents the maximum credit exposure. The Group’s receivables are due from recognised, creditworthy third parties. In addition,

receivable balances are monitored on an ongoing basis.

While cash and cash equivalents are also subject to the impairment requirements of AASB 9 the identified impairment loss is expected

to be immaterial.

The maximum exposure to credit risk at the reporting date is set out below.

Current

Cash and cash equivalents1

Restricted cash2

Trade and other receivables – other entities

Non-Current

2023

US$’000

2022

US$’000

126,636

177,066

1,014

445

1,000

4,989

128,095

183,055

Trade and other receivables – other entities

355

194

Total

128,450

183,249

The Group’s maximum deposit with a single financial institution represents 52% (2022: 49%) of cash and cash equivalents. This financial institution has a credit rating of Aa3
(2022: Aa3).

2 Restricted cash is held in Namibia, this financial institution has a credit rating of Ba2 (2022: Ba2).

2023

Trade receivables

Other receivables

Total receivables

2022

Other receivables

Total receivables

Total

US$’000

<1 year

US$’000

1-2 years

US$’000

2-3 years

US$’000

164

636

800

5,183

—

445

4,989

164

191

355

194

—

The Group applies the AASB 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance

for all trade receivables.

9 2

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

For Other Receivables, the Group considers the probability of default upon the initial recognition of an asset. The Group also considers

whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether

there is a significant increase in credit risk the Company:

• compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition

• considers available reasonable and supportive forwarding-looking information in calculating the expected credit loss rates.

Where possible, the Group has applied an expected credit loss based on industry provided information.

Fair Values

The fair value of the financial instruments as well as the methods used to estimate the fair value are summarised in the table below:

Year ended 30 June 2023

Year ended 30 June 2022

(Level 1)

(Level 2)

(Level 3)

Total

(Level 1)

(Level 2)

(Level 3)

Total

US$’000

Financial assets for which fair values are disclosed

Australia listed shares

Share receivables

Cash receivables

1,590

—

Total financial assets

1,590

—

1,590

—

1,590

—

1,926

2,796

4,722

Quoted market price represents the fair value determined based on quoted prices on active markets as at the reporting date without any

deduction for transaction costs. The fair value of the listed equity investments is based on quoted market prices which are classified as

Level 1 inputs.

For financial instruments not quoted in active markets, the Group uses valuation techniques such as present value techniques, comparison

to similar instruments for which market observable prices exist and other relevant models used by market participants. These valuation

techniques use both observable (Level 2) and unobservable (Level 3) market inputs.

For financial instruments that are recognised at fair value on a recurring basis, the Group determines whether transfers have occurred

between Levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value

measurement as a whole) at the end of each reporting period.

Due to the short-term nature of some of the non-current other receivables, their carrying amount is considered to be the same as their

fair value.

Capital Management

When managing capital, management’s objective is to ensure adequate cash resources to meet the Company’s commitments are

maintained, as well as to maintain optimal returns to shareholders through ensuring the lowest cost of capital available to the entity.

The Company utilises a combination of debt and equity to provide the cash resources required. Management reviews the capital structure

from time to time as appropriate.

The Group finance function is responsible for the Group’s capital management, including management of long-term debt and cash as

part of the capital structure. This involves the use of corporate forecasting models which enable analysis of the Group’s financial position

including cash flow forecasts to determine the future capital management requirements. To ensure sufficient funding for operational

expenditure and growth activities, a range of assumptions are modelled so as to provide the flexibility in determining the Group’s optimal

future capital structure.

9 3

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

Debt (face value plus accrued interest)1

Less cash and cash equivalents

Net Debt

Total equity

Total Capital

Gearing Ratio

(defined as net debt/total capital)

2023

US$’000

2022

US$’000

—

(126,636)

(177,066)

(126,636)

(177,066)

335,084

358,412

208,448

181,346

1 Excludes LHU’s loans from CNNC that were assigned by PFPL to CNNC and form part of CNNC’s 25% interest in LHU as the Group views these as shareholder loans to LHU.

PERFORMANCE FOR THE YEAR

NOTE 9.

REVENUE

Sale of uranium

Total

2023

US$’000

—

2022

US$’000

4,700

During FY2022 the Company participated in a uranium spot trading opportunity.

Recognition and Measurement

Amounts disclosed as revenue are net of duties and taxes paid. The Group’s main source of revenue is the sale of uranium, however the

Restart Project at the Langer Heinrich Mine means minimal revenue is being generated. Revenue is measured based on the consideration

specified in a contract with a customer. The Group’s sales arrangements with its customers are pursuant to enforceable contracts that

provide for the nature and timing of satisfaction of performance obligations, including payment terms and payment due dates. Each

delivery is considered a separate performance obligation under the contract.

The Group recognises revenue when it transfers control over a good or service to a customer. The Group has concluded that this occurs

on the delivery of the product to the customer at the converter. When uranium is delivered to converters, the converter will credit the

Group’s account for the volume of accepted uranium. Based on delivery terms in the sales contract with its customer, the converter will

transfer the title of a contractually specified quantity of uranium to the customer’s account at the converter’s facility. At this point, control

has been transferred and the Group recognises revenue for the uranium supply.

9 4

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

NOTE 10.

INCOME AND EXPENSES

Cost of Sales

Inventory purchased

Total

Other income

Interest income

Sundry income

Other losses

2023

US$’000

2022

US$’000

—

4,535

161

4,696

(4,693)

852

159

1,011

Net loss on disposal of property, plant and
equipment

(512)

(12)

Foreign exchange gain/(loss) (net)

584

(8,179)

Administration, Marketing and Non-Production Costs

Corporate and marketing

Corporate restructure costs

LHM mine site

LHM depreciation

Share based payments

Other

Total

Finance Costs

LHU’s loans from CNNC

Accretion expense on shareholder loans

Mine closure provision accretion expense

Lease interest expense

Total

Total depreciation and amortisation expense

(3,353)

(2,694)

—

(6,669)

(2,738)

(4,092)

(612)

(29)

(3,727)

(15,106)

(1,997)

(206)

(17,464)

(23,759)

(3,564)

(7,501)

(3,249)

(48)

(3,111)

(6,537)

(3,306)

(52)

(14,362)

(13,006)

(2,909)

(15,310)

9 5

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

Recognition and Measurement

Borrowing Costs

Borrowing costs incurred for the construction of any qualifying asset are capitalised during the period of time that is required to complete

and prepare the asset for its intended use or sale.

Other borrowing costs are expensed as incurred including the unwinding of discounts related to mine closure provisions. When relevant,

the capitalisation rate used to determine the amount of borrowing costs to be capitalised is the weighted average interest rate applicable

to the entity’s outstanding borrowings during the year.

Employee Benefits Expense

Wages and salaries

Defined contribution superannuation

Share-based payments

Other employee benefits

Total

2023

US$’000

(2,829)

(313)

(4,092)

(1,244)

2022

US$’000

(2,612)

(318)

(1,997)

(496)

(8,480)

(5,423)

The table above sets out personnel costs expensed during the year and are included within Administration, Marketing and Non-Production

Costs within the Consolidated Income Statement.

NOTE 11.

INCOME AND OTHER TAXES

Income Tax Expense

Current income tax

Current income tax expense

Income tax expense reported in the Consolidated Income Statement

Amounts Charged or Credited Directly to Equity

Deferred income tax related to items charged or credited directly to equity:

Capital gain on sale of investments for sale

Fair value adjustment to CNNC Loans

Capital gains applied

Tax losses recognised to offset fair value adjustment

Income tax benefit reported in equity

2023

US$’000

2022

US$’000

—

373

—

(373)

—

(193)

—

193

—

Numerical Reconciliation of Income Tax Benefit to Prima Facie Tax Payable

Loss before income tax expense from continuing operations

(27,058)

(43,938)

Tax at the Australian tax rate of 30% (2022 – 30%)

(8,117)

(13,182)

9 6

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

Difference in overseas tax rates

Non-deductible items

Under/over prior year adjustment

Previously unrecognised tax losses now recouped to reduce current tax expense

Deferred tax assets on losses not recognised

Income tax expense reported in the Consolidated Income Statement

Tax Losses

Australian unused tax losses and capital losses for which no deferred tax asset has been
recognised19

2023

US$’000

(4,917)

989

—

(3,137)

15,182

—

2022

US$’000

(1,223)

730

—

13,676

2023

US$’000

2022

US$’000

(707,638)

(741,735)

Other unused tax losses for which no deferred tax asset has been recognised210

(364,508)

(373,531)

Total unused tax losses for which no deferred tax asset has been recognised

(1,072,146)

(1,115,266)

The gross value of unused capital losses for which no deferred tax asset has been recognised are US$652.0M (2022: US$660.4M). These
unrecognised capital losses were predominantly generated from the sale of Paladin (Africa) Ltd. The benefit of these unused capital losses
will only be obtained if sufficient future capital gains are made and the losses remain available under tax legislation.

Deferred Income Tax

Deferred tax liabilities

Accelerated prepayment deduction for tax purposes

(26)

(297)

Accelerated depreciation for tax purposes

(59,949)

(65,977)

Exploration expenditure

Inventory / Consumables

Other

Gross deferred tax liabilities

Set off of deferred tax assets

Net deferred tax liabilities

Deferred tax assets

(3,719)

(2,939)

(81,883)

(3,578)

(3,144)

(4,006)

(148,516)

(77,002)

148,516

77,002

—

Revenue losses available for offset against future taxable income

170,989

163,427

Foreign currency balances

Interest bearing liabilities

116,868

12,491

48,487

33,600

Including tax losses transferred from Summit Resources Limited on consolidation.

1
2 Excluding tax losses from discontinued operation

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

Tax Losses

Provisions

Other

Australian Group deferred tax asset on carried forward losses

Deferred tax assets not recognised

Gross deferred tax assets

Set off against deferred tax liabilities

Net deferred tax assets recognised

2023

US$’000

8,224

4,085

(3,137)

2022

US$’000

7,443

3,118

—

(161,004)

(179,073)

148,516

77,002

(148,516)

(77,002)

—

Paladin and all its wholly owned Australian resident entities are part of a tax-consolidated group under Australian tax law. The net

deferred tax assets recognised are in respect of revenue losses expected to be offset against future taxable income.

This benefit for tax losses will only be obtained if:

1. The Consolidated Entities derive future assessable income of a nature and of an amount sufficient to enable the benefit from the

deductions for the losses to be realised;

2. The Consolidated Entities continue to comply with the conditions for deductibility imposed by tax legislation; and

3. No changes in tax legislation adversely affect the Consolidated Entities in realising the benefit from the deductions for the losses.

Recognition and Measurement

Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the

taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantially enacted, at the

reporting date in the countries where the Group operates and generates taxable income.

Current income tax relating to items recognised directly in other comprehensive income or equity is recognised in other comprehensive

income or equity respectively and not in the statement of profit or loss. Management periodically evaluates positions taken in the

tax returns with respect to situations in which applicable tax regulations are subject to integration and establishes provisions where

appropriate.

Deferred tax assets and liabilities are recognised using the full liability method for temporary differences at the tax rates expected to

apply when the assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted

for each jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to

measure the deferred tax asset or liability. An exception is made for certain temporary differences arising from the initial recognition of an

asset or a liability. No deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a transaction,

other than a business combination, that at the time of the transaction did not affect either accounting profit or taxable profit or loss.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable

amounts will be available to utilise those temporary differences and losses. Current and deferred tax balances attributable to amounts

recognised directly in equity are also recognised directly in equity. Deferred tax assets and liabilities are offset only if a legally enforceable

right exists to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable

entity and the same taxation authority.

9 8

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

NOTE 12. EARNINGS PER SHARE

Loss per share attributable to ordinary equity holders of the

Parent from continuing operations

2023

US cents

2022

US cents

(0.4)

(1.0)

The following reflects the income and share data used in the basic and diluted earnings per share computations:

Net loss attributable to ordinary equity holders of the Parent from continuing operations

(10,572)

(26,743)

2023

US$’000

2022

US$’000

2023

2022

Number of Shares

Weighted average number of ordinary shares used in calculation of basic earnings per share

2,979,391,490

2,747,439,635

Weighted average number of ordinary shares used in

calculation for diluted earnings per share

2,996,683,791

2,759,963,496

Total number of securities not included in weighted average

calculation due to their antidilutive nature in the current period, that could potentially dilute
basic earnings per share in the future

17,292,302

12,523,861

Recognition and Measurement

Basic Earnings Per Share

Basic earnings per share are calculated by dividing the profit attributable to equity holders of the Company by the weighted average

number of ordinary shares outstanding during the period.

Diluted Earnings Per Share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income

tax effect associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued

for no consideration in relation to dilutive potential ordinary shares. Diluted earnings per share is the same as basic earnings per share in

2023 and 2022 as the number of potentially dilutive shares does not change the result of earnings per share.

9 9

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

NOTE 13. RECONCILIATION OF EARNINGS AFTER INCOME TAX TO NET CASH FLOW FROM OPERATING ACTIVITIES

Reconciliation of Net Loss After Tax to Net Cash

Flows Used in Operating Activities

Net loss

Adjustments for

2023

US$’000

2022

US$’000

(27,058)

(43,939)

Depreciation and amortisation

2,909

15,310

Exploration Expenditure

Sundry income

Loss on disposal of property, plant and equipment

Net exchange differences

Share-based payments

Non-cash financing costs

Accretion expense on shareholder loan

Changes in operating assets and liabilities

(Increase) in prepayments

(Increase) in trade and other receivables

(Increase)/Decrease in inventories

Increase/(Decrease) in trade and other payables

(Decrease) in provisions

441

(421)

512

(580)

4,092

6,862

7,501

(977)

(2,507)

(546)

413

(16)

—

(642)

8,206

1,997

6,470

6,537

(4)

(55)

(641)

(68)

Net cash flows used in operating activities

(9,375)

(6,794)

1 0 0

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

OPERATING ASSETS AND LIABILITIES

NOTE 14. TRADE AND OTHER RECEIVABLES

Current

Trade receivables and other receivables

GST and VAT

Total current receivables

Non-Current

Trade receivables and other receivables

Long term deposits

Total non-current receivables

Notes

2023

US$’000

2022

US$’000

445

2,311

4,989

2,756

5,084

355

—

355

—

194

A. Trade receivables are non-interest bearing. Carrying value approximates fair value due to the short-term nature of the

receivables. Other receivables are amounts that generally arise from transactions outside the usual operating activities of the

Group.

Included in FY2022, receivables from the sale of Paladin (Africa) Limited were:

• A$3M shares in Lotus Resources Ltd issued 13 March 2023;

• US$3M repayment of the environmental performance bond paid 13 March 2023.

Future shares - Changes in the fair value of financial assets at fair value through profit or loss are recognised in other gains/

(losses) in the statement of profit or loss as applicable.

Future cash receivables - An expected credit loss model is used for calculating an allowance for doubtful debts. Details about the

Group’s impairment policies and the calculation of the expected credit loss are provided in Note 8.

B. GST and VAT receivables relates to amounts due from Governments in Australia, Namibia and Canada.

C. Long term deposits relates to guarantees provided by a bank for the corporate office lease, tenements and corporate credit

cards.

Recognition and Measurement

Trade Receivables

Receivables are initially recognised at fair value and subsequently at the amounts considered receivable. Trade receivables are amounts

due from customers for goods sold or services performed in the ordinary course of business. They are generally due for settlement within

30 days and therefore are all classified as current.

Due to the short-term nature of the current receivables, their carrying amount is assumed to approximate fair value.

Other Receivables

These amounts generally arise from transactions outside the usual operating activities of the Group.

1 0 1

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

The Group assesses on a forward-looking basis the expected credit loss associated with its financial instruments carried at amortised

cost and fair value through other comprehensive income. The impairment methodology applied depends on whether there has been a

significant increase in credit risk.

For trade receivables, the Group applies the simplified approach permitted by AASB 9, which requires expected lifetime losses to be

recognised from initial recognition of the receivables.

Trade receivables are written off where there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation

of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Group, and a failure to make contractual

payments for a period of greater than 120 days past due. Impairment losses on trade receivables are presented as net impairment losses

within operating profit. Subsequent recoveries of amounts previously written off are credited against the same line item.

NOTE 15. PREPAYMENTS

Current

Advance payments

Prepayments

Total prepayments

2023

US$’000

2022

US$’000

9,027

2,100

11,127

—

1,263

Advance payments reflect payments made to suppliers in relation to the LHM Restart Project. These payments are taken to Capital Work

in Progress when services have been provided.

NOTE 16.

INVENTORIES

Current

Stores and consumables (at cost)

Total current inventories at the lower of cost and net realisable value

2023

US$’000

2022

US$’000

5,646

5,100

Inventory Expense

Uranium inventories purchased for subsequent sale by the Group during the year ended 30 June 2023 were recognised as an expense

totalling US$Nil (2022: US$4,692,500).

Write-down of Inventories

During 2023 stores and consumables held at LHM were written down by US$32,588 (2022: US$5,411) due to obsolescence.

Recognition and Measurement

Consumable stores inventory are valued at the lower of cost and net realisable value using the weighted average cost method, after

appropriate allowances for redundant and slow moving items.

Finished goods and work in progress inventory are valued at the lower of cost and net realisable value using the weighted average cost

method. Cost is derived on an absorption costing basis, including both fixed and variable production costs and attributable overheads

incurred up to the delivery point where legal title to the product passes. No accounting value is attributed to stockpiles containing ore

at less than the cut-off grade.

1 0 2

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

The costs of production include labour costs, materials and contractor expenses which are directly attributable to the extraction and

processing of ore (including any recognised expense of stripping costs); the depreciation of property, plant and equipment used in the

extraction and processing of ore; and production overheads.

Significant Estimates and Assumptions

Net Realisable Value of Inventories

The Group reviews the carrying value of inventories regularly to ensure that their cost does not exceed net realisable value. In determining

net realisable value various factors are taken into account, including sales prices and costs to complete inventories to their final form.

During 2016, the carrying value of ore stockpiles held at LHM was reduced to net realisable value resulting in an impairment loss of

US$168.9M (2015: US$Nil) for the year, recognised in other expenses. Subsequent to 30 June 2016 some of the stockpile was processed

leaving a residual of 6.3M tonnes. The net realisable value of the ore stockpiles is dependent on a number of key factors including:

uranium price, future processing costs, grade and recovery rates. As at 30 June 2023 the LHM Restart Project is still underway. The

Company is assessing the timing of the reversal of the impairment and the net realisable value of the inventory.

NOTE 17. FINANCIAL ASSETS – HELD FOR SALE

Current financial assets

2023

US$’000

1,590

2022

US$’000

—

The Group has an investment in Lotus Resources Limited at 30 June 2023 of 12,987,000 shares (2022: Nil) issued at A$0.23 per share

as part of the final consideration in relation to the sale of Paladin (Africa) Ltd to Lotus Resources Ltd. At 30 June 2023 the market value

of these shares is US$1.5M (A$2.4M) (2022: US$Nil: A$Nil) based on a share price of $A0.185 per share.

Recognition and Measurement

Financial assets are recognised on trade date, being the date on which the Group commits to purchase or sell the asset.

Equity Instruments

The Group measures all equity investments at fair value. Where the Group’s management has elected to present fair value gains and

losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to the Consolidated Income

Statement following the derecognition of the investment. Dividends from such investments continue to be recognised in the Consolidated

Income Statement as other income when the Group’s right to receive payments is established.

Changes in the fair value of financial assets at FVPL are recognised in other gains/(losses) in the Consolidated Income Statement as

applicable. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately

from other changes in fair value.

1 0 3

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

NOTE 18. PROPERTY, PLANT AND EQUIPMENT

Total

Plant and Equipment

Land and Buildings

Construction Work
in Progress

US$’000

2023

Net carrying value

At 1 July 2022

Additions

Depreciation and amortisation expense

Reclassification

Disposals

Foreign currency translation

At 30 June 2023

Cost

166,274

160,634

4,044

34,997

(2,768)

—

(571)

(4)

303

(2,738)

603

(266)

(4)

197,928

158,532

384,866

339,813

(30)

—

(305)

—

3,753

9,410

Accumulated depreciation

(186,938)

(181,281)

(5,657)

2022

Net carrying value

At 1 July 2021

Additions

178,089

172,925

1,015

175

Depreciation and amortisation expense

(12,812)

(12,448)

Disposals

Foreign currency translation

At 30 June 2022

Cost

(12)

(6)

(12)

(6)

166,274

160,634

362,863

351,407

Accumulated depreciation

(196,589)

(190,773)

4,408

—

(364)

—

4,044

9,860

(5,816)

1,596

34,650

—

(603)

—

35,643

—

756

840

—

1,596

—

1 0 4

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

Property, Plant and Equipment Pledged as Security for Liabilities

No property, plant and equipment has been pledged as security.

Recognition and Measurement

All property, plant and equipment are stated at historical cost less accumulated depreciation and impairment losses. Historical cost

includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable

that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other

repairs and maintenance are charged to the Consolidated Income Statement during the financial period in which they are incurred.

Property, plant and equipment costs include both the costs associated with construction of equipment associated with establishment of

an operating mine, and the estimated costs of dismantling and removing the asset and restoring the site on which it is located.

Land is not depreciated. Depreciation on other assets is calculated using the unit of production basis or the straight line method to

allocate their cost amount, net of their residual values, over their estimated useful lives, as follows:

• Buildings

• Databases

• Plant and equipment

• Leasehold improvements

• Mine plant and equipment

20 years

10 years

2-6 years

period of lease

remaining useful life of the assets

The estimates of useful lives, residual values and depreciation method are reviewed at the end of each reporting period with the effect

of any changes in estimate accounted for on a prospective basis.

Significant Estimates and Assumptions

Change in Accounting Estimate

As a result of the decision to return the LHM to production, there has been a change in the basis for depreciating the LHM Plant. Whilst

the LHM was in Care and Maintenance, relevant tangible non-current assets were depreciated using the Straight Line method. From 1

July 2022, the basis of depreciation has changed prospectively to the units of production method over the remaining useful life of the

assets resulting in a nil depreciation charge for those assets for the period. This has resulted in a reduction in depreciation charges of

US$9,722,000 for the period.

Impairment of Property, Plant and Equipment; Mine Development and Intangibles

Property, plant and equipment; mine development and intangibles are tested for impairment whenever events or changes in circumstances

indicate that the carrying value may not be recoverable.

The Group conducts an internal review of asset values at each reporting date, which is used as a source of information to assess for

any indicators of impairment. Factors, such as changes in uranium prices, production performance and mining and processing costs are

monitored to assess for indicators of impairment. If any indication of impairment exists, an estimate of the asset’s recoverable amount

is calculated.

An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. Recoverable

amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are

grouped at the lowest levels for which there are separately identifiable cash inflows that are largely independent of the cash inflows from

other assets or groups of assets (cash-generating unit or CGU).

The future recoverability of the property, plant and equipment, mine development and intangibles is dependent on a number of key

factors including: uranium price, capex, life of mine, restart date, discount rates used in determining the estimated discounted cash flows,

foreign exchanges rates, tax rates, the level of proved and probable reserves and measured, indicated and inferred mineral resources,

future technological changes which could impact the cost of production and future legal changes, including changes to environmental

restoration obligations.

Paladin did not identify any impairment indicators in relation to the Langer Heinrich Mine CGU.

1 0 5

PALADIN ENERGY LTD: ANNUAL REPORT 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

NOTE 19. MINE DEVELOPMENT

Mine development – at cost

Less accumulated depreciation and impairment

Net carrying value – mine development

Net carrying value at start of year

Depreciation and amortisation expense

Transfer from Exploration & Evaluation assets on
commencement of Restart Project

2023

US$’000

2022

US$’000

70,180

63,091

(48,116)

22,064

14,975

—

7,089

16,748

(1,773)

—

Net carrying value at end of year

22,064

14,975

Recognition and Measurement

Mine development

Pre-production costs are deferred as development costs until such time as the asset is capable of being operated in a manner intended

by management and depreciated on a straight line basis. Post-production costs are recognised as a cost of production.

Significant Judgements, Estimates and Assumptions

Change in Accounting Estimate

As a result of the decision to return the LHM to production, there has been a change in the basis for depreciating the LHM Plant. Whilst

the LHM was in Care and Maintenance, relevant tangible non-current assets were depreciated using the Straight Line method. From 1

July 2022, the basis of depreciation has changed prospectively to the units of production method over the remaining useful life of the

assets resulting in a nil depreciation charge for those assets for the period. This has resulted in a reduction in depreciation charges of

US$1,773,000 for the period.

Proved and Probable Reserves

The Group uses the concept of a life of mine as an accounting value to determine such things as depreciation rates and the appropriate

period to discount mine closure provisions. In determining life of mine, the proved and probable reserves measured in accordance with

the 2012 edition of the JORC Code specific to a mine are taken into account which by their very nature require judgements, estimates

and assumptions.

1 0 6

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

NOTE 20. EXPLORATION AND EVALUATION EXPENDITURE

The following table details the expenditures on interests in mineral properties by area of interest for the year ended 30 June 2023:

Areas of interest

US$’000

Valhalla/
Skal

Isa North

Carley Bore

Canada

Manyingee

Fusion

LHM

Total

Balance 1 July 2021

39,520

7,802

7,917

31,340

7,524

228

5,226

99,557

Expenditure capitalised

Foreign exchange differences

116

—

280

502

—

(1,240)

112

—

1,863

3,010

—

(1,240)

Balance 30 June 2022

39,636

8,082

7,965

30,602

7,636

317

7,089

101,327

Expenditure capitalised

187

1,470

—

1,943

Expenditure transferred to Mine
Development costs

Foreign exchange differences

—

(860)

—

Balance 30 June 2023

39,735

8,269

7,997

31,212

7,717

391

(7,089)

—

(860)

95,321

Recognition and Measurement

Exploration and evaluation expenditure related to areas of interest is capitalised and carried forward to the extent that:

1. Rights to tenure of the area of interest are current; and

2. Costs are expected to be recouped through successful development and exploitation of the area of interest or alternatively by its sale.

Exploration and evaluation expenditure is allocated separately to specific areas of interest. Such expenditure comprises net direct costs

and an appropriate portion of related overhead expenditure directly related to activities in the area of interest.

Costs related to the acquisition of properties that contain Mineral Resources are allocated separately to specific areas of interest.

If costs are not expected to be recouped through successful development and exploitation of the area of interest, or alternatively by sale,

costs are expensed in the period in which they are incurred.

Exploration and evaluation expenditure that is capitalised is included as part of cash flows from investing activities, whereas exploration

and evaluation expenditure that is expensed is included as part of cash flows from operating activities.

When a decision to proceed to development is made, the exploration and evaluation capitalised to that area is transferred to mine

development. All costs subsequently incurred to develop a mine prior to the start of mining operations within the area of interest are

capitalised and carried at cost. These costs include expenditure incurred to develop new ore bodies within the area of interest, to define

further mineralisation in existing areas of interest, to expand the capacity of a mine and to maintain production.

Capitalised amounts for an area of interest may be written down to their recoverable amount if the area of interest’s carrying amount is

greater than their estimated recoverable amount.

Since 30 June 2022, there have been no events or changes in circumstances to indicate that the carrying value may not be recoverable.

1 07

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

NOTE 21.

INTANGIBLE ASSETS

At 30 June

Intangible assets – at cost

2023

US$’000

2022

US$’000

17,803

Less accumulated depreciation and impairment

(10,010)

Net carrying value – intangible assets

7,793

No amortisation for the year ended 30 June 2023 (2022: US$519,000) is included in non-production costs in the Consolidated Income

Statement as a result of the decision to restart the LHM.

Movements in Intangible Assets

Movements in each group of intangible asset during the financial year are set out below:

2023

Net carrying value at 1 July 2022

Amortisation expense

Net carrying value at 30 June 2023

2022

Net carrying value at 1 July 2021

Amortisation expense

Net carrying value at 30 June 2022

Right to Supply of
Power

Right to Supply of
Water

US$’000

Total

US$’000

2,183

—

2,183

2,328

(145)

2,183

5,610

—

5,610

5,984

(374)

5,610

7,793

—

7,793

8,312

(519)

7,793

Description of the Group’s Intangible Assets

Right to supply of power

LHU has entered into a contract with NamPower in Namibia for the right to access power at the LHM. In order to obtain this right,

the power line connection to the mine was funded by LHU. However, ownership of the power line rests with NamPower. The

amount funded is being amortised on a straight line basis.

Right to supply of water

LHU has entered into a contract with NamWater in Namibia for the right to access water at LHM. In order to obtain this right, the

water pipeline connection to the mine was funded by LHU. However, ownership of the pipeline rests with NamWater. The amount

funded is being amortised on a straight line basis.

1 0 8

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

Recognition and Measurement

Intangible assets acquired separately or in a business combination are initially measured at cost. The cost of an intangible asset acquired

in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost

less any accumulated amortisation and any accumulated impairment losses. Internally generated intangible assets, excluding capitalised

development costs, are not capitalised and expenditure is recognised in the Consolidated Income Statement in the year in which the

expenditure is incurred.

The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets with finite lives are amortised over the

useful life and tested for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period

and the amortisation method for an intangible asset with a finite useful life are reviewed at least at each financial year-end. Changes in

the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for

prospectively by changing the amortisation period or method, as appropriate, which is a change in accounting estimate. The amortisation

expense on the intangible assets with finite lives is recognised in profit or loss in the expense category consistent with the function of

the intangible asset.

A summary of the policies applied to the Group’s intangible assets is as follows:

Right to use water and power supply

Useful lives

Life of mine

Amortisation method used

Straight line method over the remaining useful life (16 years). The amortisation method is reviewed

at each financial year-end.

Impairment testing

Annually and more frequently when an indication of impairment exists.

Significant Judgements, Estimates and Assumptions

Change in Accounting Estimate

As a result of the decision to return the LHM to production, there has been a change in the basis for depreciating the LHM Plant. Whilst

the LHM was in Care and Maintenance, relevant tangible non-current assets were depreciated using the Straight Line method. From 1

July 2022, the basis of depreciation has changed prospectively to the units of production method over the remaining useful life of the

assets resulting in a US$Nil depreciation charge for those assets for the period. This has resulted in a reduction in amortisation charges

of US$519,000 for the period.

NOTE 22. TRADE AND OTHER PAYABLES

Current

Trade and other payables

Total current payables

2023

US$’000

2022

US$’000

9,094

2,211

Trade payables are unsecured, non-interest bearing and are normally settled on 30 day terms.

Recognition and Measurement

Trade and other payables are carried at amortised cost and represent liabilities for goods and services provided to the Group prior to the

end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase

of these goods and services.

1 0 9

PALADIN ENERGY LTD: ANNUAL REPORT 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

NOTE 23. PROVISIONS

Current

Employee benefits

Total current provisions

Non-Current

Employee benefits

Environmental rehabilitation provision

Total non-current provisions

Movements in Provisions

2023

US$’000

2022

US$’000

331

335

124

136

37,925

40,407

38,049

40,543

Movements in provisions during the financial year, excluding provisions relating to employee benefits, are set out below:

At 1 July 2022

Change in cost estimates

Impact of changes to discount and inflation rates

Unwinding of discount rate

Impact of discounting on changes to cost estimates and timing changes

Foreign currency movements

At 30 June 2023

Nature and Timing of Provisions

Environmental rehabilitation

Environmental Rehabilitation

US$’000

40,407

3,091

2,883

3,249

(5,974)

(5,731)

37,925

A provision for environmental rehabilitation and mine closure has been recorded in relation to the LHM. A provision is made for

rehabilitation work when the obligation arises and this is recognised as a cost of production or development as appropriate. Additionally,

the provision includes the costs of dismantling and demolition of infrastructure or decommissioning, the removal of residual material and

the remediation of disturbed areas specific to the infrastructure to a state acceptable to various authorities.

1 1 0

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

Recognition and Measurement

Provisions

Mine closure and restoration costs include the costs of dismantling and demolition of infrastructure or decommissioning, the removal

of residual material and the remediation of disturbed areas specific to the infrastructure. Mine closure costs are provided for in the

accounting period when the obligation arising from the related disturbance occurs, whether this occurs during the mine development or

during the production phase, based on the net present value of estimated future costs.

As the value of the provision for mine closure represents the discounted value of the present obligation to restore, dismantle and close

the mine, the increase in this provision due to the passage of time is recognised as a finance cost. The discount rate used is a pre-tax

rate that reflects the current market assessment of the time value of money and the risks specific to the liability. Foreign exchange

movements are treated as a finance component and recognised in the Consolidated Income Statement.

Provision is made for rehabilitation work when the obligation arises, and this is recognised as a cost of production or development. The

rehabilitation costs provided for are the present value of the estimated costs to restore operating locations. The value of the provision

represents the discounted value of the current estimate to restore and the discount rate used is the pre-tax rate that reflects the current

market assessments of the time value of money and the risks specific to the liability.

Employee benefits

Short-term benefits

Liabilities for short-term benefits, including wages and salaries, and accumulating sick leave expected to be settled within 12 months of

the reporting date are recognised as a current liability in respect of employees’ services up to the reporting date and are measured at the

amounts expected to be paid when the liabilities are settled. Liabilities for non accumulating sick leave are recognised when the leave is

taken and measured at the rates paid or payable.

Long Service Leave

The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected

future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected

future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted

using market yields at the reporting date on corporate bonds with terms to maturity and currency that match, as closely as possible, the

estimated future cash outflows.

Significant Accounting Judgements, Estimates and Assumptions

Environmental rehabilitation provision

The value of this provision represents the discounted value of the present obligation to rehabilitate the mine and to restore, dismantle and

close the mine. The discounted value reflects a combination of management’s assessment of the cost of performing the work required,

the timing of the cash flows and the discount rate. A change in any, or a combination, of the three key assumptions (estimated cash flows,

discount rates or inflation rates), used to determine the provision could have a material impact to the carrying value of the provision.

NOTE 24. EMPLOYEE SHARE RIGHTS PLAN

In 2009, Paladin implemented an Employee Performance Share Rights Plan (the 2009 Employee Share Rights Plan) together with a

Contractor Performance Share Rights Plan (the Contractor Rights Plan). These plans are referred to jointly as the Rights Plans and were

reaffirmed by shareholders at the 2018 Annual General Meeting. The Rights Plans terms were amended and approved by shareholders

at the 2020 Annual General Meeting (2020 Employee Share Rights Plan).

The Rights Plan are the mechanism under which Employees have been awarded:

• Performance Rights (PRs)

• Long Term Incentive Plan Performance Rights (LTIP)

• Share Appreciation Rights (SARs), (previous incentive grant – no longer utilised for new incentive grants)

1 1 1

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

(a) Description of share based payment arrangements

(i.) Performance Rights

Performance Rights (PRs) were issued to Executives appointed in FY2022 and FY2023 at the commencement of their

employment. These PRs were provided as a mechanism to attract and retain Executives in the current market. These PRs

have a two-year vesting period and are contingent on continued employment with the Company.

PRs were also issued to employees in FY2022 and FY2023 as a mechanism to attract and retain employees in the current

market. These PRs have a 12 month and 24 month vesting period and are contingent on continued employment with the

Company.

(ii.) Long-Term Incentive Plan (LTIP)

The LTI is an ‘at-risk’ component of the remuneration intended to align the interests of Executive KMP with long-term

shareholder returns. It is an equity-based award designed to attract, motivate and retain employees. The PRs issued

as part of the LTIP vest over a three year period. Performance measures include both a component related to a service

period and a component related to Total Shareholder Return (rTSR) as it aligns participants' remuneration with the return

received by shareholders and reflects creation of shareholder value compared to peers.

(iii.) Share Appreciation Rights (SARs)

Paladin has historically granted SARs to employees including Executives under the Rights Plan. The SARs carry no

dividend or voting rights. When exercisable, each SAR is convertible into one ordinary share of Paladin Energy Ltd.

The exercise price of SARs is based on the weighted average price at which the Company’s shares are traded on the

Australian Securities Exchange during the five business days up to and including the date of grant.

(b) Recognition and Measurement

The fair value at grant date of SARs and PRs is charged to the Consolidated Income Statement, net of tax, over the period for

which the benefits of employee services are expected to be derived. The corresponding accrued employee entitlement is

recorded in the share based payments reserve.

Where awards are forfeited because non-market based vesting conditions are not satisfied, the expense previously

recognised is proportionally reversed. If awards do not vest due to a market performance condition not being met, the

expense is recognised in full, and the share awards reserve is released to retained earnings.

The fair value of SARs is measured using a Black Scholes methodology. This model considers the following:

• Expected life of the award;

• Current market price of the underlying shares;

• Expected volatility;

• Expected dividends; and

• Risk-free interest rate

The PRs subject to non-market conditions have been valued with reference to the Paladin share price on grant date.

The PRs subject to rTSR conditions have been independently valued using a hybrid employee share option pricing model

which uses a correlated simulation that simultaneously calculates the returns from the Company’s and the individual peer

group companies’ rTSR (for Peer Groups 1 and 2) on a risk-neutral basis as at the vesting date with regards to the remaining

performance measurement period.

1 1 2

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

Share Rights

Rights at the
beginning of
the year

Granted
during the
period

Exercised
during the
period

Forfeited
during the
period

Lapsed during
the period

Rights at the
end of the year

Performance Rights

3,540,000

2,870,000

(1,295,000)

(380,000)

LTIP Performance Rights

5,660,640

5,310,021

—

(798,334)

Share Appreciation Rights

4,050,250

—

(1,171,750)

—

Total

13,250,890

8,180,021

(2,466,750)

(1,178,334)

—

4,735,000

10,172,327

2,878,500

17,785,827

The weighted average share price of PRs exercised during the year was US$0.59 (A$0.78) and for the SARS was US$0.52

(A$0.79).

(d) Expenses arising from share-based payment transactions

Total expenses arising from share-based payment transactions recognised during the period as part of employee benefit

expense were as follows:

Performance Rights

LTIP — Performance Rights

Share Appreciation Rights

Total share based payment expense

OTHER NOTES

NOTE 25. KEY MANAGEMENT PERSONNEL

Details of Key Management Personnel

Directors

Mr Cliff Lawrenson

Chair (Non-Executive)

Mr Peter Watson

Director (Non-Executive)

Mr Peter Main

Director (Non-Executive)

Ms Melissa Holzberger

Director (Non-Executive)

Ms Joanne Palmer

Director (Non-Executive)

Dr Jon Hronsky

Director (Non-Executive) (appointed 20 March 2023)

Mrs Lesley Adams

Director (Non-Executive) (appointed 22 May 2023)

2023

2022

US$'000

2,039

1,151

2,039

765

4,092

1,997

1 1 3

PALADIN ENERGY LTD: ANNUAL REPORT 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

Executives

Mr Ian Purdy

Chief Executive Officer

Ms Anna Sudlow

Chief Financial Officer

Mr Paul Hemburrow

Chief Operating Officer (appointed 1 February 2023)

Mr Jonathon Clements

Senior Vice President - Projects & Development (resigned 31 July 2022)

Mr Jess Oram

General Manager Exploration

Mr Alex Rybak

Chief Commercial Officer

Compensation of Key Management Personnel: Compensation by Category

Short-term employee benefits

Post-employment benefits

Share-based payments

2023

US$

2022

US$

1,581,346

1,722,083

140,480

113,444

1,785,237

892,181

3,507,063

2,727,708

In addition to the compensation above Dr Jon Hronsky provides professional consulting services to Paladi Energy Ltd. Since his

appointment as a director, consulting fees amounting to US$8,843 (A$13,340) have been paid on an arms-length and commercial basis

and were approved by the Board.

NOTE 26. AUDITOR’S REMUNERATION

The auditor of the Paladin Energy Ltd Group is PricewaterhouseCoopers.

Amounts received or due and receivable by PricewaterhouseCoopers (Australia) for:

Audit or review of the financial report of the
consolidated Group

Other services

Taxation services:

Tax compliance services

International tax consulting

Other tax advice

Sub-total

1 1 4

2023

US$

2022

US$

115,996

128,598

—

63,639

38,342

5,459

1,637

—

186,731

166,940

PALADIN ENERGY LTD: ANNUAL REPORT 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

Amounts received or due and receivable by related practices of PricewaterhouseCoopers
(Australia) for:

Audit or review of the financial report of
subsidiaries and audit related services

Other services

Taxation services:

Tax compliance services

International tax consulting

Sub-total

Total

2023

US$

2022

US$

32,596

28,886

13,058

162

398

—

1,747

264

46,052

31,059

232,783

197,999

NOTE 27. COMMITMENTS AND CONTINGENCIES

There were no outstanding commitments or contingencies, which are not disclosed in the Financial Report of the Group as at 30 June

2023 other than:

Tenements

Commitments for tenements contracted for at the reporting date but
not recognised as liabilities, payable:

Within one year

Later than one year but not later than 5 years

More than 5 years

Total tenements commitment

2023

US$’000

2022

US$’000

377

3,389

433

4,199

3,671

3,802

These include commitments relating to tenement lease rentals and the minimum expenditure requirements of the Namibian, Canadian,

Western Australian and Queensland Mines Departments attaching to the tenements and are subject to re-negotiation upon expiry of the

exploration leases or when application for a mining licence is made.

These are necessary in order to maintain the tenements in which the Group and other parties are involved. All parties are committed to

meet the conditions under which the tenements were granted in accordance with the relevant mining legislation in Namibia, Australia

and Canada.

In relation to the Manyingee Project, the re-negotiated acquisition terms provide for a payment of A$750,000 (US$496,393) (2022:

A$750,000 (US$516,657)) by the Group to the vendors when all project development approvals are obtained.

1 1 5

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

Other Commitments

Commitments for transport, capital, purchase order commitments, fuel and utilities and other supplies contracted for at the reporting

date but not recognised as liabilities, payable:

Within one year

Later than one year but not later than 5 years

More than 5 years

Total other commitments

Future sales commitments

2023

US$’000

52,477

703

376

2022

US$’000

444

791

517

53,556

1,752

At 30 June 2023 Paladin has contracted 48% of estimated production to CY2030. The contracted sales portfolio consists of short

and long-term sales commitments. The contracts can be executed well in advance of a delivery and include base escalated and

market-related pricing. Total revenue from these contracts cannot be reliably estimated as the transaction price will not be known until

the time of delivery.

The sales contracts are denominated in US dollars.

Contingent liabilities

There are certain legal claims or potential claims against the Group, the outcome of which cannot be foreseen at present, and for which

no amounts have been disclosed. It is expected that any liabilities arising from such legal action would not have a material effect on the

Group’s financial performance.

Bank Guarantees

As at 30 June 2023 the Group has outstanding US$108,566 (A$164,032) (2022: US$112,998 (A$164,032)) as a current guarantee

provided by a bank for the corporate office lease; a US$9,928 (A$15,000) (2022: US$10,333 (A$15,000)) guarantee for tenements and

US$86,161 (A$65,000 and C$51,947) (2022: US$80,798 (A$65,000 and C$46,378)) guarantee for corporate credit cards.

NOTE 28. RELATED PARTIES

Key Management Personnel

Except as disclosed below the only related party transactions are with Directors and Key Management Personnel. Refer to Note 25.

Details of material-controlled entities are set out in Note 29.

1 1 6

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

Loans from related parties – LHU’s loans from CNNC (refer to Note 6)

Non-Current

At 1 July 2022

Drawdowns

Interest charged

Fair value adjustment to shareholder loan

Accretion expense

At 30 June 2023

Transactions With Related Parties – Purchase of Uranium from CNNC

Purchase of uranium

NOTE 29. GROUP INFORMATION

Information Relating to Paladin Energy Ltd (Parent)

Current assets

Total assets

Current liabilities

Total liabilities

Issued capital

Accumulated losses

Option application reserve

Share-based payments reserve

Revaluation reserve

Total shareholders’ equity

Net loss after tax from operations

Total comprehensive loss

2023

US$’000

2022

US$’000

78,558

68,743

3,564

—

7,501

811

3,111

(644)

6,537

89,708

78,558

2023

US$’000

2022

US$’000

—

4,693

2023

US$’000

118,502

2022

US$’000

181,285

129,338

253,156

815

596

12,756

12,345

2,646,644

2,645,778

(2,582,911)

(2,455,032)

137

53,155

(443)

116,582

(34,760)

137

49,928

—

240,811

(10,502)

(34,760)

(10,502)

1 1 7

PALADIN ENERGY LTD: ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

The financial information for the parent entity has been prepared on the same basis as the consolidated financial statements, except as

set out below.

Investments in subsidiaries, associates and joint venture entities

Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the financial statements of Paladin Energy

Ltd. Dividends received from associates are recognised in the parent entity’s profit or loss when its right to receive the dividend is

established.

Details of Any Contingent Liabilities of the Parent Entity

Paladin has recognised a provision of US$37,925,000 (30 June 2022: US$40,407,000) for the LHM environmental rehabilitation.

Tax Consolidation

Paladin and its 100% owned Australian resident subsidiaries formed a tax consolidated group (the Group) with effect from 1 July 2003.

Paladin is the head entity of the Group. Members of the Group have entered into a tax-sharing agreement that provides that the head

entity will be liable for all taxes payable by the Group from the consolidation date. The parties have agreed to apportion the head entity’s

taxation liability within the Group based on each contributing member’s share of the Group’s taxable income and losses.

Investments in Material Controlled Entities

NAME

Paladin Energy Minerals NL

Langer Heinrich Mauritius Holdings Ltd111

Langer Heinrich Uranium (Pty) Ltd

Valhalla Uranium Pty Ltd

Summit Resources Ltd

Summit Resources (Aust) Pty Ltd

Aurora Energy Ltd212

COUNTRY OF
INCORPORATION

Australia

Mauritius

Namibia

Australia

Canada

PERCENTAGE INTEREST HELD

2023

2022

100

1 Langer Heinrich Mauritius Holdings Ltd owns 100% of Langer Heinrich Uranium (Pty) Ltd.
2 Aurora Energy Ltd equity accounts a 75% interest (FY22: 70%) in a special purpose joint venture (the Michelin Joint Venture) which owns the Michelin Project in Canada. The
Michelin Joint Venture includes a farm out agreement over a five-year period whereby Paladin received an additional 5% participating interest in the Michelin Project on an annual
basis until May 2023, in return for Paladin funding all obligations for the Michelin Project over this period.

All investments comprise ordinary shares and all shares held are unquoted.

NOTE 30. EVENTS AFTER THE BALANCE DATE

Other than disclosed below, since the end of the financial year, the Directors are not aware of any other matter or circumstance not

otherwise dealt with in this report, that has significantly or may significantly affect the operations of the Group, the results of those

operations or the state of affairs of the Group in subsequent periods with the exception of the following, the financial effects of which

have not been provided for in the 30 June 2023 Financial Report.

On 7 July 2023 Paladin announced that it will retain its 75% interest in the Michelin Joint Venture, having completed the process required

under the Michelin Joint Venture Agreement to use best efforts to sell the entirety of the joint venture on commercially acceptable terms.

The Michelin Joint Venture owns the Michelin advanced exploration project in Labrador, Canada.

1 1 8

PALADIN ENERGY LTD: ANNUAL REPORT 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2023

NOTE 31. NEW ACCOUNTING STANDARDS AND INTERPRETATIONS

Accounting Standards and Interpretations issued but not yet effective

The following Australian Accounting Standards that have recently been issued or amended but are not yet effective are relevant to the

Group but have not been applied by the Group for the annual reporting period ending 30 June 2023:

Reference/ Title

Summary

Application date of
standard*

Application date for
Group*

Classification of liabilities as current or non-
current (AASB 2020-1, AASB 2020-6)

The AASB issued a narrow-scope amendment
to AASB 101 Presentation of Financial
Statements to clarify that liabilities are
classified as either current or non-current,
depending on the rights that exist at the end of
the reporting period.

1 January 2023

Disclosure of Accounting Policies and
Definition of Accounting Estimates (AASB
2021-2)

The AASB amended AASB 101 to require
entities to disclose material rather than their
significant accounting policies.

1 January 2023

General Requirements for Disclosure of
Sustainability-related Financial Information
(IFRS S1)

The IASB issued this standard to provide
guidance on identifying sustainability-related
risks and opportunities, and the relevant
disclosures to be made in respect of those
sustainability-related risks and opportunities.

1 July 2024

Climate-related Disclosures (IFRS S2)

The IASB issued this standard to build on IFRS
S1 and focuses on climate related disclosures.

1 July 2024

* Designates the beginning of the applicable annual reporting period unless otherwise stated.

The Group has considered what impact these new Accounting Standards will have on the financial statements, when applied next year,

and have concluded that they will have no material impact.

The Group has elected not to early adopt these new standards or amendments in the financial statements.

For Standards and Interpretations effective from 1 July 2023, it is not expected that the new Standards and Interpretations will significantly

affect the Group's financial performance.

1 1 9

PALADIN ENERGY LTD: ANNUAL REPORT 2023DIRECTORS' DECLARATION

1. In the opinion of the Directors’ of Paladin Energy Ltd:

a) The consolidated financial statements and notes that are set out on pages 71 to 119, are in accordance with the Corporations

Act 2001, including:

giving a true and fair view of the consolidated entity’s financial position as at 30 June 2023 and of its performance for the

financial year ended on that date; and

ii)

complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the

Corporations Regulations 2001.

b) The financial statements and notes also comply with International Financial Reporting Standards as disclosed in Note 3 to the

Financial Statements.

c) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and

payable.

2. This declaration has been made after receiving the declarations required to be made in accordance with section 295A of the

Corporations Act 2001 for the financial year ending 30 June 2023 (section 295A Declarations). The section 295A Declarations have

been made by the Chief Executive Officer, Ian Purdy and the Chief Financial Officer, Anna Sudlow.

Dated at Perth on 25th August 2023

On behalf of the board

__________________________________________

Cliff Lawrenson

Chair

1 2 0

PALADIN ENERGY LTD: ANNUAL REPORT 2023Independent auditor’s report
To the members of Paladin Energy Ltd

Report on the audit of the financial report

Our opinion

In our opinion:

The accompanying financial report of Paladin Energy Ltd (the Company) and its controlled entities
(together the Group) is in accordance with the Corporations Act 2001, including:

(a)

giving a true and fair view of the Group's financial position as at 30 June 2023 and of its
financial performance for the year then ended

(b)

complying with Australian Accounting Standards and the Corporations Regulations 2001.

What we have audited
The Group financial report comprises:

•

the consolidated statement of financial position as at 30 June 2023

the consolidated statement of comprehensive income for the year then ended

the consolidated statement of changes in equity for the year then ended

the consolidated statement of cash flows for the year then ended

the consolidated income statement for the year then ended

the notes to the consolidated financial statements, which include significant accounting policies
and other explanatory information

the directors’ declaration.

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial
report section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.

Independence
We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.

PricewaterhouseCoopers, ABN 52 780 433 757
Brookfield Place, 125 St Georges Terrace, PERTH WA 6000, GPO Box D198, PERTH WA 6840
T: +61 8 9238 3000, F: +61 8 9238 3999

Liability limited by a scheme approved under Professional Standards Legislation.

1 2 1

PALADIN ENERGY LTD: ANNUAL REPORT 2023Our audit approach

An audit is designed to provide reasonable assurance about whether the financial report is free from
material misstatement. Misstatements may arise due to fraud or error. They are considered material if
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial report.

We tailored the scope of our audit to ensure that we performed enough work to be able to give an
opinion on the financial report as a whole, taking into account the geographic and management
structure of the Group, its accounting processes and controls and the industry in which it operates.

The Group owns uranium mining and exploration assets in Namibia, Canada and Australia.

Materiality

Audit scope

For the purpose of our audit we used overall Group
materiality of US$4.7 million, which represents
approximately 1% of the Group’s total assets.

We applied this threshold, together with qualitative
considerations, to determine the scope of our audit and
the nature, timing and extent of our audit procedures
and to evaluate the effect of misstatements on the
financial report as a whole.

We chose total assets as the benchmark because the
Group is not currently operating its assets which are in
the process of being restarted after a period in care
and maintenance or in the exploration stage. The use
of total assets as a benchmark provides a level of
materiality which, in our view, is appropriate for the
audit having regard to the expected requirements of
users of the Group’s financial report.

We utilised a 1% threshold based on our professional
judgement, noting it is within the range of commonly
acceptable asset-related thresholds in the mining
industry.

Our audit focused on where the Group made subjective
judgements; for example, significant accounting
estimates involving assumptions and inherently
uncertain future events.

In establishing the overall approach to the Group audit,
we determined the type of work that needed to be
performed by the group engagement team and by the
component auditor in Namibia operating under our
instruction. We structured our audit as follows:

•

The component auditor performed audit
procedures on the financial information of Langer
Heinrich Uranium (Pty) Ltd.

The Group engagement team performed audit
procedures, as required due to their financial
significance, on the financial information of the
Group’s remaining subsidiaries.

The Group engagement team and component
auditor had active dialogue throughout the year
through discussions, review of audit working
papers and written instructions and reporting.

1 2 2

PALADIN ENERGY LTD: ANNUAL REPORT 2023Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report for the current period. The key audit matters were addressed in the
context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters. Further, any commentary on the outcomes of a
particular audit procedure is made in that context. We communicated the key audit matters to the Audit
and Risk Committee.

Key audit matter

How our audit addressed the key audit matter

Environmental rehabilitation provisions

(Refer to note 23) [US$37,925,000]

As a result of its mining and processing operations, the
Group is obliged to restore and rehabilitate the
environment disturbed by these operations.

Rehabilitation activities are governed by a combination
of legislative and licence requirements. At 30 June
2023 the consolidated statement of financial position
included provisions for such obligations of US$37.9
million.

This was a key audit matter given the determination of
these provisions required judgement in the assessment
of the nature and extent of future works to be
performed, the future cost of performing the works, the
timing of when the rehabilitation will take place and
economic assumptions such as the discount and
inflation rates applied to future cash outflows
associated with rehabilitation activities to bring them to
their present value.

We obtained the Group’s assessment of its obligations
to rehabilitate disturbed areas and the estimated future
cost of that work, which forms the basis for the
environmental rehabilitation provision calculations (the
model) for the Langer Heinrich mine. We evaluated and
tested key assumptions utilised in this model by
performing the following procedures, amongst others:

•

comparing the rehabilitation costs being
estimated at Langer Heinrich to a management’s
expert assessment of the rehabilitation obligation,

examining supporting information for future cost
estimates,

assessing the timing of work to be performed by
comparison to mine plans and environmental
rehabilitation plans submitted to relevant
authorities, and

considering the appropriateness of the discount
and inflation rates utilised in calculating the
provision by comparing them to current market
consensus rates.

Other information

The directors are responsible for the other information. The other information comprises the
information included in the annual report for the year ended 30 June 2023, but does not include the
financial report and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon through our opinion on the financial report. We
have issued a separate opinion on the remuneration report.

1 2 3

PALADIN ENERGY LTD: ANNUAL REPORT 2023In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of
this auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.

Responsibilities of the directors for the financial report

The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.

In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial report.

A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our
auditor's report.

Report on the remuneration report

Our opinion on the remuneration report

We have audited the remuneration report included in pages 52 to 66 of the directors’ report for the
year ended 30 June 2023.

In our opinion, the remuneration report of Paladin Energy Ltd for the year ended 30 June 2023
complies with section 300A of the Corporations Act 2001.

1 2 4

PALADIN ENERGY LTD: ANNUAL REPORT 2023

Responsibilities

The directors of the Company are responsible for the preparation and presentation of the
remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the remuneration report, based on our audit conducted in accordance with
Australian Auditing Standards.

PricewaterhouseCoopers

Justin Carroll
Partner

Perth
25 August 2023

1 2 5

PALADIN ENERGY LTD: ANNUAL REPORT 2023ADDITIONAL INFORMATION

Pursuant to the Listing Requirements of ASX as at 21 August 2023

1. Distribution and number of holders

Range

Total Holders

No. of Shares

1,001

5,001

10,001

100,001

—

1,000

5,000

3,659

1,968,374

6,600

17,080,516

10,000

3,093

23,734,189

100,000

5,827

182,760,481

maximum

895

2,755,585,387

20,074

2,981,128,947

1,934 shareholders hold less than a marketable parcel of shares.

2. The twenty largest shareholders hold 82.10% of the total shares issued

Holder

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED

CITICORP NOMINEES PTY LIMITED

J P MORGAN NOMINEES AUSTRALIA PTY LIMITED

NDOVU CAPITAL XII B V

BNP PARIBAS NOMINEES PTY LTD

BNP PARIBAS NOMS PTY LTD

NATIONAL NOMINEES LIMITED

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED

HOPU CLEAN ENERGY (SINGAPORE) PTE LTD

No. of Shares

747,149,018

569,528,954

313,462,521

148,989,744

110,690,921

103,484,813

91,061,717

77,777,262

54,172,072

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED

51,733,424

BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM

BNP PARIBAS NOMINEES PTY LTD

WASHINGTON H SOUL PATTINSON AND COMPANY LTD

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2

BNP PARIBAS NOMS PTY LTD

34,050,302

29,874,233

26,300,000

25,350,754

16,979,045

25.06

19.10

10.51

5.00

3.71

3.47

3.05

2.61

1.82

1.74

1.14

1.00

0.88

0.85

0.57

1 2 6

PALADIN ENERGY LTD: ANNUAL REPORT 2023ADDITIONAL INFORMATION (CONTINUED)

Pursuant to the Listing Requirements of ASX as at 21 August 2023

HUICEN CAPITAL PTY LIMITED

CITICORP NOMINEES PTY LIMITED

XUE INVESTMENTS PTY LIMITED

BNP PARIBAS NOMS (NZ) LTD

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED

14,598,090

11,049,857

8,881,636

6,944,730

5,444,109

0.49

0.37

0.30

0.23

0.18

2,447,523,202

82.10

Substantial shareholders as disclosed in substantial shareholder notices given to the Company as at 30 June 2023 are as follows:

• Paradice Investment Management Pty Ltd

• Tembo Capital Mining Fund II LP and related entities

• Vanguard Group Holdings

3. Voting Rights

Ordinary Shares

For all shares, voting rights are one vote per member on a show of hands and one vote per share in a poll.

Share Appreciation Rights

There are no voting rights attached to Share Appreciation Rights.

Performance Rights

There are no voting rights attached to Performance Rights.

4. Unquoted securities

Unlisted Share Appreciation Rights

The Company has 2,878,500 Share Appreciation Rights on issue, issued in accordance with the Share Rights Plan approved by

shareholders.

Unlisted Performance Rights

The Company has 13,924,825 Performance Rights on issue.

1 2 7

PALADIN ENERGY LTD: ANNUAL REPORT 2023ADDITIONAL INFORMATION (CONTINUED)

Pursuant to the Listing Requirements of ASX as at 21 August 2023

Tenement information required by listing rule 5.20

Tenement

Location

Ownership

Tenement

Location

Ownership

025681M

NL, Canada

035936M

NL, Canada

035937M

NL, Canada

035938M

NL, Canada

035939M

NL, Canada

035940M

NL, Canada

035941M

NL, Canada

035942M

NL, Canada

035943M

NL, Canada

035944M

NL, Canada

035945M

NL, Canada

035946M

NL, Canada

035947M

NL, Canada

035948M

NL, Canada

035949M

NL, Canada

035950M

NL, Canada

035951M

NL, Canada

035952M

NL, Canada

035953M

NL, Canada

035954M

NL, Canada

035955M

NL, Canada

035956M

NL, Canada

035957M

NL, Canada

035958M

NL, Canada

035959M

NL, Canada

20%

18%

20%

100%

7.5%

75%

EPM 11898

QLD, Australia

EPM 13412

QLD, Australia

EPM 13413

QLD, Australia

EPM 13682

QLD, Australia

EPM 14233

QLD, Australia

EPM 14694

QLD, Australia

EPM 14712

QLD, Australia

EPM 14821

QLD, Australia

EPM 14935

QLD, Australia

EPM 15156

QLD, Australia

MDL 507

QLD, Australia

MDL 508

QLD, Australia

MDL 509

QLD, Australia

MDL 510

QLD, Australia

MDL 511

QLD, Australia

MDL 513

QLD, Australia

M08/86

M08/87

M08/88

WA, Australia

E08/1645

WA, Australia

E08/1646

WA, Australia

EL 6132

SA, Australia

ML 140

ML 172

Namibia, Africa

025621M

NL, Canada

025675M

NL, Canada

025676M

NL, Canada

1 2 8

PALADIN ENERGY LTD: ANNUAL REPORT 20231 2 9

PALADIN ENERGY LTD: ANNUAL REPORT 2023The annual report covers the Group consisting of Paladin Energy Ltd
(referred throughout as the Company or Paladin) and its controlled
entities (the Group).

Paladin Energy Ltd is a company limited by shares, incorporated and
domiciled in Australia.

All press releases, financial statements and other information are
available on our website www.paladinenergy.com.au.

1 3 0

PALADIN ENERGY LTD: ANNUAL REPORT 2023Corporate Directory

DIRECTORS

Non-Executive Chair

Mr Cliff Lawrenson

Non-Executive Directors

Mr Peter Main
Mr Peter Watson
Ms Melissa Holzberger
Dr Jon Hronsky OAM
Ms Joanne Palmer
Ms Lesley Adams

Chief Executive Officer

Mr Ian Purdy

Company Secretary

Mr Jeremy Ryan

REGISTERED OFFICE

SHARE REGISTRY

INVESTOR REL ATIONS

Level 8, 191 St Georges Terrace
Perth Western Australia 6000
Telephone: (+61 8) 9423 8100
Facsimile: (+61 8) 9381 4978
Email: paladin@paladinenergy.com.au
Web: www.paladinenergy.com.au

Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
Perth Western Australia 6000
Telephone: 1300 850 505 (within Australia) or
(+61 3) 9415 4000 (outside Australia)
Facsimile: (+61 3) 9473 2500

Mr Alex Rybak
Level 8, 191 St Georges Terrace
Perth Western Australia 6000
(PO Box 8062 Cloisters Square PO WA 6850)
Telephone: (+61 8) 9423 8135
Facsimile: (+61 8) 9381 4978
Email: alex.rybak@paladinenergy.com.au

AUDITORS

PricewaterhouseCoopers
125 St Georges Terrace
Perth Western Australia 6000

STOCK EXCHANGE LISTINGS

Australian Securities Exchange
Code: PDN

OTCQX
Code: PALAF

Munich, Berlin, Stuttgart and Frankfurt Stock Exchanges
Code: PUR

Namibian Stock Exchange
Code: NM-PDN

1 3 1

PALADIN ENERGY LTD: ANNUAL REPORT 2023

Level 8, 191 St Georges Terrace
Perth Western Australia 6000
Telephone: (+61 8) 9423 8100
Facsimile: (+61 8) 9381 4978

Email: paladin@paladinenergy.com.au
Web: www.paladinenergy.com.au