PALADIN ENERGY LTD Langer Heinrich Mine Restart Plan June 2020 Ian Purdy – Chief Executive Officer PALADIN ENERGY LTD
Disclaimer and Competent Persons Statement Disclaimer This presentation contains summary information about the Company’s activities current as at the date of this presentation. The information in this presentation is of a general background nature and does not purport to be complete or contain all the information investors would require to evaluate their investment in the Company, nor does it contain all the information which would be required in a prospectus or product disclosure statement prepared in accordance with the Corporations Act 2001 (Cth). The Company is not responsible for updating, nor undertakes to update, this presentation. This presentation should be read in conjunction with the Company’s other periodic and continuous disclosure announcements, available at http://www.paladinenergy.com.au. The Company does not purport to give financial or investment advice. No account has been taken of the objectives, financial situation or needs of any recipient of this document. Recipients of this document should carefully consider whether the securities issued by the Company are an appropriate investment for them in light of their personal circumstances, including their financial and taxation position. This presentation includes statements that may be deemed “forward -looking statements” . All statements in this presentation, other than statements of historical facts, that address future production, reserve or resource potential, exploration drilling, exploration activities and events or developments that the Company expects to occur, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from the expectations expressed in the forward-looking statements. Factors that could cause actual results to differ materially from the expectations expressed in those forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing and general economic, market or business conditions and risk factors associated with the Uranium industry generally. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Readers should not place undue reliance on forward-looking information. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise. No representation is made or will be made that any forward-looking statements will be achieved or will prove to be correct. Except for statutory liability which cannot be excluded, the Company, its officers, employees and advisers expressly disclaim any responsibility for the accuracy or completeness of the material contained in this presentation and exclude all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission there from. The Company accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation or any other information made available to a person nor any obligation to furnish the person with any further information. Competent Persons Statement The information in this announcement that relates to Exploration Results and Mineral Resource estimates for the Langer Heinrich deposit were prepared by David Princep of Gill Lane Consulting who is an independent consultant. Mr. Princep has visited the Project on numerous occasions since 2003, with the most recent being in July 2016. Mr. Princep, a Competent Person, is a Fellow of the Australasian Institute of Mining and Metallurgy and a Chartered Professional Geologist. Mr. Princep has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC 2012). Mr. Princep approves of and consents to the inclusion of the information in this announcement in the form and context in which it appears. PALADIN ENERGY LTD Langer Heinrich Mine Restart Plan - June 2020 2
Why Paladin? Paladin has streamlined the company with its sole focus on the restart of the globally significant Langer Heinrich operation in mining friendly Namibia The Langer Heinrich Mine Restart Plan (The Restart Plan) confirms the asset’s position alongside other large -scale suspended Uranium operations and confirms restart capital, costs and operational performance Our existing infrastructure, historic mine development and 10-year operations track record provides Paladin an early mover option in an improving Uranium price market Paladin has a strong financial position with approximately US$35M 1 in cash reserves and a FY2021 cash spend forecast of < US$10M Recent supply disruptions have exacerbated the structural supply deficit in the global Uranium market. Term contract pricing is responding to the growing imbalance We have the right team to deliver and execute on the Company’s strategy 1. As at 31 May 2020 PALADIN ENERGY LTD Langer Heinrich Mine Restart Plan - June 2020 3
Langer Heinrich Mine A Globally Significant Uranium Operation PALADIN ENERGY LTD
Langer Heinrich – a proven mining operation and Uranium supplier Located in a Paladin owns 75% 10-year 43Mlb U 3 O 8 Fully permitted Uranium mining CNNC 25% production track produced to resume mining province with record and sold and Uranium stable regulatory exports regime PALADIN ENERGY LTD Langer Heinrich Mine Restart Plan - June 2020 5
Restart Plan objectives & outcomes Objectives: Low risk, reliable restart plan balancing ability to rapidly respond to strengthening Uranium prices and maximising asset value Outcomes: The Restart Plan has optimised previous PFS work and delivered a path to bring Langer Heinrich back into production: • Capital improvements defined to increase plant runtime to 95% • Growth options and work packages identified to de-bottleneck plant throughput by 25% • Management systems and process control improvements to increase process stability • Verified license, permits and certificates required for restart • Restart plan detailed and schedule derisked to ensure that benefits will be realised • Modelling key operational Life of Mine metrics Independent Verification : All key outcomes have been externally reviewed and verified by AMC Consultants and PQ Partners PALADIN ENERGY LTD Langer Heinrich Mine Restart Plan - June 2020 6
Restart Plan confirms economic significance of Langer Heinrich Mine Cost to Restart Life of Mine C1 Peak Operations Cost of Production Production US$81M US$27/lb 5.9Mlb U 3 O 8 pa for 7 years $ Restart Capital Mine Intensity 1 Life US$14/lb 17 years 1. Capital restart costs divided by annual production volume. 2. $Namibia to US$ FX 16.5. 3. 100% Basis quoted PALADIN ENERGY LTD Langer Heinrich Mine Restart Plan - June 2020 7
US$81M pre-production expenditure required to restart & deliver reliable operations Operational Readiness (US$34M) Operational Readiness US$34M Working capital and other cash expenditure to restart baseline operations: Maintenance 13 • Perform maintenance on plant and infrastructure • Replenish reagents, purchase spare parts and other working capital 14 Working capital replenishment • Workforce recruitment, mobilization and training. Mobilise key contractors, Work force and mobilisation 7 including mining contractor Discretionary capital investment to improve plant availability (US$47M) Improving Plant Availability and Targeted investments to maximise plant reliability and runtime (c.85% to 95%): Process Stability US$47M • Product drying and packaging facility upgrade reducing product volumes and Product drying and packaging 14 transport weight • Leach feed surge tank to decouple crushing from leach, increasing availability Leach surge capacity and water storage 7 • Increase water storage mitigating production interruption when primary Process control and stability 6 water supply is disrupted • Process control upgrade and process equipment changes to increase stability Infrastructure asset integrity 16 and control Tailings dam 4 • Address known asset integrity issues – piping, structural and electrical • Increased tailing capacity 12 months in advance of production needs PALADIN ENERGY LTD Langer Heinrich Mine Restart Plan - June 2020 8
Restart scope of work to deliver mine to mill improvements Additional Water Storage Replace & improve product prevents interruptions drying and packaging plant from external water supply Thickener and pumping Process control upgrade upgrade to maximise density Surge Tank decouples ore Leach heating and mixing crushing from leaching upgrades to improve extraction Second Hydrosorter improves metal selectivity Pumping, piping and for leaching instrumentation upgrades throughout plant PALADIN ENERGY LTD Langer Heinrich Mine Restart Plan - June 2020 9
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