September 15, 2006

Deutsche Bank initiates coverage of Paladin Resources Limited

Deutsche Bank has initiated coverage of uranium miner and producer, Paladin Resources Limited (ASX: PDN), with a Hold recommendation.

Resources analyst, Scott Finlay initiated coverage with an A$5.27 price target.
Mr Finlay said “We believe that uranium prices are headed higher, that this is not a short term phenomenon, and that Paladin’s share price reflects this view.

“Under-investment in mining during 1980s and 1990s as a result of low uranium prices has led to a significant gap between primary supply and demand. According to our research, almost all of scheduled new mine output would need to come online and operate at full capacity to meet demand.

“Meanwhile, a very recent development in the uranium market has been a significant increase in financial investor interest in uranium.

”We think that whilst uranium prices continue to climb, investors will price Paladin shares generously – but this needs to be weighed against the level of execution and political risk of its projects”, he noted.

Based in Western Australia, Paladin is an explorer and developer of uranium projects including the Langer Heinrich deposit in Namibia and advanced projects in both Malawi and Australia. The company has signaled to the market that it intends to be among the top four producers of uranium within six years.

Equity rating recommendations are based on expected total return (including dividends):
Buy: 10% or more over a 12-month period
Hold: between -10% and 10% over a 12-month period
Sell: -10% or worse over a 12-month period

For further information, please call:

Cathy Knezevic
+61 2 8258 2792


Kate Abrahams
+61 2 8258 2416

Deutsche Bank

Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With Euro 1,058 billion in assets and 65,435 employees in 73 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.