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PERTH, AUSTRALIA--(Marketwire - Feb. 1, 2011) - Paladin Energy Ltd (TSX:PDN)(ASX:PDN) ("Paladin") is pleased to announce that it has today completed its previously announced acquisition of the uranium assets of Aurora Energy Resources Inc. ("Aurora") from Fronteer Gold Inc. (TSX:FRG)(NYSE Amex:FRG) ("Fronteer") (see December 20, 2010 news release). Paladin now holds title to significant uranium assets within the highly prospective Central Labrador Mineral Belt of Eastern Canada, totalling 83.8Mlb of Measured and Indicated resources and 53.0Mlb of inferred resources across six deposits, including the Michelin, Jacques Lake, Rainbow, Nash, Inda and Gear deposits and has secured control of the most prospective ground within this belt.


The transaction was completed for a total consideration of C$260.87M via the issuance of 52,097,937 ordinary shares in Paladin. This values the current resources at US$1.90/lb.


With completion of this transaction, Fronteer now holds approximately 6.7% of Paladin's ordinary shares. The shares issued to Fronteer are subject to a four-month hold period under Canadian securities laws. Fronteer has also entered into an agreement that sets out procedures designed to ensure that any disposition of shares by Fronteer will occur in an orderly fashion. A copy of this agreement will be lodged by Paladin with the Australian Securities Exchange and filed with Canadian Securities Regulators. A copy will be available under Paladin's profile at http://www.sedar.com/">www.sedar.com.




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Technical Information: Scientific or technical information referred to in this news release has been prepared under the supervision of John Borshoff, Managing Director of Paladin Energy Ltd, a Fellow of the Australasian Institute of Mining and Metallurgy and a qualified person under National Instrument 43-101.