Name of the Project
Langer Heinrich uranium restart project.

Location
Namib Desert, in Namibia.

Project Owner/s
Langer Heinrich Mauritius Holdings is the holding company of Langer Heinrich Uranium, which holds 100% of the Langer Heinrich tenements.

Paladin Energy owns 75% of Langer Heinrich Mauritius Holdings, with 25% owned by
CNNC Overseas Uranium Holdings.

Project Description
The project has total proven and probable reserves of 85.9-million tonnes grading 455 parts per million (ppm) of uranium for 86.5-million pounds of uranium.

The project has a declared maiden vanadium mineral resource of 122.1-million tonnes grading 145 ppm vanadium pentoxide for 38.8-million pounds of vanadium pentoxide.

Langer Heinrich was placed on care and maintenance in August 2018, owing to the sustained uranium price.

Subsequently, Paladin completed a concept study in February 2019, which identified multiple options to reduce operating costs, improve process plant performance and potentially recover a saleable vanadium product. A two-stream prefeasibility study (PFS1 and PFS2) started in March 2019 to improve the details of the restart plan and pursue further improvement options to clearly present a compelling investment case.

PFS1 focused on confirming effective care and maintenance plans, practices and costs while developing a more detailed plan to execute a rapid restart at Langer Heinrich in an improved uranium market.

Upon restart Langer Heinrich will have a production capacity of about 5.2-million pounds a year, while processing high- and medium-grade ores for about eight years. This would be followed by a production capacity of 2.7-million pounds a year, while processing low-grade ores for about 12 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Estimated capital expenditure of $80-million has been confirmed for the restart of the project. A further $30-million would be required to take production to 6.5-million pounds a year of uranium.

Planned Start/End Date
The project has the potential to be production ready in mid-2021.

Latest Developments
The PFS2 scope has been reduced to focus on completing in-progress testwork and updating the pipeline of improvements for further development after Langer Heinrich is restarted.

The scope of the proposed rapid restart feasibility study in the 2020 financial year has also been reduced to focus on further optimisation and governance of care and maintenance and the rapid restart plans.

Completion of the full scope of feasibility study work to Paladin’s standards has been deferred to when restart is imminent. The work has been budgeted to take nine months
(June 2020), with the reduced scope now expected to be completed in March 2020.

The estimated cost from start to completion of the PFS and the proposed feasibility study scope to be conducted in the 2020 financial year is $5.2-million, compared with an original budget of $6.2-million for the PFS, a saving of about $1-million, all fully funded from existing cash.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Paladin Energy, tel +61 (8) 9381 4366 or email paladin@paladinenergy.com.au.