Name of the Project
Langer Heinrich uranium restart project.

Location
Namib Desert, 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
Langer Heinrich has an estimated 17-year mine life, supported by ore reserves of 84.8-million tonnes with an average uranium grade of 448 parts per million.

Life-of-mine (LoM) production is estimated at 77.4-million pounds of uranium, up from a previously stated 76.1-million pounds.

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

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) was 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.

Potential Job Creation
The project will employ about 300 staff.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Paladin is forecasting total capital costs of about $125-million, from the previous forecast of $118-million.

Planned Start/End Date
First commercial production is expected in the fisrt quarter of 2024.

Latest Developments
After more than six years of care and maintenance, the Langer Heinrich uranium mine has restarted production activities; however, while Paladin is targeting first commercial production by the end of the first quarter, lower contractor productivity over the Christmas and New Year period might result in a slight delay to early in the second quarter.

Despite the setback, there has been extensive collaboration between the commissioning and operations teams, which has mitigated the impact of reduced productivity.

First ore was fed to the processing plant on January 20, following the successful commissioning of the beneficiation circuit.

Ahead of commercial production starting, Paladin has executed a $150-million syndicated debt facility to provide capital flexibility.

Further, Paladin has concluded a nonmaterial offtake agreement for the supply of uranium to an industry-leading counterparty in Europe. Paladin has a geographically diverse offtake book, with seven offtake agreements executed with top-tier counterparties in the US, Europe and China. These contracts range in type and duration and provide base-escalated, fixed-price and market-related pricing mechanisms.

Paladin signed commercial agreements with two Western conversion facilities and has received export permits for 2024 from the Ministry of Mines and Energy in Namibia.

Key Contracts, Suppliers and Consultants
None stated.

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