Paladin Energy Limited: Letter to Shareholders

PERTH, WESTERN AUSTRALIA —(Marketwired – December 05, 2017) – Paladin Energy Limited (Paladin or the Company) (ASX: PDN) (TSX: PDN) provides a Letter to its Shareholders as follows:

Letter to shareholders

5 December 2017

Dear shareholder

Application for Court approval for compulsory transfer of your shares for no consideration

We refer to the appointment of Hayden White, Gayle Dickerson and I, of KPMG, as joint and several administrators (Administrators) of Paladin Energy Ltd (administrators appointed) (Paladin), Paladin Finance Pty Ltd (administrators appointed) and Paladin Energy Minerals NL (administrators appointed) (together, the Companies) on 3 July 2017.

DOCA proposal

The Administrators have received a proposal from a group of Paladin's unsecured bondholders to implement a capital restructure of Paladin, which is intended to enable Paladin and its subsidiaries to continue operating as a going concern and have Paladin reinstated to quotation on ASX. The restructure is to be implemented pursuant to the terms of a deed of company arrangement (DOCA).

The creditors of Paladin will meet on 7 December 2017 to consider, amongst other things, whether the DOCA should be entered into. On 30 November 2017, the Administrators issued a Report to Creditors in which the Administrators expressed their opinion that it is in the interests of Paladin's creditors to execute the DOCA. The Report to Creditors may be downloaded from the websites detailed further below.

s444GA application

It is a condition to completion of the transaction described in the DOCA that the Administrators obtain a Court order pursuant to section 444GA of the Corporations Act 2001 (Cth).

The section 444GA Court order will allow the Administrators to perform the DOCA by transferring 98% of your shares in Paladin to certain participating creditors under the DOCA and certain other parties who participate in a debt capital raising being undertaken by Paladin to raise US$115m of additional capital (s444GA Order).

If Paladin's creditors resolve to enter into the DOCA, the Administrators intend to file an application with the Supreme Court of New South Wales for the s444GA Order.

The directions hearing in the proceeding is tentatively listed for 12 December 2017. At this hearing it is expected that the Court will make various procedural and timetabling orders about the conduct of the proceeding. The substantive hearing (at which the Court will determine whether to make the s444GA Order) is expected to be listed for 21 December 2017.

If the s444GA Order is made by the Court and the other conditions to the DOCA satisfied, 98% of your shares in Paladin will be automatically transferred for no consideration.

The Court will only approve the transfer if it is satisfied that your shares in Paladin have no value.

In order to determine the value of the shares in Paladin, the Administrators have engaged an independent expert to prepare a report setting out the likely return to shareholders if the Court refuses to make the s444GA Order and Paladin is placed into liquidation (Independent Expert's Report).

Next steps

The transfer of 98% of your shares in Paladin for no consideration is a serious matter.

Accordingly, the Administrators will make available to shareholders an explanatory statement describing the section 444GA process, which will contain a copy of the Independent Expert's Report (Explanatory Statement).

It is expected that from close of business on 11 December 2017 the Explanatory Statement (and Independent Expert's Report) will be available for download from the following websites:

It is highly recommended that from 11 December onwards you regularly review these websites, as the Administrators intend to upload additional relevant documents to them, including any orders made by the Court. A copy of the Explanatory Statement (containing the Independent Expert's Report) can also be emailed to you, free of charge, upon request.

Your rights

If you have any concerns, objections or questions in relation to the section 444GA process, please contact the Administrators as soon as possible by calling +61 8 9263 7477 or by emailing paladinenergy@kpmg.com.au.

You also have the right to provide the Administrators with your views on the section 444GA hearing. Please do so in writing so the Administrators can provide your views to the Court for the Judge's attention. You can also instruct a barrister or lawyer to appear on your behalf at the section s444GA hearing. If you propose to take either of these steps, please provide a copy of your correspondence, or notice of your intention to appear at the hearing, to the Administrators as soon as possible, and in any event by no later than 19 December 2017 by way of email to paladinenergy@kpmg.com.au.

You should seek independent legal, financial and taxation advice before making a decision on whether to take any action in relation to this matter.

The Administrators remain available to discuss any concerns or questions you may have.

Yours faithfully

Matthew Woods
Partner, Restructuring Services, KPMG for and on behalf of
PALADIN ENERGY LIMITED (ADMINISTRATORS APPOINTED)

Almadex Cuts 108.00 M of 0.88 G/T Gold and 0.29% Copper Including 80.00 M of 1.11 G/T Gold and 0.36% Copper at the Porvenir Zone, the Fourth in the El Cobre Project Cluster of Copper Gold Porphyry Zones

VANCOUVER, BC—(Marketwired – December 05, 2017) – Almadex Minerals Limited (“Almadex” or the “Company”) (TSX VENTURE: AMZ) (OTCQX: AXDDF) is pleased to announce it has received assay results from holes EC–17–040 and 042, the first drilled since 2013 at the Porvenir Zone which is located roughly 3 km to the southeast of the Norte Zone and 1.8 km southeast of the Raya Tembrillo area of the Villa Rica Zone. Since 1998, the El Porvenir area has seen 18 past diamond and RC drill holes many of which intersected important porphyry mineralisation. Hole EC–17–040 was drilled at an azimuth of 220 to cut approximately perpendicular to the strike of a sheeted vein zone identified in outcrop. This hole intersected significant fresh hypogene porphyry alteration and associated copper gold mineralisation. Hole EC–17–042 was drilled to the west (270 azimuth) and is interpreted to have missed this vein zone. Highlights from hole EC–17–040 and 042 include the following intercepts all of which are also shown on the attached plan and section:

Hole EC–17–040 PORVENIR ZONE, 220 Az, –45 dip
From 68.00 to 423.00, 355.00 m @ 0.41 g/t gold and 0.16% copper
  Including 187.00 to 295.00, 108.00 meters @ 0.88 g/t gold and 0.29% copper
  And 209.00 to 289.00, 80.00 meters @ 1.11 g/t gold and 0.36% copper
 
Hole EC–17–042 PORVENIR ZONE, 270 Az, –45 dip
From 118.50 to 196.50, 78.00 m @ 0.11 g/t gold and 0.10% copper

J. Duane Poliquin, Chairman of Almadex commented, “These are the first assays in many years from the Porvenir Zone in the central part of the El Cobre project. We believe that these results demonstrate the potential for a significant deposit in this area of the property and again clearly shows that we are dealing with a large cluster of porphyry systems all of which hold the potential to be important porphyry copper–gold deposits. As exploration progresses, it will be interesting to see how the Norte, Porvenir, Villa Rica, and Encinal zones relate at depth.”

About the El Cobre Project

The El Cobre Project has a total area of 7,456 hectares and is located adjacent to the Gulf of Mexico, about 75 kilometers northwest of the major port city of Veracruz, Mexico and has uniquely excellent infrastructure. The project area is situated 200 meters above sea level with extensive road access and is located less than 10 kilometers from a power plant, highway, gas line and other major infrastructure. Major power lines cross the property area. Almadex has its full drill permits from SEMARNAT and has land access agreements in place. The land ownership is private over most of the project area, has previously been cleared and is used for local agricultural purposes.

The four copper–gold porphyry targets currently known within the El Cobre Project, Encinal, El Porvenir, Norte and Villa Rica are defined by distinct Cu–Au soil anomalies, discrete, positive magnetic features and a large IP chargeability anomaly. Limited past RC and diamond drill testing at Encinal, El Porvenir, and Norte has returned wide intercepts of porphyry copper–gold and narrow zones of intermediate sulphidation epithermal gold–silver vein mineralization, with selected intercepts as follows:

  El Porvenir Zone: Drilling has demonstrated that the system persists at least to 400 m depth. Significant copper and gold grades were intersected such as 0.16% Cu and 0.39 g/t Au over 290 m in hole DDH04CB1. In addition, hole EC–13–004 intersected 0.23% Cu and 0.36 g/t Au over 106 m, to a depth of 504 m, again indicating potentially significant mineralization at depth.
   
  Encinal Zone: Hole CB5 intersected a highly altered breccia pipe containing fragments of stockwork veining and porphyry mineralisation across which 18.28 meters returned 1.42 g/t Au and 0.10% Cu. The breccia pipe occurs in a large alteration zone, IP chargeability high and magnetics low which has not been tested to depth. On June 19, 2017 Almadex announced that a new area of exposed stockwork quartz veining and gold mineralisation had been identified in the Encinal Zone. On June 29, 2017 Almadex announced the results of initial drilling on this exposed stockwork (Hole EC–17–025) which returned results including 34.47 meters grading 0.73 g/t Au and 0.20% Cu. Almadex is currently following up these results with some additional drilling at Encinal. 
   
  Norte Zone: All five holes drilled in the Norte Zone prior to 2016 intersected porphyry–style mineralization. Hole 08–CBCN–022, one of the deepest holes drilled at Norte in 2008, returned values of 0.14% Cu with 0.19 g/t Au over 259 m and 08–CBCN–19 intersected 41.15 meters averaging 0.42 g/t gold and 0.27% copper to the end of the hole at 187.45 meters. Drilling at the Norte Zone in 2016 and 2017 has resulted in the highest grade intersections to date at the El Cobre project, including 114.60 meters grading 1.33 g/t Au and 0.48% Cu (Hole EC–17–018, see press release of April 5, 2017), 80.50 meters grading 1.34 g/t Au and 0.46% Cu (Hole EC–16–012, see press release of October 24, 2016), 70.45 meters grading 2.32 g/t Au and 0.59% Cu (Hole EC–17–026, see press release of July 25, 2017), and 534.90 meters grading 0.90 g/t Au and 0.30% Cu (Hole EC–17–029, see press release of August 15, 2017). Since the Norte Zone discovery, Almadex has been carrying out a systematic drill campaign to define this target. Future Norte drilling will focus on defining the high grade zone now emerging from the Norte drill program.
   
  Villa Rica Zone: The Villa Rica Zone is a roughly 2.5 kilometer by 1 kilometer area defined by a strong north–northwest trending magnetic–chargeability high and associated copper–gold soil geochemical anomaly. The first drill results from the Villa Rica Zone were announced November 28, 2017. All holes intersected a chalcocite dominant enriched copper zone right from surface. This is the first time significant enriched mineralisation has been identified on the project. Hole EC–17–037 intersected 115.00 meters grading 0.57 g/t Au and 0.27% Cu including 41.00 meters grading 0.91 g/t Au and 0.42% Cu, and hole EC–17–038 intersected 83.90 meters grading 0.75% Cu and 0.13 g/t Au.

More information on El Cobre is available on the Almadex website at http://www.almadexminerals.com/ASSETS/PROJECTS/Cobre.html.

Larry Segerstrom, M.Sc. (Geology), P.Geo., A Director of the Company, is a Qualified Person as defined by National Instrument 43–101 (“NI 43–101″) and has reviewed and approved the contents of this news release. The porphyry mineralisation reported in this news release is associated with broad areas of alteration and stockwork veining. True widths cannot be determined at this time. The analyses reported were carried out at ALS Chemex Laboratories of North Vancouver using industry standard analytical techniques. For gold, samples are first analysed by fire assay and atomic absorption spectroscopy (“AAS”). Samples that return values greater than 10 g/t gold using this technique are then re–analysed by fire assay but with a gravimetric finish. For copper, samples are first analysed by Inductively Coupled Plasma – Atomic Emission Spectroscopy (“ICP–AES”), with four acid digestion. Samples that return values greater than 10000 g/t copper using this technique are then re–analysed by HF–HNO3–HCLO4 digestion with HCL leach and ICP–AES finish. Blanks, field duplicates and certified standards were inserted into the sample stream as part of Almadex's quality assurance and control program which complies with National Instrument 43–101 requirements. A NI 43–101 compliant technical report on the El Cobre project entitled, “Technical Report on the El Cobre Property” was filed in May 2015 and can be obtained from www.sedar.com.

About Almadex

Almadex Minerals Limited is an exploration company that holds a large mineral portfolio consisting of projects and NSR royalties in Canada, the U.S., and Mexico. This portfolio is the direct result of over 35 years of prospecting and deal–making by Almadex's predecessor company, Almaden Minerals Ltd. Almadex is currently focused on exploration at its El Cobre gold/copper porphyry project in Veracruz, Mexico, in which it holds a 100% interest, subject to a sliding–scale net smelter returns royalty (“NSR”) equivalent to 0.5% in the event that production from the property exceeds 10,001 tonnes per day of ore. This NSR can be reduced to 0.25% at this production rate through the payment of US$3.0 million.

On behalf of the Board of Directors,

“Morgan Poliquin”
Morgan J. Poliquin, Ph.D., P.Eng.
President, CEO and Director
Almadex Minerals Ltd.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release includes forward–looking statements that are subject to risks and uncertainties. All statements within it, other than statements of historical fact, are to be considered forward looking. 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 those in forward–looking statements. Factors that could cause actual results to differ materially from those in forward–looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward–looking statements, other than as required pursuant to applicable securities laws.

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