CMB CMC Metals Ltd

Paladin Energy Ltd ("Paladin") (TSX:PDN)(ASX:PDN)- is pleased to announce that
it has initiated its uranium business in Canada and entered into a Definitive
Agreement for the purchase of the uranium assets of Aurora Energy Resources Inc.
("Aurora") a wholly owned subsidiary of Fronteer Gold (TSX:FRG)(NYSE Amex:FRG)
("Fronteer"). Aurora Energy holds title to significant uranium assets within the
highly prospective Central Mineral Belt ("CMB") of Newfoundland and Labrador in
Eastern Canada, including the Michelin deposit (67.12Mlb Measured and Indicated
and 36.08Mlb Inferred Resources of U3O8) as well as the Jacques Lake, Rainbow,
Nash, Inda and Gear deposits and has secured the most prospective ground within
the CMB. 


NI 43-101 compliant U3O8 resources have been defined across all the deposits as
follows:-




--  83.8Mlb U3O8 Measured and Indicated Mineral Resources (40.2Mt ore at
    0.09%)  
    
--  53.0Mlb U3O8 Inferred Mineral Resources (29.0Mt ore at 0.08%) 
    



The consideration for 100% ownership amounts to C$260.87M via the issuance of
52,097,937 shares in Paladin. This values the current resources at US$1.90/lb. 


Paladin considers the CMB to be one of the few remaining, underexplored uranium
districts globally and this acquisition not only provides Paladin with a
noteworthy mid-term development asset but also offers an excellent opportunity
for both significant new discoveries and expansions of the existing deposits.
This highly strategic transaction fulfils Paladin's long held ambition to expand
its footprint into Canada, a leading country in uranium mining, both in terms of
resources and its stable political and business environment, providing the
Company with an important new platform from which to plan its continued growth. 


With this acquisition, Paladin's global uranium portfolio increases appreciably
and, with strong potential for additional uranium resource discovery to
complement the existing resource base, provides a genuine development
opportunity within the forthcoming decade. 


Current economic models and development plans will be revised with emphasis
placed on resource expansion and new target testing. Aurora, via Fronteer, has
significantly advanced these resources and Paladin is confident it can apply its
considerable international expertise in exploration and project development to
move them towards production. Aurora has also developed "best in class"
community and stakeholder relations and communication programmes and Paladin
will maintain and continue this high quality of work as a matter of priority.


John Borshoff, Managing Director and CEO of Paladin comments: "The acquisition
of the Aurora assets provides Paladin with entry into a major global uranium
district and gives us a solid basis to further the considerable achievements we
have already attained in establishing new uranium mine supply. The resources at
Michelin and Jacques Lake have grown substantially during periods of
exploration. We intend to advance these assets and will commit to regional
target identification and testing upon resolution of the current uranium mining
moratorium, which was put in place by the Nunatsiavut Government to provide the
necessary time to complete a Land Use Plan and Environmental Protection
legislation, both on track for completion by March 2011. The goal will be to
advance towards a definitive economic study and district development plan once a
sufficient resource base has been defined thus benefiting Paladin shareholders,
our customers and the stakeholders of Nunatsiavut and Newfoundland and Labrador.
The Board and I welcome our expansion into Canada, a major uranium producing
region which any company genuinely aspiring to be a Tier 1 producer must have in
its asset portfolio".


Mark O'Dea, President and CEO of Fronteer Gold, today said: "Paladin is an
experienced and well-financed global uranium mine operator and developer, and is
well positioned to advance Aurora's uranium assets. With this world-class
project added to their development pipeline, we believe Paladin will have one of
steepest growth profiles in the uranium industry. This transaction gives us the
option of maintaining exposure to the uranium price through a high quality,
diversified uranium producer".


Completion of the transaction is subject to certain customary conditions,
including the receipt of all necessary government and regulatory approvals,
including the approval of the TSX and third party consents and is expected to
close in February 2011. Cormark Securities Inc. of Toronto acted as Paladin's
financial advisor on this transaction. The shares to be issued to Fronteer will
be subject to a four-month hold period under Canadian securities laws. In
addition, Fronteer will enter into an agreement at closing that sets out
procedures designed to ensure that any disposition of shares by Fronteer will
occur in an orderly fashion to as wide a distribution as possible of
institutional investors.


Additional information in relation to the assets acquired can be obtained from
the website of Aurora at aurora-energy.ca.


NOTES:

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. Caution
Regarding Forward Looking Statements: Statements in this news release regarding
the closing of the transaction to acquire the uranium assets of Aurora Energy
Resources Inc., Paladin's plans to develop these assets, the estimation of
mineral reserves and the expected resolution of the current Nunatsiavut Land Use
Plan and uranium development moratorium in the Province of Newfoundland and
Labrador constitute forward-looking information within the meaning of applicable
securities laws. Assumptions upon which such forward looking statements are
based include that Aurora and Paladin will be able to satisfy the conditions in
the Definitive Agreement, that all third party, regulatory and governmental
approvals to the transaction will be obtained and all other conditions to
completion of the transaction will be satisfied or waived. Many of these
assumptions are based on factors and events that are not within the control of
Fronteer, Aurora or Paladin and there is no assurance they will prove to be
correct. 

In particular, there can be no assurance that the transaction will close as
scheduled or that there will be a resolution of the current Nunatsiavut Land Use
Plan and uranium development moratorium in the Province of Newfoundland and
Labrador that is favourable to Paladin or that Paladin will be able to
successfully develop the properties acquired. Forward-looking statements are
subject to known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or achievements of
Paladin to be materially different from those expressed or implied by such
forward-looking statements, including but not limited to: risks related to the
integration of the business of Aurora, risks related to mining operations,
including political risks and instability and risks related to international
operations, actual results of current exploration activities, conclusions of
economic evaluations, changes in project parameters as plans continue to be
refined, as well as those factors discussed in the section entitled "Risk
Factors" in Paladin's Annual Information Form of the year ended June 30, 2010.
Although Paladin has attempted to identify important factors that could cause
actual results to differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that such
statements will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements. Paladin
does not undertake to update any forward-looking statements herein, except in
accordance with applicable securities laws.


ACN 061 681 098

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