PUBLIC CENSURE ANNOUNCEMENT

Paladin Limited
(the Company)

The Listing Committee of the Stock Exchange of Hong Kong has recently concluded an investigation into the conduct of the Company and the Board of Directors of the Company. The investigation concerned the failure by the Company to observe the requirements of Paragraph 11 of the Listing Agreement in failing to publish the Interim Report and Accounts for the six months ended 31 December 1999 within the timeframe required by the Listing Agreement.

The Listing Committee has noted that in an earlier announcement made by order of the Board dated 5 April 2000 the Company conceded that a breach had occurred. The breach was attributed by the Company to "pure oversight and forgetfulness". The Listing Committee has therefore concluded on the basis of the admissions that have been made that a breach of Paragraph 11 of the Listing Agreement has occurred.

The Listing Committee has also concluded that the Directors have also collectively and individually acted in breach of their respective Declaration and Undertakings with regard to Directors as set out in Form B of Appendix 5 to the Exchange Listing Rules (the Undertaking), in causing or failing to prevent the Company from breaching the Listing Agreement.

Accordingly, the Company and the Directors are hereby individually and collectively publicly censured by the Listing Committee for breach of Paragraph 11 of the Listing Agreement and the Undertaking given in Form B.

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