09:22     PALADIN<00495> - Announcement                                       

    The Stock Exchange of Hong Kong Limited takes no                          
    responsibility for the contents of this announcement, makes               
    no representation as to its accuracy or completeness and                  
    expressly disclaims any liability whatsoever for any loss                 
    howsoever arising from or in reliance upon the whole or any               
    part of the contents of this announcement.                                
                                                                              
                                                                              
    PALADIN LIMITED                                                           
    (Incorporated in Bermuda with limited liability)                          
    (Stock Code: 495)                                                         
                                                                              
                                                                              
    FURTHER DELAY IN DESPATCH OF CIRCULAR                                     
                                                                              
    Despatch of the Circular to the Shareholders in relation to               
    the major transaction will be further delayed from 31 January             
    2005 to no later than 7 February 2005.                                    
                                                                              
    Reference is made to announcement of Paladin Limited (the                 
    "Company") dated 3 December 2004 (the "Announcement") in                  
    relation to the major transaction regarding a corporate                   
    guarantee of HK$80 million given by the Company and securities            
    given by Banhart in favour of the Bank in order to obtain                 
    banking facilities for Fine Chiffon and the announcements of              
    the Company dated 24 December 2004 and 17 January 2005                    
    regarding the delay in dispatch of the circular (the                      
    "Circular"). Unless otherwise stated, capitalised terms used              
    herein have the meanings ascribed thereto in the Announcement.            
                                                                              
    Pursuant to Rules 14.38 and 14.40 of the Listing Rules, the               
    Company is required to despatch the Circular to the                       
    Shareholders within 21 days after publication of the                      
    Announcement, which is on or before 24 December 2004. On 24               
    December 2004, the Company announced that it had made an                  
    application to the Stock Exchange for a waiver for the delay              
    in time of despatch of the Circular until 17 January 2005 and             
    on 17 January 2005, the Company announced that it had made                
    an application to the Stock Exchange for a waiver for the                 
    further delay in time of despatch of the Circular until 31                
    January 2005.                                                             
                                                                              
    During the period from 17 January 2005 to the date of this                
    announcement, the indebtedness statement and cashflow                     
    projection had been completed by the Company. However,                    
    additional time is required by the Company to finalise certain            
    financial information to be included in the Circular, the                 
    Company has applied to the Stock Exchange for a waiver for                
    the further delay in time of despatch of the Circular until               
    7 February 2005.                                                          
                                                                              
    As at the date of this announcement, the board of directors               
    of the Company comprises Mr. LAW Fong and Mr. CHEN Te Kuang               
    Mike as executive directors, Mr. OUNG Shih Hua James as                   
    non-executive director and Mr. ZHU Pei Qing, Ms. LU Ti Fen                
    and Mr. KWOK Wai Chi as independent non-executive directors.              
                                                                              
                                                                              
                                                                              
    By order of the Board                                                     
    Paladin Limited                                                           
    Law Fong                                                                  
    Acting Chairman                                                           
                                                                              
    Hong Kong, 31 January 2005