Palladon Ventures Ltd Shareholder Update by 24hgold

Mots clés associés : Utah |

Re: Press Release - Tuesday, May 26, 2009
Title: Palladon Ventures Ltd. - Shareholder Update

Salt Lake City, Utah, May 26, 2009. Palladon Ventures Ltd. ("Palladon" or the "Company") (TSX.V: PLL) (Frankfurt: PV-1) is pleased to release the following updates to shareholders.

Iron Mountain Project - SRK Update

In April, Palladon retained SRK Consulting to prepare an Internal Preliminary Economic Assessment report on Palladon's Iron Mountain Project. SRK was asked to undertake a review of the historical drill data and related information, in order to access the merit of the deposits, to examine their economic potential, and subsequently to prepare a NI 43-101 compliant scoping study and a preliminary economic assessment of alternative development scenarios.

Below is a brief summary of SRK's initial assessment and recommendations.

Palladon holds claims on several substantial iron ore resource deposits in southern Utah. Iron ore was produced between 1923 and 1995, with annual production rates ranging from 217,000 to 3,000,000 tons per year. The project can therefore be considered a brownfield development project with existing permits in place. The project scope is likely to expand from what is presently permitted, which will require permit amendment.

The Iron Mountain area is served by extensive existing infrastructure, with nearby highway access, a rail spur to the site that connects to the Union Pacific Railroad, electrical power and natural gas. Palladon also has rights to local water resources. Coal and limestone are readily available in the region.

The high transportation cost of shipping iron ore from southern Utah to traditional Asian and European markets presents a compelling argument for upgrading the run of mine (ROM) iron ore to higher-value products on site. Considerable drilling and metallurgical test work has been undertaken on the deposits and ores during the project history. From a review of the data available and subject to confirmatory tests, design and evaluation work, SRK believes the iron ores are amenable to the production of concentrates and pig-iron-grade iron nuggets, a premium quality feedstock for Electric Arc Furnaces (EAF). SRK has undertaken preliminary resource estimates and has developed conceptual pit designs for the Comstock, Mountain Lion and Rex deposits. A process flow sheet being developed by SRK and Samuel Engineering will include iron ore crushing, grinding and concentrating, followed by the option of an iron nugget plant. ROM ore will feed a conventional concentrator to produce concentrate feed for the iron nugget plant. An initial 1Mtpa production rate for iron nuggets seeks to balance projected market demand with economies of scale. An iron concentrate only scenario is also being evaluated.

Although the project designs are conceptual at this stage, the preliminary economics look encouraging and there appear to be no fatal flaws to development.

Investigations are planned or on-going in the following areas:

Land tenure
Twin hole drilling for historical data verification
Open pit and underground mine designs
Confirmatory metallurgical test work
Logistics and infrastructure
Market assessment
Tailings impoundment design and preliminary site selection
Project scoping and capital and operating cost estimation
Environmental studies in support of permit amendment

BCSC update

Palladon continues to work diligently to satisfy requests from the BCSC regarding restatement of prior interim financial disclosures, which will lead to having the trading halt removed from the stock. As part of this effort, prior-year audit firm BDO Dunwoody LLC has been re-engaged as Palladon's outside auditor. BDO's in-depth knowledge of the company will be focused on reviewing Palladon's restatement of prior interim financial statements, in addition to conducting an audit of the fiscal year ended February 28, 2009.

The general ledger has been reconstructed from February 28, 2008 which was the date of the last audited financials. Numerous corrections and clarifications in supporting documents are being made. A congruent three pronged effort is underway to rectify finance and accounting problems. Management's objective is to sturdy the accounting systems with new policies and procedures, to restate prior interim periods as requested by the BCSC, and to organize the books in support of the year-end audit. This effort is a top priority for management, to be accomplished as quickly as possible.

Financing Update

The company is in discussions with Luxor Capital with regard to extending the maturity of their notes. Palladon is also pursuing alternative financing options with other strategic and financial parties.

Palladon looks forward to updating shareholders as these initiatives progress.

On Behalf of the Board of Directors,
John W. Cutler
President & Chief Executive Officer

About Palladon

Palladon Ventures Ltd. is a junior resource company focused on advancing the Iron Mountain iron ore mine in Iron County, Utah.

For Further Information Please Contact:
John W. Cutler
President & CEO
Palladon Ventures Ltd.
801.521.5252 Tel
801.521.5454 Fax
Email: info@palladonventures.com
Website: www.palladonventures.com; www.ironbullmining.com

Disclaimer for Forward-Looking Information

Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding: (1) SRK's belief that the project scope is likely to be expanded from what is presently permitted, which will require permit amendment; (2) SRK's belief that the high transportation cost of shipping iron ore from southern Utah to traditional Asian and European markets presents a compelling argument for upgrading the run of mine (ROM) iron ore to higher value products on site; (3) SRK's belief that the iron ores are amenable to the production of concentrates and pig-iron-grade iron nuggets, a premium quality feedstock for EAF (Electric Arc Furnace) use; (4) the Company's receipt of the process flow sheet being developed by SRK and Samuel Engineering which will include iron ore crushing, grinding and concentrating followed by the option of an iron nugget plant; (5) the Company's belief that an initial 1Mtpa production rate for iron nuggets seeks to balance projected market demand with economies of scale; (6) the Company's ability to work diligently to satisfy requests from the BCSC regarding restatement of prior interim financial disclosures, which will lead to having the trading halt removed from the stock; (7) the Company's belief that BDO's in-depth knowledge of the company will be focused on reviewing the Company's restatement of prior interim financial statements, in addition to conducting an audit of the fiscal year ended February 28, 2009; (8) the Company's objective of studying up the accounting systems with new policies and procedures, to restate prior interim periods as requested by the BCSC, and to organize the books in support of the year-end audit; (9) the Company's ability to restate prior interim periods and conduct the yearend audit as quickly as possible; (10) the Company's discussions with Luxor Capital with regards to extending the maturity of their notes; (11) the Company's ability to pursue alternative financing options with other strategic and financial parties; and (12) the Company's belief that shipping run-of-mine ore in the current environment is uneconomic. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties and speculative nature associated with mineral exploration and production, (3) a decreased demand for minerals, (4) any number of events or causes which may delay or cease exploration and development of the Company's property interests, such as environmental liabilities, weather, mechanical failures, safety concerns and labor problems; (5) the risk that the Company does not execute its business plan, (6) inability to retain key employees, (7) inability to finance operations and growth, (8) other factors beyond the Company's control (9) the risk that the Company will not be able to raise funds due to Luxor Capital Group and (10) the risk that the Company is unable to satisfy the BCSC's requests. These forward-looking statements are made as of the date of this news release and, except as required by law, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements.

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

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