Palladon Ventures Ltd.

Palladon Ventures Ltd.

January 09, 2007 16:36 ET

Palladon Sells Interest in Western Utah Copper Project

SALT LAKE CITY, UTAH--(CCNMatthews - Jan. 9, 2007) - Palladon Ventures Ltd. (TSX VENTURE:PLL)(FWB:PV-1) is pleased to announce that Palladon's former joint venture partner, Western Utah Copper Company ("WUCC"), has exercised its option to purchase Palladon's interest in the Western Utah Copper Project for USD$3 million in cash, and USD$10 million payable as a 1% Net Smelter Royalty from copper produced from current "reserve" properties, and a 2% Net Smelter Royalty from copper produced from newly discovered ore bodies.

On August 28, 2006, Palladon announced a restructuring of the Western Utah Copper Project. Under the restructuring, WUCC had the option to purchase Palladon's interest on or before January 4, 2007. In the event the option was not exercised, Palladon had the option for a period of 60 days thereafter to purchase WUCC's interest for the same consideration, plus amounts expended by WUCC on the production properties since March, 2006.

Palladon President & CEO Don Foot comments: "Proceeds of the sale will be used to pay down principal on the outstanding term loan to Luxor Capital Partners on the debt outstanding for the Iron Mountain Project. The WUCC joint venture restructuring allows us to focus both our efforts and our cash resources more effectively on the development of the Iron Mountain Project."

On Behalf of the Board of Directors,

Donald G. Foot, Jr., President & Chief Operating Officer

About Palladon

Palladon Ventures Ltd. is a junior resource company focused on building production facilities at the Comstock/Mountain Lion iron mine in Iron County, Utah. Palladon also holds gold and copper exploration projects in Nevada, Utah and Argentina.

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