Palladon Ventures Ltd.
TSX VENTURE : PLL
FRANKFURT : PV-1

Palladon Ventures Ltd.

September 15, 2009 12:55 ET

Palladon Ventures Provides Update on Company Developments

SALT LAKE CITY, UTAH--(Marketwire - Sept. 15, 2009) - Palladon Ventures Ltd. ("Palladon" or the "Company") (TSX VENTURE:PLL)(FRANKFURT:PV-1) is pleased to be in full compliance with the British Columbia Security Commission and to have met TSX Venture exchange requirements for the resumption of trading. On August 7, 2009 the Company, in conjunction with SRK Consulting (US), Inc. ("SRK"), announced its first National Instrument 43-101 ("NI 43-101") compliant resource estimate for the Comstock/Mountain Lion ("CML") deposit and stockpiles. The company is working with SRK and is in the process of completing the Preliminary Economic Analysis ("PEA" or Scoping Study), which is expected to be released by September 25, 2009. The resource estimate is a key component of the forthcoming PEA, which will also assess the technical and economic merits and development options of CML and the stockpiles only. The PEA will not address the technical and economic merits of Palladon's other significant resources at Iron Mountain.

Technical and economic details will be summarized in the completed PEA, but in the interim interested parties are encouraged to visit the Company's website at www.palladonventures.com to view a PowerPoint presentation prepared by SRK. SRK's Group Chairman Dr. Neal Rigby stated, "For a long dormant project, the infrastructure in place at Iron Mountain is among the best of any mining project anywhere...and given the planned exploration and likely scale of operation, the project should not be resource constrained." Please understand the power point has economic slides where the numbers have been left blank. The numbers will be inserted into a revised PowerPoint upon release of the PEA.

In addition the Company has been working with Hatch Management Consulting ("Hatch"), a leading engineering and mining consulting firm, to complete comprehensive market evaluations to assess commercial opportunities for production of iron ore concentrate and alternative iron units (including DRI, pig iron and iron nuggets, collectively "AIU"). Based on these studies, the Company believes solid demand exists for AIU products in North America and Asia, as well as concentrate in Asia.

The company has also had discussions with Midrex Technologies, Inc ("Midrex"), regarding the technical and economic aspects of the MIDREX ® Direct Reduction Process as well as the new ITmk3 ® ("Iron Making Technology Mark 3") Technology for iron nugget production. Midrex is owned by Kobe Steel, Ltd., and is the world's leading technology company for direct reduction of iron ore.

The company believes there are several secular trends that could bolster the project:

- The growing production and market share of Electronic Arc Furnace steel producers (mini mills), who require that AIU be added to their charge mix along with scrap.

- The declining availability of quality scrap iron and the well-known scrap shortage in Asia; and

- The strategy of numerous international and domestic steel makers to secure iron ore resources and invest in iron ore projects.

On the corporate front, the Company announces that its wholly owned subsidiary Palladon Iron Corporation ("PIC") has notified China Kingdom International (Australia) PTY Ltd., CKI Minerals & Metals ("CKI") of the termination of the Sales Agreement for the Purchase of Iron Ore dated March 31, 2008 between PIC as seller and CKI as buyer, subject to the dispute resolution mechanisms as set out in the agreement. When the Sales Agreement was negotiated and entered into, it was assumed by both parties that the iron ore would be delivered to CKI at the Port of Long Beach, and this assumption was specifically made part of the agreement. However, subsequent to the signing of the Sales Agreement, the Port of Long Beach became unavailable, making performance of the agreement commercially impracticable.

Palladon CEO John Cutler stated, "We are excited by the initial assessment of the project and the market opportunity for AIU, and we look forward to providing more specific details of the project upon completion of the PEA. Management is working diligently with recognized experts in the industry to advance this important project for the benefit of all shareholders." The immediate focus of the Company is raising a minimum of $5 million dollars by October 15, 2009 as required by our recently executed extension agreement.

On Behalf of the Board of Directors,

John W. Cutler, President and Chief Executive Officer

About Palladon

Palladon Ventures Ltd. is a junior resource company focused on advancing the Iron Mountain Project, an iron ore mine located west of Cedar City, Utah.

Disclaimer for Forward-Looking Information

Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's: (1) belief and expectation that the Preliminary Economic Analysis will be completed and released by September 25, 2009 and (2) expectation that demand exists for AIU products in North America and Asia, as well as concentrate in Asia. 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 labour 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; and (9) the risk that the Company will not be able to raise funds due to Luxor Capital Group. 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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