Palladon Ventures Ltd.

Palladon Ventures Ltd.

March 31, 2009 18:15 ET

Clarification of the March 27, 2009 Press Release Entitled: Palladon Iron Corporation Completes Phase 1 of 3-D Modeling of High Resolution Aeromagnetic Data From Iron Mountain, Utah Property

SALT LAKE CITY, UTAH--(Marketwire - March 31, 2009) - Palladon Ventures Ltd. ("Palladon" or the "Company") (TSX VENTURE:PLL)(FRANKFURT:PV-1) would like to clarify the press release dated March 27, 2009 to explain that the quantities and grades disclosed are not a resource estimate and that they represent a target. The March 27, 2009 press release is repeated in its entirety below. Additional clarifying language is marked with (i).

Palladon, through its wholly-owned subsidiary, Palladon Iron Corporation, announces operational and resource updates.

Palladon has been committed and has worked diligently to effect the shipment of ROM ore. We have benefited from untiring support from our partners both in China and domestically to make this happen and for that we are truly grateful. In spite of these efforts, it is clear that shipping ROM ore in this environment is uneconomic. Therefore, the Board of Directors has decided to suspend that effort in the short term.

As outlined below we have new information on the resource and understanding the significance of this data is a priority.

Palladon Iron Corporation Completes Phase 1 of 3-D Modeling of High Resolution

Aeromagnetic Data From Iron Mountain, Utah Property

Palladon Ventures is pleased to announce completion of Phase 1 of 3-D modeling of high resolution aeromagnetic data acquired over its Iron Mountain property in September, 2008. Dr. Craig Beasley of Wave Geophysics L.L.C., an independent geophysical consultant based in Evergreen, Colorado, was contracted to model the data. Dr. Beasley computed a 3-D model with model volumes having no geologic constraints and with the computed model parameter magnetic susceptibility in International Standard (S.I.) units. These units are not geologically intuitive so the S.I. units were converted to equivalent percent magnetite (PMT) values. After reviewing several modeling scenarios, representative isosurfaces (shape boundaries) were chosen at 2 PMT, 5 PMT and 10 PMT. Without geologic constraints, the model cannot produce standard cut-off grades of % Fe.

This 3-D model is an effective method for assessing the location and geometry of specific zones of magnetite content. The model consists of several hundred thousand cube-shaped voxels 50 x 50 x 50 meters in size. The 2 PMT, 5 PMT and 10 PMT isosurfaces were determined to be the most representative shape boundaries for correlation with PIC's knowledge of the known iron deposits in the district. The total volume of magnetite content and total volume of rock enclosed by each isosurface shell were determined from the model. However, as stated previously, the Beasley model did not define grades or tonnes for any of the isosurface shells. The model was computed between a base elevation of 975 meters and a top elevation of 2,381.44 meters, a thickness of 1,404.44 meters.

The 3-D model clearly identifies known iron deposits and presents several high priority exploration targets as well. The Reduced To-Pole Vertical Derivative map by Dr. Beasley is the best 2-D data representation of the close fit of the modeled magnetic anomalies of the known iron deposits to the true outline of the historic 39% Fe cutoff boundary of the known deposits. That is especially true of PIC's Rex, A&B and Comstock/Mountain Lion iron deposits. Several of the 3-D model maps are displayed on the Company's website.

Inferred grades in metric tonnes were assigned to each isosurface by PIC and are based on PIC's knowledge of historical resources in the district and the size, shape and grade of the known iron deposits. Please refer to a News Release of May 30, 2006 announcing an updated historic iron resource estimate for the Iron Mountain district at

The following tables show the volumes contained within the PMT isosurfaces (as provided by the Beasley model in the Phase 1 study) and inferred tonnes and grade (by Palladon) within each isosurface shell.

(i) Please note that the use of the term "Inferred" below and herein is not meant to reference a NI 43-101 technical study. The potential quantity and grade of "Inferred" tonnes are conceptual in nature. There has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in discovery of a mineral resource. The "Inferred" tonnes herein describe a target, not a resource. This information has been reviewed by Rick H. Russell, a qualified person.

Table 1 - Shape Volumes (Beasley)
Total Magnetite
Isosurface Content Total Volume
2 PMT 88,376,727 m3 3,122,625,000 m3
5 PMT 9,840,213 m3 149,000,000 m3
10 PMT 1,291,008 m3 10,875,000 m3

Table 2 - Inferred Tonnes and Grade (Palladon)
Specific Inferred Inferred
Isosurface Gravity Tonnes Grade
2 PMT 4.5 14.05 Billion Tonnes less than or equal to 20% Fe
5 PMT 4.5 670.5 Million Tonnes 20-40% Fe
10 PMT 4.5 48.9 Million Tonnes greater than or equal to 40% Fe

Only the 2 PMT isosurface involves the entire 1,404.44-meter thickness of the modeled block. The thickest portion of the 5 PMT isosurface is approximately 450 meters and averages 200 to 300 meters in thickness.

Phase 1 modeling has identified several exploration targets that may be tested in future drilling programs. Phase 2 modeling of the high resolution aeromagnetic data is currently under way with the objective of the further refinement of drill targets and to better define the inferred tonnes and grade as they directly relate to the aeromagnetic data. This objective will be realized by integrating the high resolution aeromagnetic data with the existing drill hole database for the known iron deposits. The first deposit to be modeled will be the Comstock/Mountain Lion deposit.

A number of the more insightful aeromagnetic maps and also plates produced by Dr. Beasley will be posted to the website to facilitate discussion of these results in the upcoming conference call with investors. Our intent is to put all of the data generated in these studies on the website.

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 Comstock/Mountain Lion iron mine in Iron County, Utah. Palladon also holds gold exploration projects in Nevada, Utah and Argentina.

Disclaimer for Forward-Looking Information:

Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's belief that shipping ROM ore is currently 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 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, (9) the risk that the Company's may not be able to refinance existing indebtedness and (10) the risk that the Company may not finalize an agreement with an alternative port. 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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