Palladon Ventures Ltd.

Palladon Ventures Ltd.

October 15, 2009 13:36 ET

Palladon Ventures Enters Into Standstill Agreement With Luxor Capital Partners, LP

SALT LAKE CITY, UTAH--(Marketwire - Oct. 15, 2009) - Palladon Ventures Ltd. ("Palladon" or the "Company") (TSX VENTURE:PLL)(FRANKFURT:PV-1). The Company is pleased to announce that effective immediately, the Company and Luxor Capital Partners, LP ("Luxor") have entered into a standstill agreement to the extension agreement dated June 26, 2009 (the "extension agreement"). The standstill agreement provides for an extension of the October 15, 2009 due date to December 4, 2009. As per the extension agreement, if the Company completes the interim financing and the other terms of the extension agreement are met, the Luxor Loans will be due and payable on December 31, 2010. In connection with the standstill agreement, the Company will pay down the Luxor Loans in the amount of US$200,000 (for further information on the extension agreement and the interim financing, please refer to the Company's press release dated June 26, 2009).

During the standstill period the Company will continue to work with Luxor and existing and new investors to finalize both short and long term financing alternatives with the ultimate intent of consummating a transaction that pays off Luxor's indebtedness and provides the Company with additional capital for operations. 

In light of the recently released Preliminary Economic Assessment, management continues to work diligently to advance the important iron ore project at Iron Mountain for the benefit of all shareholders.

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 ability to raise funds to satisfy the Luxor debt. 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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