Palladon Ventures Ltd.

Palladon Ventures Ltd.

July 20, 2009 14:26 ET

Palladon Ventures Ltd.-Amended and Restated Financial Statements

SALT LAKE CITY, UTAH--(Marketwire - July 20, 2009) - Palladon Ventures Ltd. ("Palladon" or the "Company") (TSX VENTURE:PLL)(FRANKFURT:PV-1) - As a result of a review by the British Columbia Securities Commission (the "BCSC"), Palladon is pleased to issue the following press release.

The BCSC's review is part of their ongoing Continuous Disclosure Review Program. The review identified several matters with respect to the Company's financial statements for the interim periods ending August 31, 2008 and November 30, 2008 and their accompanying Management Discussion and Analysis ("MDA").

As a result of the review, the Company is filing of amended and restated financial statements for the interim periods ending May 31, 2008, August 31, 2008 and November 30, 2008. Accompanying the amended financial statements were amended and restated Management, Discussion and Analysis for the same periods.

All three periods were amended and restated to rectify various accounting errors and to consistently apply accounting treatment from the prior year audit.

The August 31, 2008 statements were amended and restated to reflect early adoption of Handbook Section 1601, Consolidations, Handbook Section 1602, Non-controlling Interests, and Handbook Section 1582, Business Combinations, as these sections apply to Palladon's June 2008 acquisition of the portion of Palladon Iron Corporation that it did not already own.

Specifically, goodwill in the amount of $69.0 million in the originally filed August financial statements was restated as a $60.5 million write off directly to the deficit account. The net result of this accounting change was to reduce shareholder equity from $75.4 million in the original statement to $5.1 million in the amended statement.

Loans payable of $34.5 million in the original August statements were restated to $36.7 million and also moved to current liabilities because the maturity date was within one year.

Similarly to August, the original November goodwill amount of $69.0 million was eliminated in the amended November statement, and originally stated shareholders' equity of $72.0 million was changed to a negative $0.9 million.

Also in November, inventory originally recorded as $1.1 million was reclassified as Mineral Properties, with the corresponding Mineral Properties amounts changing from $23.0 million originally to $24.9 million as restated.

The Company has also filed a business acquisition report with respect to the acquisition of the portion of Palladon Iron Corporation that it did not already own.

Palladon will continue to update investors as information becomes available.

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: (1) belief that shipping run-of-mine ore in the current environment is uneconomic; (2) ability to evaluate shipping options for run-of-mine ore should market pricing improve; (3) ability to evaluate a possible near-term shipping opportunity for concentrate production in Mexico; (4) evaluation of a turnkey solution that would involve iron ore processing, loading, and shipping in vessels that are owned by the steel producer; (5) belief that ore samples that are currently being processed should be available in the next two weeks; (6) belief that SRK's initial assessment should be available in the next few weeks. (7) belief that the Phase 2 assessment of the Aeromagnetic survey results will soon be available; (8) ability to continue to evaluate longer-term options including construction of a concentrate plant and production of higher order products, such as pig iron. 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 will not be able to raise funds due to Luxor Capital Group and (10) the risk that the Company is unable to finalize arrangements with the 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.

Contact Information