Palladon Ventures Ltd.-New Iron Mountain Project Resource Estimate

SALT LAKE CITY, UTAH--(Marketwire - Aug. 7, 2009) - Palladon Ventures Ltd. ("Palladon" or the "Company") (TSX VENTURE:PLL)PV is pleased to announce the first National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate for its Comstock Mountain Lion ("CML") deposit at the Iron Mountain Project in southwest Utah. The indicated mineral resource estimate totals 40.35 million short tons, at a grade of 46.09% Fe (Iron). The independent mineral resource estimate was prepared by SRK Consulting (US), Inc. ("SRK"). The resource estimation and classification follows Canadian Institute of Mining and Metallurgy (CIM) guidelines and meets Canadian National Instrument 43-101 reporting standards. Palladon CEO, John Cutler, stated, "This compliant resource estimate solidifies our previous non-compliant resource estimates, and gives Palladon a compliant resource for the first time in the Company's history. This resource estimate is also an important component of the Preliminary Economic Assessment ("PEA"), which assesses the technical and economic merits of various development options for the Comstock Mountain Lion deposit and stockpiles. Palladon will file a NI43-101 PEA within 45 days of this press release. The Company will now work with SRK to complete a feasibility study for the Iron Mountain Project by Q2 2010." Further details of the resource estimate are outlined below. As previously disclosed, the Company has filed its audited financial statements for the fiscal year ended February 28, 2009, along with the related management's discussion and analysis ("MDA"). Financial statements and MDA for the first quarter ended May 31, 2009 are expected to be filed early next week. The Company believes that the first quarter filing will bring the Company into compliance with its filing requirements, at which time the Company will immediately apply to have the cease trade order lifted. The company has completed confirmatory drilling at the Comstock Mountain Lion (CML) iron deposit and stockpiles. SRK reviewed the results and considers the recent drilling and analyses to confirm the historic drilling conducted between 1942 and 1961 by Columbia Steel, a subsidiary of US Steel, and Colorado Fuel and Iron Company. Six core holes from the early drilling were twinned by six reverse circulation (RC) holes that include a total of 1,735 feet (529 meters). Additionally, 2,520 feet (768 meters) in 29 RC holes were drilled in the stockpiles. The samples were analyzed at Palladon's laboratory in Cedar City, Utah which is managed and operated by SGS North America Inc. ("SGS"). Check analyses were completed at Lerch Brothers, Inc. in Hibbing, Minnesota. SRK has conducted a resource estimate for the Comstock Mountain Lion deposit and stockpiles. The resources are classified as Indicated and the results are shown in Table 1. /T/ Table 1: Mineral Resources: Comstock Mountain Lion as at August 1, 2009 ------------------------------------------------------------------------- Short Metric Tons Tonnes Fe SiO2 Al2O3 P CaO MgO Area (millions) (millions) % % % % % % ------------------------------------------------------------------------- CML 31.35 28.44 49.60 10.27 2.70 0.239 3.77 1.89 Stockpiles 9.00 8.16 33.88 28.34 5.74 0.277 6.27 3.86 Total 40.35 36.60 46.09 14.30 3.38 0.250 4.33 2.33 ------------------------------------------------------------------------- /T/ Notes: CML Resource Estimation 1. A grade shell was created at 10% iron using the historic drilling. 2. The drill hole database including 121,546 feet (37,047 meters) in 434 holes was composited into 10 foot intervals. 3. A block model consisting of blocks 25 feet square in plan view and 20 feet high was created using Maptek's Vulcan software. 4. The resource was estimated by ordinary kriging within the grade shell using only composites within the grade shell. The estimation required a minimum of two drill holes for block estimation. 5. The resource was estimated using topography current as of August 1, 2009. 6. The resource was estimated using volumes and grades within the grade shell and do not include external dilution. 7. The resource is stated at a cutoff of 20% iron. Stockpiles Wireframes were constructed for each stockpile using toes and crests surveyed by Palladon's surveyor. 1. The drill hole database includes 2,520 feet (768 meters) in 29 RC holes. 2. The grades within the stockpiles were estimated using a polygonal method. Ms Leah Mach, Principal Resource Geologist with SRK is the Qualified Person (QP) for the resource estimate and has reviewed and approved this press release. 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 and 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) expectation that it will file a NI 43-101 technical report within 45 days of this press release; (2) ability to work with SRK to complete a feasibility study for the Iron Mountain Project by Q2 2010; (3) expectation and ability to file the financial statements and related MDA for the first quarter ended May 31, 2009 by early next week and (4) ability to immediately apply to have the cease trade order lifted once the Company is in compliance with all filing requirements. 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.