TSX-V Denies Palladon Ventures Letter Agreement With Luxor Capital Partners, LP, and Palladon Enters Into a New Standstill Agree

  Palladon Ventures Ltd. ("Palladon" or the "Company") (TSX VENTURE: PLL)(FRANKFURT: PV-1). On December 4, 2009 Palladon announced that the Company and Luxor Capital Partners, LP ("Luxor") had entered into a letter agreement (the "Letter Agreement"), subject to TSX Venture Exchange approval, which extended the due date of existing indebtedness, granted Palladon an option to repay the Luxor Loans ("the loans") at a discount on or before March 31, 2010, and restructured the loans for a combination of debt and equity if the loans were not repaid by March 31, 2010.

The TSX Venture Exchange has notified the Company that it would not approve this Letter Agreement. Therefore, under a new standstill agreement which expires on March 15, 2010, the Company and Luxor are reviewing all available avenues to repay or restructure the loans.

Palladon CEO Dale Gilbert stated: "Our highest priority is to repay or restructure the Luxor debt in a way that maximizes value for Palladon shareholders. We are also working very hard on developing a plan to ship iron ore and/or to upgrade our iron ore to concentrate. The continued strengthening of iron ore prices has resulted in increased interest in Palladon and its Iron Mountain Project. I was encouraged on my recent trip to China, where I met with numerous parties to discuss off-take agreements for iron ore and concentrate, as well as funding and possible investment in Palladon."

On Behalf of the Board of Directors,

Dale S. Gilbert, 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. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future, which include the Company's continuing efforts finance current operations and further development of the Iron Mountain Project. 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 labor 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.

Contacts: Palladon Ventures Ltd. Dale S. Gilbert President & CEO 801.521.5252 801.521.5454 (FAX) [e-mail] www.palladonventures.com