UPDATE: MONDAY, SEPTEMBER 8, 2008

TEST CAR

A test car containing 100 tons of run-of-mine ore was shipped from Iron Mountain to the Port of Long Beach to evaluate how the material dumps from the car and how the belts handle the material. After a few problems encountered with the door linkage of the test car, it dumped successfully. There are no pictures available as the 100 tons of material was dumped in approximately 2 seconds. Based on these tests, fabrication of the new cars will begin shortly with cars expected to start coming off production in about 16 weeks.

SECONDARY POWER

Secondary power is currently being connected to all of the equipment on the site (Figure 1). All equipment will be operational and tested this week.

Figure 1: Secondary Power Being Installed on Stacker

RAIL REFURBISHMENT

The refurbishment project at the site is progressing rapidly. Rail ballast (Figure 2) is being added for the top curves 1, 2 & 3, with nearly 1/2 of the 5400 ties now in place. Seventeen hundred and fifty feet of 90 lb. rail, out of a total 2140 feet, has now been replaced with new 133 lb rail.

Figure 2: Ballast Being Spread on Curves of Rail

EQUIPMENT TESTING

We are now into the final testing phase of the equipment at the site. This week we will feed run-of-mine ore through the crusher (Figure 3). This material will be added to the stockpile after crushing.

Figure 3: Crusher Being Readied for Start-up

In anticipation of start-up and continuous mining, Gilbert Development is now installing their offices at the site (Figure 4).

Figure 4: Gilbert Development's Office at the Site

ANNUAL GENERAL MEETING

Our Annual General Meeting for shareholders will be held on Wednesday September 17, 2008 at the corporate offices in Salt Lake City, Utah. We are pleased to announce the following schedule:

Wednesday September 17, 2008
9:00 a.m. – Annual General Meeting
10:30 a.m. – Closed Palladon Ventures Board Meeting
12:30 p.m. – Iron Mountain Mine Presentation with light lunch provided

Thursday September 18, 2008
9:00 a.m. – Mine Tour Available
1:00 p.m. – Mine Tour Available

If you plan to attend the presentation and light lunch on the 17th, or either mine tour on the 18th, please RSVP to Bob Banish at 1.801.521.5252.
The mine is located approximately 3 hours from either Las Vegas, Nevada or Salt Lake City, Utah. The address of our office at the mine is 2708 Comstock Road, Cedar City Utah, 84720.