UPDATE: MONDAY, OCTOBER 20, 2008

SITE VISITORS

We were pleased to have visitors all of last week from China Kingdom International, Shandong FarEast Marine group (the shipping people), and a prominent Chinese Steel Company visit the site and also the port. They were all very excited to see the progress made at the mine (Figures 1&2). Despite the rumors in the iron ore industry of reduced iron ore demand, we have received every assurance from our Chinese buyers that they anxiously await the first shipment of iron ore.

Figure 1: Standing in the Bucket of the New Loader

Figure 2: Discussing the Ore Reserves at the 6350' Level

THE ENGINES HAVE ARRIVED

After a long wait, the two engines that our shortline operator will use are now at the site (Figure 3). The engines will be used to move material along the 14.4 mile track from the mouth of the mine to Iron Springs.

Figure 3: Engines Arrive at Iron Springs

The engine will now start to move the Union Pacific bridge cars from Iron Springs to the tipple where they will be loaded. This is being done for two reasons. The first is to calibrate the tipple for accurate loading and the second is to have cars loaded and ready for shipment once the barn at the Port of Long Beach is ready to receive shipments.

Figure 4: Engine Pulls Under the Tipple

Shipping will commence once the modifications to the barn at the Port of Long Beach are completed to handle the higher density iron ore. The plows have to be modified, as well as some of the structural components in the barn.

GRAND BLAST

On Thursday October 23, a “Grand Blast” will be held at the mine to signify the grand re-opening of the historic Comstock/Mountain Lion Mine by Palladon Iron Corporation. At 11am there will be a private ceremony for invited guests and dignitaries with speeches from the Mayor of Cedar City, County Commissioners, and Palladon management. From 1 pm to 3 pm there will be an open house for the general public of Cedar City and Iron County. Those planning to attend must RSVP to 1.435.586.2770.