UPDATE: MONDAY, NOVEMBER 10, 2008

This week’s update will be a bit different than those of the past few months. We have tried to keep you abreast of the progress at the mine by showing some of the interesting pictures of what has been going on. While this has served its purpose, there are a number of questions that have been asked that those updates have not directly answered. Today we would like to answer some of the questions that have been presented to us concerning different phases of the activities surrounding this project. These will be broken down into specific areas that are currently being worked on.

THE MINE SITE

1. If you are mining at 5000tpd you must have more than enough in the stockpile?

We are currently mining at 5000tpd 4 days a week, but we are also moving sub-grade material into lean ore stockpiles that will be processed once the plant is built. In addition we are moving some waste at this time to develop the roads that give us greatest access to all areas of the mine. This is part of building what is called the “Ultimate Pit” design. We currently have about 130,000 tons in the stockpile and will take that to about 150,000 tons at all times. We will not increase to 6000tpd until after we start shipping

2. Are you achieving the grade of >55% Fe in the stockpile?

We run approximately 100 assays a day, so it is impossible to report all of the data that we receive. The current stockpile is blended by using the rotary stacker. This assures us that when we put product in the ship it will be greater than the 55% Fe specified. We have had absolutely no problem in maintaining the contract grade in the stockpile based on the mining plan and drill and blast data that we have. We do move any waste to the waste dumps, sub-grade material to our lean-ore stockpiles and the run-of-mine ore to the crushing pad. The mining plan developed prior to start-up has worked out beautifully and is updated daily with all of the assays that are recorded.

3. It is starting to snow at the mine site. Will this cause delays in shipping?

Anyone who lives in this area of the country and understands the mining industry will know that there is always variability in the weather conditions. Weather does not stop the mining operation. Even if there is a severe storm that may cause us to have to move snow, we will continue mining and are maintaining a large stockpile so that loading and shipping will not be impacted. It gets cold at the site, but we do heat the engine blocks of all of the equipment so it is ready to go each morning.

4. When will the new 100-ton trucks arrive?

The 100-ton trucks start arriving this month and we will post pictures when they get here. The new large dozer that was pictured in previous updates is now in operation.

5. What about an update on the AeroMag Survey?

The survey is complete and Rick Russell, our chief geologist, is now interpreting all that data and putting the report together. This data will give us a good idea of other anomalies at the site and will also show us areas that may provide for additional resources. It will take drilling to confirm the results. The results of the survey will have to be issued as a press release as they may represent a material change to the company. This data will also provide us with a drilling plan that Palladon will use to determine the best time for implementation.

6. Are there more permits necessary at the site or to be able to move rail cars from the site?

Fortunately there are no additional permits required for the mine or for moving cars from the site. All permits are in place.

RAILROAD AND RAIL CARS

1. Is all of the rail maintenance now complete and can you operate the shortline?

Absolutely, and our contractor did a great job. We have been moving cars along the entire track with great success.

2. Is there a contract in place with the UP to move the ore?

As has always been stated, we will not sign the contract with the UP until the day we start shipping as that will start the clock. The UP has been incredible to work with on this project and has helped us to make sure we have everything in place. This is an important project for them as well so we have developed a great working team with the UP, Palladon and people from the port.

3. Where are all the railcars?

You have seen in the pictures that there are a number of cars at the site, close to 120. The UP will bring in the additional cars as soon as we have a firm date on when the first train will move down the tracks. This way we are not burdened with a lot of cars sitting on our tracks.

4. What is the status on the new cars and when will we get them?

We have been working closely with the manufacturer and the lessor on the cars to make sure that everything is in place before we start construction. This has turned out to be to our benefit as the price for steel has stabilized from the level of just two months ago. This should reduce the cost of the cars and the ultimate lease price. Once we give the green light it will take about 16 weeks to receive the new cars. In the meantime we will use the cars provided by the UP.

5. When will you be able to go from 2M tonnes per year up to 4M tonnes per year?

This is determined first by our ability to have a smooth shipping scenario on 2M tonnes and then by the UP giving us approval to go to 4M tonnes per year. Obviously the real concern here is rail congestion.

THE PORT

1. When will the facility be ready to receive ore?

This is our highest priority. This is out of our hands right now as we will sublease a facility that will need some refurbishment. We are working closely with all parties to expedite all of this and get the product moving as quickly as possible.

2. What refurbishment has to be done?

The density of our material is very high by comparison to either coal or petroleum coke. While 100 tons of coal weighs the same as 100 tons of iron ore, the volume is dramatically different and the movement of such ore is also more difficult. The facility must be re-enforced to handle the higher density material, and the plows that move the iron ore onto the belt have to be stiffened.

CKI AND THE IRON ORE SALES AGREEMENT

1. There is a lot being written about the decline of the steel market and the reduction of iron ore shipments. How does this impact Palladon?

While it is true that commodities have taken a big hit in the last few months and you can read a lot of different things about the iron ore industry, it does help that we are not shipping in the “spot” market where prices rose nearly 200% and caused iron ore suppliers around the globe to move out of contracts and try to sell as much as possible on the spot market. Palladon chose to honor its contract and not to play the speculation game. That was the safest thing we could do for our shareholders. We have been assured by CKI that their buyer is anxious to receive our material as soon as possible.

2. What do you see as next year’s price for iron ore?

You can read whatever you want here as people are projecting anything from an increase to a decrease. The new contract will not be signed until April and hopefully by then the market will stabilize. Steel shipments in China appear to be moving up right now and some of the furnaces are coming back online. Though only indicators, that is the best news we have heard in the last few months. This will be a slow process, but Palladon feels it is positioned well to continue to move our material to China throughout the term of the contract. We are also in close communications with all of our service providers to do everything we can to keep moving during this downturn.

CORPORATE QUESTIONS

1. When will you have an IR person on board?

Palladon is working closely now to determine the best avenue to take in that matter. In the meantime, Del Satterthwaite ([email protected]) is now handling all of those functions internally and will be the one that will keep our shareholders apprised of the progress. Please keep in mind that a lot of the questions that people ask require answers that are confidential and that information, if released, would be construed as insider information. So please be patient and all the information will be released to the general public as soon as possible.

2. When will the Palladon Ventures Website be updated?

This has been something that has driven us crazy for the last year. I am happy to report that all of the equipment in currently being installed between the mine and the corporate office such that we have a robust computer network that works seamlessly between offices and provides multiple levels of security. With this we will host our own websites allowing for quick changes and an ease of updating the shareholders. Palldonventures.com is being completely re-designed, but we have chosen to keep the existing one up for continuity. Right now, we ask you to go to the ironbullmining.com website where we will provide the latest news. We are currently managing that site internally. We apologize for the old website, but there will be good things to come.

3. When will the first train leave the mine, and when will the first ship leave the port?

This is the answer I would love to give right now, but we will release that once we have are able to ship the material and once the ship is scheduled to be in the port. The days the first ship leaves the port will be a happy day for the company and for our shareholders. We are so looking forward to this day and will keep you advised as soon as we have all of the final information.

We hope this information has been helpful and we look forward to continued updates on a weekly basis.