Palladon gets management cease-trade order

2008-07-02 19:22 ET - News Release

Mr. Donald Foot reports

PALLADON VENTURES REQUESTS MANAGEMENT CEASE TRADE ORDER

As a result of the delay in filing its Feb. 28, 2008, annual financial statements (and annual management's discussion and analysis related thereto) by the required filing date under applicable Canadian securities laws, Palladon Ventures Ltd. requested, and the British Columbia Securities Commission and the Alberta Securities Commission have issued, a temporary order that prohibits, effective immediately, certain current and former directors, officers, and insiders of Palladon from trading in securities of Palladon.

The delay in the filing of the fiscal year end financial statements is due to the company suffering a computer system failure, in both its mainframe and back-up systems, in which it lost relevant financial information required for its year-end audit.

Palladon expects to file the Feb. 28, 2008, annual financial statements by Aug. 27, 2008.

If the fiscal year-end financial statements have not been filed by Aug. 27, 2008, then the commissions may impose an issuer cease-trade order. An issuer cease-trade order may be imposed sooner if Palladon fails to file its default status reports on time, as required under applicable securities legislation.

Palladon intends to satisfy the provisions of Appendix B default status reports to policy document 57-301 as long as it remains in default of the financial statement filing requirement. Palladon is not subject to any insolvency proceeding.

There is no other material information concerning the affairs of Palladon that has not been generally disclosed.