After due deliberation, on March 15, 2010, the Board of Directors voted unanimously to consent to the March 15, 2010, Satisfaction and Settlement Agreement ("the equitization"), whereby Luxor would realize on its security interest and convert its $40.55 million of indebtedness into a 78.26% interest in Palladon Iron Corporation, and Palladon Ventures Ltd. would retain a 21.74% interest in Palladon Iron Corporation. The Board believes that this approach provided the best outcome for shareholders and avoided the foreclosure proceedings or bankruptcy filing that otherwise appeared inevitable.