Palladon Ventures Ltd. has announced the selection of the Albany and Eastern Railroad Company ("A&E"), of Lebanon, Oregon, to operate Palladon's shortline railroad serving the Iron Mountain project near Cedar City, Utah.

Palladon and A&E will independently operate the 14.4-mile shortline railway, which runs from the mouth of the Comstock / Mountain Lion iron mine to Iron Springs where it connects with the Union Pacific Railroad's main line. Palladon is currently building interchange tracks at Iron Springs, where unit trains from the mine will be interchanged with empty trains returning to the mine for re-loading. A&E will also perform ongoing maintenance and rehabilitation of the shortline in anticipation of new railcar deliveries commencing in the summer of 2006. Palladon is currently assembling iron ore processing equipment and is preparing for construction of plant facilities.

Mike Root, President and owner of A&E, will delegate management of his 67-mile Oregon railroad to experienced A&E personnel, and will relocate and establish permanent residence in Cedar City from where he will personally manage administrative functions for both the Palladon and A&E Railroads. Mr. Root began his railroad experience with the Union Pacific Railroad while a college student and has 26 years' experience in the shortline business as an owner-operator. The Albany and Eastern Railroad and Mr. Root are held in high regard by the Class-1 railroads, with whom he interchanges daily, and by his current customers / shippers.

Don Foot, President and COO of Palladon Ventures stated, "Our goal for this project is to engage experienced, professional individuals and organizations in whom we have confidence and with whom we can form a close partnership. Mike Root and Albany and Eastern railroad will be that kind of partnership. Their experience will assure the successful implementation of our shortline."