Palladon Ventures-CML Update

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 23, 2013) - Palladon Ventures Ltd. ("Palladon") (TSX VENTURE:PLL) announces the following update for CML Holdings, Inc. ("CML" or "the Company").

Based on conversations with CML management, Palladon is pleased to provide the following update for CML logistics, plant operations, hedging arrangements, liquidity, and resource development activities.

Logistics

Earlier this year, as previously reported, CML secured port access in Southern California at the Port of Long Beach, California and shipped its first fully-loaded Supramax on March 31, 2013. During the calendar quarter ended September 30, 2013, the Company successfully transitioned to using Panamax vessels, resulting in the largest iron ore shipments the Company has loaded to date. CML will retain the flexibility to use Supramax vessels. The Company successfully loaded and shipped three Panamax vessels during the months of August and September from the Port of Long Beach destined for China. These loads averaged approximately 70,000 metric tonnes with contained Fe averaging nearly 65%. The Company completed loading and shipped its fourth Panamax from the Port of Long Beach during the first half of October.

As expected, the new port facility has increased CML's export capacity and helped to lower unit costs, as employing larger vessels reduces unit shipping costs. In addition, Long Beach is substantially closer to the mine than CML's prior ports, providing for some lower maintenance costs related to the CML rail cars. CML is exploring, with the Port of Long Beach, the use of larger ocean vessels, such as Post Panamax vessels carrying in excess of 100,000 tonnes, which may assist CML in lowering their freight costs.

Plant Operation

As reported earlier in 2013, CML replaced both the original and temporary filter presses used to remove water from the tailings with centrifuge de-watering equipment. The centrifuges have worked as planned during this year and CML has now removed the original filter presses from the tailings drying circuit. CML is currently in the process of acquiring additional centrifuge equipment to support the anticipated increase in production upon installation of its hyperbaric disk filters.