North American Palladium Updates Resource Estimate for Offset Zone

Indicated Resource Grade Increases by 25%

 

TORONTO, May 27, 2010 - North American Palladium Ltd.

("NAP" or "the Company") (TSX: PDL) (NYSE Amex: PAL) today announced the results of an updated resource estimate for the Offset Zone at its Lac des Iles ("LDI") mine in Northern Ontario.

 

The updated resource estimate, prepared by Scott Wilson Roscoe Postle Associates Ltd ("Scott Wilson RPA"), shows that the 2009 drill program, which consisted of 86 drill holes totaling 41,600 metres, achieved its objective of significantly increasing the palladium grade in the Offset Zone. The indicated resource grade increased from 5.02 g/t Pd (the last published resource grade in March 2009) to 6.29 g/t Pd.

 

"Consistent with the exploration success we achieved last year, I am extremely pleased that our 2009 infilll drilling on the Offset Zone resulted in a 25% grade increase for indicated resources," said William J.

Biggar, President and CEO. "Contained mineralization for the Offset Zone, which is still open at depth and along strike, now stands at 2.4 million ounces of palladium. As we progress this year with initial development of the Offset Zone by constructing a $16 million ramp over a depth of 200 metres, we are encouraged that the increased resource grade supports our plans to extend LDIs mine life by potentially 10 years, at an annualized production rate in the range of 250,000 ounces per year."

 

The following mineral resource calculation uses a minimum 4 g/t Pd resource block cut-off:

 

Estimated Mineral Resources - Offset Zone, LDI Mine

Category

Tonnes (Millions)

Pd g/t

Pt g/t

Au g/t

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