North American Palladium Ltd.
TSX : PDL
NYSE Amex : PAL

North American Palladium Ltd.

January 25, 2010 16:31 ET

NAP's Exploration Program Delivers Excellent Results at Offset and Cowboy; Company Doubles Exploration Budget for 2010

TORONTO, ONTARIO--(Marketwire - Jan. 25, 2010) - North American Palladium Ltd. ("NAP") (TSX:PDL)(NYSE Amex:PAL) continues to deliver excellent exploration results at its wholly-owned Lac des Iles ("LDI") mine northwest of Thunder Bay, Ontario, and has consequently doubled its LDI exploration budget to $15 million in 2010. The results reported herein (see attached table) are the final tranche of drill results from the 2009 exploration program, which totalled 86 holes and approximately 42,000 metres of drilling. The Company expects to file early in the second quarter an updated NI 43-101 report on LDI that incorporates all the drilling activities from 2009.

"Our commitment to exploration at LDI continues to yield positive results," said William J. Biggar, NAP's president and chief executive officer. "Our intent is to continue to add to our resources and reserves, while we optimize production in our Roby Underground mine, which is on target to be fully operational in the second quarter. We also look forward to advancing our assessment and development plans for the Offset zone, including completion this year of a $16 million ramp into the Offset zone. The ramp will facilitate additional underground exploration drilling as well as provide access for the installation of a shaft to surface."

The Offset Zone: High grades over long intersections

Some of the higher grade intersections at the Offset zone, which is believed to be the fault-displaced extension of the Roby Underground mine, are in holes 404, 414, 415 and 417. Highlights include:



- Hole 404: a 19 metre intersection graded 9.78 g/t palladium, including a
high grade section of 6 metres grading 16.68 g/t of palladium;

- Hole 414: a 19 metre intersection graded 8.90 g/t palladium, including 9
metres grading 11.58 g/t palladium;

- Hole 415: a 42 metre intersection graded 6.12 g/t palladium, including 7
metres grading 11.70 g/t palladium and 5 metres grading 8.39 g/t
palladium; and

- Hole 417: a 22 metre intersection graded 10.15 g/t palladium, including
8 metres grading 17.70 g/t palladium.



NAP is also encouraged by drilling in the northern part of the Offset zone (holes 902, 903 and 904) where multiple wide, high grade zones were intersected and where a potential new zone may have been intersected. Drilling is still too limited to interpret the extent of this potential new zone, but it is evidenced in hole 903 by a 25 metre section grading 9.33 g/t palladium, and in hole 904 by a 10 metre section grading 7.87 g/t palladium. This year's exploration program will follow up on these results.

The Cowboy Zone: Adding to the mineralization

At the Cowboy zone, located 30 to 60 metres to the west of, and parallel to, the Offset zone, the best new intersection is in hole 410: 18 metres grading 8.91 g/t palladium, including 6 metres grading 10.64 g/t palladium.

Updated NI 43-101

NAP has engaged Scott Wilson Roscoe Postle and Associates to prepare an updated mineral resource and mineral reserve estimate that will include, for the first time, the 2009 drill results from the Offset and Cowboy zones. The Company expects this report to be available early in the second quarter.

Building on exploration success in 2010: investing $15 million at LDI

NAP intends to build on its 2009 exploration success, and has more than doubled its exploration budget to $15 million for LDI for 2010. The program's objectives are to identify additional resources, upgrade resource classifications, and facilitate future mine development planning.

NAP will spend $12 million drilling 53,000 metres in the Offset zone, and $3 million drilling in the West Pit area adjacent to the current pit, and the Creek zone area approximately 1.6 kilometres northeast of the Offset zone.

QA/QC

The assay analyses performed during NAP's drill programs are subject to a formal quality assurance and quality control (QA/QC) program. Diamond drill core is logged and sampled on site and at the Company's exploration office in Thunder Bay with sample transport by the Company and Courtesy Courier to Activation Laboratories Ltd. (Thunder Bay and Ancaster), an independent accredited laboratory, for assay analysis. Check assay analyses are carried out by SGS Minerals Services (Toronto), a laboratory that is also independent of the Company. The Company's exploration team designed and executed the drilling program under the supervision of Mr. Michel Bouchard, P. Geo., Vice President, Exploration and Development, a Qualified Person as defined by National Instrument 43-101, who has reviewed and approved the content of this news release.

About North American Palladium

NAP is a Canadian precious metals company focused on the production of palladium and gold in mining friendly jurisdictions. LDI, the Company's flagship mine, is one of North America's two primary palladium producers. Located approximately 85 kilometres northwest of Thunder Bay, Ontario, LDI has produced palladium since 1993. NAP also owns and operates the Sleeping Giant gold mine located in the prolific Abitibi region of Quebec. The Company has extensive landholdings adjacent to both the LDI and Sleeping Giant mines, and is pursuing an aggressive exploration program aimed at increasing its reserves and resources in those areas. NAP trades on the NYSE Amex under the symbol PAL and on the TSX under the symbol PDL.

Cautionary Statement on Forward Looking Information

Certain information included in this press release constitute 'forward-looking statements' within the meaning of the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. The words 'expect', 'believe', 'will', 'intend', 'estimate' and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies including the possibility that the restart of the Lac des Iles mine may not proceed as planned, and that the metals prices and foreign exchange assumptions may differ from management's expectations. The Company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of North American Palladium to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements and that the forward-looking statements are not guarantees of future performance. These statements are also based on certain factors and assumptions. For more details on these estimates, risks, assumptions and factors, see the Company's most recent Form 40-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities. In addition, there can be no assurance that the Company's Lac des Iles mine will be successfully restarted, that the operations at the Sleeping Giant mine will be successfully maintained, or that other properties can be successfully developed. The Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except as expressly required by law. Readers are cautioned not to put undue reliance on these forward-looking statements.



2009 LDI Drill Program
Highlights of Q4 Drill Results

OFFSET ZONE

----------------------------------------------------------------------------
Len-
Drill From To gth Pd Pt Au
Hole Section (m) (m) (m) g/t g/t g/t Cu% Ni% Co%
----------------------------------------------------------------------------
09-404 505N 316 335 19 9.78 0.53 0.42 0.11 0.13 0.01
including 505N 329 335 6 16.68 0.80 0.67 0.14 0.16 0.01
09-404 505N 350 370 20 5.72 0.36 0.32 0.09 0.12 0.01
including 505N 350 358 8 7.57 0.45 0.46 0.12 0.15 0.01
09-408 506N 186 194 8 8.16 0.48 0.26 0.09 0.12 0.01
09-408 506N 197 207 10 8.44 0.50 0.40 0.12 0.20 0.01
09-410 506N 226 241 15 7.69 0.46 0.37 0.20 0.24 0.01
including 506N 231 236 5 10.15 0.49 0.21 0.11 0.16 0.01
09-410 506N 253 260 7 9.68 0.66 0.73 0.13 0.21 0.01
09-413 507N 168 180 12 10.13 0.58 0.54 0.10 0.17 0.01
09-414 507N 183 202 19 8.90 0.49 0.47 0.07 0.13 0.01
including 507N 189 198 9 11.58 0.57 0.65 0.07 0.15 0.01
09-415 507N 207 249 42 6.12 0.37 0.42 0.12 0.14 0.01
including 507N 209 216 7 11.70 0.66 0.59 0.11 0.15 0.01
including 507N 231 236 5 8.39 0.39 0.52 0.18 0.20 0.01
09-416 507N 265 276 11 5.70 0.34 0.10 0.04 0.09 0.01
09-416 507N 278 284 6 6.39 0.38 0.32 0.10 0.15 0.01
09-416 507N 290 295 5 5.62 0.38 0.49 0.12 0.15 0.01
09-417 508N 300 322 22 10.15 0.57 0.42 0.11 0.15 0.01
including 508N 306 314 8 17.70 1.01 0.77 0.15 0.22 0.01
09-417 508N 339 348 9 5.02 0.35 0.32 0.08 0.14 0.01
09-504 509N 86 105 19 7.67 0.46 0.66 0.17 0.23 0.01
09-602 510N 167 191 24 7.87 0.46 0.53 0.12 0.16 0.01
including 510N 170 180 10 10.39 0.55 0.63 0.10 0.15 0.01
09-607 511N 191 227 36 5.08 0.32 0.39 0.07 0.11 0.01
including 511N 191 200 9 6.93 0.40 0.78 0.10 0.14 0.01
including 511N 210 221 11 7.20 0.46 0.34 0.08 0.11 0.01
09-608 511N 207 219 12 6.76 0.42 0.15 0.06 0.09 0.01
09-608 511N 239 247 8 7.86 0.43 0.33 0.08 0.13 0.01
09-609 511N 229 248 19 5.30 0.34 0.21 0.04 0.07 0.01
09-609 511N 257 268 11 6.28 0.37 0.20 0.05 0.08 0.01
09-610 511N 273 283 10 8.20 0.47 0.49 0.06 0.11 0.01
09-611 511N 308 314 6 5.22 0.39 0.76 0.09 0.17 0.01
09-901 512N 205 217 12 6.61 0.41 0.20 0.06 0.09 0.01
09-902 512N 236 247 11 6.40 0.40 0.31 0.03 0.12 0.01
09-902 512N 258 264 6 9.39 0.61 0.16 0.06 0.09 0.01
09-902 512N 278 289 11 8.57 0.52 0.20 0.02 0.09 0.01
09-903 512N 239 264 25 9.33 0.55 0.09 0.05 0.13 0.01
09-903 512N 280 299 19 6.81 0.46 0.53 0.08 0.14 0.01
including 512N 284 292 8 12.34 0.76 0.53 0.09 0.14 0.01
09-904 512N 245 255 10 7.87 0.46 0.06 0.04 0.09 0.01
09-904 512N 293 305 12 6.23 0.42 0.23 0.07 0.10 0.01
09-951 514N No Significant Assay Drilled above Offset Zone
09-953 514N No Significant Assay Drilled above Offset Zone
09-955 514N 218 233 15 8.57 0.55 0.45 0.06 0.10 0.01
including 222 230 8 12.14 0.72 0.41 0.06 0.10 0.01


COWBOY ZONE
----------------------------------------------------------------------------
Drill From To Length
Hole Section (m) (m) (m) Pd g/t Pt g/t Au g/t Cu% Ni% Co%
----------------------------------------------------------------------------
09-404 505N 379 387 8 4.78 0.24 0.10 0.07 0.07 0.00
09-408 506N 266 271 5 7.63 0.46 0.30 0.10 0.12 0.01
09-410 506N 307 325 18 8.91 0.47 0.74 0.26 0.30 0.01
including 506N 319 325 6 10.64 0.65 0.66 0.30 0.29 0.01
09-416 507N 365 371 6 4.52 0.34 0.43 0.26 0.22 0.01
09-417 508N 409 414 5 3.52 0.23 0.09 0.13 0.09 0.01
09-903 512N 322 328 6 3.65 0.24 0.14 0.05 0.07 0.01
09-904 512N 319 324 5 6.13 0.36 0.32 0.07 0.10 0.01
----------------------------------------------------------------------------


Notes: Hole lengths expected to be within 60% to 80% of true widths

Additional figures and tables are available on the Company's website at www.nap.com/explore_ldi.htm

Contact Information

  • North American Palladium
    Michel Bouchard
    Vice President, Exploration and Development
    416-360-7971 Ext. 224
    mbouchard@nap.com