North American Palladium Ltd.

North American Palladium Ltd.

January 10, 2005 16:17 ET

North American Palladium Ltd. Announces Record Production for 2004


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORTH AMERICAN PALLADIUM LTD.

TSX SYMBOL: PDL
AMEX SYMBOL: PAL

JANUARY 10, 2005 - 16:17 ET

North American Palladium Ltd. Announces Record
Production for 2004

TORONTO, ONTARIO--(CCNMatthews - Jan. 10, 2005) - Overall, 2004 has been
a record production year for North American Palladium
(TSX:PDL)(AMEX:PAL). The mill processed 5,298,544 tonnes of ore at an
average of 14,477 tonnes per day with a palladium head grade of 2.41
grams per tonne, producing 308,931 ounces of palladium at a recovery
rate of 75.2%. This compares to 2003 palladium production of 288,703
ounces. Also attaining record numbers, the by-product metal production
in 2004 included 25,128 ounces of platinum, 25,679 ounces of gold,
4,320,970 pounds of nickel and 7,836,183 pounds of copper. The final
2004 metal production quantities are subject to assay adjustments with
the smelters.

During the fourth quarter of 2004, the Lac des Iles mill processed
1,202,942 tonnes of ore at an average of 13,075 tonnes per day with a
palladium head grade of 2.17 grams per tonne, producing 62,526 ounces of
palladium at a recovery rate of 74.6%. By-product metal production
during the fourth quarter of 2004 included 5,475 ounces of platinum,
4,928 ounces of gold, 848,519 pounds of nickel and 1,604,010 pounds of
copper. This compares to the third quarter of 2004 when the mill
processed 1,301,378 tonnes of ore at an average of 14,145 tonnes per day
with a palladium grade of 2.53 grams per tonne, producing 79,174 ounces
of palladium at a recovery rate of 74.8%.

Milling operations during the fourth quarter were affected by the tie-in
of the new secondary crusher, in addition to maintenance on conveyor
belts and chutes. However, with the grinding improvement project now
complete and operating as planned, the milling process will continue to
be optimized.



--------------------------------------------------------------------
Q3, Q4, Q1, Q2, Q3, Q4,
2003 2003 2004 2004 2004 2004
--------------------------------------------------------------------
Mill Throughput 14,215 16,312 14,822 15,884 14,145 13,075
(tonnes per day)
--------------------------------------------------------------------
Palladium Recovery 74.0 75.1 77.3 73.5 74.8 74.6
(%)
--------------------------------------------------------------------
Mill Availability 92.6 94.8 89.3 92.3 87.3 84.9
(%)
--------------------------------------------------------------------
Palladium
Production (oz) 76,729 94,114 91,261 75,970 79,174 62,526
--------------------------------------------------------------------


Looking back at the fourth quarter's palladium head grade results, Andre
J. Douchane, President & CEO, commented, "Palladium production for each
of the next three quarters of this year will be similar to that of
2004's fourth quarter. We are entering a period where the head grade
will drop to slightly below 2 grams per tonne, but mill tonnage will be
increased to compensate for this decline. By the fourth quarter of 2005,
palladium production is expected to gradually increase as the
underground operations move online."

Exploration Activity

At the Lac des Iles mine site, the Company commenced drilling of a deep
hole to test the depth of the extension of the Offset High Grade Zone.
The drilling crew encountered abnormal ground conditions and did not
reach its ultimate planned length of approximately 2000 metres. Another
drill rig is beginning a second hole, in order to continue the testing
on this Offset High Grade Zone. A third drill rig is scheduled to move
onto the mine site in the first quarter of 2005 to start an anticipated
5000-metre drill program to evaluate several additional targets,
including the Creek, Baker and South-East Roby Zone.

On the Company's Shebandowan Lake Projects a 3000-metre drill program
was completed on targets generated as a result of the 2004 summer
exploration program. Follow-up drilling is scheduled to commence in
early 2005 on a prospective nickel-copper-platinum group element bearing
target that is located along strike of the INCO's past producing
Shebandowan Mine. Additional drilling is also planned to further test
the extension of the high-grade palladium bearing breccia on the
adjoining Haines-Conacher Property.

North American Palladium's Lac des Iles Mine is Canada's only primary
producer of platinum group metals and is one of the largest open pit
bulk mineable palladium reserves in the world. In addition to palladium,
the Company earns substantial revenue from by-product nickel, platinum,
gold and copper. Palladium use in the auto industry continues to be an
important component in controlling exhaust emissions as mandated by more
stringent hydrocarbon emissions standards for cars, particularly in the
United States, Europe and Japan. Palladium is also used in the dental,
electronics, jewelry and chemical sectors

Forward-Looking Statements - Certain statements included in this news
release are forward-looking statements which are made pursuant to the
"safe harbor" provisions of the United States Private Securities
Litigation Reform Act of 1995. They include estimates and statements
that describe the Company's future plans, objectives and goals,
including words to the effect that the Company or management expects a
stated condition or result to occur. When used herein, words such as
"estimate", "expect", "intend", "budget", "plan", "projection" and other
similar expressions are intended to identify forward-looking statements.
In particular statements relating to estimated future metal prices, cash
flows, expenses, capital costs, ore production, mine life, financing,
construction and commissioning are forward-looking statements. Such
forward-looking statements involve inherent risks and uncertainties and
are subject to factors, many of which are beyond our control, which may
cause actual results or performance to differ materially from those
currently anticipated in such statements. Important factors that could
cause actual results to differ materially from those expressed or
implied by such forward-looking statements include among others metal
price volatility, changes in the US/CDN dollar exchange rate, economic
and political events affecting metal supply and demand, fluctuations in
ore grade, ore tonnes milled, geological, technical, mining or
processing problems, future profitability and production, availability
of financing on acceptable terms and unexpected problems during the
development, construction and start-up phases of the underground mine or
the construction and commissioning of the new secondary crusher. For a
more comprehensive review of risk factors, please refer to the Company's
most recent Annual Report under "Management's Discussion and Analysis of
Financial Results" and Annual Information Form under "Risk Factors" on
file with the U.S. Securities and Exchange Commission and Canada
provincial securities regulatory authorities. The Company disclaims any
obligation to update or revise any forward-looking statements whether as
a result of new information, events or otherwise. Readers are cautioned
not to put undue reliance on these forward-looking statements. For
additional information on the Company's mineral reserves and resources,
see the Company's most recent Annual Information Form.

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