North American Palladium Ltd.
TSX : PDL
AMEX : PAL

North American Palladium Ltd.

October 22, 2007 15:04 ET

North American Palladium Reports Final Drill Results at Ahmavaara Deposit, Finland; Pilot Plant Operation & Feasibility Study Commencing

TORONTO, CANADA--(Marketwire - Oct. 22, 2007) - North American Palladium (TSX:PDL)(AMEX:PAL) is pleased to announce the final results of an infill drill program at the Ahmavaara deposit, the larger of two deposits that comprise the Suhanko property. The Suhanko property is one of three advanced stage platinum group metal projects located south of Rovaniemi, Finland known as the Arctic Platinum Project ("APP") over which the Company has a right to earn up to a 60% interest from Gold Fields.

A total of 26 holes totalling 4,352 metres in length were drilled in this last phase, completing the 83-hole drilling program. The results of this infill drill program support NAP's interpretation of the geologic continuity and metal distribution that was based upon previous widely spaced drill holes.

In addition to this infill drilling campaign, bulk sampling is underway at both Suhanko property deposits, Ahmavaara and Konttijarvi and is nearing completion. A program of bench-scale metallurgical testing is ongoing in support of a pilot plant test that is expected to be carried out next month.

Mr. Jim Excell, President and CEO of North American Palladium commented, "These drilling results are very encouraging as they continue to confirm the excellent continuity of the metal content and the favourable widths of these shallow mineralized zones at the deposit. In terms of the nickel-copper and PGM's, the Ahmavaara drilling results are broadly comparable to those the Company mines from the open pit portion of its Lac des Isles mine near Thunder Bay, Ontario."

The Company has accepted a proposal from Aker Kvaerner to complete a definitive feasibility study and recently hired a 30-year veteran of the mining industry to oversee the work at APP as it moves closer to satisfying the conditions of its earn-in.

The mineralized drill intersections at Ahmavaara have been located within 200 metres from surface and have included such intersections as: 3.0 g/t Pd+Pt+Au ("3E") along a core length of 26.7 metres in drill hole RN/YP-746; 1.6 g/t 3E along a core length of 41 metres in drill hole RN/YP-734; and 2.2 g/t 3E along a core length of 28.2 metres in drill hole RN/YP-749. A complete listing of the drilling results is given in Table 1 below, and a listing of the drill hole co-ordinates can be found on the Company's website. Mineralized intervals were calculated using a cut-off grade of 1.0 g/t 3E.



Table 1 - Results of the Phase 2 In-fill Drilling at the Ahmavaara
Deposit, Finland.

---------------------------------------------------------------------------
---------------------------------------------------------------------------
Hole From Length True Pd/ Pd Pt Au Cu Ni ZONE
m m len- Pt/ g/t g/t g/t % %
gth % Au
(3E)
g/t
---------------------------------------------------------------------------
RN/YP-734 80.00 41.00 100 1.56 1.16 0.27 0.12 0.20 0.06 Upper
---------------------------------------------------------------------------
incl. 80.00 1.00 3.51 2.53 0.65 0.32 0.28 0.12
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP-745 168.00 15.00 100 3.52 2.66 0.72 0.15 0.19 0.09 Upper
---------------------------------------------------------------------------
incl. 171.00 1.00 12.93 10.10 2.73 0.10 0.13 0.21
---------------------------------------------------------------------------
and 209.00 6.33 100 2.23 1.69 0.30 0.23 0.57 0.19 Lower
---------------------------------------------------------------------------
incl. 214.00 1.33 3.72 2.72 0.62 0.38 0.85 0.20
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP-746 137.00 7.00 90 1.36 0.90 0.27 0.18 0.18 0.11
---------------------------------------------------------------------------
incl. 143.00 1.00 2.01 1.39 0.39 0.23 0.22 0.11
---------------------------------------------------------------------------
and 152.00 26.75 90 3.04 2.21 0.52 0.31 0.35 0.10 Upper+
lower
---------------------------------------------------------------------------
incl. 175.55 0.45 9.32 6.28 1.30 1.74 2.90 0.42
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP-747 98.00 14.16 100 1.58 1.15 0.35 0.08 0.07 0.06 Upper
---------------------------------------------------------------------------
incl. 106.00 0.55 6.29 4.38 1.68 0.23 0.19 0.06
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP-749 146.00 9.00 100 1.01 0.73 0.19 0.09 0.11 0.07
---------------------------------------------------------------------------
incl. 154.00 1.00 1.50 1.15 0.25 0.10 0.10 0.08
---------------------------------------------------------------------------
and 165.00 28.16 100 2.16 1.57 0.41 0.18 0.34 0.06 Upper
---------------------------------------------------------------------------
incl. 169.00 1.00 5.61 4.23 1.02 0.36 0.36 0.05
---------------------------------------------------------------------------
and 196.61 16.45 100 2.15 1.63 0.24 0.29 0.51 0.15 Lower
---------------------------------------------------------------------------
incl. 200.00 1.00 5.06 3.45 0.46 1.15 1.12 0.33
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP-750 122.00 19.22 90 1.77 1.27 0.33 0.16 0.15 0.11 Upper
---------------------------------------------------------------------------
incl. 124.00 1.00 7.06 5.02 1.56 0.48 0.24 0.13
---------------------------------------------------------------------------
and 171.00 10.00 90 1.34 1.07 0.18 0.08 0.21 0.10 Lower
---------------------------------------------------------------------------
incl. 172.00 1.00 3.31 2.78 0.45 0.09 0.43 0.29
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP-751 8.10 17.90 70 1.27 0.94 0.25 0.08 0.16 0.08 Upper
---------------------------------------------------------------------------
incl. 25.00 1.00 1.85 1.30 0.40 0.15 0.21 0.08
---------------------------------------------------------------------------
and 50.71 11.29 80 1.03 0.80 0.15 0.07 0.20 0.08 Lower
---------------------------------------------------------------------------
incl. 55.00 0.83 2.00 1.56 0.31 0.13 0.50 0.19
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP-753 191.00 16.49 100 3.39 2.63 0.53 0.23 0.71 0.24 Lower
---------------------------------------------------------------------------
incl. 197.72 1.28 9.83 7.94 1.53 0.35 1.93 0.75
---------------------------------------------------------------------------
and 214.00 3.00 100 1.99 1.53 0.19 0.26 0.79 0.14
---------------------------------------------------------------------------
incl. 214.00 1.00 3.48 2.59 0.35 0.53 1.80 0.15
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP-754 43.93 5.59 100 3.12 2.49 0.42 0.22 0.39 0.15
---------------------------------------------------------------------------
incl. 43.93 1.07 7.35 6.52 0.58 0.25 0.53 0.11
---------------------------------------------------------------------------
and 62.00 5.10 80 1.89 1.40 0.36 0.12 0.18 0.12 Upper1
---------------------------------------------------------------------------
incl. 63.00 1.00 4.17 3.10 0.89 0.21 0.23 0.20
---------------------------------------------------------------------------
and 75.94 27.06 80 2.34 1.80 0.39 0.16 0.25 0.16 Upper2+
lower
---------------------------------------------------------------------------
incl. 86.00 0.91 14.00 11.70 2.20 0.10 0.33 1.15
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP-755 14.00 13.00 100 2.01 1.26 0.39 0.36 0.12 0.07 Upper
---------------------------------------------------------------------------
incl. 15.00 0.50 6.26 4.37 1.56 0.33 0.25 0.15
---------------------------------------------------------------------------
and 56.00 9.00 90 1.15 0.89 0.17 0.11 0.24 0.09
---------------------------------------------------------------------------
incl. 56.00 1.00 2.04 1.52 0.37 0.16 0.32 0.14
---------------------------------------------------------------------------
and 71.00 8.00 90 1.19 0.88 0.18 0.13 0.18 0.05
---------------------------------------------------------------------------
incl. 72.00 1.00 2.08 1.45 0.30 0.33 0.34 0.05
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP-756 165.15 35.67 90 2.11 1.52 0.34 0.25 0.31 0.10 Upper+
lower
---------------------------------------------------------------------------
incl. 192.00 1.00 6.04 3.81 0.81 1.42 0.85 0.20
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP-757 123.00 15.00 70 1.18 0.88 0.21 0.09 0.14 0.07 Upper
---------------------------------------------------------------------------
incl. 136.00 1.00 2.37 1.79 0.44 0.14 0.27 0.12
---------------------------------------------------------------------------
and 150.00 43.00 80 2.00 1.34 0.26 0.40 0.47 0.09 Lower
---------------------------------------------------------------------------
incl. 179.32 0.68 15.96 7.01 0.59 8.36 4.69 0.22
---------------------------------------------------------------------------
and 199.65 7.23 90 3.37 2.78 0.36 0.23 0.52 0.38 Lower
---------------------------------------------------------------------------
incl. 201.00 1.00 5.97 5.31 0.50 0.16 0.47 0.97
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP-758 58.00 26.00 70 1.86 1.34 0.38 0.19 0.17 0.09 Upper
---------------------------------------------------------------------------
incl. 65.04 0.96 4.99 3.57 1.11 0.31 0.27 0.08
---------------------------------------------------------------------------
and 110.00 14.00 90 2.54 2.00 0.31 0.22 0.40 0.20 Lower
---------------------------------------------------------------------------
incl. 119.90 0.50 15.18 13.40 1.64 0.14 0.68 2.40
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP-759 81.00 5.00 90 1.65 1.21 0.30 0.14 0.13 0.03 Lower
---------------------------------------------------------------------------
incl. 81.00 1.00 3.59 2.82 0.71 0.06 0.04 0.03
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP Upper+
-760B 161.76 31.24 90 1.72 1.30 0.28 0.15 0.30 0.09 lower
---------------------------------------------------------------------------
incl. 182.00 1.00 8.00 5.95 1.81 0.24 1.88 0.56
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP-761 84.00 17.00 90 1.43 1.02 0.32 0.09 0.11 0.08 Upper
---------------------------------------------------------------------------
incl. 90.00 1.00 2.63 1.94 0.66 0.02 0.05 0.10
---------------------------------------------------------------------------
and 128.00 5.36 90 1.72 1.45 0.21 0.06 0.39 0.28
---------------------------------------------------------------------------
incl. 128.00 0.80 4.33 3.83 0.46 0.05 0.84 0.90
---------------------------------------------------------------------------
and 171.00 11.87 90 2.77 2.28 0.35 0.13 0.86 0.44 Lower
---------------------------------------------------------------------------
incl. 180.00 1.09 8.70 7.82 0.69 0.18 4.31 1.55
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP-762 28.00 4.74 90 1.53 1.10 0.32 0.10 0.13 0.08 Upper
---------------------------------------------------------------------------
incl. 31.00 1.00 2.43 1.72 0.59 0.14 0.15 0.08
---------------------------------------------------------------------------
and 97.00 19.00 90 1.43 1.09 0.24 0.10 0.16 0.06
---------------------------------------------------------------------------
incl. 113.00 1.00 3.08 2.45 0.50 0.13 0.23 0.20
---------------------------------------------------------------------------
and 129.77 16.23 90 1.38 1.03 0.19 0.17 0.25 0.07 Lower
---------------------------------------------------------------------------
incl. 142.00 1.00 2.15 1.67 0.24 0.24 0.42 0.11
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP-763 136.00 23.00 80 1.28 0.99 0.21 0.08 0.20 0.10
---------------------------------------------------------------------------
incl. 150.00 1.00 4.27 3.24 0.85 0.18 0.34 0.15
---------------------------------------------------------------------------
and 167.73 33.27 80 1.90 1.48 0.23 0.20 0.39 0.15 Lower1
---------------------------------------------------------------------------
incl. 188.00 1.00 4.61 3.70 0.48 0.43 0.68 0.60
---------------------------------------------------------------------------
and 212.61 5.85 90 1.98 1.61 0.20 0.17 0.39 0.14 Lower2
---------------------------------------------------------------------------
incl. 218.00 0.46 3.94 3.40 0.37 0.17 0.62 0.30
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP-764 75.10 11.90 80 2.56 1.89 0.42 0.24 0.38 0.11
---------------------------------------------------------------------------
incl. 85.00 1.00 4.07 3.05 0.73 0.29 0.48 0.19
---------------------------------------------------------------------------
and 130.00 19.00 80 1.48 1.12 0.27 0.09 0.16 0.11 II
Upper1
---------------------------------------------------------------------------
incl. 147.00 1.00 3.23 2.46 0.70 0.08 0.20 0.21
---------------------------------------------------------------------------
and 153.00 9.00 80 1.18 0.88 0.19 0.12 0.18 0.06 II
Upper2
---------------------------------------------------------------------------
incl. 153.00 1.00 2.05 1.45 0.39 0.21 0.26 0.10
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP-766 28.80 6.20 100 1.32 0.93 0.32 0.07 0.08 0.08
---------------------------------------------------------------------------
incl. 28.80 1.20 2.73 1.93 0.66 0.14 0.15 0.09
---------------------------------------------------------------------------
and 43.00 16.00 100 1.58 1.16 0.34 0.08 0.10 0.03 Upper
---------------------------------------------------------------------------
incl. 43.00 0.58 4.40 3.09 1.10 0.21 0.27 0.10
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP-767 22.47 8.53 100 3.30 2.37 0.75 0.17 0.09 0.05 Upper
---------------------------------------------------------------------------
incl. 27.23 0.43 14.35 10.90 3.11 0.34 0.14 0.12
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP-768 77.00 18.00 100 1.47 1.06 0.26 0.15 0.15 0.06 Upper
---------------------------------------------------------------------------
incl. 77.00 1.00 4.77 3.57 1.15 0.05 0.04 0.15
---------------------------------------------------------------------------
and 116.00 4.00 100 2.04 1.50 0.41 0.12 0.41 0.25
---------------------------------------------------------------------------
incl. 116.00 1.00 3.28 2.43 0.64 0.20 0.63 0.63
---------------------------------------------------------------------------
and 131.90 26.10 100 1.76 1.37 0.23 0.16 0.43 0.13 Lower
---------------------------------------------------------------------------
incl. 157.00 1.00 3.10 2.75 0.19 0.16 2.01 0.49
---------------------------------------------------------------------------
and 211.00 9.00 90 1.22 0.89 0.14 0.19 0.24 0.06 II
Upper
---------------------------------------------------------------------------
incl. 218.29 0.71 1.89 1.15 0.15 0.59 0.38 0.06
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP-769 70.00 20.00 100 1.29 0.96 0.23 0.10 0.15 0.08 Upper
---------------------------------------------------------------------------
incl. 84.00 1.00 2.51 1.89 0.50 0.12 0.23 0.12
---------------------------------------------------------------------------
and 96.00 36.00 100 1.55 1.18 0.22 0.15 0.26 0.12 Lower
---------------------------------------------------------------------------
incl. 102.00 1.00 5.03 4.10 0.82 0.11 0.66 0.28
---------------------------------------------------------------------------
and 167.00 10.00 90 1.67 1.21 0.36 0.10 0.10 0.08 II
Upper
---------------------------------------------------------------------------
incl. 175.15 0.85 5.69 4.38 1.09 0.22 0.30 0.22
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP-770 61.40 21.60 100 2.17 1.59 0.45 0.12 0.11 0.05 Upper
---------------------------------------------------------------------------
incl. 66.00 1.00 4.46 2.99 1.01 0.46 0.14 0.08
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP-771 48.00 20.00 100 1.61 1.17 0.33 0.11 0.16 0.07 Upper
---------------------------------------------------------------------------
incl. 53.26 0.74 3.41 2.06 0.64 0.71 0.15 0.08
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RN/YP-772 45.00 7.00 100 2.17 1.52 0.47 0.17 0.24 0.11 Upper+
Lower
---------------------------------------------------------------------------
incl. 50.00 1.00 3.94 2.65 0.74 0.54 0.85 0.18
---------------------------------------------------------------------------
Note: The column labelled "3E" represents the summation of three elements:
Palladium (Pd), Platinum (Pt) and Gold (Au).


A general description of the geological setting and mineralization found at the Ahmavaara deposit and the results of the previous 57 drill holes were disclosed in news releases dated July 12, 2007 and September 24, 2007, which are available on the Company's website.

Diamond drill core from these drilling programs is transported by joint venture personnel from the various project sites to Rovaniemi, Finland for logging and splitting. The split samples are transported to the GTK (Finnish Geological Survey) laboratory, an accredited laboratory, for sample preparation and analysis. At GTK, precious metals are analyzed utilizing a standard fire assay with ICP-OES finish and base metals are analyzed utilizing an aqua-regia digestion and ICP-OES finish. Mr. Reno Pressacco, Vice President of Exploration & Development for North American Palladium Ltd., is the Qualified Person, as defined in National Instrument 43-101, who supervised the work carried out on the Arctic Platinum Project.

North American Palladium is Canada's only primary producer of palladium. The Company's core palladium business at the Lac des Iles mine is strengthened by a significant contribution from nickel, platinum, gold and copper by-product metals. The Company continues to pursue three advanced-stage exploration projects: the Offset High Grade Zone at its Lac des Iles mine, the Shebandowan Project, located approximately 100 kilometres from the mine, and the Arctic Platinum Project in Finland.

Please visit www.napalladium.com for further information on North American Palladium.

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