North American Palladium Ltd.
TSX : PDL
AMEX : PAL

North American Palladium Ltd.

July 12, 2007 08:46 ET

Infill Drilling at NAP's Ahmavaara Deposit at Suhanko Finland Indicates Good Continuity of Widths and Grades

TORONTO, ONTARIO--(Marketwire - July 11, 2007) - Canada. North American Palladium Ltd. ("NAP")(TSX:PDL)(AMEX:PAL) is pleased to announce the results of the first phase of an infill drill program comprising 31 drill holes for a total of 4,086 metres at the Ahmavaara deposit, the larger of two target areas comprising the Suhanko Property. The Suhanko Property was earlier identified by Gold Fields Limited ("Gold Fields") and forms part of a group of advanced stage PGM deposits located south of Rovaniemi, Finland known as the Arctic Platinum Project ("APP") over which NAP has a right to earn up to a 60% interest.

Since the commencement of the drill campaign in February 2006, NAP's strategy at APP has been to maximize the economics of the bulk mineralization at the Suhanko Project, the subject of a 2005 feasibility study by Gold Fields, by examining the near-surface potential of nearby high grade deposits such as the Narkaus Property located approximately 35 km to the northeast of Suhanko (see press release of June 1, 2007 for latest drill results at Narkaus).

NAP's strategy also included an infill drill program for the bulk mineable mineralization found at the Ahmavaara deposit in order to upgrade a portion of the mineral resources from inferred to indicated. 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. Most of the mineralized drill intersections at Ahmavaara have been within 150 metres from surface over widths of up to 48 metres.

Highlights of the program are presented below. For a complete set of drill results and locations, please visit NAP's website at www.napalladium.com.



AHMAVAARA PHASE 1 DRILLING - HIGHLIGHTS
(Cut-off at 1 g/t 3E (Pd+Pt+Au))

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Hole From To Length True Pd/Pt/ Pt Pd Au Cu Ni ZONE
m m m leng Au g/t g/t g/t % %
-th (3E)
% g/t
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RN/YP-
686 38.00 59.78 21.78 100 2.090 0.387 1.495 0.207 0.192 0.080 Upper
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incl. 39.00 40.00 1.00 4.308 0.842 3.350 0.116 0.268 0.202
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RN/YP-
690 54.00 102.00 48.00 100 1.584 0.250 1.152 0.183 0.294 0.085 Upper
---------------------------------------------------------------------------
75.00 76.00 1.00 3.971 0.719 3.000 0.252 0.512 0.176
---------------------------------------------------------------------------
RN/YP-
692 58.00 77.00 19.00 90 2.674 0.519 1.970 0.185 0.304 0.108 Upper
---------------------------------------------------------------------------
incl. 62.00 62.73 0.73 5.719 0.992 4.410 0.317 0.689 0.186
---------------------------------------------------------------------------
RN/YP-
693 69.00 81.00 12.00 100 1.990 0.390 1.397 0.203 0.155 0.080 Upper
---------------------------------------------------------------------------
incl. 77.00 78.31 1.31 3.821 0.802 2.370 0.649 0.377 0.058
---------------------------------------------------------------------------
and 113.45 122.00 8.55 100 2.851 0.390 1.996 0.464 0.494 0.117 Lower
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incl. 119.00 120.00 1.00 8.080 1.300 5.430 1.350 0.910 0.122
---------------------------------------------------------------------------
RN/YP-
694 64.00 70.00 6.00 100 2.650 0.545 1.980 0.125 0.219 0.090 Upper
---------------------------------------------------------------------------
incl. 64.00 65.00 1.00 6.207 1.290 4.800 0.117 0.164 0.111
---------------------------------------------------------------------------
RN/YP-
695 56.00 67.00 11.00 90 2.451 0.452 1.777 0.222 0.234 0.134 Upper
---------------------------------------------------------------------------
61.64 62.00 0.36 4.592 0.701 3.350 0.541 0.815 0.154
---------------------------------------------------------------------------
RN/YP-
696 74.00 85.00 11.00 100 2.402 0.404 1.827 0.171 0.184 0.085 Upper
---------------------------------------------------------------------------
incl. 80.00 81.00 1.00 5.096 0.543 3.980 0.573 0.283 0.096
---------------------------------------------------------------------------
RN/YP-
700 42.00 55.58 13.58 90 2.228 0.443 1.503 0.282 0.163 0.076 Upper
---------------------------------------------------------------------------
incl. 42.00 43.00 1.00 7.269 1.750 5.340 0.179 0.202 0.186
---------------------------------------------------------------------------
RN/YP-
701 61.00 65.45 4.45 100 3.470 0.756 2.630 0.084 0.137 0.093 Upper
---------------------------------------------------------------------------
incl. 62.25 63.47 1.22 5.847 1.450 4.300 0.097 0.114 0.119
---------------------------------------------------------------------------
RN/YP-
702 62.00 83.00 21.00 100 2.086 0.369 1.565 0.152 0.266 0.094 Upper
---------------------------------------------------------------------------
64.00 65.00 1.00 4.520 0.702 3.590 0.228 0.382 0.236
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RN/YP- Upper+
709 68.00 93.80 25.80 100 2.037 0.341 1.523 0.172 0.256 0.102 lower
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incl. 70.00 71.28 1.28 6.338 0.919 5.180 0.239 0.245 0.247
---------------------------------------------------------------------------
RN/YP-
710 88.00 111.00 23.00 100 2.550 0.554 1.833 0.162 0.321 0.082 Upper
---------------------------------------------------------------------------
incl. 91.00 92.00 1.00 9.117 2.190 6.570 0.357 0.870 0.244
---------------------------------------------------------------------------
RN/YP-
714 110.00 129.00 19.00 100 1.978 0.381 1.475 0.123 0.163 0.059 Upper
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incl. 111.00 111.64 0.64 7.199 1.630 5.390 0.179 0.102 0.137
---------------------------------------------------------------------------
and 137.00 158.00 21.00 100 1.830 0.254 1.361 0.216 0.600 0.210 Lower
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incl. 143.00 144.00 1.00 3.428 0.303 2.700 0.425 0.997 0.595
---------------------------------------------------------------------------

Note: The column labeled "3E" represents the summation of 3 columns:
Pd (g/t) + Pt (g/t) + Au (g/t)


Jim Excell, President and Chief Executive Officer of North American Palladium commented, "These drilling results are encouraging as they indicate that, on the basis of the Suhanko Property alone, the economics have improved for a bulk mining operation. We plan to proceed with metallurgical test work and bulk sampling with a view to optimizing grade and have engaged the services of marketing professionals to seek appropriate markets for the concentrate. The further identification of higher grade mineralized areas such as the Narkaus could significantly enhance the Project's economic viability."

North American Palladium has contracted with Aker Kvaerner ASA to complete a re-scoping study for the Suhanko project and with P&E Mining Consultants Inc. to conduct open-pit designs and optimization. Metallurgical test work is being conducted by SGS Lakefield Research to examine different processing options, to improve metal recoveries and reduce operating costs. The results of this work will be presented in a Technical Report that is prepared in compliance with National Instrument 43-101.

Situated along the western edge of the Suhanko intrusion, the Ahmavaara deposit is similar stratigraphically to its sister deposit Konttijarvi. The platinum-group element (PGE) mineralization at both Ahmavaara and Konttijarvi is associated with Cu and Ni mineralization in the form of base metal sulphides. The typical sulphide assemblage is pyrrhotite-chalcopyrite-pentlandite and is hosted in pyroxenites, peridotites and gabbros.

Platinum group elements along with copper-nickel mineralization were first discovered in the area by Outokumpu Oy in 1964 during a regional Cu-Ni exploration program. The area was further explored by Gold Fields between 2001 and 2004. In 2005, Gold Fields commissioned a feasibility study on the Suhanko Property, comprising the advanced stage Konttijarvi and Ahmavaara deposits.

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 independent accredited laboratory, for sample preparation and analysis. At GTK, precious metals are analysed utilizing a standard fire assay with ICP-OES finish and base metals are analysed utilizing an aqua-regia digestion and ICP-OES finish. The results of this drilling program have been reviewed, verified and compiled by NAP's geological staff, which includes Mr. Reno Pressacco, Vice President of Exploration & Development for North American Palladium Ltd. Mr. Pressacco 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's Lac des Iles Mine is Canada's foremost primary producer of palladium. Its Lac des Iles mine in north western Ontario is among the largest open-pit, bulk mineable palladium operations in the world. The Company's core palladium business is strengthened by a significant contribution from platinum, gold, nickel and copper by-product metals. Committed to sustainable mining practices and continuous improvement, North American Palladium pursues a growth strategy that involves the acquisition and development of PGM/nickel properties that present the highest level of value creation. In April 2006, the underground mine at Lac des Iles was brought into commercial production and further expansion there is being advanced at the Offset High Grade Zone. In addition, the Shebandowan nickel-PGM deposit south of Lac des Iles with CVRD Inco and the Arctic Platinum Project in Finland with Gold Fields provide the potential for a significant pipeline for future growth.

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

Certain information included in this press release, including any information as to our future financial or operating performance and other statements that express management's expectations or estimates of future performance, 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 and contingencies. These statements are based on certain factors and assumptions, including but not limited to, the assumption that market fundamentals will result in increased palladium demand and prices and sustained by-product metal demand and prices; the integrated operation of the Company's underground mine and the open pit mine remain viable operationally and economically; financing is available on reasonable terms; expectations for blended mill feed head grade and mill performance will proceed as expected; new mine plan scenarios will be viable operationally and economically; and plans for mill production, sustainable recoveries from the Lac des Iles mine, exploration at Lac des Iles and elsewhere will all proceed as expected.
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 risks, uncertainties and other factors include, but are not limited to: metal price volatility; economic and political events affecting metal supply and demand; changes in the regulatory environment; fluctuations in ore grade or ore tonnes milled; geological, technical, mining or processing problems; future production; changes in the life-of-mine plan or the ultimate pit design; availability and increasing costs associated with mining inputs and labour; the speculative nature of exploration and development, including the risks of diminishing quantities or grades of mineral reserves; adverse changes in our credit rating; and the risks involved in the exploration, development and mining business. These factors are discussed in greater detail in 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. 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. Additional information is available in the Company's MD&A filed on its website and on www.sedar.com.

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