North American Palladium Ltd.
TSX : PDL
AMEX : PAL

North American Palladium Ltd.

May 01, 2007 09:15 ET

North American Palladium Announces Phase II Drill Results From Shebandowan Nickel/Copper Project

TORONTO, ONTARIO--(CCNMatthews - May 1, 2007) - North American Palladium Ltd. ("NAP") (TSX:PDL)(AMEX:PAL) is pleased to announce drill results from the Phase II drill campaign at the Shebandowan Nickel/Copper Project located approximately 100 km southwest of its 100% owned Lac des Iles mine in Ontario. The Option Joint Venture with CVRD Inco Limited entitles NAP to earn a 50% interest in the Haines-Conacher properties and the former Shebandowan mine (the "Shebandowan Property") for cash payments aggregating $200,000 and exploration expenditures of $3 million on or before March 31, 2008.

The recently completed drill program was an expansion of the Phase I program (see press release dated September 12, 2006) and focused on in-fill drilling at the West Zone, Road Zone and D-Zone mineralized bodies, all located immediately to the west and along strike of the past-producing Shebandowan mine. Two significant ultramafic units have been recognized, a North unit which hosts part of all three zones and is the principle host to the nickel-copper mineralization at the Shebandowan mine, and a South unit which hosts a part of the Road Zone.

Fifty eight (58) holes (SP-06-022 to 079 inclusive) for a total of 8,441.5 metres were completed in this program and highlights of significant results are presented below.



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INTER- PLAT- PALL-
FROM TO VAL NICKEL COPPER COBALT GOLD INUM ADIUM
HOLE (m) (m) (m) (%) (%) (%) (g/t) (g/t) (g/t) LENS
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West Zone
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SP06-
023 134.00 144.00 10.00 1.0975 0.5161 0.0397 0.093 0.257 1.034 North
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SP06-
030 107.00 109.00 2.00 3.2769 6.3063 0.0643 1.113 1.544 8.448 North
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And 114.00 132.00 18.00 1.3194 2.2207 0.0332 0.186 0.597 2.391 North
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Incl 123.00 132.00 9.00 1.9197 3.6885 0.0399 0.284 0.565 2.875 North
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SP06-
039 107.00 109.00 2.00 0.2205 0.5149 0.0153 0.130 0.143 0.697 North
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And 111.00 126.95 15.95 0.9779 1.4212 0.0378 0.172 0.407 2.176 North
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Incl 114.00 125.00 11.00 1.2090 1.5257 0.0458 0.219 0.510 2.726 North
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SP06-
041 199.75 203.75 4.00 4.6713 1.1941 0.1127 0.095 0.516 1.036 North
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SP06-
046 145.00 147.00 2.00 0.4044 0.6029 0.0114 0.056 0.179 0.580 North
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And 150.00 160.16 10.16 1.0588 0.6396 0.0354 0.115 0.260 0.831 North
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Incl 153.00 157.00 4.00 1.4939 0.8448 0.0635 0.123 0.271 0.962 North
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Road Zone
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SP06-
052 70.60 86.00 15.40 1.0987 0.9504 0.0403 0.244 0.393 2.490 South
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Incl 73.00 78.00 5.00 1.5681 1.2326 0.0559 0.200 0.581 4.671 South
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Incl 82.00 86.00 4.00 1.8153 0.8166 0.0493 0.198 0.532 2.057 South
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SP06-
053 136.25 140.25 4.00 1.6672 0.8060 0.0526 0.274 0.297 1.464 North
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SP06-
055 56.00 74.00 18.00 1.0622 0.6411 0.0470 0.180 0.316 0.961 North
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Incl 59.00 63.00 4.00 1.1108 0.6410 0.0544 0.252 0.410 1.185 North
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Incl 66.00 74.00 8.00 1.6352 0.9759 0.0689 0.146 0.426 1.280 North
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SP06-
079 67.50 77.70 10.20 1.3989 0.7007 0.0427 0.369 0.517 1.939 North
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And 145.55 147.55 2.00 1.3730 0.7796 0.0837 1.258 0.163 1.303 South
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And 157.4 159.15 1.75 1.9813 0.8677 0.0473 0.313 0.129 0.907 South
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D-Zone
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SP06-
067 22.00 35.80 13.80 1.3493 0.7436 0.0472 0.312 0.301 1.105 North
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SP06-
068 37.66 38.50 0.84 1.2417 1.7261 0.0674 0.575 0.231 1.188 North
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And 42.00 43.00 1.00 0.9628 0.5072 0.0417 0.286 0.229 0.781 North
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And 49.40 53.00 3.60 1.0373 0.1441 0.0583 0.096 0.258 0.552 North
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And 58.80 60.30 1.50 5.9319 0.9889 0.0889 1.725 0.271 2.708 North
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SP06-
074 12.80 15.00 2.20 6.5634 1.2548 0.1258 0.230 1.222 2.524 North
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And 19.60 20.73 1.13 1.2380 0.3020 0.1397 0.258 0.361 1.905 North
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And 23.68 26.67 2.99 5.9537 1.7659 0.1259 0.139 0.492 2.814 North
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SP06-
077 22.00 24.75 2.75 3.9816 1.0497 0.1052 0.143 0.737 3.547 North
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(i)Note: true widths are interpreted to average 65-75% of the drilled
widths


A complete table of results is available on the Company's website and on Sedar.

Compilation and quality control verification activities have been completed and have allowed the commencement of mineral resource estimates on these zones. The results of these estimates are expected to be disclosed in a Technical Report prepared in compliance with the requirements set out in National Instrument 43-101 in the second quarter of 2007.

The assaying performed during this Phase II drill campaign was subject to a formal quality assurance and quality control (QA/QC) program. Diamond drill core was logged and split on site with split samples transported by NAP to Accurassay Laboratories, an independent accredited laboratory in Thunder Bay, for analysis. At Accurassay, the precious metals were analysed utilizing a standard fire assay with atomic absorption finish and the base metals were analysed utilizing an aqua-regia digestion and atomic absorption finish. Approximately 10 per cent of the analyzed samples are sent to and re-sampled by ALS Chemex, a laboratory that is also independent of the Company. The check samples conducted by ALS Chemex were analyzed using the same procedures and confirmed the Accurassay results. Mr. Michael A. MacIsaac, P.Geo., Exploration Manager for North American Palladium Ltd., is the Qualified Person who supervised the work carried out on the Shebandowan Property. Mr. MacIsaac has reviewed and approved the contents of this news release.

CVRD Inco Limited, a wholly-owned subsidiary of CVRD and owner of the Shebandowan Property that is subject to the Option Joint Venture with NAP, takes no responsibility for nor makes any representation or warranty relating to any information contained in this news release.

North American Palladium's Lac des Iles Mine is Canada's foremost primary producer of palladium and is among the largest open pit, bulk mineable palladium operations in the world. The mine also generates substantial revenue from platinum and by-product metals including nickel, gold and copper. NAP is focused on expanding its production profile through joint ventures in Canada and the Arctic Platinum Project in Finland. Palladium's catalytic qualities are expected to play an increasing role in the automotive industry in response to growing concern for global environmental solutions, in fuel cell technology for alternative energy sources and an emerging jewellery market, while continuing to have widespread application in the dental, electronics 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 "will", "expected", "anticipated", "continuing" and other similar expressions are intended to identify forward-looking statements. In particular, statements relating to estimated future metal prices and future ore production are forward-looking statements. In making the forward-looking statements in this news release, the Company has applied several material assumptions, including but not limited to, the assumption that increasingly strong palladium and other commodity prices will continue to benefit the Company. Any forward-looking statements in this news release 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, economic and political events affecting metal supply and demand, and geological or technical problems. For a more comprehensive review of risk factors, please refer to 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.

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