North American Palladium Ltd. (“NAP”) is an established precious metals producer that has been operating its flagship Lac des Iles (“LDI”) mine located in Ontario, Canada since 1993. LDI is one of only two primary producers of palladium in the world, and is currently undergoing a major expansion to increase production and reduce cash costs per ounce. NAP also operates the Vezza gold mine located in the Abitibi region of Quebec.

The Company is expanding the LDI mine to transition from mining via ramp access to mining via shaft while utilizing a high volume bulk mining method.  The shaft is targeted to be commissioned at the end of 2012, which will allow LDI to increase its underground mining rate and palladium production.  It is expected that the mine expansion will transform LDI into a long life, low cost producer of palladium with a steady production profile.  The Vezza mine, which is targeted to commence commercial production in the first quarter of 2012, is expected to provide an additional source of cash flow to fund growth in the Company’s palladium initiatives.

The Company has significant exploration upside near the LDI mine, where a number of growth targets have been identified, and is engaged in a substantial exploration program aimed at increasing its reserves and resources.  As NAP pursues its organic growth strategy through the LDI mine expansion, exploration will continue to be a key focus for the Company for many years to come.  As an established PGM producer with excess mill capacity on a permitted property, NAP has potential to convert exploration success into production and cash flow on an accelerated timeline.

With an experienced senior management team, a strong balance sheet of over $102 million in working capital (including $51 million in cash) as at December 31, 2011, NAP is well positioned to pursue its growth strategy.  NAP trades on the TSX under the symbol PDL and on the NYSE Amex under the symbol PAL.  The Company’s common shares are included in the S&P/TSX Composite Index.