Located north of Thunder Bay, Ontario
One of only two primary palladium mines in the world
Production from the open pit commenced in 1993, and from underground (via ramp) in 2006
Mine expansion underway to increase production to +250,000 oz at estimated cash costs at approximately US$200/oz starting in 2015
Offers significant leverage to the rising price of palladium
Production from the Offset Zone (via shaft) targeted for Q1, 2013
New underground zones (Cowboy, Outlaw, & Sheriff) can further increase production and extend mine life
Significant exploration upside near mine site

The Company’s flagship asset is the world class Lac des Iles (LDI) palladium mine – one of only two primary palladium producers in the world. The mine is located approximately 85 kilometres northwest of the city of Thunder Bay in Ontario, and consists of an open pit, an underground mine, and a large 15,000-tonne per day mill with significant excess capacity available for future production growth. The primary deposits on the property are the Roby Zone and the Offset Zone, both palladium deposits with some platinum, gold, nickel, and copper by-products. In addition, the Company has identified three new mineralized areas in the vicinity of the Offset Zone: the Cowboy Zone, the Outlaw Zone and the Sherriff Zone.

LDI commenced production from the open pit in 1993, expanded underground to mine via ramp access from the Roby Zone in 2006, and in 2010 commenced a major expansion to mine via shaft from the Offset Zone, which is only about 250 metres away from the Roby Zone. The mine expansion entails extending the ramp, raiseboring a shaft that will have a capacity of 7,000 tonnes per day, and utilizing a highly mechanized bulk mining method. The most critical aspect of the mine expansion is the installation of the shaft, which is on track for commissioning at the end of 2012. This will allow LDI to gradually increase its underground mining rate starting in 2013. NAP is targeting to reach commercial production from the shaft at an increased mining rate of 3,500 tonnes per day targeted for the first quarter of 2013, with plans to further increase it to 5,500 tonnes per day starting in the first quarter of 2015.

Through the utilization of the shaft and higher mining rates, LDI is expected to benefit from increased production at reduced cash costs per ounce, transforming the mine into a long life, low cost producer of palladium. Once producing at full capacity from the shaft (presently conceived to be 5,500 tonnes per day), the expansion is expected to significantly increase LDI’s palladium production to over 250,000 ounces per year commencing in 2015, at significantly reduced cash costs – expected to decline to approximately US$200 per ounce, possibly positioning LDI as the world’s lowest cost producer of palladium.

Beyond the mine expansion which is predominately based on the Offset Zone, there remains significant exploration upside near the mine, where a number of recent discoveries (Cowboy, Outlaw and Sheriff zones) can potentially increase production at LDI. The positive results from the Company’s drill campaigns underpin the significant exploration potential of the +33,000-acre land package, and supports NAP’s belief that mining will continue at LDI for many years to come.

The exploration upside is further complimented by LDI’s existing infrastructure and permits, the underutilized mill, and the strategic engineering of the underground development which has potential to serve the other nearby underground zones with minimal additional development. As an established PGM producer with a clearly defined strategy for growth, NAP is well positioned to convert exploration success into production and cash flow on an accelerated timeline.

LDI Operating History:

1993 : NAP began mining at LDI from the Roby Zone using open pit mining methods.
2006 : began mining underground from the Roby Zone via ramp access, while concurrently mining from the open pit.
2008 : LDI mine was temporarily placed on care and maintenance, effective October 29, 2008, due to declining metal prices. On December 8, 2009, the Company announced its intention to restart operations at LDI.
2010 : LDI mine was successfully restarted, ahead of schedule and under budget, in May 2010.
Mining resumed from underground only (Roby Zone) as the open pit had been predominantly
mined out. At the start of 2010, NAP also commenced a significant mine expansion
to prepare for production from the Offset Zone, currently in progress.
2011 : LDI mine expansion significantly advanced, with production from the Offset Zone via shaft targeted for the first quarter of 2013.

2012 : LDI mine expansion underway.

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