North American Palladium Announces Drill Results from Shebandowan Nickel/Copper Project

North American Palladium Announces Drill Results from Shebandowan Nickel/Copper Project

North American Palladium Ltd. is pleased to announce drill results from a twenty-one hole drill campaign totaling 4,010 metres at the Shebandowan Nickel/Copper Project located approximately 100 km southwest of its 100% owned Lac des Iles Mine, Ontario. The Option Joint Venture with Inco Limited (“Inco”) entitles NAP to earn a 50% interest in the Shebandowan Property (see press release June 20, 2006).

The recently completed drill program was an expansion of the originally proposed fifteen hole program focused on testing an area west of the Number 1 Shaft, the “West” Zone and “Road” Zone along strike of the past producing Shebandowan mine (See maps attached: Sixteen holes (SP-06-001 to 14 and SP-06-016,017) were drilled to test the West Zone, while three holes (SP06-015,018 and 019) tested the Road Zone.

Holes SP06-020 and 021 targeted a narrow, yet high grade auriferous, altered feldspar-porphyry within a sericite schist hosted by Timiskaming Metavolcanics that intersected 25.689 g/t gold over 1.20 metres from 185.5 -186.70 metres in Hole SP05-008. Hole SP06-021 intersected 5.07 metres of sericite schist but contained only anomalous gold values (0.419 g/t over 1.07 metres).

Bruce Mackie, the Company’s Vice President of Exploration noted: “The results from the Main unit were largely in line with expectations based on previous drilling by Inco, but we did receive some pleasant surprises from the South unit (including 20.10 metres of 2.512% nickel equivalent from Hole SP06-015) that warrant further investigation.” Further infill drilling around the higher grade intercepts will be required before a reliable resource estimate can be completed on the West, Road and D Zones, in addition to the verification of all historic data.

An infill drill program for the West and Road Zones is expected to commence later this month. In addition, some shallow drilling and trenching of the D Zone is also anticipated to begin shortly. Previous results from a drill program carried out in late 2005 around the historic D Zone 1,500 metres to the west of the old mine workings, included 4.55 metres of 3.00% Ni, 0.90% Cu, 0.062% Co and 2.33 grams per tonne 2 PGM plus Au from hole SP-05-005 (see press release dated March 2, 2006).

Composite drill core samples have been submitted to SGS Lakefield for some preliminary metallurgical test work including the amenability of Shebandowan ore to processing through the Lac Des Iles concentrator.

Nickel-copper mineralization at Shebandowan occurs as stringer, breccia and massive sulphides hosted within highly altered and deformed ultramafic bodies which have been interpreted as basaltic komatiites. In the immediate area around the Shebandowan Mine, two significant ultramafic units have been recognized, a “Northern” or “Main” unit which was the principle host to the nickel-copper mineralization at Shebandowan and a “South” unit, each of which form a part of the West Zone and Road Zone.

Diamond drill core was logged and split on site with split samples transported by NAP to Accurassay Laboratories, an accredited laboratory in Thunder Bay for analysis. Check samples were sent to ALS Chemex. At Accurassay the precious metals were analysed utilizing a standard fire assay with atomic absorption finish and the base metals were analysed utilizing an aquaregia digestion and atomic absorption finish. Bruce W. Mackie, P.Geo.,Vice President of Exploration for North American Palladium Ltd. is the Qualified Person who supervised the work carried out on the Shebandowan Property.

Inco Limited, owner of the Shebandowan property which is subject to the option joint venture with NAP, takes no responsibility for nor makes any representation or warranty of any kind relating to any information contained in this news release.

North American Palladium’s Lac des Iles Mine is Canada’s only primary producer of platinum group metals and is among the largest open pit, bulk mineable palladium reserves 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 Annual Report under “Management’s Discussion and Analysis of Financial Results” and Annual Information Form under “Risk Factors” on file with the U.S. Securities and Exchange Commission and Canada 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.


Contacts: North American Palladium Ltd. James Excell President & CEO (416) 360-2656

North American Palladium Ltd. Bruce W. Mackie Vice President, Exploration (416) 360-2659

North American Palladium Ltd. Donna Yoshimatsu Director, Investor Relations (416) 360-2652

Source: North American Palladium Ltd.

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