FINANCE: North American Palladium withdraws from $50M deal

TORONTO — North American Palladium has withdrawn from its previously announced private placement of up to US$50 million. The company said the final terms proposed by the Casimir Capital LP were not satisfactory.

William J. Biggar, president and CEO reassured investors that the company remains financially strong with $60 million in its treasury at the end of June 2009. "In addition to our strong balance sheet, we expect positive cash flow from the anticipated restart of the Sleeping Giant mine in the fourth quarter of this year."

In addition to the Sleeping Giant gold mine, North American continues to be encouraged by the preliminary results of its ongoing exploration program at its Lac des Iles palladium mine. Details are available at www.NAPalladium.com.