PALLADIUM DISCOVERY: New zone unearthed, two others extended

ONTARIO - North American Palladium (NAP) reports that exploration at its flagship Lac des Iles palladium mine in northern Ontario has led to the discovery of a new zone, named Sheriff. It was intersected approximately 100 metres southeast of the Offset zone. Drilling further indicates that both the Offset and Cowboy zones are open at depth.

The underground Sheriff zone is located about 100 metres from and sub-parallel to the Offset zone. The best drill core assays came from two separate holes - 11.0 g/t Pd over 3 metres and 8.4 g/t over 5 metres.

NAP's $15-million 2010 exploration drilling program was aimed at expanding the size of the Offset and Roby zones, increasing the grade of the Offset zone mineralization and exploring the West pit and other surface areas. Exploration at the mine is ongoing, expected to include approximately 7,000 more metres prior to year end.

A visual of the Sheriff zone trend is available online at NAP's website at www.NAP.com/explore_LDI.htm.