ARCTIC PLATINUM (SUHANKO)

North American Palladium received a draft of the feasibility study. The price of steel and diesel fuel, the strength of the euro relative to the U.S. dollar and other variables have adversely impacted the estimated capital cost of the project. The Company has determined that it will not deliver a positive feasibility study for the Arctic Platinum Project prior to the August 31, 2008 deadline and it has commenced discussions with Gold Fields Ltd. to review strategic options for the project.

A mineral resource estimate and a positive preliminary economic assessment (scoping study) were completed on the Arctic Platinum Project (APP). This work was undertaken to complete the first phase of the Joint Venture agreement with Gold Fields Limited. Based upon this new resource estimate and combined with a revision in the throughput rate, management believes that the mineral resource could be sufficient to support a mine life of over 20 years at a throughput rate of 7.5 Mt per annum. The scoping study was completed on the basis of the first 10 years of production that included 70,284,000 million tonnes at an average grade of 1.147 g/t Pd, 0.265 g/t Pt, 0.121 g/t Au, 0.083% Ni, 0.183% Cu in the Measured & Indicated category and 4,716,000 tonnes of similar grade in the Inferred category. Capital costs for the project are estimated at US $428.8 million, indicating a positive pre-tax IRR of 23.9% using 18-month trailing average metal prices of USD$344/oz Pd, USD$1,222/oz Pt, USD$15.27/lb Ni, USD$3.26/lb Cu and USD$644/oz Au. Application of 24-month trailing average metal prices of USD$325/oz Pd, USD$1,167/oz Pt, USD$613/oz Au, USD$13.01/lb Ni, USD$2.98/lb Cu yields a positive pre-tax IRR of 19.1%. The cost estimate, based on the designs presented in the scoping study has a predicted accuracy level of +/- 30%.

North American Palladium announced positive results of a mineral resource estimate and preliminary economic assessment (scoping study) completed on the Arctic Platinum project in northern Finland. The updated mineral resource estimate comprises a measured and indicated mineral resource of 152.5 Mt averaging 1.067 g/t palladium, 0.245 g/t platinum, 0.115 g/t gold, 0.077% nickel and 0.187% copper from the two deposits. Based upon this new resource estimate and combined with a revision in the throughput rate, mine life is estimated to be over 20 years at a throughput rate of 7.5 Mt per annum. Capital costs for the project are estimated at US $428.8 million, indicating a positive pre-tax internal rate of return of 23.9% using 18-month trailing average metal prices of USD$344/oz Pd, USD$1,222/oz Pt, USD$15.27/lb Ni, USD$3.26/lb Cu and USD$644/oz Au. This work was undertaken to complete the first phase of the joint venture agreement with Gold Fields whereby the company may earn-in up to 60% in the project.