re-engineering the futureInvestor PresentationNovember 2009William J. BiggarPresident & Chief Executive Officer
Forward-Looking StatementsCertain information included in this presentation, including any information as to our future fi...
NAP: An attractive investmentDelivering on vision to build a diversified mid-tier preciousmetals company operating in mini...
NAP: A diversified precious metals producer Lac des Iles Sleeping Giant palladium mine ...
A liquid stock Stock symbol NYSE Amex – PAL TSX – PDL ...
Palladium: a key value driver Supply: limited production RUSSIA ...
Palladium demand is increasing PALLADIUM DEMAND BY CATEGORY 21% ...
Palladium market fundamentals Global light vehicle production forecast (OOOs) ...
Palladium market fundamentals Stricter emission controls in BRIC nationsequals increased PGM usa...
Palladium market fundamentals Growth in Palladium ETFsIncreasingly viewed as an attractive precious metal provid...
Palladium price projected to be rising Price expected to remain above US $350 per ounce next year 2006-20...
Ready to restart with rebound in palladium• Located north of Thunder Bay, Ontario: – Open pit and underground mine – 1...
LDI: A world class mine Open pit Roby Undergroun...
A new focus on exploration at LDI • $7.0 million exploration program for 2009 • Working to add to ...
Extending LDI’s minelife: 2 new discoveries in 2009• Two new underground PGM discoveries (Cowboy & Outlaw zones)• Discove...
Two new zones: Cowboy and OutlawAdditional mineralization has the potential to increase resources ...
Discovering additional surface targets North VT Rim North PitWestPit ...
Building a gold division: Acquiring Sleeping Giant• A key step in growing NAP: – Reduces risk associated with a single ...
Sleeping Giant mine: a foundation for growth • 100% owned Sleeping Giant gold mine is located no...
First gold poured at Sleeping Giant on Oct. 6 • Annual pr...
Potential to grow through exploration 0 0 500 500 ...
Discovery: A potential source of additional production • 237,000 mea...
Eight properties that include 70 km of favourablegeology in 1182 claims over 48,699 hectares ...
Acquisition: The external growth driver• Build on presence in Abitibi region of Quebec with a focus on gold companies wit...
NAP: On track for growth Restart LDI mine Continue when sustainable aggressive recovery in ...
Shareholder informationNorth American Palladium’s vision is to build a mid-tier diversified precious metals companyoperati...
re-engineering the futureInvestor PresentationNovember 2009Appendices and further information
Appendices – Table of Contents• Senior management slides 29 to 30• Board of directors sli...
Senior managementBill Biggar – President and CEOAn accomplished businessman with extensive experience in mining and in a b...
Senior managementMichel Bouchard – Vice President, Exploration and DevelopmentMr. Bouchard has been involved in exploratio...
Board of DirectorsAndré J. Douchane, ChairmanA mining engineer with over 35 years of mining experience managing precious m...
Board of DirectorsBill Biggar – President and CEOAn accomplished businessman with extensive experience in mining and in a ...
Board of DirectorsRobert J. QuinnA founding partner of the Houston mining transactional law firm Quinn & Brooks LLP, Mr. Q...
Board of DirectorsWilliam J. Weymark, P.Eng.Appointed to the Board of Directors of the Company in January 2007, Mr. Weymar...
Capitalization Potent...
Longitudinal section showing Phase 1 and 2drillhole intercepts Underground development ...
Interpreted geological cross section 505Nof the Offset Zone 37
Interpreted longitudinal section of the Cowboy Zone 38
West Pit Area: Phases 1 and 2 507N Pod Quartz Diorite ...
Sleeping Giant: History1984 to 1987: Oct. 2007:Peron Gold Mines ...
Appendix – Resources and Reserves 1. Cautionary Note to U.S. Investors Concerning Mineral Reserves and Mineral ...
Cautionary Note to U.S. Investors Concerning Mineral Reserves and Mineral ResourcesMineral reserves and mineral resources...
Lac des Iles mine Mineral Resource Summary – December 31, 2008 Ton...
Lac des Iles mine – Offset Zone Estimated Mineral Resource – March 31, 2008 Tonnes ...
Sleeping Giant mine Statement of Reserves & Resources – October, 2008 ...
Discovery Project Mineral Resources – August 1, 2008 ...
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Nap inves pres_16nov2009

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  • 1. re-engineering the futureInvestor PresentationNovember 2009William J. BiggarPresident & Chief Executive Officer
  • 2. Forward-Looking StatementsCertain information included in this presentation, including any information as to our future financial or operatingperformance and other statements that express managements expectations or estimates of future performance,constitute ‘forward-looking statements’ within the meaning of the ‘safe harbor’ provisions of the United StatesPrivate Securities Litigation Reform Act of 1995 and Canadian securities laws. The words ‘expect’, ‘believe’, ‘will’,‘intend’, ‘estimate’ and similar expressions identify forward-looking statements. Forward-looking statements arenecessarily based upon a number of estimates and assumptions that, while considered reasonable bymanagement, are inherently subject to significant business, economic and competitive uncertainties, risks andcontingencies. The Company cautions the reader that such forward-looking statements involve known andunknown risks, uncertainties and other factors that may cause the actual financial results, performance orachievements of North American Palladium to be materially different from the Company’s estimated future results,performance or achievements expressed or implied by those forward-looking statements and that the forward-looking statements are not guarantees of future performance. These statements are also based on certain factorsand assumptions. For more details on these estimates, risks, assumptions and factors, see the Company’s mostrecent Form 40-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadianprovincial securities regulatory authorities. In addition, there can be no assurance that the Company’s Lac des Ilesor Sleeping Giant mines will be successfully restarted or that other properties can be successfully developed. TheCompany disclaims any obligation to update or revise any forward-looking statements, whether as a result of newinformation, events or otherwise, except as expressly required by law. Readers are cautioned not to put unduereliance on these forward-looking statements.All dollar amounts in Canadian currency unless otherwise stated. 2
  • 3. NAP: An attractive investmentDelivering on vision to build a diversified mid-tier preciousmetals company operating in mining-friendly jurisdictionsWorld class palladium mine offers significant leverageto the rising palladium priceRenewed commitment to exploration at Lac des IlesCommenced gold production at Sleeping Giant mineFocused on acquiring additional gold assets to growgold production to 250,000 ouncesExperienced management and technical teamsStrong balance sheet: over $100 M in cash, no debt 3
  • 4. NAP: A diversified precious metals producer Lac des Iles Sleeping Giant palladium mine gold mine LDI palladium mine: Sleeping Giant gold mine – Flagship mine – Commenced gold production – On care and maintenance in October 2009 since late 2008 – Potential for intrinsic growth – Significant exploration upside – Presence in highly prolific Abitibi region of Quebec 4
  • 5. A liquid stock Stock symbol NYSE Amex – PAL TSX – PDL Share price US $2.87 Shares outstanding 127M (154M fully diluted*) Market capitalization US $364M (US $442M fully diluted) Three-month average NYSE Amex – 1,030,722 daily trading volume TSX – 352,261 2008 high/low US$9.28/$0.91 2009 high/low US$3.60/$1.14 Shareholder base Institutional – 53% Retail – 47% Major shareholder Kaiser Francis Oil Company (30%)Information as at November 12, 2009* For details, please see Appendix. 5
  • 6. Palladium: a key value driver Supply: limited production RUSSIA 44% 44%NORTH AMERICA 14% 14% 6.5 M oz. total worldwide production SOUTH AFRICA 38% 6
  • 7. Palladium demand is increasing PALLADIUM DEMAND BY CATEGORY 21% • Use in vehicles is growing, Investment/Other particularly in BRIC economies 13% • Stricter emission controls Electronics equals increased PGM usage • ETFs in Zurich, London, 9% Japan, and soon New York Dental will increase demand 49% 8%Automotive Jewellery/China Demand will grow, supply will stagnate Source: CPM Group 7
  • 8. Palladium market fundamentals Global light vehicle production forecast (OOOs) 78 M 79 M 76 M 73 M 65 M 67 M 60 M 52 MSource: CSM Worldwide, March 2009 8
  • 9. Palladium market fundamentals Stricter emission controls in BRIC nationsequals increased PGM usage 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Brazil Euro II Euro III Euro IVRussia Euro I Euro II Euro IIIChina (gas) Euro I Euro II Euro III Euro IVChina (diesel) Euro I Euro II Euro III Euro IVIndia (nation) Euro I Euro II Euro IIIIndia (10 cities) Euro I Euro II Euro III Euro IVSource: CPM Group 9
  • 10. Palladium market fundamentals Growth in Palladium ETFsIncreasingly viewed as an attractive precious metal providing portfolio diversification 10
  • 11. Palladium price projected to be rising Price expected to remain above US $350 per ounce next year 2006-2009 Historic – Average Annual Price 2009-2017 Forecast – Average Annual Price US$ US$ 700 600 500 400 300 200 100 0 2009 2010 2011 2012 2013 2014 2015 2016 2017Sources: Thomson One; CPM Group’s PGM Long Term Metals Outlook dated April 2009 11
  • 12. Ready to restart with rebound in palladium• Located north of Thunder Bay, Ontario: – Open pit and underground mine – 15,000 tpd mill – $500 million invested in infrastructure and mineral rights to date• In production from 1993 to October 2008 when temporarily placed on care and maintenance in response to low metal prices• Annualized production at time of shut down: – 270,000 ounces of palladium – 3.0 million pounds of nickel – 20,000 ounces of platinum – 5.6 million pounds of copper – 20,000 ounces of gold• Decisive action taken to preserve reserves and maintain balance sheet• Will consider restart once palladium reaches sustainable price of US$325 to $350 per ounce• Prepared for quick restart – Capex approximately $4 million – Key personnel in place – Will take approximately 90 days from go decision to reach full production 12
  • 13. LDI: A world class mine Open pit Roby Underground Zone Offset Zone 0 __________600 m 13
  • 14. A new focus on exploration at LDI • $7.0 million exploration program for 2009 • Working to add to 3.7 million ounces of measured and indicated palladium resources* • Increase grade of upper portion of Offset Zone • Discover new resources on surface and underground* See cautionary note to U.S. Investors in Appendix. 14
  • 15. Extending LDI’s minelife: 2 new discoveries in 2009• Two new underground PGM discoveries (Cowboy & Outlaw zones)• Discovered during infill drilling of Offset Zone• Cowboy is located 30 to 50 metres from Offset Zone, extends 250 metres along strike, 350 metres down dip and is open in all directions• Outlaw is located 50 to 75 metres from Cowboy Zone• Additional drilling underway• Potential near-surface discovery (West Pit) Potential to add at least 10 years of mine life 15
  • 16. Two new zones: Cowboy and OutlawAdditional mineralization has the potential to increase resources 16
  • 17. Discovering additional surface targets North VT Rim North PitWestPit 17
  • 18. Building a gold division: Acquiring Sleeping Giant• A key step in growing NAP: – Reduces risk associated with a single mine operation – Bullish on gold – Focus on precious metals increases shareholder value• Completed acquisition of Cadiscor Resources in May 2009 for $32 million in an all-share transaction• First step in NAP’s evolution into a diversified precious metals producer• The Sleeping Giant Mine provides good platform from which to grow and expand Aim is to build gold division to production of approximately 250,000 ounces per year 18
  • 19. Sleeping Giant mine: a foundation for growth • 100% owned Sleeping Giant gold mine is located northwest of Val d’Or, Quebec in prolific Abitibi region • Contained mineralization of 153,000 gold ounces* • Previously operated by IAMGOLD, Sleeping Giant produced an average of 58,000 ounces of gold over last five years • Cumulative production of 1 million ounces over 20 years at an average grade of 11.4 g/t gold* See cautionary note to U.S. Investors in Appendix. 19
  • 20. First gold poured at Sleeping Giant on Oct. 6 • Annual production expected to be 50,000 ounces per year with cash cost in the range of US $450 to $500 per ounce* • Production restart cost approximately $7.5 million • Full complement of employees on site • Mill was refurbished on time and on budget On track and budget for achieving commercial production in early 2010* Non-GAAP performance measure. For further information, please see pages 22-23 of the Company’s Second Quarter 2009 Report. 20
  • 21. Potential to grow through exploration 0 0 500 500 1000 1000 1500 1500 21
  • 22. Discovery: A potential source of additional production • 237,000 measured and indicated gold ounces* • 294,000 inferred gold ounces* • Process ore at Sleeping Giant mill, which is 70 km away via established logging roads • August 2008 PEA identified 44,000 ounces of gold production per year over 4- year mine life* See cautionary note to U.S. Investors in Appendix. 22
  • 23. Eight properties that include 70 km of favourablegeology in 1182 claims over 48,699 hectares Discovery Cameron Shear JV Florence Flordin Harricana North Laflamme 23
  • 24. Acquisition: The external growth driver• Build on presence in Abitibi region of Quebec with a focus on gold companies with near-term production potential• Focus on North and South American opportunities• Disciplined approach that maintains balance sheet strength• Leverage management strengths and expertise 24
  • 25. NAP: On track for growth Restart LDI mine Continue when sustainable aggressive recovery in exploration palladium prices program is achieved Commenced Continue gold production diversification in October 2009 through gold acquisitions 25
  • 26. Shareholder informationNorth American Palladium’s vision is to build a mid-tier diversified precious metals companyoperating in mining friendly jurisdictions. Highly leveraged to palladium, the Company is buildingon its exposure to gold, and focused on acquiring high quality near-term producing gold assets.NAP’s experienced management and technical teams have a renewed commitment to explorationand are dedicated to building shareholder value.Corporate office: 130 Adelaide Street West, Suite 2116 Toronto, Ontario M5H 3P5Stock Symbols: NYSE Amex – PAL TSX – PDLWebsite: www.nap.comInvestor Relations: Annemarie Brissenden Director, Investor Relations abrissenden@nap.com 416 -360-7971 ext. 226 26
  • 27. re-engineering the futureInvestor PresentationNovember 2009Appendices and further information
  • 28. Appendices – Table of Contents• Senior management slides 29 to 30• Board of directors slides 31 to 34• Capitalization slide 35• Exploration slides slides 36 to 38• Sleeping Giant: History slide 40• Reserves and resources slides 41 to 46 28
  • 29. Senior managementBill Biggar – President and CEOAn accomplished businessman with extensive experience in mining and in a broad range ofindustries. Mr. Biggar has held senior positions with Barrick Gold Corporation, HorshamCorporation and Magna International. He also has over 12 years of experience as aninvestment banker and private equity investor.Jeff Swinoga – Vice President, Finance and CFOEighteen years of experience in the resource, mining and finance industries. Mr. Swinogahas held CFO positions with HudBay Minerals and MagIndustries, and was Director, TreasuryFinance of Barrick Gold Corporation for seven years.Dave Passfield – Vice President, OperationsA professional engineer by training, Mr. Passfield has 30 years experience in open-pit andunderground operations. Mr. Passfield has held key management positions with severalmajor Canadian and international mining companies and has operating experience inCanada and overseas. 29
  • 30. Senior managementMichel Bouchard – Vice President, Exploration and DevelopmentMr. Bouchard has been involved in exploration, development, and operations in the miningindustry for the past 25 years. He is credited with contributing to the discovery of theBouchard Hebert Mine in northwest Quebec. Previously Mr. Bouchard held senior positionswith Audrey Resources, Lyon Lake Mines and SOQUEM. Mr. Bouchard was formerlyPresident and CEO of Cadiscor Resources Inc.Trent Mell – Vice President, Corporate Development and General CounselMr. Mell joined NAP in 2007, having previously worked at the corporate head offices ofBarrick Gold Corporation and Sherritt International. Prior to joining the mining industry, Mr.Mell worked with Stikeman Elliott LLP, where he practiced securities law. Mr. Mell has alsopublished papers on NI 43-101, and holds a B.A., a B.C.L. (with distinction) and a LL.B. (withdistinction), all from McGill University, as well as a Masters degree in Securities Law fromOsgoode Hall Law School. 30
  • 31. Board of DirectorsAndré J. Douchane, ChairmanA mining engineer with over 35 years of mining experience managing precious metals operations,Mr. Douchane was appointed to the Company’s Board of Directors in April 2003. In addition toserving on the board of Osisko Mining Corporation, Mr. Douchane is the President and ChiefExecutive Officer of Starfield Resources Inc., an exploration and development company operatingin Nunavut, Canada. Mr. Douchane previously served as North American Palladium’s President andChief Executive Officer from April 2003 to January 2006, and has held senior managementpositions with several international publicly-traded precious metal mining companies includingVice President, Operations of Franco and Euro-Nevada (Newmont Mining Corporation).Steven R. BerlinMr. Berlin was appointed to the Board of Directors of the Company in February 2001, and is also adirector of Orchids Paper Products, an AMEX listed company. At the end of 2005, Mr. Berlin retiredfrom his position as Vice-President of KFOC where he worked part-time for two years followingfour years of full-time work as Vice-President and Chief Financial Officer. Prior to joining KFOC, Mr.Berlin taught at the University of Tulsa for three years where he also served a year as actingassociate Dean of the College of Business and acting Director of the School of Accounting. Beforejoining the University of Tulsa, Mr. Berlin spent 25 years with Citgo Petroleum Corporation, wherehe retired as Senior VP Finance and Administration and Chief Financial Officer. Mr. Berlin has abachelor’s degree from Duquesne University, an MBA from the University of Wisconsin Madisonand has completed the Executive Management program at Stanford University. 31
  • 32. Board of DirectorsBill Biggar – President and CEOAn accomplished businessman with extensive experience in mining and in a broad range ofindustries. Mr. Biggar has held senior positions with Barrick Gold Corporation, HorshamCorporation and Magna International. He also has over 12 years of experience as an investmentbanker and private equity investor.C. David A. CombaMr. Comba, who has over four decades of experience as an exploration advocate and seniormining executive, was appointed to the Company’s Board of Directors in March 2006. As ChiefExploration Geologist of Falconbridge Limited in Sudbury, Ontario, he led the team that discoveredthe Thayer Lindsley mine. Prior to its takeover by Kinross Gold Corporation, Mr. Comba was Vice-President, Exploration of Falconbridge Gold Corporation. Following the takeover, he becamePresident and Chief Executive Officer of a Kinross-controlled junior exploration company listed onthe TSX. Mr. Comba was Director of Issues Management with the Prospectors and DevelopersAssociation of Canada from 1998 to 2005, during which time he led the successful lobby effort forthe re-introduction of enhanced or “super” flow-through shares. Mr. Comba has Bachelor’s andMasters’ degrees in geology from Queen’s University in Kingston, Ontario. 32
  • 33. Board of DirectorsRobert J. QuinnA founding partner of the Houston mining transactional law firm Quinn & Brooks LLP, Mr. Quinnhas over 25 years of legal and management experience, including as Vice President and GeneralCounsel for Battle Mountain Gold Company. Appointed to the Board of Directors of the Companyin June 2006, he has extensive experience in M&A transactions, corporate governance, publicdisclosure, governmental affairs, environmental law and land management. Mr. Quinn has aBachelor of Science degree in Economics from the University of Denver, a juris doctorate degreefrom the University of Denver College of Law and has completed two years of graduate work inmineral economics at the Colorado School of Mines.Greg J. Van Staveren, CA, CPAMr. Van Staveren is the President of Strategic Financial Services, a private consulting companyproviding business advisory services. Appointed to the Board of Directors of the Company inFebruary 2003, Mr. Van Staveren is an independent director on the board of two other publiccompanies and part-time Chief Financial Officer for Starfield Resources Inc. (SRU:TSX) and AIMHealth Group Inc. (AHG:TSX). He was the Chief Financial Officer of MartinRea International Inc.(MRE:TSX) from 1998 to September 2001, and provided accounting and advisory services until1998 as a partner of KPMG, which he joined in 1980. Mr. Van Staveren is a Chartered Accountantand a Certified Public Accountant and holds a Bachelor of Math (Honours) degree from theUniversity of Waterloo. 33
  • 34. Board of DirectorsWilliam J. Weymark, P.Eng.Appointed to the Board of Directors of the Company in January 2007, Mr. Weymark is President ofWeymark Engineering Ltd., a Company providing consulting services to businesses in the privateequity, construction and resource sector. He is also a director of Tirex Resources Ltd. (TXX:TSX-V),the VGH & UBC Hospital Foundation Board, and several private companies. Mr. Weymark is activewith the BC Lions as a Founder of their business association and a Member of the IndustryAdvisory Committee for the Norman B. Keevil Institute of Mining Engineering at the University ofBritish Columbia. Until June 2007, Mr. Weymark was President and CEO of VancouverWharves/BCR Marine, a transportation firm located on the west coast of British Columbia. Prior tojoining Vancouver Wharves in 1991, Mr. Weymark spent 14 years in the mining industrythroughout western Canada working on the start-up and operation of several mines. 34
  • 35. Capitalization Potential Number Price Proceeds Common Shares Outstanding 1 127,383,000 Stock Options 2 2,407,100 $ 4.02 $ 9,700,000 Warrants 2 4.25 to (expiring December 2009 to 25,120,000 US $10.73 3 $ 134,500,000 September 30, 2011) Total 154,910,000 $ 144,200,000 • 27.5 million warrants and options outstanding • 10.7 million expire December 13, 20091 As at November 12, 2009.2 As at September 30, 2009.3 Warrants in both US$ and C$. U$ converted at rate of $1.05 CDN/US. 35
  • 36. Longitudinal section showing Phase 1 and 2drillhole intercepts Underground development View looking west 36
  • 37. Interpreted geological cross section 505Nof the Offset Zone 37
  • 38. Interpreted longitudinal section of the Cowboy Zone 38
  • 39. West Pit Area: Phases 1 and 2 507N Pod Quartz Diorite 39
  • 40. Sleeping Giant: History1984 to 1987: Oct. 2007:Peron Gold Mines Cadiscor signs(now Aurizon) sinks option to acquiretwo shafts SG and begins Oct. 2008: 1991: underground drill Ownership transferred Cambior acquires campaign to to Cadiscor 50% by investing identify new in drilling and April 2005: May 2009: reserves underground work Cambior acquires NAP acquires Cadiscor second 50% from and continues Aurizon, becomes operational restart sole owner 2006: IAMGOLD becomes owner, Oct. 6, 2009: after acquiring First gold pour Cambior April 2009: Cadiscor commences 1993: restart Production resumes Sept. 2008: Cadiscor releases 1988 to 1990: NI 43-101 report Commercial production until indicating new reserves and reserves thought depleted resources for 3 years of production 40
  • 41. Appendix – Resources and Reserves 1. Cautionary Note to U.S. Investors Concerning Mineral Reserves and Mineral Resources 2. Lac des Iles mine Mineral Resource Summary – December 31, 2008 3. Lac des Iles mine – Offset Zone Estimated Mineral Resource – January 20, 2009 4. Sleeping Giant mine Statement of Reserves and Resources – October 2008 5. Discovery Project Mineral Resources – August 1, 2008Dr. William E. Stone, P. Geo, Vice President, Exploration for North American Palladium Ltd., is theQualified Person who supervised the preparation of the technical data in this presentation.Please refer to North American Palladium’s Annual Information Form for the year endedDecember 31, 2008 and applicable technical reports available on www.sedar.com, www.sec.govand www.nap.com for further information. 41
  • 42. Cautionary Note to U.S. Investors Concerning Mineral Reserves and Mineral ResourcesMineral reserves and mineral resources have been calculated in accordance with NationalInstrument 43-101 as required by Canadian securities regulatory authorities. For UnitedStates reporting purposes, Industry Guide 7, (under the Securities and Exchange Act of1934), as interpreted by Staff of the SEC, applies different standards in order to classifymineralization as a reserve. In addition, while the terms “measured”, “indicated” and“inferred” mineral resources are required pursuant to National Instrument 43-101, the U.S.Securities and Exchange Commission does not recognize such terms. Canadian standardsdiffer significantly from the requirements of the U.S. Securities and Exchange Commission,and mineral resource information contained herein is not comparable to similar informationregarding mineral reserves disclosed in accordance with the requirements of the U.S.Securities and Exchange Commission. U.S. investors should understand that “inferred”mineral resources have a great amount of uncertainty as to their existence and greatuncertainty as to their economic and legal feasibility. In addition, U.S. investors arecautioned not to assume that any part or all of NAPs mineral resources constitute or will beconverted into reserves. For a more detailed description of the key assumptions, parametersand methods used in calculating NAP’s mineral reserves and mineral resources, see NAP’smost recent Annual Information Form/Form 40-F on file with Canadian provincial securitiesregulatory authorities and the U.S. Securities and Exchange Commission. 42
  • 43. Lac des Iles mine Mineral Resource Summary – December 31, 2008 Tonnes Pd Pt Au Cu Ni PdEq Pd Location (000’s) (g/t) (g/t) (g/t) (%) (%) (g/t) (000 oz) Measured Resources Roby Open Pit 3,722 1.99 0.23 0.17 0.075 0.065 3.77 238 Roby Stockpiles 763 2.09 0.19 0.18 0.060 0.079 3.79 51 Indicated Resources Roby Open Pit 2,565 2.20 0.24 0.18 0.078 0.068 4.07 181 Roby RGO Stockpile 13,365 0.97 0.12 0.08 0.034 0.056 2.00 417 Roby Underground 3,292 7.61 0.44 0.33 0.062 0.077 10.46 805 Offset Underground 12,331 5.02 0.38 0.37 0.114 0.133 8.28 1,990 Total M&I Resources 36,038 3.18 0.26 0.22 0.072 0.086 5.29 3,682 Inferred Resources Offset Underground 4,637 4.9 0.4 0.3 0.12 0.13 8.0 730Notes:1. CIM definitions were followed for the estimation of Mineral Resources.2. Mineral Resources for the Roby Open Pit were estimated at a cut-off grade of 1.8 g/t PdEq, within an optimized pit shell run below the current pit survey (October 2008).3. Mineral Resources in stockpiles were estimated at a cut-off grade of 1.9 g/t PdEq.4. Mineral Resources for the Roby and Offset Zones underground were estimated at a cut-off grade of 5.8 g/t PdEq.5. Cut-off grades were determined under the assumption that a production rate of 14,000 tpd would be resumed in the event of restarting operations.6. PdEq factors were calculated separately for each area, based on operating cost and metallurgical performance estimates appropriate for those areas.7. Metal price assumptions of US $250/oz palladium, US$1,400/oz platinum, US$850/oz gold, US$6.50/lb nickel and US$2.00/lb copper were used in the estimation of Pd/Eq and cut-off grade. A US$/C$ exchange rate of 1.11 was used.Please refer to North American Palladium’s Annual Information Form for the year ended December 31, 2008 and applicable technical reports filed onwww.sedar.com, www.sec.gov and www.nap.com for further information. 43
  • 44. Lac des Iles mine – Offset Zone Estimated Mineral Resource – March 31, 2008 Tonnes Pd Pt Au Ni Cu PdEq Pd Category (millions) (g/t) (g/t) (g/t) (%) (%) (g/t) (000 oz) Indicated 12.3 5.02 0.38 0.37 0.13 0.11 8.28 1,985 Inferred 4.6 4.85 0.37 0.33 0.13 0.12 8.0 717Notes:1. Prepared by Mr. Ian T. Blakley, P. Geo and Senior Consulting Geologies for Scott Wilson Roscoe Postle Associates, an independent Qualified Person within the meaning of NI 43-101.2. Palladium equivalency (PdEq) cut-off of 5.575 g/t, assuming long-term US$ metal prices of $300/oz Pd, $1,000/oz Pt, $850/oz Au, $7.00/lb Ni, $2.50/lb Cu and a US$/C$ echange rate of 1.10.3. Resources were estimated to a maximum depth of 1,200 m.4. Metal recovery assumptions of 80% Pd, 70% Pt, 75% Au, 40% Ni and 85% Cu were used in estimation of PdEq.The Offset Zone resource estimate is available on www.sedar.com, www.sec.gov and www.nap.com. 44
  • 45. Sleeping Giant mine Statement of Reserves & Resources – October, 2008 Tonnes Au Au Type (000’s) (g/t) Contained ounces Reserves Proven 135,300 9.3 40,396 Probable 100,000 9.4 30,177 Resources Measured 42,000 8.7 11,731 Indicated 211,900 10.3 70,068Notes:1. CIM definitions were followed for the estimation of Mineral Resources and Reserves.2. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.3. Mineral Reserves as stated can be produced at or below the production cost of CDN$850 per troy ounce. With an exchange rate of $1US=1.07 $CDN, this corresponds to a gold price of US $794 per troy ounce.4. Reserve estimates are based on historical mine operating costs and gold recoveries at the mine. The estimated cost of each stope has included development costs based on current mine costs and per shift production.5. A series of gold prices have been used to estimate reserves in a number of economic scenarios. The gold price has been modified in US$50 increments from US$750 to US$900 per troy ounce.Please refer to the Technical Report titled “The Sleeping Giant Mine, Northwestern Quebec”, dated October 8, 2008 and preparedby Genivar LP for further information. It is filed on www.sedar.com under Cadiscor Resources Inc.Dr. Tyson C. Birkett, Eng. Ph.D., Josee Couture, Eng., and Christian Bezy, Geo, are the Qualified People who supervised the preparationof the above technical data. 45
  • 46. Discovery Project Mineral Resources – August 1, 2008 Au Au Type Tonnes (g/t) (Contained Oz) Mineral Resources Measured 3,109 8.95 893 Indicated 1,278,973 5.74 235,682 Inferred 1,545,500 5.93 294,223Notes:1. CIM definitions were followed for the estimation of Mineral Resources and Reserves.2. The Independent and Qualified Persons for the Mineral Resource estimates as defined by Regulation 43-101 is Carl Pelletier, B.Sc., P.Geo., of InnovExplo Inc. The effective date of the estimate is June 17, 2008.3. Mineral Resources, having demonstrated economic viability, are not Mineral Reserves.4. Results are presented undiluted and in situ. The estimate included six (6) gold-bearing zones (“A”, “B”, “C”, “E”, “20” and “30”) and covers the Discovery Project area between sections 1+00E to 9+00W and 4+50E to 15+00E.5. The resources were compiled using a cut-off grade of 3.0 g/t Au. This cut-off must be re-evaluated in light of present market conditions (gold price, exchange rate and mining cost). A fixed density of 2.82 g/cm3 was used. A minimum of 1.6 m horizontal width was applied, using the grade of the adjacent material when assayed, or a value of zero when not assayed. High grade capping was done on the raw data and established at 35.0 g/t Au. Drill hole compositing was not done. Resources were evaluated from drill hole results using a polygonal on longitudinal approach. Calculations used metric units (metre, tonnes and g/t Au). The company is not aware of any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issue that could materially affect the Mineral Resource estimates.For further information, please refer to the report titled “Technical Report on the Scoping Study and Mineral Resource Estimatefor the Discovery Project (according to Regulation 43-101 and Form 43-101F1) dated August 1, 2008 and prepared by InnovExplo Inc.It is filed on www.sedar.com under Cadiscor Resources Inc. 46

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