North American Palladium Ltd. provided an update on its drill results from the second half of its 2012 underground and surface exploration programs at its Lac des Iles palladium mine property in Northern Ontario. Highlights: Offset Zone underground extension drilling program delivers positive results indicating potential for expanding the resource to the south of and above the current limits of the deposit: Hole 12-706 (upper Offset Zone) intersected 21 metres grading 4.19 grams per tonne palladium and hole 12-601 (southern Offset Zone) intersected 10 metres averaging 4.27 g/t Pd; Sheriff Zone near-surface resource potential enhanced by positive definition drilling results featuring broad zones of lower grade palladium mineralization containing local, higher-grade intervals: Hole 12-179 intersected 130 metres averaging 1.26 g/t Pd including 24 metres grading 3.05 g/t Pd, and hole 12-185 intersected 106 metres grading 1.40 g/t Pd including 5 metres grading 4.68 g/t Pd; Initial resource estimate for the Sheriff Zone expected later in 2013; Roby Zone north extension drilling program returns high-grade intersections: Hole 12-259 intersected 5 metres grading 13.37 g/t Pd and hole 12- 269 intersected 24 metres averaging 23.35 g/t Pd, including 3 metres grading 104.20 g/t Pd (amongst the high ever reported from LDI); North VT Rim surface exploration drilling is starting to demonstrate lateral continuity and returns additional high-grade intercepts and broader zones of pit grade mineralization: Hole 12-036 intersected 6 metres with 12.4 g/t Pd including 1 metre grading 54.10 g/t Pd; New mineralization intersected on the North LDI property (at approximately 400-metre vertical depth on the first of four planned fence holes to be drilled): Hole NL 12-100 intersected 2 metres grading 3.58 g/t Pd and 1.08 g/t Pt.

In 2012, the company completed a total 50,148 metres of diamond drilling at LDI, of which: 19,405 metres were completed on surface projects (Sheriff Zone, North VT Rim and other areas on the Mine Block Intrusion); and 30,743 metres on underground exploration and infill programs (Roby and Offset zones). Since the last exploration update on 2012 drilling, the company completed 20,656 metres of diamond drilling at LDI, including: 5,114 metres at Sheriff; 4,952 metres in the southern Offset Zone (12-600 series of holes); 3,437 metres in the upper Offset Zone (12-700 series of holes); 1,411 metres on the Offset Zone infill program (12-800 series of holes 3,350 metres at Roby Zone; and 2,392 metres at North VT Rim.