North American Palladium Updates Reserves and Resources for Gold Division

TORONTO, ONTARIO, Apr 06 (MARKET WIRE) --
North American Palladium Ltd. ("NAP" or "the Company") (TSX: PDL)(NYSE
Amex: PAL) today released a mineral reserve and resource update for its
Sleeping Giant gold mine, as well as a first-time mineral resource
estimate for its Flordin property, both located in the prolific Abitibi
gold district in Quebec.

"This resource update supports our growth strategy for the Gold Division
in the Abitibi region, where we have a significant land position and an
underutilized mill," said Michel Bouchard, Vice President, Exploration
and Development at NAP. "The twofold increase in the resources at
Sleeping Giant strengthens our belief that the mine life will be extended
and justifies the shaft deepening that is already underway. There is also
considerable upside potential at the nearby Discovery project, and at the
Flordin gold deposit where we are examining open pit scenarios."

Gold Division Mineral Reserves and Mineral Resources

The table below sets forth estimated mineral reserves and resources as at
December 31, 2009 for the Sleeping Giant mine, as at March 31, 2010 for
the Flordin property, and as at August 1, 2008 for the Discovery project,
in each case as calculated in accordance with National Instrument 43-101
- Standards of Disclosure for Mineral Projects ("NI 43-101").

----------------------------------------------------------------------
Property Category Tonnes Au (g/t) Contained Ounces
----------------------------------------------------------------------
Sleeping Giant Reserves
----------------------------------------------------------------------
Proven 91,000 8.91 26,000
----------------------------------------------------------------------
Probable 96,000 9.79 30,000
----------------------------------------------------------------------
Resources
----------------------------------------------------------------------
Indicated 213,000 8.32 57,000
----------------------------------------------------------------------
Inferred 243,000 12.9 101,000
----------------------------------------------------------------------
Flordin Resources
----------------------------------------------------------------------
Measured 30,000 4.6 4,000
----------------------------------------------------------------------
Indicated 649,000 4.24 88,000
----------------------------------------------------------------------
Inferred 1,451,000 3.63 169,000
----------------------------------------------------------------------
Discovery Resources
----------------------------------------------------------------------
Measured 3,000 8.95 0.9
----------------------------------------------------------------------
Indicated 1,279,000 5.74 236,000
----------------------------------------------------------------------
Inferred 1,546,000 5.93 294,000
----------------------------------------------------------------------
(1) Mineral reserves are exclusive of mineral resources.
(2) The mineral reserve and mineral resource estimate for the Sleeping Giant
mine was prepared by Mr. Vincent Jourdain, P.Eng., Ph.D, a qualified
person under NI 43-101, assuming a long-term gold price of Cdn.$850.
Applied varying cut-off grades depending on the type of mining method
contemplated.
(3) The mineral resource estimate for the Flordin property was prepared by
Mr, Carl Pelletier, B.Sc., P.Geo. and Mr. Bruno Turcotte, M.Sc., P.Geo.
of InnovExplo, both of whom are independent qualified persons under NI
43-101, using a cut-off grade of 2 g/t.
(4) The mineral resource estimate for the Discovery Project was prepared by
Mr, Carl Pelletier, B.Sc., P.Geo. of InnovExplo, an independent
qualified person under NI 43-101, assuming a gold price of U.S.$850 in
the first 5 years, and U.S.$750 thereafter. Applied varying cut-off
grades depending on the type of mining method contemplated.

Sleeping Giant Property

The main focus of the Sleeping Giant drilling program, conducted in the
latter half of 2009, was to demonstrate the potential to further extend
the mine life. The extensional drill program resulted in additional
resources both below and adjacent to the current mine workings, including
an extension of the 30 West zone and the 3 zone. A new zone, called the
785N zone, was also intersected 180 metres below the bottom of the
current mine workings and provided a 2.2 metre section grading 16 g/t
gold (see news release dated January 29, 2010 at www.nap.com).

The updated mineral reserve and resource estimate nearly doubles the
mineral resources at Sleeping Giant. In 2010, the Company intends to
conduct 30,000 metres of extensional drilling at a cost of approximately
$2.1 million with the objective of extending the mine life further by
identifying new resources and converting mineral resources to mineral
reserves.

Flordin Property

The Flordin property is approximately 40 kilometres north of the town of
Lebel-sur-Quevillon, Quebec, in close proximity to NAP's Discovery
project and within trucking distance of the Sleeping Giant mill.
Preliminary exploration drilling in 2008 intersected several mineralized
zones, expanding the known dimensions of the mineralized area. InnovExplo
was contracted in 2009 to prepare an NI 43-101 resource estimate on the
gold deposit.

The presence of several parallel gold veins near surface led to
consideration of possible open pit mining scenarios. According to the new
NI 43-101 technical report, using a conservative 2 g/t gold cut-off, the
NI 43-101 report estimates that the property contains 679,000 tonnes of
measured and indicated resources at an average grade of 4.25 g/t gold for
92,814 contained ounces and an additional inferred resource of 1,451,400
tonnes grading 3.63 g/t gold for a total of 169,261 contained ounces.

In 2010, NAP intends to conduct a summer 10,000-metre infill drill
campaign to upgrade the resource classification. The Company believes
that the Flordin gold property could have the potential to provide
additional feed for the underutilized Sleeping Giant mill.

Discovery Project

The Company recently filed an environmental impact study for the
Discovery project and applied for a mining lease to continue to advance
the property toward a future underground exploration program. In 2010,
NAP plans to conduct a 4,200-metre surface drilling program on the 1200E
sector of the property, to expand the gold zone intersected in 2008.

The 2008 resource estimate and scoping study estimated that the Discovery
project had 3,109 tonnes of measured resources grading 8.95 g/t,
1,278,973 tonnes of indicated resources grading 5.74 g/t and 1,545,500
tonnes of inferred resources grading 5.93 g/t. The August 1, 2008 scoping
study concluded that the project could produce 44,000 ounces of gold per
year for four years with a project IRR of 27%, assuming a U.S.$850 gold
price.

Technical Information and Qualified Person

Michel Bouchard, P.Geo., Vice President, Exploration and Development for
North American Palladium, is the Qualified Person who supervised the
preparation of this news release.

Additional information can be found in NAP's recent Form 40-F/Annual
Information Form on file with the US Securities and Exchange Commission
and Canadian provincial securities regulatory authorities, available at
www.sec.gov and www.sedar.com, respectively. The mineral reserve and
mineral resource estimates for each of these properties are available on
www.sedar.com and www.nap.com. Mineral resources that are not mineral
reserves do not have demonstrated economic viability.

About North American Palladium

NAP is a Canadian precious metals company focused on the production of
palladium and gold in mining-friendly jurisdictions. Lac des Iles, the
Company's flagship mine, is one of North America's two primary palladium
producers. Located approximately 85 kilometres northwest of Thunder Bay,
Ontario, Lac des Iles has produced palladium since 1993. NAP also owns
and operates the Sleeping Giant gold mine located in the prolific Abitibi
region of Quebec. The Company has extensive landholdings adjacent to both
the Lac des Iles and Sleeping Giant mines, and is pursuing an aggressive
exploration program aimed at increasing its reserves and resources in
those areas. NAP trades on the NYSE Amex under the symbol PAL and on the
TSX under the symbol PDL. The Company's common shares are included in the
S&P/TSX Global Mining Index.

Cautionary Note to U.S. Investors Concerning Estimates of Measured,
Indicated and Inferred Resources

This press release uses the terms "Measured", "Indicated" and "Inferred"
Resources. United States investors are advised that while such terms are
recognized and required by Canadian regulations, the United States
Securities and Exchange Commission does not recognize them. "Inferred
Mineral Resources" have a great amount of uncertainty as to their
existence, and as to their economic and legal feasibility. It cannot be
assumed that all or any part of an Inferred Mineral Resource will ever be
upgraded to a higher category. Under Canadian rules, estimates of
Inferred Mineral Resources may not form the basis of feasibility or other
economic studies. United States investors are cautioned not to assume
that all or any part of Measured or Indicated Mineral Resources will ever
be converted into Mineral Reserves. United States investors are also
cautioned not to assume that all or any part of an Inferred Mineral
Resource exists, or is economically or legally mineable.

Cautionary Statement on Forward Looking Information

Certain information included in this news release including information
relating to exploration results, and future exploration results,
constitute 'forward-looking statements' within the meaning of the 'safe
harbor' provisions of the United States Private 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 are necessarily
based upon a number of estimates and assumptions that, while considered
reasonable by management, are inherently subject to significant business,
economic and competitive uncertainties, risks and contingencies. The
Company cautions the reader that such forward-looking statements involve
known and unknown risks, uncertainties and other factors that may cause
the actual financial results, performance or achievements 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 factors and assumptions. For more details on these
estimates, risks, assumptions and factors, see the Company's most recent
Form 40-F/Annual Information Form on file with the U.S. Securities and
Exchange Commission and Canadian provincial securities regulatory
authorities. In addition, there can be no assurance that the Company's
Lac des Iles or Sleeping Giant mines will be successfully restarted or
that other properties can be successfully developed. The Company
disclaims any obligation to update or revise any forward-looking
statements, whether as a result of new information, events or otherwise,
except as expressly required by law. Readers are cautioned not to put
undue reliance on these forward looking statements.

Contacts:
North American Palladium Ltd.
Camilla Bartosiewicz
Manager, Investor Relations and Corporate Communications
416-360-7971 Ext. 226
camilla@nap.com

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