North American Palladium Preliminary Economic Assessment Confirms Long Term Potential of Offset High Grade Zone

Market Wire, May, 2008

The preliminary economic assessment was prepared under the supervision of Mr. Mani Verma, P.Eng, of Micon International Limited, who is an Independent Qualified Person as defined under NI 43-101, and based on North American Palladium's most recent NI 43-101 report for the OHGZ completed by Scott Wilson Roscoe Postle Associates Inc. (RPA) dated February 23, 2007.

This economic assessment is preliminary in nature and includes measured, indicated and inferred mineral resources. Approximately 80% of the resources included in the preliminary economic assessment are in the inferred category. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable the resource to be categorized as mineral reserves. The study's level of accuracy is deemed to be plus or minus 20-25%. There is no certainty that the preliminary economic assessment will be realized.

About The Offset High Grade Zone

The primary deposit at the Company's Lac des Iles property is the Roby Zone, which is currently being mined using open pit and underground mining methods. The OHGZ is believed to be the fault displaced continuation of the Roby Zone mineralization and is located below and approximately 250 meters to the west of the Lac des Iles underground mine. A mineral resource estimate showed that the OHGZ has significantly more mineral resources than the current underground mine at similar grades, while still being open along strike to the north, south and at depth.

The current mineral resource estimates for the OHGZ are as follows:(1)

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                        Tonnes    Pd     Pt     Au     Cu       Ni    Pd Eq
                         000's  (g/t)  (g/t)  (g/t)    (%)      (%)    (g/t)
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Total Measured &
Indicated Resources      3,239  5.45   0.38   0.39  0.121    0.133     8.24
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Total Inferred
Resources               12,794  5.25   0.38   0.37  0.108    0.124     8.24
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(1) Mineral resource estimate prepared by Scott Wilson Roscoe Postle
    Associates; see press release dated April 2, 2007.  Mineral resources
    that are not mineral reserves do not have demonstrated economic
    viability.

RPA has been retained to update this mineral resource estimate for the upper portion of the OHGZ using the results of a recent infill drilling program (see press release dated April 29, 2008).

OHGZ Future Development

North American Palladium will immediately proceed to the feasibility stage for this project, including updating the current resource estimate. The Company will be making a development decision by the end of 2008, with production planned to commence in 2010. Ongoing drill programs will be conducted throughout 2009 and 2010 to confirm resources. Potential also exists to add new resources along strike to the north and south and at depth.