North American Palladium Announces First Quarter 2008 Financial Results; Net Income $12.6 Million

Market Wire, May, 2008

                   North American Palladium Ltd.
                    Consolidated Balance Sheets
           (expressed in thousands of Canadian dollars)

                                                    March 31    December 31
                                                        2008           2007
                                                ------------- --------------
                                                  (unaudited)
Assets
Current Assets
Cash and cash equivalents                       $     81,975  $      74,606
Concentrate awaiting settlement, net                  97,179         79,087
Taxes recoverable                                      1,404             62
Inventories                                           13,995         17,873
Crushed and broken ore stockpiles                      9,176          8,072
Other assets                                           2,495          2,563
                                                ------------- --------------
                                                     206,224        182,263

Mining interests, net                                117,735        114,464
Mine restoration deposit                               8,611          8,272
Crushed and broken ore stockpiles                        385            375
                                                ------------- --------------
                                                $    332,955  $     305,374
                                                ------------- --------------
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable and accrued liabilities        $     21,584  $      20,757
Future mining tax liability                              247            168
Current portion of obligations under
 capital leases                                        1,733          1,672
Current portion of convertible notes payable          20,297         25,710
Current portion of long-term debt                      6,072          5,918
                                                ------------- --------------
                                                      49,933         54,225
Mine restoration obligation                            8,966          8,878
Obligations under capital leases                       1,462          1,824
Long-term debt                                         2,518          3,957
Future mining tax liability                            2,787            539
                                                ------------- --------------
                                                      65,666         69,423
Shareholders' Equity
Common share capital and purchase warrants           463,084        443,986
Stock options                                          1,721          1,673
Equity component of convertible notes payable,
 net of issue costs                                    4,676          6,044
Contributed surplus                                    7,660          6,292
Deficit                                             (209,852)      (222,044)
                                                ------------- --------------
Total shareholders' equity                           267,289        235,951
                                                ------------- --------------
                                                $    332,955  $     305,374
                                                ------------- --------------