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

> Certain prior period amounts have been reclassified to conform to the presentation adopted in 2008. These financial statements should be read in conjunction with the notes and management's discussion and analysis, available online at www.sedar.com , www.sec.gov and on the Company's website.


                    North American Palladium Ltd.
           Consolidated Statements of Shareholders' Equity
  (expressed in thousands of Canadian dollars, except share amounts)
                            (Unaudited)

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                                 Number of     Capital     Stock
                                    shares       stock    options  Warrants
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Balance, December 31, 2007      75,770,570    $430,793     $1,673   $13,193
Transitional adjustment on
 adoption of
 inventory standard                      -           -          -         -
Common shares issued:
 For principal repayments on
  convertible notes payable      1,942,283       8,133          -         -
 For interest payments on
  convertible notes payable         65,385         256          -         -
 Pursuant to unit offering,
  net of issue costs             2,800,000       9,604          -         -

Warrants Issued:
 Pursuant to unit offering,
  net of issue costs                     -           -          -       899

 Warrants exercised                    100           1          -         -

Stock-based RRSP compensation
 expense                            55,574         205         48         -
Net income and comprehensive
 income for the three months
 ended March 31, 2008                    -           -          -         -
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Balance, March 31, 2008         80,633,912    $448,992     $1,721   $14,092
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                                    Equity
                                 component
                                        of                            Total
                               convertible                           share-
                                     notes Contributed             holders'
                                   payable     surplus    Deficit    equity
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Balance, December 31, 2007          $6,044      $6,292  $(222,044) $235,951
Transitional adjustment on
 adoption of
 inventory standard                      -           -       (403)     (403)
Common shares issued:
 For principal repayments on
  convertible notes payable         (1,368)      1,368          -     8,133
 For interest payments on
  convertible notes payable              -           -          -       256
 Pursuant to unit offering,
  net of issue costs                     -           -          -     9,604

Warrants Issued:
 Pursuant to unit offering,
  net of issue costs                     -           -          -       899

 Warrants exercised                      -           -          -         1

Stock-based compensation/RRSP
 expense                                 -           -          -       253
Net income and comprehensive
 income for the three months
 ended March 31, 2008                    -           -     12,595    12,595
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Balance, March 31, 2008             $4,676      $7,660 $ (209,852) $267,289
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