NAP Investor Presentation August 2014

1. 0
INVESTOR PRESENTATION August 2014

2. 1
Forward Looking
STATEMENTS
Certain information included in this presentation constitutes ‘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’, ‘forecast’, and similar expressions identify forward-looking statements. Such statements include, without limitation, any information as to our future exploration, financial or operating performance, including: the Company's forward looking production guidance, projected capital expenditures, operating cost estimates, project timelines, mining and milling rates, the methods by which ore will be extracted, projected grades, mill recoveries, and other statements that express management's expectations or estimates of future performance. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The factors and assumptions contained in this presentation, which may prove to be incorrect, include, but are not limited to: metal prices assumptions, Canadian and U.S. dollar exchange rate assumptions, that there will be no significant disruptions affecting operations, that prices for key mining and construction supplies, including labour and transportation costs, will remain consistent with the Company's expectations, that the Company's current estimates of mineral reserves and resources are accurate, and that there are no material delays in the timing of ongoing development projects. The forward-looking statements are not guarantees of future performance. The Company cautions the reader that such forward-looking statements involve known and unknown risks that may cause the actual results to be materially different from those expressed or implied by the forward-looking statements. Such risks include, but are not limited to: the possibility that metal prices, foreign exchange rates or operating costs may differ from management's expectations, uncertainty of mineral reserves and resources, inherent risks associated with mining and processing, the risk that the Lac des Iles mine may not perform as planned and that the Offset Zone and other properties may not be successfully developed, and uncertainty of the ability of the Company to obtain financing. For more details on the factors, assumptions and risks 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. 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.
All dollar amounts are in Canadian currency unless otherwise stated, all references to production refer to payable production, and all reference to tonnes refer to metric tonnes.
U.S. investors are encouraged to refer to the “Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated and Inferred Resources” in the appendix.

3. 2
Growing
• Strong demand from automotive sector
• Growth in demand driven by vehicle sales & environmental legislation in developing markets:
o Light vehicle production forecasted to increase by 4% annually
o Strong growth in light vehicle production driven by China (forecast ~31 M vehicles per
year by 2018)
o More stringent emission control standards mandate the use of catalytic converters
DEMAND
Automotive
(catalytic converters)
67%
Electronics
12%
5%
Dental
1%
Other
5%
Jewellery
5%
Chemical 4%
Investment
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
110,000
2011 2012 2013 2014 2015 2016 2017 2018
Global Light Vehicle Production Forecast:
(000’s)
Source: IHS Automotive, February 2012
1. Other includes: Japan, Korea, Middle East and Africa
2. BRIC Economies include: Greater China, South America and South Asia

4. 3
Constrained
Small Market:
•Only ~6.5 M oz in annual mine production (unlikely to increase meaningfully)
Highly Concentrated:
•80% of mine supply derived from risky jurisdictions: Russia & South Africa (mined as a by-product metal)
Challenged Global Supply:
•Decreased production from Russia’s Norilsk Nickel due to declining grades
•Anticipated closures of some South African mines, where output is affected by political issues, labour unrest & technical challenges
•Decreased sales from Russian stockpiles, a historical overhang (believed to be depleted)
•Recycling insufficient to offset demand
The palladium market is forecasted to remain in a
deficit position for the foreseeable future
SUPPLY
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2008
2009
2010
2011
2012e
2013p
2014p
2015p
Other
United States
Canada
South Africa
Russia
NORTH AMERICA
RUSSIA
SOUTH AFRICA
36%
14%
44%
Sources: Johnson Matthey & CPM Group (excludes secondary supply)

5. 4
NAP’s Investment
Attractive PGM Investment Jurisdiction
NAP operates in a stable political landscape, with low geopolitical risk and moderate cost inflation compared to peers in South Africa and Russia
Significant Development & Exploration Upside
Excess mill and production shaft capacity, existing infrastructure & permits, gives NAP the potential to convert exploration success into production and cash flow on an accelerated timeline
•Growth Strategy to Increase Production & Lower Cash Costs
NAP’s mine offers production growth with a decreasing cash cost profile and expanding operating margins
Strong Senior Management Team with Track Report of Operational Success
Operational improvements at LDI implemented in 2013, continuing in 2014 with goal of achieving expanded productions and lower cost targets
PROPOSITION

6. 5
•Located north of Thunder Bay, Ontario, Canada
•One of only two primary palladium producers in the world
•Deposit is unique in the world:
-Strong palladium enrichment over significant widths vs. more typical PGE reef-type deposits
-Offset Zone remains open at depth, to the west and south
•Established infrastructure with excess capacity:
-15,000 tpd mill & new 8,000 tpd shaft
•Increasing production & decreasing operating costs:
-Mining rate of ~3,000 tpd in H1/14, up to 5,000 tpd by YE
-Cash costs expected to decline to US$450 per ounce in Q4
LDI Mine & Mill Complex
A WORLD CLASS ASSET
15,000 tpd mill capacity
8,000 tpd shaft capacity

7. 6
•Potential to leverage existing mine & mill infrastructure:
-Significant exploration upside identified on the LDI property
-Opportunity at depth & laterally
•43-101 proven and probable reserves
-15,046k tonnes @ 2.8 g/t Pd, 1,341k Pd ounces (2019 mine life)
•Measure and Indicated Resources (exclusive of P&P)
-57,732k tonnes @ 2.1 g/t Pd, 3,857k Pd ounces (not in LOM)
•Inferred Resources
-15,720k tonnes @ 2.8 g/t Pd, (not in LOM)
Reserves and Resources
A WORLD CLASS ASSET
15,000 tpd mill capacity
8,000 tpd shaft capacity

8. 7
HANGINGWALL AND FOOTWALL ZONES
•A new resource and reserve classification has been adopted
•Roby and Offset zones are now subdivided into separate hangingwall and footwall zones
•Previously the footwall and hangingwall resources were combined
•Adding 26 million tonnes of M&IND resources grading ~2.2 g/t from the two underground footwall zones
Cross Section, Looking North

9. 8
2014 RESERVE AND RESOURCE ESTIMATES
Source
Tonnes (000’s)
Pd (g/t)
Pd (k oz contained)
Proven & Probable (2019 mine life):
Near Surface
5,885
1.03
195
Underground Hanging Wall
9,161
3.89
1,146
Total
15,046
2.77
1,341
Measured & Indicated (not in LOM):
Near Surface
25,759
1.44
1,189
Underground Hanging Wall
5,651
4.25
773
Underground Footwall
26,322
2.24
1,895
Total
57,732
2.08
3,857
Inferred – Underground (not in LOM)
15,720
2.77

10. EXPLORATION PROGRAM Q2 UPDATE OFFSET ZONE DRILLING PROGRAM
•Principal objective: Verify that Lower Offset Zone below the 1065 mine level has sufficient size- grade-thickness to support a Phase 2 mine expansion
•#1 Priority: Adding inferred & indicated resources in the Lower Offset hangingwall zone to depths of ~1600 m; focus on the central Offset target (area of thickening)
•Encouraging results from Q2 drilling includes a 74 m intersection in the Lower Offset having an average grade of 4.76 g/t Pd (hole 14-901)
9

11. 10
2014
•Using proven and probable reserves only, life of mine to 2019
•Underground mine increases to 5,000 tpd and total payable Pd increases to approx. 200,000 oz per year up from 140,000 in the 2013 report
•1.1 million Payable ounces of Pd produced, an increase of 140,000 ounces from 2013, despite mining depletion
•2.6M tonnes annual mill throughput including low grade stockpile material.
•Assumes a large open stope blast hole mining method with waste for fill, successfully done at LDI for several years.
•Total LOM site capital of $143M
LIFE OF MINE HIGHLIGHTS

12. 11
Payable palladium produced
170,000 - 175,000 oz
Cash cost per ounce1
~US$550/oz (expected to decline to ~$450/oz in Q4)
Tonnes of ore mined
~2.3 M
From Surface Stockpile
~1 M @ 1.0 g/t
From Underground
~1.3 M @ 4.2 g/t
Average milled head grade
3.0 g/t Pd
Palladium mill recovery
~82%
Total cost per tonne milled
C$51 – C$55
Mining Rate
~3,000 tpd in 1H/14 & gradually increase to ~5,000 tpd in 2H/14
Capital expenditure forecast
~$30 M
Exploration budget
~$10 M
LDI Operations
2014 GUIDANCE
1.Non-IFRS measure. Please refer to Non-IFRS Measures in the MD&A.

13. 12
CAPITAL REQUIREMENTS FOR 2014
•Budget of approximately $30M
•Underground level and ramp development
•Preliminary engineering for site optimization
•Mill enhancements and tailings work
• Considering surface and underground fleet replacement, increased capex in 2014 and 2015 of ~$6 to $10M

14. 13
H1 2014
Palladium Production:
•81,863 oz Pd. at a cash cost of US$498/oz
•Realized Pd. selling price of US$735/oz = operating margin of US$277/oz or US$22.7 M
Financial Performance:
•Revenue: $99.2 M
•Adjusted EBITDA: $20.2 M
Operating Highlights:
•Underground production during the first half averaged 2,982 tonnes per day, in line with guidance for 2014
•Underground ore mined at an average grade of 4.9 g/t palladium
•Low grade surface stockpile averaged 1.0 g/t palladium
•Mill recoveries were 84.1% during the first half
Financial Position:
•$44.3 M cash and cash equivalents as of June 30, 2014
SUMMARY OF RESULTS

15. 14
By Metal Type
REVENUES
Q1 2014
70.0%
10%
10%
5%
5%
Pd
Palladium
Pt
Platinum
Au
Gold
Cu
Copper
Ni
Nickel

16. 15
LDI
H1 OPERATING HIGHLIGHTS
H1 2014
Guidance
Payable Pd. produced
81,863 oz.
170-175k oz.
Cash cost per ounce1
US$498
US$550
Tonnes of ore mined
Average underground grade
1,037,084
4.9 g/t Pd
2,300,000
4.2 g/t Pd
Tonnes of ore milled
Average milled head grade
1,037,989
3.2 g/t Pd
2,300,000
3.0 g/t Pd
Pd. mill recovery
84.1%
82.0%
Total cost per tonne milled
C$59
C$51-55
7
1. Non-IFRS measure. Please refer to Non-IFRS Measures in the MD&A.

17. 16
LDI Operations
Q1 2014 PRODUCTION
1.Non-IFRS measure. Please refer to Non-IFRS Measures in the MD&A.
Q2, 2013
Q3, 2013
Q4, 2013
Q1, 2014
Q2, 2014
Payable palladium produced
35,428 oz
30,097 oz
30,979 oz
42,641 oz
39,223 oz
Cash cost per ounce1
US$564
US$581
US$621
US$492
US$510
Tonnes of ore mined
433,580
542,917
576,478
530,139
506,945
From underground
131,606
@ 4.4 g/t
208,097
@ 4.5 g/t
231,346
@ 4.67 g/t
275,845
@ 5.0 g/t
263,904
@ 4.9 g/t
From surface
301,974
@ 2.1 g/t
334,820
@ 1.2 g/t
345,132
@ 0.98 g/t
254,294
@ 1.0 g/t
243,041
@ 1.0 g/t
Tonnes of ore milled
483,266
517,157
544,074
516,511
521,478
Avg. milled head grade
3.1 g/t pd
2.5 g/t Pd
2.4 g/t Pd
3.3 g/t Pd
3.1 g/t Pd
Palladium mill recovery
80.7%
80.7%
81.5%
84.5%
83.6%
Total cost per tonne milled
C$53
C$42
C$55
C$62
C$56

18. 17
Financial
POSITION
Liquidity as at June 30, 2014:
•$44.4M cash and cash equivalents
•US$37.1M of US$60.0M credit facility utilized

19. 18
(as at June 30, 2014)
CAPITAL STRUCTURE
(1) excludes $15.4 million of letters of credit, primarily for closure cost obligations.
C$000s
Term loan, US$173.2 million, 15%, June 2017
184,908
2012 convertible debentures, 6.15%, Sept 2017
43,000
2014 convertible debentures, 7.50%, Jan/Apr 2019 (1)
2,019
Capital leases
10,310
Credit facility (1)
24,296
264,533
Shareholder equity
253,225

20. 19
LDI OPTIMIZATION OPPORTUNITIES
•Longer mill runs with additional RGO (low grade stockpile)
•Improved recoveries with new Flash Cells installed in late 2014
•Future Mining of the low grade footwall resource
–May be economic at higher production rates and metal prices
–Lower cost/more efficient mining method
•Deepen the shaft to exploit resources at depth
–Requires additional drilling and resource conversion
–Potential for higher mining volumes at lower unit costs

21. 20
EXPANDED 2014 EXPLORATION BUDGET
•Expanded $10M budget for 2014
•43,000 m of conversion and extension drilling in Offset Zone using both UG and surface drills
•300 metres of drifting provides platform for resource compliant drilling
•Confirm indicated resources in lower Offset and extend limit of Offset zone high-grade mineralization to depth of ~1400m
20
Lower OZ Core Zone Conversion
Lower OZ
Deep Extension
Upper OZ
North End
Conversion
Upper OZ
Southeast
Extension
655 expl’n drift
extension
Long Section
Looking West

22. 21
Appendices &
FURTHER INFORMATION

23. 22
Future Growth Potential
UPSIDE
Mill Complex
Nameplate capacity: 15,000 tpd mill
Shaft Infrastructure
Nameplate capacity: 8,000 tpd mill
Robust Ore Body
Offset Zone remains open at depth,
to the west and south
Opportunity to optimize the ore body & utilize existing infrastructure
Growth could potentially come from:
•Deeper Offset Zone (via shaft extension & new ore handling system)
•Lateral development (lateral targets near existing infrastructure)
•New bulk mining method (potential to significantly increase mining volumes)
•Surface exploration upside
1 g/t Pd Resource
Shell and Block Model
Legend:
Red – Measured
Green – Indicated
Blue - Inferred

24. 23
LDI Property
EXPLORATION UPSIDE
•LDI complex remains largely underexplored
•New lateral targets are under review (near existing infrastructure)
•Regional land package covers the most prospective mafic complexes in the area

25. 24
Firm
As of:
2014
2015
2016
2017
BMO Capital Markets
06-30-14
$750
$800
$800
$800
Scotia
01-09-14
$725
$725
$700
$650
CPM Group
01-08-14
$769
$830
$875
$908
Mitsui Precious Metals
04-10-14
$745
$853
CIBC World Markets
01-07-14
$800
$1,000
-
-
Cormark
01-07-14
$750
$750
$750
$750
Macquarie
01-07-14
$785
$838
-
-
Credit Suisse
03-31-14
$760
$840
$850
$850
Prestige Economics LLC
06-30-14
$745
$868
$900
-
Intesa Sanpaolo SpA
06-13-14
$800
$845
$875
$900
TD Bank
05-30-14
$819
$831
-
-
Societe Generale SA
06-04-14
$790
$875
$900
$950
ABN AMRO Bank NV
11-21-13
$650
$725
-
-
Citigroup
06-30-14
$800
$900
$935
-
LBBW
11-07-13
$775
-
-
-
Standard Chartered Bank
04-21-14
$850
$825
-
-
UBS
10-15-13
$825
$850
$825
$825
Raymond James
10-08-13
$750
$850
-
-
Bank of America Merrill Lynch
05-14-14
$800
$850
$900
$950
Deutsche Bank
09-25-13
$750
$850
$950
-
RBC Capital Markets
08-11-13
$850
$850
-
-
Capital Economics
03-04-14
$850
$875
-
-
CIMB Group Holdings
08-09-13
$850
$1,000
$708
$708
Barclays
02-28-14
$795
$850
-
-
China International Capital
04-15-13
$800
-
-
-
Annual Average (US$/oz.)
$783
$847
$844
$829
Palladium Price Forecasts (US$ per ounce)

26. 25
Market
STATISTICS
Information as at March 31, 2014, Thomson One. Shareholder ID based only on public filings.
SECURITY SYMBOLS
NYSE MKT: PAL
TSX: PDL, PDL.DB, PDL.DB.A
MARKET CAPITALIZATION
US$88 Million
RECENT SHARE PRICE
US$0.32
SHARES OUTSTANDING
273,992,149 M (issued & outstanding)
(fully diluted)
52-WEEK HIGH/LOW
US$1.95 / US$0.31
3-MONTH TRADING VOLUME
NYSE MKT: 6.9 M / TSX: 1.5 M
ANALYST COVERAGE
1.CIBC, Leon Esterhuizen
2.Raymond James, Alex Terentiew
3.Mackie, Barry Allan
4.Euro Pacific, Heiko Ihle
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20

27. 26
Senior
EXECUTIVES
Phil du Toit – President & CEO
Mr. du Toit is an accomplished mining executive with a proven track record for executing on his management mandates throughout his career. He brings significant project management expertise to the CEO role, developed during his 37 years of global experience in the mining industry which included senior roles for some of the world's leading mining companies, and the successful development of multiple large capital projects. Recently, Mr. du Toit served as Executive Vice President and Head of Mining Projects and Exploration for ArcelorMittal, the world's leading integrated steel and mining company, where he was responsible for mining strategy, exploration, project and business development. His experience also includes serving as interim CEO of Baffinland Iron Mines Corp., as well as having held various senior management positions for Vale, Diavik Diamond Mines (a subsidiary of Rio Tinto plc), Voest Alpine Inc., and Gencor Ltd. He holds a Bachelor of Science degree in Civil Engineering from the University of Pretoria in South Africa.
Dave Langille – Chief Financial Officer
Mr. Langille is a seasoned finance executive with over 26 years of international public company experience. He brings a wealth of international financial expertise to NAP, notably a solid track record of optimizing operations to improve operating margins, along with merger and acquisition experience, and raising capital through a broad range of capital market products. Most recently, Mr. Langille served as the CFO and Vice President, Finance of Breakwater Resources Ltd. Prior to this, he served in senior financial positions for various public companies, including Lindsey Morden Group Inc., Capital Environmental Resource Inc., Cott Corporation, and TVX Gold Inc. Mr. Langille received an Honours Bachelor of Business Administration from Wilfrid Laurier University in Waterloo, Ontario, Canada in 1985, and has been a member of the Institute of Chartered Accounts of Ontario and the Society of Management Accountants of Ontario since 1987.
David Peck – Head of Exploration
Dr. Peck is a Professional Geoscientist with nearly 30 years of exploration and research experience specializing in magmatic Ni-Cu-PGE ore deposits. Dr. Peck holds global recognition as an expert in PGE exploration after serving as a senior technical and strategic consultant to several public and private companies and having worked on exploration and mining projects in more than a dozen countries. He was directly involved in several significant magmatic Ni-Cu-PGE discoveries in Canada and overseas. Prior to joining NAP, Dr. Peck served as President and Senior Technical and Strategic Consultant at Revelation Geoscience Ltd., and prior to this, he served as Global Nickel Commodity Leader at Anglo American plc, a Senior Geologist for Falconbridge Ltd., a Senior Mineral Deposits Geologist with the Manitoba Geological Survey, held various academic roles in Canadian universities, and was the technical lead on a multi-year mineral potential study funded by the Ontario Geological Survey. He has authored numerous public publications addressing his area of specialization.
Jim Gallagher – Chief Operating Officer Mr. Gallagher is a seasoned mining executive with over 30 years of experience in a series of roles spanning operations, projects, engineering, technology and consulting. For the last seven years, Mr. Gallagher served as Global Director of Mining at Hatch Ltd., with a mandate to build the firm’s global underground capability, where he led the firm’s global mining group involved in transitioning projects to normal operations. Prior to Hatch, the foundational part of his experience came from his 24-year career at Falconbridge in a variety of operations and project management roles, most of which were based in Northern Ontario. Mr. Gallagher also has a track record for identifying improvement opportunities and building out technical capabilities. Mr. Gallagher holds a Bachelor of Mining Engineering degree from Laurentian University in Canada.

28. 27
Cautionary Note to U.S. Investors Concerning
•Mineral reserves and mineral resources have been calculated in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. For United States reporting purposes, Industry Guide 7, (under the Securities and Exchange Act of 1934), as interpreted by Staff of the Securities Exchange Commission (SEC), applies different standards in order to classify mineralization as a reserve. In addition, while the terms “measured”, “indicated” and “inferred” mineral resources are required pursuant to National Instrument 43-101, the U.S. Securities and Exchange Commission does not recognize such terms. Canadian standards differ significantly from the requirements of the SEC, and mineral resource information contained herein is not comparable to similar information regarding mineral reserves disclosed in accordance with the requirements of the U.S. Securities and Exchange Commission. U.S. investors should understand that “inferred” mineral resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. In addition, U.S. investors are cautioned not to assume that any part or all of NAP's mineral resources constitute or will be converted into reserves. For a more detailed description of the key assumptions, parameters and methods used in calculating NAP’s mineral reserves and mineral resources, see NAP’s most recent Annual Information Form/Form 40-F on file with Canadian provincial securities regulatory authorities and the SEC.
•Please refer to North American Palladium’s most current Annual Information Form and applicable technical reports available on www.sedar.com, www.sec.gov and www.nap.com for further information.
MINERAL RESERVES AND MINERAL RESOURCE

29. 28
2014 RESERVE AND RESOURCE ESTIMATES
Summary of the 2014 Resource and Reserve Estimate for the Lac des Iles Mine Property
Source
Zone
Category
Tonnes (000’s)
Pd (g/t)
Pd (k oz contained)
Near Surface
All
2P Reserves
5,885
1.03
195
Near Surface
All
Resources
25,759
1.44
1,189
Underground
Hangingwall
2P Reserves
9,161
3.89
1,146
Underground
Hangingwall
Resources
5,651
4.25
773
Underground
Footwall
2P Reserves
nil
-
-
Underground
Footwall
Resources
26,322
2.24
1,895
Underground
Roby & Offset
Inferred
15,720
2.77
TOTALS
All Sources
Reserves & Resources
72,778
2.22
5,198

30. 29
LDI Reserves & Resources
Notes
1.Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
2.Palladium ounces are stated as contained ounces. Disclosure of contained ounces is permitted under Canadian regulations; however, the US Securities and Exchange Commission (SEC) generally permits resources to be reported only as in place tonnage and grade.
3.Resources listed in Table 1.1 are exclusive of reserves. Resources and reserves reflect depletion from mining activities to December 31, 2013.
4. Tonnages are rounded to nearest '000 tonnes. Palladium, platinum and gold grades are rounded to nearest 0.01 g/t. Nickel and copper grades are rounded to nearest 0.01%. Rounded numbers used to calculate contained palladium (oz) and average resource and reserve tonnage and grades.
5.All reserve and resource estimates were prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects (NI 43-101) and the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) classification system. US investors should refer to the Annual Information Form for an overview on how Canadian Standards differ significantly from US requirements.
6.The mineral resource for the Offset hangingwall and footwall zones was estimated as of December 31, 2013 by Denis Decharte P.Eng, an employee of North American Palladium Ltd. (NAP) and a qualified person (QP) under NI 43-101. The mineral resource calculation uses a minimum 2.5 g/t palladium resource block cut-off for the hangingwall zone and a minimum 1.5 g/t palladium resource block cut- off for the footwall zone. The mineral resource estimate is based on the combination of geological modeling, geostatistics, and conventional block modelling (5 m by 5 m by 5 m blocks). 1 m composite intervals were used with a grade capping at 30 g/t for palladium and 3 g/t for gold. Grade capping was determined not to be necessary for others metals. The Offset Zone resource models used the ordinary kriging (OK) grade interpolation method within a 3DI block model with mineralized zones defined by wireframe solids. The mineral resource is exclusive of mineral reserve and mined-out material as of December 31, 2013.
7.The mineral resource for the Roby footwall zone was estimated as of December 31, 2013 by Denis Decharte P.Eng, an employee of NAP and a QP under NI 43-101. The mineral resource calculation uses a minimum 1.5 g/t palladium resource block cut-off. The mineral resource estimate is based on the combination of geological modeling, geostatistics, and conventional block modelling (5 m by 5 m by 5 m blocks). Grade capping was determined not to be necessary, however influence of composite intervals with palladium grade higher than 50 g/t were limited in space. The Roby Zone resource models used the OK grade interpolation method within a 3DI block model with mineralized zones defined by wireframe solids. The mineral resource is exclusive of mineral reserve and mined-out material as of December 31, 2013.
NOTES

31. 30
LDI Reserves & Resources
8.Mineral resource estimates for the near-surface portion of the western part of the North VT Rim Zone (west and east deep zones) at the Lac des Iles Mine Property was prepared by Chris Roney, P.Geo., a QP and a private consultant to the Company. This resource estimate was based on a 1.0 g/t palladium cut-off grade. The North VT Rim Zone mineral resources were estimated from drilling completed to April 15, 2013. The mineral resource uses a minimum 1.0 g/t palladium resource block cut-off. The mineral resource estimate is based on the combination of geological modeling, geostatistics, and conventional block modeling (5 m by 5 m by 5 m blocks). The North VT Rim resource models used the inverse distance squared (ID2) grade interpolation method. North American Palladium Ltd. 1-4 1496780200- REP-R0002-01 Technical Report for Lac des Iles Mine, Ontario Incorporating Prefeasibility Study for Life of Mine Plan.
9.Mineral resource estimates for the low-grade stockpile (RGO) was prepared by David N. Penna, P.Geo., an employee of Lac des Iles Mines Ltd. and a QP within the meaning of NI 43-101.
10.As with mineral resources, the estimate of mineral reserves may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. The mineral reserves were estimated from geological block models provided by Denis Decharte P.Eng. and from RGO stockpile resource information provided by Dave Penna, P. Geo., employees of NAP and QPs under NI 43-101. The geological block models reflect updates that are based upon diamond drilling completed after March 31, 2012 and before December 31, 2013.
11.Mineral resources for the Sheriff Zone are based on estimates originally provided in the Company’s September 5, 2013 press release.
12.The mineral reserves were estimated by William Richard McBride, P.Eng. of Tetra Tech and Wenchang Ni, P.Eng. of Tetra Tech; with input by Dave Penna, P. Geo., an employee of NAP and QPs under NI 43-101 on allocation of indirect mining costs and John Cooney, P. Eng., an employee of NAP and QP under NI 43-101 on the use of the Lac Des Isle Mine 2014 budget for unit cost determinations; and with additional input by Cam McKinnon, P.Eng. of Tetra Tech on recoveries; and Philip Bridson, P.Eng. of Tetra Tech on metal prices and exchange rate, independent QPs within the meaning of NI 43-101.
13.Reserves were estimated to the 1065 Mine Level (4,435 m elevation), a maximum depth of 1,072.5 m.
14.The following metal price assumptions were used for reserves estimation: US$700/oz palladium, US$1,453/oz platinum, US$1,320/oz gold, US$6.47/lb nickel, and US$3.26/lb copper. A Cdn$/US$ exchange rate of Cdn$1.00 = US$0.95 was also applied.
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LDI Reserves & Resources
15.An average production rate of 5,272 t/d was used to determine the reserves. The following recoveries were used in the assumptions to determine the reserves: 86.3% palladium, 80.3% platinum, 80.4% gold, 38.8% nickel, and 88.7% copper. The effective date of NAP’s Lac des Iles Mine resource models for the Offset Zone and for the Roby Zone, as prepared by NAP’s Denis Decharte P.Eng., is December 31, 2013 and as a result of “mining depletion” the user of this reserve information should ensure that this is based upon the most recent resource estimate for the Property.
16.It should also be noted that the mineral reserve estimate for the Offset Zone as provided in 2013 as part of the technical report labeled “Technical Report Lac des Iles Mine, Ontario, Incorporating Prefeasibility Study Offset Zone Phase I, effective January 31, 2013” reflected a different mining method with a different set of economic circumstances that thereby lead to that January 2013 reserve estimate in that prior report to be non-applicable to the unconsolidated fill mining method demonstrated as being viable by this prefeasibility study work. It should be further noted that “mining depletion” during 2013 is not accounted for in the reserves, as in place underground mining developments were removed from the resource model prepared by NAP’s Denis Decharte P.Eng., and thereby from the reserve numbers; and a 0% mining recovery was applied to known mined-out stopes. The projected top down, long-hole with unconsolidated fill mining method, its potential production profile and the plans referred to in this prefeasibility study are preliminary in nature and additional technical studies will need to be completed in order to prove out their viability. There is no certainty that this mining method will be realized or that the production capabilities as represented will be realized. A mine production decision that is made without a feasibility study carries additional potential risks which include but are not limited to the lack of details pertaining to geotechnical and ventilation field study inputs for mine design, ore handling upgrades and their impact on mining schedules, metallurgical flow sheets and process plant designs that in themselves may require additional economic analysis and internal studies to ensure satisfactory operational conditions and decisions regarding future targeted production. Numbers may not add due to rounding.
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Shareholder INFORMATION
North American Palladium’s vision is to become a low cost, mid-tier precious metals company operating in mining friendly jurisdictions. NAP is an established precious metals producer that has been operating its Lac des Iles mine (LDI) located in Ontario, Canada since 1993. LDI is one of only two primary producers of palladium in the world, and is currently completing a major expansion to increase production and reduce cash costs per ounce.
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