North American Palladium Announces Preliminary First Quarter 2012 Production Results

North American Palladium Ltd PAL today announced its preliminary palladium production results for the first quarter ending March 31, 2012. In the first quarter of 2012, the Company's Lac des Iles mine produced 41,760 ounces of payable palladium at an approximate cash cost of US$380 per ounce(1). During the first quarter, 532,435 tonnes of ore were mined, of which 219,945 tonnes came from underground sources (with an average palladium mined grade of 5.3 grams per tonne), and 312,490 tonnes from surface sources (with an average palladium mined grade of 1.9 grams per tonne). The LDI mill processed 519,944 tonnes of ore at an average palladium head grade at the mill of 3.5 grams per tonne, and a palladium recovery of 77%. "During a very active development period at the mine, LDI delivered excellent results in the first quarter," said William J. Biggar, President & Chief Executive Officer. "Based on these results, we are confident we will meet our 2012 production guidance of 150,000 to 160,000 ounces of palladium at a cash cost per ounce in the range of US$375 to US$400. We are also making good progress with the mine expansion development work, which remains on schedule to complete the shaft commissioning by year-end." The Company's first quarter 2012 financial results will be released in May.