0

INVESTOR PRESENTATION

September 2014

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 future exploration and development. 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.

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 Global Light Vehicle Production Forecast:

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:

• Anticipated closures of some South African mines,

where output is affected by political issues, labour

unrest, rising costs & 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)

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 Record of Operational Success Operational improvements at LDI implemented in 2013, continuing in 2014 with goal of achieving

expanded productions and lower cost targets

PROPOSITION

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

6

• Potential to leverage existing mine & mill infrastructure:

- Significant exploration upside identified on the LDI property

- Opportunity at depth & laterally

• Proven and Probable Reserves1

- 15,046k tonnes @ 2.8 g/t Pd, 1,341k Pd ounces

• Measured and Indicated Resources (exclusive of P&P) 1

- 57,732k tonnes @ 2.1 g/t Pd, 3,857k Pd ounces

• Inferred Resources1

- 15,720k tonnes @ 2.8 g/t Pd

Reserves and Resources

A WORLD CLASS ASSET

15,000 tpd mill capacity

8,000 tpd shaft capacity

1. Prices assumed: Pd US$700/oz; Pt US$1,453/oz; Au US$1320/oz; Cu US$3.26/lb; Ni US$6.47/lb; exchange rate of C$1.05

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

8

2014 RESERVE AND RESOURCE ESTIMATES 1

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

1. Prices assumed: Pd US$700/oz; Pt US$1,453/oz; Au US$1320/oz; Cu US$3.26/lb; Ni US$6.47/lb; exchange rate of C$1.05

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

10

2014

• Using proven and probable reserves only

• 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

43-101 HIGHLIGHTS

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 by YE/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.

12

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

• US$37.1M of US$60.0M credit facility utilized

SUMMARY OF RESULTS

13

By Metal Type APPROXIMATE REVENUES

70.0%

10%

10%

5% 5%

Pd Palladium

Pt Platinum

Au Gold

Cu Copper Ni

Nickel

14

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.

15

LDI Operations

IMPROVING PRODUCTION TRENDS

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

16

(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

17

LDI OPTIMIZATION OPPORTUNITIES

• Longer mill runs with additional mill feed

• 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

18

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

18

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

19

Appendices &

FURTHER INFORMATION

20

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

21

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

22

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 $830 $900 $900 $900

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.) $782 $849 $848 $835

Pa

llad

ium

Pric

e F

ore

ca

sts

(US$

pe

r o

un

ce

)

23

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

24

Palladium Demand/Car

AUTO PRODUCTION

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

15 20 25 30

Pa

lla

diu

m D

em

an

d (

mm

oz p

.a.)

Auto Production (mm cars)

2g Pd/Car

3g Pd/Car

4g Pd/Car

2012

2012

2017 E 2017 E

a move towards U.S. emission standards could increase palladium demand over our estimates

Source: RBC Capital Markets Estimates

25

PALLADIUM AUTOCAT DEMAND

Europe

Japan

North America

Rest of World

China

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2007 2008 2009 2010 2011 2012 2013 2014E 2015E

Pal

lad

ium

Au

toca

t D

em

and

(0

00

oz)

Europe Japan North America Rest of World China

Forecast

Source: Johnson Matthey, GFMS, RBC Capital Markets Estimates

26

PALLADIUM RECYCLING VOLUMES

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2002 2004 2006 2008 2010 2012 2014E

'00

0 o

z

Pd Recycling Pd Px

Pd Recycling

Pd Prices

Source: Johnson Matthey, GFMS, RBC Capital Markets Estimates

27

Market

STATISTICS

Information as at September 12, 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$93 Million

RECENT SHARE PRICE US$0.25

SHARES OUTSTANDING 384,942,920 M

52-WEEK HIGH/LOW US$1.06 / US$0.25

3-MONTH TRADING VOLUME NYSE MKT: 1.4 M / TSX: 0.6 M

ANALYST COVERAGE

1. CIBC, Leon Esterhuizen

2. Raymond James, Alex Terentiew

3. Mackie, Barry Allan

4. Euro Pacific, Heiko Ihle

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

$0.40

28

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 – Vice President, 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.

29

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

30

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

31

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

32

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, t itle,

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 re lease.

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.

NOTES

33

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.

NOTES

34

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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