NAP Investor Presentation September 2012

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<ul><li> 1. Investor PRESENTATION PRESENTATIONSeptember 2012William J. Biggar President &amp; CEO</li></ul><p> 2. Forward LookingSTATEMENTSCertain information included in this presentation constitutes forward-looking statements within the meaning of the safeharbor provisions of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. Thewords 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 operatingperformance, including: the Companys forward looking production guidance, projected capital expenditures, operatingcost estimates, project timelines, mining and milling rates, the methods by which ore will be extracted, projected grades,mill recoveries, and other statements that express managements expectations or estimates of future performance.Forward-looking statements are necessarily based upon a number of factors and assumptions that, while consideredreasonable by management, are inherently subject to significant business, economic and competitive uncertainties andcontingencies. The factors and assumptions contained in this press release, which may prove to be incorrect, include, butare not limited to: metal prices assumptions, Canadian and U.S. dollar exchange rate assumptions, that there will be nosignificant disruptions affecting operations, that prices for key mining and construction supplies, including labour andtransportation costs, will remain consistent with the Companys expectations, that the Companys current estimates ofmineral reserves and resources are accurate, and that there are no material delays in the timing of ongoing developmentprojects. The forward-looking statements are not guarantees of future performance. The Company cautions the readerthat such forward-looking statements involve known and unknown risks that may cause the actual results to be materiallydifferent from those expressed or implied by the forward-looking statements. Such risks include, but are not limited to: thepossibility that metal prices, foreign exchange rates or operating costs may differ from managements expectations,uncertainty of mineral reserves and resources, inherent risks associated with mining and processing, the risk that the Lac desIles and Vezza mines may not perform as planned and that the Offset Zone and other properties may not be successfullydeveloped, and uncertainty of the ability of the Company to obtain financing. For more details on the factors, assumptionsand risks see the Companys most recent Form 40-F/Annual Information Form on file with the U.S. Securities and ExchangeCommission and Canadian provincial securities regulatory authorities. The Company disclaims any obligation to update orrevise any forward-looking statements, whether as a result of new information, events or otherwise, except as expresslyrequired 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 payableproduction, 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. 1 3. Investment CaseFOR NAPCOMMODITY GROWTHBALANCE SHEETMANAGEMENTPalladium is theLDI mine expansion Strong balanceExperienced senior number one pickoffers production sheet to fundmanagement &amp; amongst metalgrowth with a developmentoperating team price forecastersdecreasing cash programs reduces riskcost profile &amp;Positive supply &amp;expanding margins$65.4 M in workingLDI has been demand capital as at June producing fundamentalsSignificant 30, 2012, includingpalladium for 20 driven bydevelopment &amp; $64.7 M in cashyears constrained mine exploration upside(pro-forma recent supply &amp; risingcomplimented by convertible Over 600 global vehicle excess mill debentureemployees and production capacity, existingfinancing) contractors drivinginfrastructure &amp; growthCanada is an permits attractive PGM investment jurisdiction compared to South African peers 2 4. Market StatisticsCOMPELLING ENTRY POINT$9.00 SECURITY SYMBOLSNYSE MKT: PAL$8.00 TSX: PDL$7.00 TSX: PDL.DB$6.00MARKET CAPITALIZATIONUS$317 M $5.00$4.00SHARE PRICEUS$1.82$3.00$2.00 SHARES OUTSTANDING174 M$1.00$0.0052-WEEK HIGH/LOW US$3.75/$1.4703/01/2011 03/02/201103/03/2011 03/04/201103/05/2011 03/06/201103/07/2011 03/08/201103/09/2011 03/10/201103/11/2011 03/12/201103/01/2012 03/02/201203/03/2012 03/04/201203/05/2012 03/06/201203/07/2012 03/08/201203/09/20123-MONTH AVERAGENYSE MKT: 1 MTRADING VOLUME TSX: 0.2 MCIBC, Haywood,RBC,TOP 5 INSTITUTIONAL SHAREHOLDERSLeon EsterhuizenChris ThompsonSam CrittendenCormark,Macquarie,Scotia,1. T. Rowe Price Associates (6.8%)Edward Otto Daniel GreenspanLeily Omoumi2. RBC Global Asset Management (6.8%)Credit Suisse,Merrill Lynch,Stifel Nicolaus,Nathan Littlewood Michael ParkinGeorge Topping3. Mackenzie Financial (4.5%)Euro Pacific, Octagon,4. Franklin Advisers (3.0%)Heiko IhleAnnie Zhang5. Chilton Investment Company (1.5%)GMP,Raymond James,Andrew Mikitchook Alex TerentiewInformation as at September 4, 2012, Thomson One. 3 5. FinancialPOSITION C$65.4 M in working capital as at Jun. 30 C$43 M convertible debenture financing closed Jul. 31 C$64.7 M pro-forma cash position post financing US$60 M operating line (US$28.8 M available) C$15 M capital lease line C$72 M term debtStrong balance sheet supports growth strategy4 6. Investment Case forPALLADIUM5 7. Palladium MarketMINE SUPPLYRUSSIA NORTHAMERICA39%13% ONLY 6.9 M oz. ANNUAL PRODUCTION WORLDWIDE SOUTH AFRICA 38%Source: CPM Group, June 2012Notes:1. Other producing countries (~10%) include Zimbabwe, Australia, Botswana, China, Serbia and Montenegro. 62. Excludes secondary recycling supply of 1.7 M oz. 8. Palladium MarketMINE SUPPLY Constrained Mine Supply From Major Producers (000s ounces) South Africa Russia 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 02008 2009 2010 2011 2012p 2013p 2014p2015p Source: CPM Group, June 2012 Notes: 1. Russian supply is entirely from Norilsk Nickel, which produces palladium as a by-product from nickel production. 2. South African supply includes the major platinum producers who produce palladium as a by-product from platinumproduction. 7 9. Palladium MarketFABRICATION DEMAND2011 Fabrication Demand RefiningDentalAutomotive6%10% Other 61%2% Jewellery6%Electronics 15%Source: CPM Group, June 20128 10. Palladium MarketFABRICATION DEMAND Global Light Vehicle Production Forecast (000s)110,000102M 104M 95M 99M100,000 91MOther1 90,00085M 77M81M 80,000Europe 70,000 60,000North 50,000America 40,000 30,000BRIC Economies2 20,000 10,0000 2011 2012 2013 20142015 20162017 2018Source: IHS Automotive, February 20121. Other includes: Japan, Korea, Middle East and Africa2. BRIC Economies include: Greater China, South America and South Asia Global vehicle production biggest source of palladium demand (61%) Strong growth to +100 M units by 2017 driven by BRIC economies9 11. Palladium MarketFABRICATION DEMANDAdoption of Stricter Emission Control Standards2005 2006 2007200820092010201120122013 20142015 EuropeEuro IVEuro V Euro VI Beijing Euro III Euro IV Euro VChina Nationwide Euro II Euro III Euro IV Euro V Select Cities Euro IIIEuro IVIndia Nationwide Euro IIEuro III Russia Euro IEuro IIEuro IIIEuro IV Euro VUSA Tier 2 and LEV IIBrazil Prconve 3Prconve 4 Prconve 5Prconve 6 Source: CPM Group, June 2012 Emerging economies have adopted emission control standards that mandate the use of catalytic converters Advancing to a higher level of emission controls results in higher PGM loadings in the catalytic converter Tightening emission control regulations for heavy-duty trucks10 12. Use of Palladium inCATALYTIC CONVERTERSGasoline EnginesHybrids &amp; Other New Forms Use +90% palladium (of total required Neutral impact on PGM usePGM content) Gasoline hybrids tend to use as muchpalladium as normal gasoline enginesDiesel Engines Currently account for only 1% of globalcars sales1 Historically used platinum due totechnical requirements Forecasted to be 14% of overall marketby 20202 Currently use 30% palladium, with scopeto increase to 50% due to advent of lowsulphur diesel fuel Electric No requirement for catalytic converters Challenged by lack of infrastructure torecharge, high costs, long chargingperiods and short driving range Forecasted to account for only 2% ofglobal car sales by 20202 1. CPM Group, June 2010 2. Stefan Bratzel, director of the Centre of Automotive Management in Germany; as reported in Mitsui Global PreciousMetals Pole Position Report, June 201011 13. Palladium MarketINVESTMENT DEMAND Exchange Traded Funds Physical Palladium HoldingsM oz. Pd.M oz. Pd.2.52.5 Mitsubishi SPAL2.0SPDM2.0 WITE GLTR1.5Julius Baer 1.5 PALL MSL ASX1.0Palladium ZKB 1.0 PHPD LSE0. 200720082009 2010 2011 2012 Investment demand driven by supply/demand fundamentals for palladium -- constrained mine supply and growth in global vehicle productionSource: CPM Group, as at May 28, 201212 14. Palladium MarketPRICE PERFORMANCE Historic Price Performance (US$/oz) Average Annual Price Forecast (US$/oz)$900 20122013$800Citigroup$801$925$700RBC$700$850$600Credit Suisse$825$950$500TD $695$880$400BNP Paribas$665$900$300CIBC $700$800$200$100HSBC $655$750$0Macquarie$746 $1,019 02/01/2008 02/01/2009 02/01/201002/01/2011 02/01/2012 Historic High: US$1,090 (2001) 2011 Average Price: US$733 Recent Price: US$645 (Aug. 28, 2012 NY close) Sources: Thomson One, Bloomberg and available equity research.13 15. Investment Case ForNAP14 16. LDI Mine &amp; Mill ComplexA WORLD CLASS ASSET Located north of Thunder Bay, Ontario, Canada One of only two primary palladium producers in the world Deposit is unique in the world: high palladium concentration,broadly disseminated mineralization vs. narrow vein Total production of +2.6 M oz of palladium since 1993 Currently undergoing a major expansion to increase productionand reduce cash costs per ounce 15,000 tpd mill has excess capacity available for production growth Significant exploration upside identified on the LDI property Notable safety award received for lowest reportable injury rates 1515 17. LDI MineOPERATING METRICSQ1 2012 Q2 2012 H1 Results2012 GuidancePayable Pd. Production141,760 oz.40,017 oz. 81,777 oz. 150,000 - 160,000 oz.Cash Cost (US$/oz)2$380$429$404 $375 - $400Avg. Underground Mining Rate ~2,400 tpd ~2,300~2,3502,600 tpdTotal Tonnes Of Ore Milled 519,944 528,0681,048,012 1.8 M 2.0 M(Underground &amp; Surface)Average Pd. Head Grade33.5 g/t3.4 g/t 3.4 g/t 3.7 g/tPd. Mill Recovery77% 77%77%78%1. 2012 production guidance is comprised of approximately 40,000 oz. from open pit &amp; 110,000 120,000 oz. from underground.2. Cash cost per ounce is a non-IFRS measure. For reconciliation of historical total cash costs per ounce to production costs, please refer to the Companys financial statements. Cash costs per ounce are presented net of byproduct credits and can be materially affected by changes in byproduct metal prices, as well as the Canadian/US dollar exchange rate. The 2012 cash cost guidance assumes: US$1,600 per ounce gold, US$1,600 per ounce platinum, US$8.50 per pound nickel, US$3.50 per pound copper and an exchange rate of C$1.00 to US$1.00.3. 2012 grade guidance represents a blend of surface ore (1.9 g/t) and underground ore (5.3 g/t). 16 18. LDI Mine ExpansionPLAN FOR GROWTH Transitioning from mining via ramp to via Surfaceshaft accessOPEN PIT Currently sinking a shaft to 795 metres fromsurface (on target to begin commissioning ROBYat year end)ZONESHAFT North Shaft is being sized for 7,000 tpd High-volume, large scale bulk miningmethod: long-hole stoping with primary &amp; 795 Metressecondary stoping blocks Target underground mining rate: OFFSETZONE 3,500 tpd (Q1 2013) 5,500 tpd (Q1 2015) Once mining at 5,500 tpd: Production expected at ~250,000 oz/yr1,345 Metres Cash costs expected to decline to thelow US$200/oz rangeThe underground design schematic of LDI, showing the deposit and underground ramp infrastructure, looking east.17 19. LDI Mine Expansion DEVELOPMENT PROGRAM 2012 Capital budget of $116 M to:HEAD FRAME Complete surface construction activities Complete shaft sinking to the 795-metre level ORE BIN Complete development of 735-HOIST HOUSE metre mine level Commence set up of mining stopes for Offset Zone production Commence shaft commissioning by YE $65 M spent YTD June 30, 2012Top Priority: Commissioning of Shaft for 2013 Production 18 20. LDI ExplorationSIGNIFICANT 2012 PROGRAM $16 M budget for palladium exploration* 70,000 metres of drilling planned 64,000 metres at LDI 6,000 metres at other nearby properties LDI program objectives: To expand reserves &amp; resources and identify new targets Underground exploration targeting the Offset Zone infill drilling &amp; testing Offset Zone extensions towards surface, at depth &amp; south Drilling at North LDI, North VT Rim and other potential zones * $10 M of the budget (55,000 of the 64,000 metres to be drilled at LDI) is in connection with the LDI mine expansion and is included in the $116 M capital expenditure budget.19 21. LDI MineNEW UNDERGROUND ZONES Sheriff Zone discovered in 2010, extends to surface. New Zones Have Potential to IncreaseProduction Utilizing Existing UndergroundInfrastructureCowboy &amp; Outlaw Zones discovered in2009; located west of the Offset Zone.20 22. LDI PropertyEXPLORATION UPSIDE Near-mine land package62,000-acre regional land package South Norite Zone Mineralization TrendLDI represents a rare palladium-rich asset with excellent infrastructureLDI complex has only been drilled in a 1km x 1km area &amp; remains largely underexploredMultiple targets identified for follow up exploration (surface &amp; underground)Regional land package covers the most prospective mafic complexes in the area (all PGM properties are less than 30 km from LDI mill)21 23. Plan:PRODUCE MORE, FOR LESS Transition to shaft mining Leverage existing infrastructure Realize exploration upside22 24. Vezza Gold MineNON-CORE ASSET Non-core asset: divestiture opportunities currently being explored Located in Abitibi region, Quebec 2012 development capex $20 M Potential 40,000-ounce gold producer when operating at steady state of 750 tpd Commercial production targeted for YE, 2012 Mining method: blend of long hole &amp; alimak Ore to be trucked to Sleeping Giant mill, approx. 85 km away 23 25. 2012OUTLOOKCurrent priorities: Commencing commissioning of the LDI mine shaft by year end Realizing value for the gold division assets Advancing ongoing near-mine &amp; greenfields palladium exploration programs24 26. CompellingINVESTMENT OPPORTUNITY LEVERAGE TO RISING PALLADIUM PRICES CLEAR STRATEGY TO INCREASE PRODUCTION &amp; L...</p>