North American Palladium Ltd. (fka PALDF)

[Dobie Lama]

Contact PAL and obtain and update. But you don't want to do that, do you? Too busy trying to be right.

Lac des Iles Operations

Q2 2014 Production

In the second quarter of 2014, the Company's LDI mine produced 39,223 ounces of payable palladium at a total cash cost of US$510 per ounce(1). The cash cost is below our full year guidance of US$550. More payable palladium ounces sold and a favorable movement of the Canadian dollar were partially offset by increased production costs.

Payable palladium production in the second quarter was in line with management's full year guidance for 2014 as the mine continued to balance production volumes between surface and underground ore sources during the transition period. During the second quarter, 506,945 tonnes of ore were mined at LDI, of which 263,904 tonnes came from underground sources (with an average palladium grade of 4.9 grams per tonne), and 243,041 tonnes came from surface stockpiles (with an average palladium grade of 1.0 grams per tonne). During the second quarter, the LDI mill processed 521,478 tonnes of ore at a combined average palladium mill head grade of 3.1 grams per tonne, at an 83.6% palladium recovery rate, and at a total cost of $56 per tonne milled.

The Company is encouraged by the operating results in the first six months of 2014, which have generally met or exceeded its expectations. During the first six months of 2014, upgrades to the ore handling system were completed, transportation of men and material via the shaft commenced and mill recoveries remained high; however; production has been impacted by repairs to the primary surface crusher, oversized muck and other equipment availability. The fatality at the mine site which was previously reported on July 11 2014 has impacted production for the first few weeks of July and is expected to result in lower production in the third quarter of 2014. Production is returning to normal and remediation steps are being implemented.

http://www.napalladium.com/investors/news-releases/news-release-details/2014/North-American-Palladium-Announces-Second-Quarter-2014-Results-and-Provides-Update-on-Exploration/default.aspx