North American Palladium Ltd. (fka PALDF)

[Pro-Life]

North American Palladium Announces Exercise of Over-Allotment Option

April 26, 2010 3:29 PM ET

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=MW&date=20100426&id=11450238

North American Palladium Ltd. ("NAP" or the "Company") (TSX: PDL)(NYSE Amex: PAL) today received notice of exercise for the full over-allotment option granted in connection with its previously announced cross-border bought deal financing. The syndicate of underwriters co-led by Cormark Securities Inc. and Haywood Securities Inc. (collectively, the "Underwriters") have agreed to purchase an additional 2,600,000 units (the "Units") from the Company at a price of C$5.00 per Unit for aggregate additional gross proceeds of C$13,000,000. Total aggregate gross proceeds for the Unit financing are now expected to be approximately C$100,000,000 (the "Offering").

Each Unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant shall entitle the holder to acquire an additional common share at a price of C$6.50 during the period ending 18 months following the closing of the Offering. In the event that the closing sale price of the common shares on the TSX is greater than C$7.50 per share for a period of 20 consecutive trading days at any time after the closing of the Offering, the Company may accelerate the expiry date of the warrants by giving notice to the holders thereof and in such case the warrants will expire on the 30th day after the date on which such notice is given by the Company.

The Offering is subject to the approval of the TSX and the NYSE Amex.

The Units will be offered by way of a short form base shelf prospectus of the Company dated February 9, 2010 as supplemented by a shelf prospectus supplement filed in each of the provinces of Canada pursuant to National Instrument 44-101 Short Form Prospectus Distributions and National Instrument 44-102 Shelf Distributions, and in the United States pursuant to a prospectus supplement to the Company's effective shelf registration statement filed with the United States Securities and Exchange Commission under the Multi-Jurisdictional Disclosure System adopted in the United States and Canada.

The Units may also be offered in such other jurisdictions outside of Canada and the United States that are agreed to by the Company and the Underwriters. The Company plans to use the net proceeds received from the sale of the Units to fund the development of the Offset zone at the Lac des Iles mine, to fund other capital expenditures, for exploration and development expenditures, to fund working capital requirements, and for general corporate purposes, which may potentially include future acquisitions.

A copy of the Canadian prospectus supplement and/or the U.S. prospectus supplement relating to the Offering can be obtained from Susan Samila-Moroz of Cormark Securities Inc. at 416- 943-6405 or [e-mail].

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities nor shall there by any sale of such securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.