North American Palladium Ltd. (fka PALDF)

[Dobie Lama]

PAL- real company here....why whine.....get in and buy some shares.

TORONTO, ONTARIO--(Marketwired - Mar 21, 2014) - North American Palladium Ltd. ("NAP" or the "Company") (TSX:PDL)(NYSEMKT:PAL) is pleased to provide an update on its mineral reserve and resource estimates and life of mine plan for its Lac des Iles mine property in northwestern Ontario. An update of current 2014 operations and production at LDI is also provided.

"We are pleased with the overall increase in contained palladium ounces in our reserves and resources and the improved economics of our updated life of mine plan for LDI," said Phil du Toit, President and CEO. "Our operations are performing well year to date and the fundamentals for the palladium market remain favorable. As we continue through 2014 we will focus on continued operational improvements, lowering unit costs and further diamond drilling to potentially convert our large mineral resource to reserves."

Due to the material increase in reserves and resources, the Company is required by regulatory legislation to file a revised NI 43-101 technical report and intends to do so on or before March 31, 2014.

Highlights:

Palladium production and operating costs in January and February were ahead of guidance with positive variances in both months.

Total reserves and resources of 5.2 million ounces of contained Pd is an increase of 24% above the January 2013 technical report.

Of the total reserve, underground reserve accounts for 9.2 million tonnes at a diluted grade of 3.9 g/t Pd. Total reserve is 15.0 million tonnes at a grade of 2.8 grams per tonne ("g/t") palladium ("Pd") which now includes salvage mining in the open pit and a portion of the low grade stockpile on surface.

Total reserves increased by 140,000 of contained Pd to 1.3 million ounces. This is an increase of 12% compared to the previous technical report.

Total resources increased by 860,000 ounces of contained Pd to a total of 3.9 million ounces. This is an increase of 28% compared to the previous technical report.

Utilizing only proven and probable reserves, the current Life of Mine ("LOM") increases by one year to 2019 with annual production peaking over 200,000 payable ounces and a total mined reserve of 1.1 million payable Pd ounces, an increase of approximately 34% from the 2013 technical report. This plan does not include the potential shaft extension to access the lower Offset zone. Management will focus on advancing work to potentially extend the LOM through the future successful conversion of resources into reserves.

A life of mine plan has been completed as part of an updated pre-feasibility study ("PFS") report that is expected to be filed on SEDAR on or before March 31, 2014.

Addition of large tonnage footwall zone resources in both the Roby and Offset Zone deposits.

The base case net present value ("NPV") at a 5% discount rate is $173 million (using three year average pricing of US$700 per ounce Pd and a CDN$0.95 foreign exchange rate). Current price scenario using US$770 Pd and CDN$0.90 foreign exchange rate results in an NPV (5%) of $299 million an increase of $161 million from the previous NPV in the January 2013 technical report.

Cash costs of the base case averages US$440 per ounce of payable Pd.

Additional exploration funds are expected to be allocated in 2014 to conduct conversion and extension drilling below the 1000 metre level in the lower part of the Offset Zone in support of a potential shaft expansion and future LOM extension.

"Mine operations continue to perform well with several large stopes in the production cycle and significant broken ore inventory underground. Tonnage mined is as per plan and grade has been above guidance year to date due partly to some strategic stope sequencing decisions made late last year," said Jim Gallagher, Chief Operating Officer. "Performance at the concentrator has been above guidance with recoveries in the first two months averaging 84.5%, reflecting positive results from the process improvements implemented in December 2013. We have also taken short-term measures to improve throughput of the ore handling system feeding the shaft and are on track to complete permanent solutions in the second half of 2014, which are expected to allow us to achieve higher production rates at lower unit costs."