North American Palladium Ltd. breaks two production records.

THUNDER BAY, ONTARIO--(BUSINESS WIRE)--Dec. 6, 1996--North American Palladium (TSE PDL., NASDAQ PDLCF. POLCF.) North American Palladium Ltd. (NASDAQ and TSE), today released the financial results for the Nine Months ended September 30, 1996.

The Company reported a net loss of $8,303,000 or $0.71 CDN per share (1995 - profit of $922,000 or $0.08 CDN per share), which included depreciation and amortization of $3,769,000 (1995 - $3,352,000). The net loss for the three months ended September 30, 1996 of $3,414,000 or $0.29 CDN per share (1995 - profit of $1,591,000 or $0.14 CDN per share). Cash provided by operating activities for the nine months totalled $ 224,000 (1995 - $7,997,000). -0-

NORTH AMERICAN PALLADIUM LTD.
CORPORATE REPORT

(Canadian Funds in Thousands of Dollars Except Share and Per
Share Amounts)

                         Year Ended       Three Months Ended
                          December 31,        September 30,

                               1995         1996        1995

Revenue from metal sales   $ 27,351      $ 4,791     $ 9,320
Income (loss) from mining
  operations                  1,462       (1,957)      1,696
Net Profit (Loss)            (2,473)      (3,414)      1,591
Average shares
  outstanding            11,528,133   11,737,588  11,551,392
Net Profit (Loss) per
  share                       (0.22)       (0.29)       0.14


Nine Months Ended
                                              September 30,

                                             1996       1995

Revenue from metal sales                 $ 15,157   $ 22,114
Income (loss) from mining operations       (4,033)     2,595
Net Profit (Loss)                          (8,303)       922
Average shares outstanding             11,698,491 11,502,702
Net Profit (Loss) per share                 (0.71)      0.08

Figures in parentheses are losses

The Company is currently operating a platinum group metals property northwest of Thunder Bay, Ontario. Fixed assets, Mining leases and deferred expenditures, net of depreciation and amortization, at September 30, 1996 total $43,228,000, $14,030,000 and $37,840,000 respectively.

The financial statements for the period ended September 30, 1996 include the accounts of the Company and its wholly owned subsidiaries Lac des Iles Mines Ltd. and North American Metals Management Ltd.

In commenting on the third quarter results, C.D. McDoulett, Jr., President and Chief Executive Officer, noted that revenues for the quarter and year to date when compared with 1995 reflect lower metal prices and quantities, the latter as a result of catch-up waste removal in both the Roby and "C" Zones and removal of the old ramp in the center of the Roby Zone pit. Ore head grades have continued to improve gradually but still run below projected mine averages as development work, including ramp removal, has continued in production areas. Concentration ratios have improved to over 100:1 tons of concentrate without hurting recoveries.

The Company continues to make progress on its 1996 Capital Expansion Program. The Company said Kaiser-Francis Oil Company of Tulsa, Oklahoma, its principal lender and 18 percent shareholder, has provided the required funds for the capital program.

In commenting on the status of the major Capital Expansion Projects, Mr. McDoulett stated that the Power Line running from Silver Falls on Dog Lake to the Lac des Iles mine site was completed in October 1996. At present work is continuing on the hook-up of the power line to the Lac des Iles camp, laboratory and maintenance facilities, which are projected to be hooked-up by December 1, 1996. The mill and crushing complex are expected to be hooked-up as other vital equipment is delivered.

Work is continuing on the construction of the new crushing complex with mechanical work to be completed by December 31, 1996 on the secondary crushing plant and by January 15, 1997 on the primary plant. Electrical hook-up will be accomplished after the completion of the mechanical phase.

Other phases of the Capital Program are being completed as the necessary materials are delivered. Work in progress includes the installation of the pressure filter in the mill which was delivered in September 1996, completion of the reagent supply building and the addition of flotation cells. All small projects are expected to be completed within the next few weeks.

The Company also said today that a record tonnage of 228,322 short tons was put through the mill in the third calendar quarter of 1996, breaking the previous record established in the third quarter of 1995 of 207,500 tons. An additional record was set in the month of July, 1996 as 80,714 tons of ore were put through the mill. Subsequent to September 30, 1996, 73,736 tons were processed in October and 47,524 tons ran through the mill as of Nov 24, 1996. Fourth quarter is not expected to exceed the third quarter but is expected to exceed 210,000 tons. October 15, 1996 was a mile-stone day as the Lac des Iles mine ran its 2 millionth ton of concentrate through the mill.

In other news the Company would like to announce the North American Palladium Ltd. World Wide Web Internet Site at http://www.napalladium.ca.

The Company would also like to announce a new TOLL FREE number, 1-888-272-9123, accessible 24 hours a day, 7 days a week to obtain up-to-date stock quotes, Financial Statements and Corporate Information requests by fax or mail. This service will be made available on December 20, 1996. -0-

PRODUCTION STATISTICS
3rd Quarter 1996

PRODUCTION:
Palladium (troy oz.)     15,402
Platinum  (troy oz.)      1,209
Gold      (troy oz.)      1,041
Copper    (lbs)         257,246
Nickel    (lbs)         179,670

Tons Ore Mined          278,880
Tons Ore Crushed        229,461
Tons Ore Milled         228,322

CONTACT: North American Palladium Ltd

C.D. McDoulett, Jr., 807/345-4479