North American Palladium Provides Update on Suspension of Milling Operations at its Lac des Iles Mine

TORONTO, ONTARIO--(Marketwired - May 28, 2015) - North American Palladium Ltd. ("NAP" or the "Company") (TSX:PDL)(OTC PINK:PALDF) provided an update regarding the previously disclosed temporary suspension of milling operations at its Lac des Iles palladium mine ("LDI") site near Thunder Bay, Ontario, due to water balance issues.

Initial indications suggested that a restart of the processing plant could occur once repairs to the liner of a reclaim pond were completed. However, recent problems have been experienced with leakages at some of the existing containment structures which are currently under repair. These issues have been exacerbated by the late and rapid onset of spring, accompanied by heavy rains, causing excess water to enter containment areas resulting in an upsetting of the water balance.

In addition, the Company has recently experienced a leak in a decommissioned tailings pond that was used to store reclaimed water. An amount of water has leaked and is currently being contained on site and monitored closely.

Progress towards the repair of the containment structures is being made, but the timing for the resumption of milling operations has yet to be determined. The Company has been working closely with stakeholders and regulators to keep them informed of mitigation strategies to manage water balance issues. All necessary measures are being implemented by the Company to restore the water balance.

Underground mining operations have continued and production rates for the months of April and May have been slightly ahead of plan. A significant stockpile of underground ore has been built up at surface and is available for processing with excess capacity available at the LDI mill once milling operations restart. Management is taking the opportunity during this shutdown to bring forward planned maintenance work.

Technical Information and Qualified Persons

Mr. James Gallagher, the Company's Chief Operating Officer and a Qualified Person under National Instrument 43-101, has reviewed and approved all technical items disclosed in this news release.

About North American Palladium

NAP is an established precious metals producer that has been operating its Lac des Iles mine ("LDI") located in Ontario, Canada, since 1993. LDI is one of only two primary producers of palladium in the world, offering investors exposure to palladium. The Company's shares trade on the TSX under the symbol PDL and on the OTC Pink under the symbol PALDF.