Presentation for 2015 Preliminary Economic Assessment for Mine Expansion Plan at Lac des Iles Feb 26, 2015

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Forward-Looking Statements Certain information included in this presentation constitutes ‘forward-looking statements’ within the meaning of the ‘safe

harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. The words ‘potential’, ‘preliminary’, ‘expect’, ‘believe’, ‘will’, ‘intend’, ‘estimate’, ‘forecast’, and similar expressions identify forward-looking statements. Such statements include, without limitation: information pertaining to the Company’s strategy,

plans or future financial or operating performance, such as statements with respect to future exploration, the Company's forward-looking guidance, projected capital requirements, operating and capital cost estimates, project timelines, production plans, mining and milling rates, cash flows, the methods by which ore will be extracted, projected grades, mill recoveries, metal prices and foreign exchange rates, and other statements that express management's expectations or estimates of future performance. Forward-looking statements involve known and unknown risks that may cause the actual results to be materially different from those expressed or implied by the forward-looking statements. Such risks include, but are not limited to: the possibility that metal prices, foreign exchange rates or operating costs may differ from management's expectations, uncertainty of mineral reserves and resources, inherent risks associated with mining and processing, the risk

that the Lac des Iles mine may not perform as planned, and uncertainty of the ability of the Company to obtain financing. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered

reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The factors and assumptions contained in this presentation, which may prove to be incorrect, include, but are not limited to: metal prices assumptions, Canadian and U.S. dollar exchange rate assumptions, that there will be no significant disruptions affecting operations, that prices for key mining and construction supplies, including labour and transportation costs, will remain consistent with the Company's expectations, that the Company's current estimates of

mineral reserves and resources are accurate, and that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. The forward-looking statements are not guarantees of future performance. For more details on the factors, assumptions and risks see the Company's most recent Form 40-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities. The Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except as expressly required by law. Readers are cautioned not to put undue reliance on these forward-looking statements.

All dollar amounts are in Canadian currency unless otherwise stated, all references to production refer to payable

production, and all reference to tonnes refer to metric tonnes.

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Note to US Investors

Cautionary Note to US Investors Concerning Estimates of Measured, Indicated and Inferred Resources

This presentation uses the terms "Measured", "Indicated" and "Inferred" Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors

are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.

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Preamble

• The following presentation is an overview of the current Preliminary Economic Assessment for the Lac des Iles Mine Expansion Plan as of February 2015 . It includes an evaluation of the potential to profitably mine all known reserves and resources at the site.

• This PEA is at a scoping level and is preliminary in nature. It includes mineral reserve that is considered too speculative geologically to have the economic considerations applied to them that would enable them to be declared as mineral reserves, and there is no certainty the conclusions of the PEA will be realized.

• The resource information in this report has been compiled by North American Palladium Qualified Persons.

• The technical evaluation has been completed by Hatch Ltd. under close supervision of NAP management.

• This report has not changed the mineral reserves of the property.

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Executive Summary A low cost, low risk, open pit mine expansion

Current Mine Plan

• Expanded to 23.0 Mt @ 2.1 g/t Pd, after tax NPV(5%) of $457 M

Open Pit Expansion

• 39.0 Mt @ 1.3 g/t Pd, after tax NPV(5%) of $136 M, IRR of 30%

Base Case Expansion – current and open pit combined

• 62.0 Mt @ 1.6 g/t Pd, after tax NPV(5%) of $593 M, no negative cashflow

Phase 2 Shaft Deepening – future opportunity, ongoing exploration

• 10.9 Mt @ 3.3 g/t Pd, after tax NPV(5%) of $22 M, IRR 7%

Low Risk Project

• Right jurisdiction, existing infrastructure, permitted tailings facility, established First Nations relationships

Palladium - the right metal at the right time

• Strong forward looking market demand and supply constraints

By-product Credits – the resource at LDI contains significant quantities of Pt, Au, Cu & Ni which adds approx. 35% more revenue to the Pd total.

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Why a PEA?

• A PFS level Technical Report was published in March of 2014, what has changed:

– Results from 2014 exploration drilling program primarily focused on targets below the 1000 m level are included and contain inferred mineral resources.

– Based on running LDI mill on a full time basis as opposed to previous 2 week per month batch process, delivering economies of scale and lower unit costs have been realized.

– Metal prices and foreign exchange rates that reflect current and longer-term analyst consensus have been used – potential to make lower grade material economic.

• Current mine plan has already changed and future opportunities are significantly different due to the above factors. This warranted a PEA level study to assess these opportunities.

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Favourable Location

• Provincial highway access

near Thunder Bay, Ontario

• Decades of successful

mining history

• Experienced and focused

management team

• Mining friendly jurisdiction

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Existing Site Infrastructure

• Shaft access to 825 meter level

• 15,000 tpd Mill

• Expandable Tailings Management Facility

• Existing camp

• Truck shops and offices

• Idled Open Pit

• All utilities supply and distribution in place at site

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Understanding the Ore Body

Cross Section Looking North Section Looking West

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Mineral Reserve & Mineral Resource

MINERAL RESERVES AND RESOURCES Tonnes Pd Pt Au Ni Cu Pd Contained

Category (000's) (g/t) (g/t) (g/t) (%) (%) (000's oz)

Total Proven Reserves 16,259 1.76 0.16 0.13 0.07 0.04 918

Total Probable Reserves 4,108 3.61 0.26 0.25 0.10 0.09 477

Total Proven + Probable Reserves 20,367 2.13 0.18 0.16 0.08 0.05 1,395

Total Measured Resources 43,080 1.83 0.20 0.13 0.07 0.05 2,532

Total Indicated Resources 28,388 2.20 0.21 0.16 0.08 0.06 2,011

Total Measured + Indicated Resources 71,468 1.98 0.20 0.14 0.07 0.06 4,543

Total Reserves and Measured &

Indicated Resources91,835 2.01 0.20 0.14 0.07 0.05 5,938

Total Inferred Resources 15,039 2.67 0.20 0.17 0.08 0.07

As released on February 25, 2015

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Production Plan – Current Plan

Tailings

Phase 1

Roby FW

RGO

23.0 Mt Mined

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Production Plan Base Case (Current Plan + Open Pit Expansion)

Tailings

Offset FW Phase 1

Roby/Sherriff Pit

Roby FW

RGO

62 Mt Mined

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Base Case – Payable Pd Ounces

Payable Pd Ounces Contribution

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Base Case Operating Cost Summary

Base CaseTailings

/ RGO

Open

Pit

Offset

Phase 1

Offset

Phase 2

Roby

FW

Offset

FW

(Current Plan + Open Pit) $18.34 $20.01 $55.39 N/A $47.35 $56.29

Cost per Tonne Milled

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Life of Mine and Project Capital

BASE CASE

CURRENT PLAN

OPEN PIT

$Cnd x 1 Million SUM 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Current Plan 131.9 39.0 38.1 19.2 13.4 11.6 9.0 1.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Project Capital 7.5 0.0 7.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Sustaining Capital 124.4 39.0 30.6 19.2 13.4 11.6 9.0 1.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

$Cnd x 1 Million SUM 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Open Pit Expansion 196.2 0.0 1.0 0.0 8.5 22.0 20.8 30.8 28.4 23.7 19.9 11.7 10.4 10.4 6.1 2.6 0.0 0.0

Project Capital 51.1 0.0 0.0 0.0 8.5 22.0 20.3 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Sustaining Capital 145.1 0.0 1.0 0.0 0.0 0.0 0.5 30.6 28.4 23.7 19.9 11.7 10.4 10.4 6.1 2.6 0.0 0.0

$Cnd x 1 Million SUM 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Base Case 329.6 39.0 39.1 19.2 21.9 33.6 29.9 32.4 28.4 23.7 19.9 11.7 11.9 10.4 6.1 2.6 0.0 0.0

Project Capital 58.6 0.0 7.5 0.0 8.5 22.0 20.3 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Sustaining Capital 271.0 39.0 31.6 19.2 13.4 11.6 9.5 32.2 28.4 23.7 19.9 11.7 11.9 10.4 6.1 2.6 0.0 0.0

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Expected Mill Recovery

Ranges between

74% - 85% over the life of

mine depending on the

ratio of surface to

underground materials.

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Pricing & Exchange Rate Consensus Pricing Used for Analysis

Source: Average of bank and analyst estimates compiled by NAP, Jan. 28, 2015

Price Unit 2016 2017 2018 2019+

Palladium USD$/oz 901 935 948 855

Platinum USD$/oz 1,440 1,543 1,600 1,611

Gold USD$/oz 1,265 1,253 1,246 1,275

Nickel USD$/lb 9.31 9.53 10.11 8.87

Copper USD$/lb 3.11 3.29 3.39 3.01

Exchange Rate CAD per USD 1.15 1.12 1.11 1.11

Consensus pricing

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Cash Flows – Current Plan

$457 M

$522 M

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Cash Flows – Open Pit Project

$136 M

$248 M

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Cash Flows – Base Case (Current Plan + Open Pit)

$593 M

$770 M

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Base Case Project Sensitivity Palladium & Foreign Exchange

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Future Opportunities

OPPORTUNITIES TO ENHANCE THE BASE CASE

Phase 2 10.9 Mt @ 3.3 g/t

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Production Plan – Phase 2 Potential

Tailings

Offset FW

Phase 2

Phase 1

Roby/Sherriff Pit

Roby FW

RGO

72.8 Mt Mined

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Phase 2 Payable Pd Ounces Contribution

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Phase 2 – Operating and Capital Cost Summary

Cost per Tonne Milled

Tailings / RGO

Open Pit

Offset Phase 1

Offset Phase 2

Roby FW

Offset FW

Base Case (Current Plan + Open Pit)

$18.34 $20.01 $55.39 N/A $47.35 $56.29

Phase 2 with Shaft Deepening

$18.09 $20.01 N/A $52.11 $46.33 $51.56

OPEX

CAPEX $Cnd x 1 Million SUM 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Phase 2 Expansion 289.8 0.0 35.2 76.7 99.7 35.4 9.8 10.4 10.7 8.5 3.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Project Capital 242.2 0.0 35.2 76.7 99.7 29.3 1.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Sustaining Capital 47.6 0.0 0.0 0.0 0.0 6.1 8.5 10.4 10.7 8.5 3.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0

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Cash Flows – Current Plan + Open Pit + Phase 2

$614 M

$889 M

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Phase 2 Project Sensitivity Palladium & Foreign Exchange

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Low Risk Relative to other PGM Projects

The LDI site has the following advantages:

• An existing operation in a mining friendly jurisdiction with power, roads, water services all in place.

• Over 20 years of near continuous operating history.

• A large capacity mine shaft, an operating mill with excess capacity, and known recoveries and a permitted tailings facility with long-term expansion capability.

• Well established, positive relations with the regional communities and First Nations groups.

• A management team with extensive experience at managing similar projects.

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The Way Forward – Base Case

• Commence a Preliminary Feasibility Study (PFS) on the Base Case mine plan which includes the open pit expansion and selective mining of the footwall zone.

• Investigate opportunities for accelerating some higher grade open pit options that exist within shell of the major pit expansion.

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The Way Forward – Phase 2

• Continue exploration and definition drilling at depth to upgrade and expand the lower Offset Zone resource to support future evaluation of the Phase 2 shaft deepening.

• Perform engineering optimization studies to improve the business case for Phase 2.

Presentation for 2015 Preliminary Economic Assessment for Mine Expansion Plan at Lac des Iles Feb 26, 2015

For more information, please visit

www.nap.com

or contact Investor Relations at

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