PAL

[David Randolph]

PAL absolutely needs to hold the $10 line now, which was a prior short term resistance, so now it should act as a strong support. I think this is going to be the case, but I'll hold whatever happens, due to my long term believe in the Palladium metal bull market.

[Garoh]

Good action just as expected to touch 9.86 and rebound ...

It should  only go up from here if everything is good

[David Randolph]

Good action just as expected to touch 9.86 and rebound ...

It should  only go up from here if everything is good

Thanks for your view and chart Garoh

Unfortunately PAL closed back below $10. Volume was low. It is still respecting a short term ascending trendline, we'll see if that support is able to sustain the stock and the push it higher.

The Palladium market went down almost 2% to $364 as global commodities fell. I think this is just a temporary thing, after the shake up the bull market will probably continue.

I'll continue holding PAL.

[David Randolph]

It is still respecting a short term ascending trendline, we'll see if that support is able to sustain the stock and the push it higher.

No, PAL broke down below it like it didn't exist (perhaps it only existed in my chart and mind). Now there's the June low of $9 and the 200 days SMA at $8.75.

PAL is now close to the price it was a year ago, when the company was in much worse financial shape and palladium prices were lower. It doesn't make any sense from a fundamental standpoint.

PAL is one of the few mining companies outthere with a valuation that makes sense to me (besides copper mining - there's a lesson to learn from PCU, which is - it may take some time, but value always goes up).

I'll keep holding PAL.

[David Randolph]

PAL touched its long term support given by the 200 days SMA and an horizontal support. I believe the buyers did well in buying, the sellers did bad in selling. Only time will tell, but fundamentally I see a lot more value in this company.

I remain a bull in the palladium market, the 2.5 billion Chinese and Indians will want cars, and those cars need palladium.

I'll keep holding PAL.

[David Randolph]

Well, PAL rose a bit on Friday's session, while the general market had another strong sell off, we have to give the stock some credit for that. I would like to have it closing above $9, but it wasn't possible. Let's see what the next few days bring, I'll continue holding PAL.

[David Randolph]

Well, PAL rose a bit on Friday's session, while the general market had another strong sell off, we have to give the stock some credit for that. I would like to have it closing above $9, but it wasn't possible. Let's see what the next few days bring, I'll continue holding PAL.

Well, PAL was able to close back above $9, which is a technical development that I welcome, reacting positively to the 200 days SMA support. Palladium also rose $4 yesterday to $364, so that probably helped a bit too.

I'll continue holding PAL.

[David Randolph]

Unfortunately PAL couldn't hold the line above $9. But I'll remain focused on the following:

- Most of the 2.5 billion Indians and Chinese don't have a car, but they're starting to have, and cars are the main source of demand for palladium. Palladium will also rise as a substitute to platinum, which is way too expensive now.

- PAL produces 5% of the world's annual consumption of palladium.

I'll patiently keep holding PAL as I wait for palladium to breakout to new highs above $400 (it closed at $363 today, down 1$).

[David Randolph]

PAL isn't acting nice ... but I expect yesterday's volume above average in PAL shares and the general market late day surge to be the beginning of something positive.

I'll keep holding PAL, despite losing 26% on it now.

[babouk]

Nissan Motor Co., Ltd. has developed a new catalyst for gasoline-powered cars that utilizes only half the precious metal components versus conventional catalyst currently available. This new catalyst will be introduced in future products from fiscal 2008.

This technology, developed as part of the Renault-Nissan Alliance, results in no changes in the performance of the catalyst despite using significantly less precious metal.

Exhaust-cleaning automotive catalysts comprise a mix of platinum (Pt), rhodium (Rh) and palladium (Pd). Within the catalyst, the chemical reaction between the precious metals and exhaust gases contributes to the chemical reaction of nitrogen oxide (NOX), carbon monoxide (CO) and hydrocarbons (HC) - into non-toxic compounds such as nitrogen (N2), water (H20), and carbon dioxide (CO2).

In conventional catalysts, the high temperatures within the catalyst causes the precious metals to cluster-up, reducing the exposed metal surface area, leading to less-effective cleaning of the gases. To compensate this problem, existing converters contain a higher amount of precious metals in order to maintain an efficient level of cleaning.

Employing advanced nano-technology, Nissan has succeeded in keeping the fine metal particles separated to prevent them from clustering under high temperature conditions. This pioneering technology enables the catalyst to maintain performance while utilizing only half the component of precious metals needed.

Under the Nissan Green Program 2010, Nissan will offer advanced technology and products to help make real-world reductions in CO2 emissions, clean emissions to preserve the air, water, and soil, and recycle resources. The new catalyst results in clean exhaust emissions and reduces the consumption of precious metals, hence benefiting the environment and conservation of the Earth’s natural resources.

[David Randolph]

Nissan Motor Co., Ltd. has developed a new catalyst for gasoline-powered cars that utilizes only half the precious metal components versus conventional catalyst currently available. This new catalyst will be introduced in future products from fiscal 2008.

This technology, developed as part of the Renault-Nissan Alliance, results in no changes in the performance of the catalyst despite using significantly less precious metal.

Exhaust-cleaning automotive catalysts comprise a mix of platinum (Pt), rhodium (Rh) and palladium (Pd). Within the catalyst, the chemical reaction between the precious metals and exhaust gases contributes to the chemical reaction of nitrogen oxide (NOX), carbon monoxide (CO) and hydrocarbons (HC) - into non-toxic compounds such as nitrogen (N2), water (H20), and carbon dioxide (CO2).

In conventional catalysts, the high temperatures within the catalyst causes the precious metals to cluster-up, reducing the exposed metal surface area, leading to less-effective cleaning of the gases. To compensate this problem, existing converters contain a higher amount of precious metals in order to maintain an efficient level of cleaning.

Employing advanced nano-technology, Nissan has succeeded in keeping the fine metal particles separated to prevent them from clustering under high temperature conditions. This pioneering technology enables the catalyst to maintain performance while utilizing only half the component of precious metals needed.

Under the Nissan Green Program 2010, Nissan will offer advanced technology and products to help make real-world reductions in CO2 emissions, clean emissions to preserve the air, water, and soil, and recycle resources. The new catalyst results in clean exhaust emissions and reduces the consumption of precious metals, hence benefiting the environment and conservation of the Earth's natural resources.

Thanks babouk, that's bad news for palladium and PAL. Nickel has been going down a lot too, more than I expected, because the warehouse levels have been rising strongly: Nickel Historical Charts.

I should have taken the loss when we've had that rally after the 2nd quarter production numbers, but I didn't, I was hopeful that the rally would last longer ...

The chart is also bearish now and my hands aren't as strong as I would like them to be, because I feel I don't know enough about valuing mining companies (I already have that book, but still didn't read much).

This is going to hurt, but here it goes: I'll sell PAL today, taking a 27% loss.

I already have four stocks where I'm losing about 20% and I dislike the situation, because if I'm losing, probably that's because I was wrong, and if I was wrong, I should correct the mistake by taking the loss before it gets worse.

PAL is the biggest loser of the Main Portfolio and it is also the stock where I'm less confident.

The trading plan for PAL is: SELL.

[soxguy]

Press Release Source: North American Palladium Ltd.


North American Palladium Reports Second Quarter 2007 Financial Results
Wednesday August 8, 9:44 am ET


This news release contains forward-looking statements. Reference should be made to the cautionary statement on forward-looking information at the end of this news release


TORONTO, ONTARIO--(MARKET WIRE)--Aug 8, 2007 -- North American Palladium Ltd. ("NAP") (Toronto:PDL.TO - News)(AMEX:PAL - News) -
ADVERTISEMENT






Highlights for the Quarter

- Revenue of $44.5 million in Q2 2007, up from $35.5 million in Q2 2006. For the first half of 2007, revenue increased by 69% to $112.9 million, compared to $67.0 million for the comparable period in 2006.

- Operating cash flow(1) in Q2 2007 improved significantly to $12.9 million compared to cash used in operations of $1.0 million last year. For the six months ended June 30, 2007, operating cash flow was $35.9 million, compared cash usage of $1.2 million in 2006.

- By-product revenue in the first half was $60.0 million (up 70% over last year) and includes a 156% increase in nickel revenue.

- Net loss for the quarter of $9.1 million or $0.17 per share, which includes a $8.9 million mark to market on foreign exchange and commodity prices. This compares to a net loss in Q2 2006 of $11.3 million or $0.22 per share. For the first half, the net loss decreased to $3.6 million ($0.07 per share) compared to a net loss of $15.5 million ($0.30 per share) in 2006.

- Palladium cash costs per ounce(1) were US$242 per oz in Q2 2007 compared to US $219 per oz in Q2 2006, an increase attributable to the strengthening Canadian dollar and higher maintenance costs.

Results of Operations

North American Palladium announced today revenue of $44.5 million in the second quarter of 2007, up $9.0 million or 25% compared to revenue of $35.5 million reported in the second quarter of 2006. Operating cash flow (1) was $12.9 million in the three months ended March 31, 2007, compared to cash used in operations of $1.0 million in 2006, and was $35.9 million for the first six months of 2007, an improvement of $37.1 million from the prior year when cash used in operations was $1.2 million.

As previously reported, Palladium production for the second quarter of 2007 was 66,651 ounces of palladium at an average palladium head grade of 2.26 grams per tonne an increase 9,326 ounces or 16% compared to last year's second quarter production of 57,326 ounces at a head grade of 2.22 grams per tonne (see July 18, 2007 press release for Q2 production results).

Palladium revenue was $21.9 million or 49% of total revenue, compared to $14.9 million or 42% in 2006, an increase of $7.0 million or 47% year over year. For the three months ended June 30, 2007, palladium revenue was recorded at US$365 per ounce, an increase of 18% compared to US$310 in the corresponding period in 2006.

By product metal revenue for the six months ended June 30, 2007 increased by 70% to $60.0 million, up from $35.3 million in 2006. In the second quarter of 2007, by product metal sales generated $22.6 million of revenue, an increase of $2.0 million or 10% compared to by product revenue of $20.6 million in the second quarter of 2006. In particular, nickel sales in the second quarter of 2007 benefited from a 68% year over year price increase (US$16.24 per lb versus US$9.64 per lb in 2006).

Jim Excell, President and Chief Executive Officer of North American Palladium had the following comments on the financial results: "I am pleased to see continued strengthening in our operations and expect to see continued improvements this year. With a new management team in place, consistency in operations and a good pipeline of projects, I believe that North America Palladium is well positioned to benefit and expand its base of existing cash generating properties."

The Company recognizes the sale of metal concentrate as revenue when concentrate is delivered to a third party smelter for treatment. However, final pricing is not determined until the refined metal is sold, which can be up to six months later. Final pricing adjustments result in additional revenue in a rising commodity price environment and reductions to revenue in a declining price environment. Similarly, a strengthening Canadian dollar relative to the US dollar will result reduced revenue and vice versa. In Q2 2007, revenue was reduced by negative mark to market adjustments of $8.9 million ($2.4 million due to negative price adjustments and $6.5 million due to a negative foreign exchange adjustment) compared with a negative adjustment in the second quarter of 2006 of $1.2 million ($0.6 million positive price adjustment and $1.8 million negative foreign exchange adjustment).

Largely due to these mark to market adjustments, the Company recognized a loss from mining operations of $9.2 million in the second quarter of 2007 compared to a loss of $9.1 million in the same period last year. In addition to the $8.9 million negative revenue adjustments, the mine incurred unplanned maintenance costs as a result of several lightning strikes during the quarter that caused unscheduled downtime to the primary crusher and #1 ball mill and reduced throughput (steps have since been taken to mitigate future disruptions in the electrical supply). Increased production volumes compared to 2006 also resulted in increased amortization of $4.4 million. For the three months ended June 30, 2007, the Company reported a net loss of $9.1 million or $0.17 per share compared to a net loss of $11.3 million or $0.22 per share for the three months ended June 30, 2006. For the six months ended June 30, 2007 the net loss of $3.6 million was a significant improvement compared to the loss of $15.5 million for the same period in 2006.

Review of Operations and Projects

The Company remains on course to meeting its year end production target of approximately 290,000 ounces. Its intensive core drilling exploration program will continue through 2007, with approximately $15.0 million being allocated to exploration activities.

The Company continued its exploration of the Offset High Grade Zone ("OHGZ"), located approximately 250 metres to the southeast of the current underground mine at the Lac des Iles mine. Drilling from the exploration drift commenced in the second quarter of 2007. The OHGZ remains open along strike and at depth. Early in the third quarter of 2007, the Company engaged two consulting firms to conduct a Preliminary Economic Assessment of three potential exploitation/operating scenarios for the OHGZ. Management is also considering the viability of a Phase V pushback of the pit, with a view to extending its mine life. The expanded open pit could provide supplemental mill feed for a possible OHGZ underground mine and allow the mine to operate at current production levels for additional years beyond the current planned mine life. At this time, no mineral reserve estimates have been made for the OHGZ and, consequently, no decision been made to extend the current underground mine to the OHGZ and/or build a shaft to access the OHGZ (see the press release dated April 2, 2007 for information about the OHGZ mineral resource estimate).

In addition to the operations and exploration activities around the Lac des Iles mine site, the Company continues to pursue other PGM and nickel copper opportunities, including its earn in under option and joint venture agreement with CVRD Inco at the Shebandowan Project. Preparation of a 43 101 technical report is underway, which will disclose the results of a mineral resource estimate by an independent Qualified Person. The Company is assessing the capital expenditure requirements to refurbish its old mill at Lac des Iles to process ore from Shebandowan, which could add up to 2,500 tpd to the milling capacity at the Lac des Iles site. The Company is also active satisfying the conditions of its 60% earn in right at the Arctic Platinum Project ("APP") in Finland (subject to a 10% back in right in favour of Gold Fields which, if exercised, would decrease the Company's interest to 49.9%). As at June 30, 2007, the Company has incurred $8.5 million in expenditures on the APP. The results of approximately 12,000 metres of a Phase II drilling program will be released in the third quarter of 2007, following receipt of assay results and completion of the Company's quality assurance/quality control procedures. The results of the 2007 in fill drilling program will be incorporated into an updated mineral resource estimate. The Company will also disclose the results of a re scoping study following completion of its due diligence review.

Further information about the second quarter results are available in the Company's financial statements and MD&A, which will be filed on its website, with Canadian provincial securities authorities (www.sedar.com) and with the U.S. Securities and Exchange Commission (www.sec.gov).

Conference Call

The Company will host its second quarter conference call at 8:30 a.m. EST on Thursday, August 9, 2007. The toll free conference call dial in number is 1-866-249-5221 and the local and overseas dial in number is 416-644-3430. The conference call will be simultaneously webcast and archived at www.napalladium.com in the Investor Centre under Conference Calls. A replay of the conference call will be available until August 30, 2007- toll free at 1-877-289-8525, locally and overseas at 416-640-1917, access code 21199657#.

(1)Non GAAP Measures

Cash cost per ounce and operating cash flow are not recognized measures under Canadian GAAP. Such non GAAP financial measures do not have any standardized meaning prescribed by Canadian GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers. Management uses these measures internally. The use of these measures enables management to better assess performance trends. Management understands that a number of investors and others who follow the Company's performance assess performance in this way. Management believes that these measures better reflect the Company's performance for the current period and are a better indication of its expected performance in future periods. This data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The following table reconciles these non GAAP measures to the most directly comparable Canadian GAAP measure:



(a) Reconciliation of Cash Cost per Ounce to Financial Statements

Three Months Ended June 30
(thousands of dollars except per ounce amounts)          2007        2006
-------------------------------------------------------------------------
Production costs including overhead                $   32,438  $   28,289
Smelter treatment, refining and freight costs           5,733       4,237
-------------------------------------------------------------------------
                                                       38,171      32,526
Less: by product metal revenue                        (22,638)    (20,578)
-------------------------------------------------------------------------
                                                       15,533      11,948
-------------------------------------------------------------------------
Divided by ounces of palladium                         60,435      48,977
Cash cost per ounce (C$)                                  257         244
C$ exchange rate                                       1.0631      1.1151
-------------------------------------------------------------------------
Cash cost per ounce (US$)                                 242         219
-------------------------------------------------------------------------
-------------------------------------------------------------------------

(b) Reconciliation of Cash Flow from Operations, Prior to Changes in
Non Cash Working Capital (Operating Cash Flow) to Financial Statements(i)


                          2007           2006           2007          2006
                   Three months ended June 30     Six months ended June 30
--------------------------------------------------------------------------
Operating Cash Flow   $ 12,865      $    (965)     $  35,902    $   (1,225)
Changes in
Non-cash
Working Capital        (9,486)       (16,159)       (30,390)      (26,343)
--------------------------------------------------------------------------
Cash Provided by
Operating Activities $  3,379      $ (17,124)     $   5,512    $  (27,568)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(i) Certain prior period amounts have been reclassified to conform to the
   classification adopted in the current period.
Forward Looking Statements

Certain statements included in this news release are forward looking statements within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation including the Securities Act (Ontario), relating to the objectives, plans, strategies and results of operation of the Company including words to the effect that the Company or management expects a stated condition or result to occur. When used herein, words such as "expect", "continues", "pursue", "will" and other similar expressions as they related to the Company or its management, are intended to identify forward looking statements. In particular, statements relating to estimated future metal prices and future ore and metal production are forward looking statements. In making the forward looking statements in this news release, the Company has applied several material assumptions, including but not limited to, the assumption that (1) market fundamentals will result in increased palladium demand and prices and sustained by product metal demand and prices, (2) the integrated operation of the underground mine and the open pit mine remain viable operationally and economically, (3) financing is available on reasonable terms, (4) expectations for blended mill feed grade and mill performance will proceed as expected, (5) new mine plan scenarios will be viable operationally and economically, and (6) plans for improved mill production, for sustainable recoveries from the Lac des Iles mine, for further exploration at the Lac des Iles mine and surrounding region, and for exploration in Finland will proceed as expected. Any forward looking statements in this news release involve inherent risks and uncertainties and are subject to factors, many of which are beyond our control, which may cause actual results or performance to differ materially from those currently anticipated in such statements. Important factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements include among others (1) metal price volatility, (2) economic and political events affecting metal supply and demand, (3) fluctuations in ore grade or ore tonnes milled, (4) geological, technical, mining or processing problems, (5) future metal production, and (6) changes in the life of mine plan. For a more comprehensive review of risk factors, please refer to the "Risks and Uncertainties" section of the Company's most recent interim Management Discussion and Analysis and most recent Annual Report under "Management's Discussion and Analysis of Financial Results"

and Annual Information Form under "Risk Factors" 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. Readers are cautioned not to put undue reliance on these forward looking statements.

North American Palladium is Canada's foremost primary producer of palladium. Its Lac des Iles mine in northwestern Ontario is among the largest open pit, bulk mineable palladium operations in the world. The Company's core palladium business is strengthened by a significant contribution from nickel, platinum, gold and copper by product metals. Committed to sustainable mining practices and continuous improvement, North American Palladium pursues a growth strategy that involves the acquisition and development of PGM/nickel properties that present the highest level of value creation.



                         North American Palladium Ltd.
                          Consolidated Balance Sheets
                   (expressed in thousands of Canadian dollars)

                                                   June 30     December 31
                                                      2007            2006
                                                ----------     -----------
                                                (unaudited)
                     Assets
                     ------
Current Assets
Cash                                       $        4,505  $        3,153
Concentrate awaiting settlement, net               98,814          82,050
Taxes recoverable                                     252             145
Inventories                                        14,606          14,164
Current portion of crushed and broken ore
  stockpiles                                         8,862           7,134
Other assets                                        1,436           2,602
                                           ---------------  --------------
                                                   128,475         109,248

Mining interests, net                              130,757         146,617
Mine restoration deposit                             8,151           8,041
Crushed and broken ore stockpiles                      383             289
Deferred financing costs                                 -             962
                                           ---------------  --------------
                                            $      267,766  $      265,157
                                           ---------------  --------------
     Liabilities and Shareholders' Equity
     ------------------------------------
Current Liabilities
Accounts payable and accrued liabilities   $       17,306  $       21,526
Advance purchase facility                           8,868
Future mining tax liability                           186             149
Current portion of obligations under
  capital leases                                     1,835           2,104
Current portion of convertible notes
  payable                                           29,324          22,148
Current portion of long term debt                   6,218           6,662
Kaiser Francis credit facility                          -           5,827
                                           ---------------  --------------
                                                    63,737          58,416

Mine restoration obligation                          8,707           8,211
Obligations under capital leases                     2,851           4,111
Convertible notes payable                            9,259          23,062
Long term debt                                       7,216          10,992
Future mining tax liability                          1,439             381
                                           ---------------  --------------
                                                    93,209         105,173
          Shareholders' Equity
          --------------------

Common share capital and common share
  purchase warrants                                357,625         339,743
Equity component of convertible notes
  payable, net of issue costs                       10,138          12,336
Contributed surplus                                 3,717           1,269
Deficit                                          (196,923)       (193,364)
                                           ---------------  --------------
Total shareholders' equity                         174,557         159,984
                                           ---------------  --------------
                                           $       267,766  $      265,157
                                           ---------------  --------------


                        North American Palladium Ltd.
               Consolidated Statements of Operations and Deficit

                 (expressed in thousands of Canadian dollars,
                    except share and per share amounts)
                                  (unaudited)

                     Three months ended June 30   Six months ended June 30
                            2007           2006         2007          2006
                      ----------     ----------   ----------    ----------
Revenue from metal
sales - before
pricing
adjustments         $    53,451    $    36,698  $   113,755   $    61,054
Pricing adjustments-
  commodities             (2,421)           566        6,720         7,518
Pricing adjustments-
  foreign exchange        (6,535)        (1,745)      (7,541)       (1,561)
                      ----------     ----------   ----------    ----------
Revenue from metal
sales                    44,495         35,519      112,934        67,011
                      ----------     ----------   ----------    ----------
Operating expenses
Production costs,
  excluding
  amortization
  and asset
  retirement costs        32,438         28,289       65,690        52,600
Smelter treatment,
  refining and
  freight costs            5,733          4,237       10,995         6,951
Amortization             11,923          7,538       23,831        11,135
Administrative            2,321          1,584        4,017         3,763
Exploration expense         798          2,659        4,026         4,683
Loss on disposal of
  equipment                    -            194            -           194
Asset retirement
  costs                      498            132          677           255
                      ----------     ----------   ----------    ----------
Total operating
  expenses                53,711         44,633      109,236        79,581
                      ----------     ----------   ----------    ----------

Income/(loss) from
mining operations        (9,216)        (9,114)       3,698       (12,570)
                      ----------     ----------   ----------    ----------
Other expenses
(income)
Interest on
  long term debt,
  capital leases and
  convertible notes
  payable                  1,162          1,423        2,704         2,118
Foreign exchange loss
  (gain)                  (4,355)          (955)      (4,981)         (674)
Interest income            (187)          (380)        (270)         (463)
Accretion expense
  relating to
  convertible
  notes payable            3,250          2,460        7,512         2,460
Interest expense            216              -          756             -
Deferred financing
  costs                      219            144          441           659
                      ----------     ----------   ----------    ----------
Total other expenses         305          2,692        6,162         4,100
                      ----------     ----------   ----------    ----------

Loss before income
taxes                    (9,521)       (11,806)      (2,464)      (16,670)
Income tax expense
(recovery)                 (455)          (481)       1,095        (1,204)
                      ----------     ----------   ----------    ----------
Loss for the period       (9,066)       (11,325)      (3,559)      (15,466)

Deficit, beginning of
period                 (187,857)      (163,396)    (193,364)     (159,255)
                      ----------     ----------   ----------    ----------
Deficit, end of
Period              $  (196,923)   $  (174,721) $  (196,923)  $  (174,721)
                      ----------     ----------   ----------    ----------
Loss per share
Basic               $     (0.17)   $     (0.22) $     (0.07)  $     (0.30)
                      ----------     ----------   ----------    ----------
Diluted             $     (0.17)   $     (0.22) $     (0.07)  $     (0.30)
                      ----------     ----------   ----------    ----------
Weighted average
number of shares
outstanding

Basic                54,410,210     52,371,162   53,749,822    52,293,401
                      ----------     ----------   ----------    ----------
Diluted              54,410,210     52,371,162   53,749,822    52,293,401
                      ----------     ----------   ----------    ----------


                       North American Palladium Ltd.
                 Consolidated Statements of Cash Flows
             (expressed in thousands of Canadian dollars)
                              (unaudited)

                     Three months ended June 30   Six months ended June 30
                            2007           2006         2007          2006
                      ----------     ----------   ----------    ----------

Cash provided by
(used in)
Operations
Loss for the period $     (9,066)   $   (11,325) $    (3,559)  $   (15,466)
Operating items not
involving cash
Accretion expense
  relating to
  convertible
  notes payable            3,250          2,460        7,512         2,460
Amortization             11,923          7,538       23,831        11,135
Amortization of
  deferred financing
  costs                      219            144          441           155
Interest settled on
  convertible notes        1,007            395        1,581           395
Accrued interest on
  mine restoration
  deposit                   (110)           (84)        (110)          (84)
Unrealized foreign
  exchange (gain)
  loss                     3,478           (582)       3,409          (526)
Asset retirement
  costs                      498            132          677           255
Future income tax
  expense (recovery)       1,050           (295)       1,095        (1,130)
Write off of
  deferred financing
  costs                        -              -            -           504
Stock based
  compensation and
  employee benefits          616            458        1,025           883
Loss on disposal of
  equipment                    -            194            -           194
                      ----------     ----------   ----------    ----------
                          12,865           (965)      35,902        (1,225)

Changes in
non cash working
capital                  (9,486)       (16,159)     (30,390)      (26,343)
                      ----------     ----------   ----------    ----------
                           3,379        (17,124)       5,512       (27,568)
                      ----------     ----------   ----------    ----------
Financing Activities
Advances under
  purchase facility        4,453              -        8,868             -
Issuance of common
  shares                       -          3,446        5,703         3,921
Repayment of
  long term debt          (1,562)        (1,625)      (9,042)       (3,295)
Repayment of
  obligations under
  capital leases            (539)          (597)      (1,082)       (1,175)
Mine restoration
  deposit                      -           (300)           -          (600)
Issuance of
  convertible notes            -              -            -        41,037
Increase in long term
  debt and credit
  facility                     -              -            -         2,311
Deferred financing
costs                         -           (227)           -        (2,364)
                      ----------     ----------   ----------    ----------
                           2,352            697        4,447        39,835
                      ----------     ----------   ----------    ----------

Investing Activities

Additions to mining
interests                (4,148)        (3,649)      (8,607)      (11,084)

Increase(decrease) in cash and
cash equivalents          1,583        (20,076)       1,352         1,183
Cash and cash
equivalents,
beginning of period       2,922         36,290        3,153        15,031
                      ----------     ----------   ----------    ----------
Cash and cash
equivalents, end of
period             $      4,505    $    16,214  $     4,505   $    16,214
                      ----------     ----------   ----------    ----------



Contact:
     Contacts:
     North American Palladium Ltd.
     Jim Excell
     President & CEO
     (416) 360-7971 ext.223
     
     North American Palladium Ltd.
     Fraser Sinclair
     Vice President, Finance & CFO
     (416) 360-7971 ext.222
     Website: http://www.napalladium.com
     


--------------------------------------------------------------------------------
Source: North American Palladium Ltd.

I think the numbers are good. Maybe the market likes them too.

[setravis]

ENTERS UNDERWRITING AGREEMENT: North American Palladium Ltd. (PAL) announced
that it has entered into an underwriting agreement in connection with its previously announced
public unit offering in Canada and the United States. The offering will be made under a prospectus
supplement to North American Palladium's shelf prospectus dated November 16, 2007. The
underwriters have agreed to purchase 14 million units at a price of US$4.00 per unit (C$4.04
per unit). Each unit consists of one common share and one half of a common share purchase
warrant of North American Palladium. Each whole warrant will entitle the holder to purchase one
common share at a price of US$5.05 per share at any time on or prior to two years from the date
of the closing of this offering, expected to occur on December 13, 2007. The units will mandatorily
separate after the closing of this offering into common shares and warrants.

[David Randolph]

This is going to hurt, but here it goes: I'll sell PAL today, taking a 27% loss.

I already have four stocks where I'm losing about 20% and I dislike the situation, because if I'm losing, probably that's because I was wrong, and if I was wrong, I should correct the mistake by taking the loss before it gets worse.

Sometimes it's better to just take the loss, even if it is already a 27% loss, and move on. PAL is an example of this. I sold at $8.58 and the stock closed yesterday at $3.7 (Jesus).

The reason for the fall can be attributed to the following private placement:

• North American Palladium Announces Marketed Unit Offering
Marketwire (Tue, Nov 27)

The news was announced in November 27th, and PAL closed at $6.02 on the previous day. It fell an additional 43.5% after the news, because, as I see it, PAL had to print more new shares in order to receive an amount closer to what it intended to receive. They wished $100 M and ended up getting just $75 M:

• North American Palladium Announces Closing of US$75 Million Offering
Marketwire (Thu, Dec 13)

Other problems are that revenues are shrinking and the company is losing money now (it lost $14 M in Q3 2007, on $36 M revenue).

Anyway, I see that palladium prices are recovering. But nickel continues to be depressed.

I think PAL made a big mistake making this private placement, ending six years of close to zero dilution.

Probably we're closer to a bounce (since the stock is so oversold and far away from its moving averages), but I wouldn't consider bottom fishing a company which just started diluting shareholders value. Maybe we'll go down to $1, who knows?

[wrangler]

Hi David
This stock is definately a candidate for bottom bounce. It gave buy signal yesterday,,bottom bounce plays are short term plays using 20 DMA for sell target because they usually bounce back down when getting close to 20 DMA. Buy signal is when RSI 5 rise above 30 line heading out of oversold territory.