North American Palladium Ltd. provided an update on its 2018 exploration programs at the Lac des Iles Mine (“LDI”) property, located 90 kms north of Thunder Bay, Ontario. In addition to the drilling completed at the Creek Zone, the Company also drilled several holes in the spring of 2018 in the vicinity of the Baker Zone, approximately half-way between the Roby Pit in the west and the Creek Zone in the east. This program was designed to follow up on historical drilling dating back to the 1990s that produced several intersections with grades between 1–3 g/t Pd over intervals of up to 16 metres. The best results in 2018 were obtained from hole 18–013, which intersected 1.37 g/t Pd over 164.0 m, including 11.4 m averaging 2.13 g/t Pd. Based on these results, the Baker Zone remains a high-potential near-surface target. The Company will use the results of the recently-completed geophysical surveys to help guide the next phase of drilling at this target. For the past two years, underground exploration at LDI has been focused on resource drilling beneath the current bottom of the shaft and south of the known Offset Zone reserves. Resource additions resulting from this drilling were included in the Company’s October 2, 2018 Technical Report that is available on the Company’s website. The recent drilling showed that the Offset Zone bifurcates into two discrete mineralized domains (southeastern and southwestern domains). These two domains collectively host at least three discrete pipe-shaped bodies containing relatively high-grade palladium mineralization that are referred to as the B1, B2 and B3 Zones. Exploration drilling completed in the fourth quarter of 2018, combined with recent underground rock chip sampling and a small number of historical exploration drill holes, delineated a new zone of palladium mineralization located 100 to 200 metres to the east of the Offset Zone. The new zone is herein named the C (contact) Zone, denoting its close proximity to the western contact of the LDI complex with the basement rocks. Initial drilling highlights from the C Zone are provided in Table 2. The C Zone target is approximately parallel to the Offset Zone and has an average thickness of 10 to 30 metres, an average length of 300 metres, and a vertical extent of at least 800 metres. The mineralization is hosted by rocks that are geochemically and mineralogically distinct from the principal host rocks to all of the known mineralization in the Roby and Offset Zones. Two other exploration targets located within the Offset Block in the general vicinity of the SLS mining area are now recognized as having the potential to expand down-plunge several hundred metres below their currently-defined limits. They include the Mystery Zone, located on the eastern side of the barren hanging wall gabbro unit to the Offset Zone (e.g., previously reported drill intersection of 15 metres of 6.33 g/t Pd in hole 05–012 and 8 metres averaging 7.01 g/t Pd in hole 17–901) and the near-surface Sheriff South Zone (e.g., previously reported drill intersection of 17 metres averaging 5.37 g/t Pd in hole 11–027) that is located directly south of the Sheriff Pit. Late last year, development of a new exploration drift was started to access the Camp Lake target, representing a large area of prospective geology located approximately 500 metres south of the Camp Lake fault. Only a few long drill holes from surface and underground have penetrated the Camp Lake target. Nonetheless, some of these holes encountered palladium-rich disseminated sulfide mineralization, having strong similarities to the Offset Zone mineralization (e.g., previously reported drill intersection of 31.86 metres of 1.51 g/t Pd including 5.83 metres averaging 3.76 g/t Pd in hole 14–918W1). These seven underground exploration targets collectively represent the best opportunities to extend the life of the underground operations and are expected to feature prominently in the Company’s underground drilling programs over the next several years. In addition to these targets, the Company is looking at options for extension drilling on the northeastern domain of the Offset Zone below the 1,000-metre level and beneath the current lower limit of the higher-grade Offset Central Zone resources (i.e., below the 1,355 metre level). The Company plans to spend a minimum of CAD 16 million on exploration in 2019 including CAD 10 million of flow-through eligible expenditures based on the flow-through share financing completed in December. Last month, the Company re-commenced drilling on the Sunday Lake project. The current program is designed to test for higher-grade and more massive sulfide mineralization than has been intersected to date and will focus on several conductivity anomalies identified from geophysical surveys completed last year.