North American Palladium Announces Non-Brokered Flow-Through Private Placement Financing of Up to $5,000,000

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR DISSEMINATION TO THE UNITED STATES

TORONTO, Dec. 10, 2018 - North American Palladium Ltd. ("NAP" or the "Company") (TSX:PDL) (OTC PINK:PALDF) today announced that it intends to complete a non-brokered private placement financing (the "Offering") of up to 535,714 common shares that are "flow-through shares" within the meaning of the Income Tax Act (Canada) (each a "Flow-Through Share") at a price of $14.00 per Flow-Through Share for aggregate gross proceeds of approximately $5,000,000.

Jim Gallagher, President and Chief Executive Officer of NAP, commented, "We are pleased to announce the flow-through financing which is being offered at a significant premium to the closing price of the Company’s shares. We remain committed to increasing the Company's growth potential through exploration of our extensive mineral claim holdings at the Lac des Iles mine."

All proceeds from the sale of the Flow-Through Shares will be used to incur eligible Canadian Exploration Expenses at the Company’s Camp Lake, East Mine Block and Sunday Lake properties, located in Ontario, Canada. The Company will renounce qualifying expenses as at December 31, 2018.

The Flow-Through Shares will be issued on a private placement basis in certain provinces of Canada, in each case, pursuant to applicable exemptions from the prospectus requirements under applicable securities laws. The Flow-Through Shares will be subject to a statutory hold period of four months and one day from the date of closing of the Offering.

Closing of the Offering is scheduled to occur on or before December 21, 2018 and remains subject to the approval of the Toronto Stock Exchange and other customary closing conditions. The Offering is non-brokered and will not result in the payment of any broker fees or commissions.

Cautionary Statement on Forward-Looking Information

Certain information contained in this news release constitutes 'forward-looking statements' and ‘forward-looking information’ within the meaning of applicable Canadian securities laws. All statements other than statements of historical fact are forward-looking statements. The words 'target', 'plan', 'should', 'could', 'estimate', 'guidance', and similar expressions identify forward-looking statements. Forward-looking statements in this news release include, without limitation, statements relating to the Offering and the timing of closing of the Offering. Forward-looking statements involve known and unknown risk factors that may cause the actual results to be materially different from those expressed or implied by the forward-looking statements. For more details on these and other risk factors see the Company's most recent management’s discussion and analysis and the Company’s annual information form on file with Canadian securities regulatory authorities on SEDAR at www.sedar.com under the heading “Risk Factors”.

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 forward-looking statements are not guarantees of future performance. 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.

About North American Palladium

North American Palladium Ltd. (TSX: PDL) (OTC PINK: PALDF) is a Canadian company with over 25 years of production at Lac des Iles mine, located northwest of Thunder Bay, Ontario. North American Palladium is the only pure play palladium producer in the world. With over 600 employees, Lac des Iles mine features a unique world class ore body, modern infrastructure, including both an underground mine and an open pit mine, and a world class exploration portfolio.

SOURCE: North American Palladium Ltd.

For further information:

North American Palladium Ltd.
Investor Relations
Telephone: 416-360-7374
Email: IR@nap.com