NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS



FOR:  NORTH AMERICAN PALLADIUM LTD

TSE SYMBOL:  PDL
NASDAQ SYMBOL:  PDLCF

OCTOBER 22, 1997

North American Palladium Ltd. Company Announcement

THUNDER BAY, ONTARIO--North American Palladium Ltd. ("NAP") 
announced today the completion of both phases of the Capital 
Reorganization voted upon and approved at the Special Meeting of 
Shareholders held on September 17, 1997. 

The "Stock Purchase Transaction"  was completed on September 17, 
1997 in accordance with the terms and conditions of the Stock 
Purchase Agreement, effective as of July 25, 1997 between NAP and 
KFOC as amended. 

The second phase of the Capital Reorganization, being the "Debt 
Reorganization" converting and consolidating the remaining amount 
of demand debt owed to KFOC after completion of the Stock Purchase
Transaction, into one term note was completed on October 15, 1997 
in accordance with the terms and conditions of the letter 
agreement between NAP and KFOC dated as of August 12, 1997 with 
registrations of security occurring on October 17, 1997. 

The full effect of the Capital Reorganization will be realized  on
the balance sheet for the year ended December 31, 1997.

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FOR FURTHER INFORMATION PLEASE CONTACT:
North American Palladium Ltd
Michael P. Amsden
President
(807) 345-4479
(807) 345-7796  (FAX)

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